Workday’s market valuation of $43 billion and AI-driven data assets attract private equity interest amid slowing growth.
Private equity firm Silver Lake is in discussions to acquire Workday Inc (NASDAQ:WDAY) at a potential $43 billion valuation. Talks remain preliminary with no certainty of a deal, but analysts highlight Workday’s stable enterprise software business and AI potential as key attractions.
Workday’s valuation metrics, including 4 times 2027 revenue and 14 times free cash flow, sit near the low end of the large-cap software sector. The company’s 97% retention rate, 80 million active users, and strong recurring revenue mix provide stability, though growth in its Financial Management and HCM segments has slowed.
Analysts suggest a take-private move could allow Workday to accelerate its AI transition and margin expansion. Current fiscal 2027 margin guidance of 30.5% implies only 90 basis points of growth, leaving room to approach peers’ 40% levels.