← Workday overview

Workday vs Applied Digital: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Workday Inc (WDAY)

Q3 2026
▼2▲1

Workday swings on buyout talk, AI growth, and slower guidance

  • IBM's weak results signaled budget shift from software to hardware IBM's disappointing results early in the quarter suggested companies are spending more on hardware and less on software, which dragged Workday shares down 5% and raised fears about demand.

    This was a key early event that pushed the stock down and set the tone for the quarter.

  • Morgan Stanley downgraded Workday on software-sector concerns Morgan Stanley downgraded Workday, adding to worries about the software sector. A downgrade means a major analyst lowered their rating, which can make investors more cautious and pressure the stock.

    This analyst action contributed to negative sentiment and is new information for the period.

  • Silver Lake buyout talks valued Workday at $240–$250 per share Reuters reported that private equity firm Silver Lake was in talks to buy Workday at $240–$250 per share, sending the stock surging. However, the talks could still fall apart, so the gain may not last.

    This was a major positive catalyst that drove a sharp price increase during the quarter.

  • Strong AI momentum but slower growth guidance and new competition Workday reported over $100 million in new AI contract value and roughly $600 million in AI annual recurring revenue, up over 200%. But it guided fiscal 2028 growth to about 11%, down from 13–14%, and AI-native startup Rillet poses a long-term threat.

    This captures both the positive AI traction and the negative guidance and competitive threat that balance the outlook.

August 2026
▲2▼2

Workday jumps on buyout talks, AI sales surge, but growth slows

  • Silver Lake buyout talks Reuters reported private equity firm Silver Lake is in talks to buy Workday, with analysts valuing a deal at $240–$250 per share. The stock surged on the news, though talks could still fall apart.

    This was the biggest new event driving Workday's price in August.

  • Record AI contract value Workday's AI products brought in over $100 million in new annual contract value and about $600 million in AI annual recurring revenue, up more than 200%. State government wins, like Georgia's 70,000-employee rollout, added to the momentum.

    Shows strong demand for Workday's new AI offerings, a key positive driver.

  • Slowing growth target Workday set an early fiscal 2028 growth target of about 11%, down from the current 13–14% pace. That signals the company expects its expansion to slow, which could weigh on the stock.

    A negative counterweight to the positive AI news, showing future growth may decelerate.

  • AI-native startup threat Rillet, an AI-native startup, is seen as a long-term threat to Workday's core ERP market. While not an immediate problem, it highlights how new AI competitors could chip away at Workday's business.

    A risk factor that could pressure the stock over time, balancing the positive AI news.

Latest
▲2▼2

Workday's AI Surge Meets Growth Slowdown and New Rivals

  • AI drives record new contract value Workday's AI products generated over $100 million in new annual contract value, more than 25% of all new ACV, with AI annual recurring revenue near $600 million, up over 200% year-over-year. This shows AI is becoming a real revenue driver, pushing the stock up.

    This is the core new positive force behind Workday's recent earnings-driven jump.

  • Early fiscal 2028 growth target signals slowdown Workday gave an early fiscal 2028 subscription growth target of about 11%, down from the current 13-14% pace. That suggests the company's growth is slowing, which weighs on the stock even as current results beat expectations.

    This is the main new counterweight that explains why the stock didn't hold its post-earnings gain.

  • AI-native startup Rillet challenges incumbents Rillet, a private AI-native ERP startup, is pitching real-time continuous accounting to replace batch-processed systems from Workday, Oracle, and SAP. Its backer says rivals would need 4-5 years to catch up, highlighting a long-term competitive threat to Workday's core market.

    This is a new competitive threat that could pressure Workday's long-term pricing and market share.

  • State government wins show public sector traction Workday reported large state government go-lives, including Georgia's 70,000-employee rollout, as governments replace legacy HR and finance systems. This deepens its public sector presence and supports future subscription revenue, though it reinforces an existing narrative rather than creating a new one.

    This is a new demand signal that supports the bull case, though it is more incremental than the AI and growth news.

▲2▼1

Silver Lake buyout talks send Workday soaring

  • Silver Lake in talks to acquire Workday Reuters reported private equity firm Silver Lake is in talks to buy Workday, sending shares up about 18-25% — their best day since 2016. A buyout would give shareholders a cash payout at a premium to the beaten-down price, so the stock jumped toward the rumored deal value.

    This is the single new event that explains the period's huge move and is the core answer to why WDAY is moving.

  • Analysts peg takeover value at $240-$250 per share Analysts at Needham, BNP Paribas and KeyBanc estimate a deal could be worth roughly $224-$250 per share, citing Workday's 98% renewal rates, sticky seat-based subscriptions and room to lift margins. That gives investors a concrete number to anchor the stock to while talks continue.

    It quantifies the buyout premium, which is what is pulling the share price up now.

  • Deal is only talks, and founders control the vote No deal is guaranteed — Silver Lake and Workday are still only in talks and may need outside investors to fund a huge purchase. Co-founders Aneel Bhusri and David Duffield hold about 70% of voting power, so RBC says a management-led buyout is more likely. If talks collapse, the stock could give back much of the gain.

    It is the real counterweight: the upside depends on a deal that may not happen, which is essential for a fair picture.

  • Software weakness and AI doubts linger Before the buyout report, Workday was down about 15% this year and 40% from its 2024 peak, hurt by worries that AI is making traditional software less competitive. On August 6, Datadog's weak earnings dragged Workday and other software names lower, showing the sector's underlying slump.

    It explains the weak backdrop that made Workday a takeover target and remains a risk if the deal fades.

July 2026
▼2▲1

Workday swings on software rotation, downgrade, and budget shift

  • Enterprise budgets shift from software to hardware IBM's weak results showed companies are spending on costly memory and servers instead of software, pushing Workday down 5% on July 14. If this trend continues, Workday's subscription revenue growth could slow, which would weigh on the stock.

    This is a new fundamental demand risk that directly threatens Workday's core business.

  • Morgan Stanley downgrades Workday On July 21, Morgan Stanley downgraded Workday along with Adobe and Intuit, citing concerns about the software sector. A downgrade from a major bank can shake investor confidence and push the stock down, as it did that day.

    This is a new analyst action that directly impacted WDAY's price and sentiment.

  • Investors rotate into beaten-down software stocks As chipmakers sold off on July 27 and 28, investors moved money into software. Workday jumped over 8% and then over 7% on those days. This rotation can lift Workday's price even if its own business hasn't changed.

    This is a new positive price driver from sector rotation that explains recent gains.

▼2▲1

Workday swings on software rotation, downgrade, and budget shift

  • Enterprise budgets shift from software to hardware IBM's weak results showed companies are spending on costly memory and servers instead of software, pushing Workday down 5% on July 14. If this trend continues, Workday's subscription revenue growth could slow, which would weigh on the stock.

    This is a new fundamental demand risk that directly threatens Workday's core business.

  • Morgan Stanley downgrades Workday On July 21, Morgan Stanley downgraded Workday along with Adobe and Intuit, citing concerns about the software sector. A downgrade from a major bank can shake investor confidence and push the stock down, as it did that day.

    This is a new analyst action that directly impacted WDAY's price and sentiment.

  • Investors rotate into beaten-down software stocks As chipmakers sold off on July 27 and 28, investors moved money into software. Workday jumped over 8% and then over 7% on those days. This rotation can lift Workday's price even if its own business hasn't changed.

    This is a new positive price driver from sector rotation that explains recent gains.

Q2 2026
▲2▼2

Workday's AI Growth Story Faces Legal and Sector Headwinds

  • Q1 Revenue Beat and Strong Billings Workday reported Q1 revenue of $2.54 billion, up 13.5% year on year and beating estimates, with billings also ahead. This shows the core business is still growing, which supports the stock's value even as shares have fallen sharply this year.

    This is a new earnings report that directly affects investor confidence in Workday's financial health.

  • California AI Bias Lawsuit Proceeds A federal judge ruled Workday must face a class-action lawsuit claiming its AI hiring tools discriminated against applicants. This creates legal risk and potential liability, which could weigh on the stock as it raises uncertainty and possible costs.

    This is a new legal development that introduces regulatory and reputational risk for Workday.

  • Composable HCM Market to Triple by 2031 A new report projects the composable HR platform market will grow from $10.8 billion to $27.4 billion by 2031, driven by enterprises moving away from monolithic systems. Workday is well-positioned as a leading vendor, which could boost future demand.

    This market forecast highlights a long-term growth opportunity for Workday's modular offerings.

  • AI Fears Hit Software Stocks Workday shares fell 4.4% as part of a broader sell-off in software stocks, driven by fears that AI agents will erode subscription revenue models. This reflects ongoing market skepticism about traditional enterprise software, which could keep pressure on the stock.

    This captures a key negative sentiment driver affecting Workday's valuation.

June 2026
▲2▼2

Workday's AI Growth Story Faces Legal and Sector Headwinds

  • Q1 Revenue Beat and Strong Billings Workday reported Q1 revenue of $2.54 billion, up 13.5% year on year and beating estimates, with billings also ahead. This shows the core business is still growing, which supports the stock's value even as shares have fallen sharply this year.

    This is a new earnings report that directly affects investor confidence in Workday's financial health.

  • California AI Bias Lawsuit Proceeds A federal judge ruled Workday must face a class-action lawsuit claiming its AI hiring tools discriminated against applicants. This creates legal risk and potential liability, which could weigh on the stock as it raises uncertainty and possible costs.

    This is a new legal development that introduces regulatory and reputational risk for Workday.

  • Composable HCM Market to Triple by 2031 A new report projects the composable HR platform market will grow from $10.8 billion to $27.4 billion by 2031, driven by enterprises moving away from monolithic systems. Workday is well-positioned as a leading vendor, which could boost future demand.

    This market forecast highlights a long-term growth opportunity for Workday's modular offerings.

  • AI Fears Hit Software Stocks Workday shares fell 4.4% as part of a broader sell-off in software stocks, driven by fears that AI agents will erode subscription revenue models. This reflects ongoing market skepticism about traditional enterprise software, which could keep pressure on the stock.

    This captures a key negative sentiment driver affecting Workday's valuation.

▲2▼2

Workday's AI Growth Story Faces Legal and Sector Headwinds

  • Q1 Revenue Beat and Strong Billings Workday reported Q1 revenue of $2.54 billion, up 13.5% year on year and beating estimates, with billings also ahead. This shows the core business is still growing, which supports the stock's value even as shares have fallen sharply this year.

    This is a new earnings report that directly affects investor confidence in Workday's financial health.

  • California AI Bias Lawsuit Proceeds A federal judge ruled Workday must face a class-action lawsuit claiming its AI hiring tools discriminated against applicants. This creates legal risk and potential liability, which could weigh on the stock as it raises uncertainty and possible costs.

    This is a new legal development that introduces regulatory and reputational risk for Workday.

  • Composable HCM Market to Triple by 2031 A new report projects the composable HR platform market will grow from $10.8 billion to $27.4 billion by 2031, driven by enterprises moving away from monolithic systems. Workday is well-positioned as a leading vendor, which could boost future demand.

    This market forecast highlights a long-term growth opportunity for Workday's modular offerings.

  • AI Fears Hit Software Stocks Workday shares fell 4.4% as part of a broader sell-off in software stocks, driven by fears that AI agents will erode subscription revenue models. This reflects ongoing market skepticism about traditional enterprise software, which could keep pressure on the stock.

    This captures a key negative sentiment driver affecting Workday's valuation.

Applied Digital Corporation (APLD)

Q3 2026
▲3▼1

APLD Q4 Revenue Soars 407%, Backlog $36B, But Valuation and Sector Risks Loom

  • Fiscal Q4 Revenue Surges 407% to $258.7M, Beating Estimates Applied Digital reported fiscal Q4 revenue of $258.7 million, up 407% year over year, beating analyst estimates. The strong results reflect accelerating demand for AI data center capacity and improving execution, boosting investor confidence.

    This is the primary new financial result that drove positive sentiment during the period.

  • Contracted Lease Backlog Reaches $36B Across 1.41 GW Applied Digital's contracted lease backlog hit $36 billion across 1.41 GW, with over 70% backed by investment-grade hyperscalers. Management now expects to hit its $1 billion annual net operating income target three years early, signaling strong future cash flows.

    This new backlog figure and accelerated target highlight the scale of demand and future revenue visibility.

  • B. Riley Reiterates Buy with $66 Target; Sector Tailwinds B. Riley reiterated a Buy rating with a $66 price target, citing strong growth prospects. Sector momentum from Nvidia and CoreWeave added tailwinds, lifting Applied Digital shares as investors grew more optimistic about AI infrastructure demand.

    Analyst endorsement and sector momentum were key positive drivers during the quarter.

  • Valuation and Financing Risks Temper Bull Case Morgan Stanley initiated coverage with Equal-weight, citing lower returns on invested capital and financing risks. APLD's 526x forward P/E and $1.59 billion in 7% senior secured notes leave little margin for error, with customer concentration an ongoing concern.

    These new risk factors provide a necessary counterweight to the positive developments.

August 2026
▲3▼1

AI demand and $36B backlog drive APLD, but financing and peer risk weigh

  • AI data center demand remains red-hot Applied Digital's $36 billion lease pipeline and 167% revenue growth show strong demand for AI data centers. Goldman Sachs estimates $7.6 trillion in AI infrastructure spending through 2031, a huge tailwind. This supports the stock because it means more future revenue and growth.

    Explains the core demand driver behind APLD's move and its long-term growth potential.

  • Earnings beat and accelerated profit target Q4 revenue surged 407% to $258.7 million, beating estimates, and management now expects to hit its $1 billion annual net operating income target three years early. This shows the AI buildout is translating into real profits, pushing the stock up.

    Highlights the fundamental earnings strength that directly boosts investor confidence and the stock price.

  • Sector momentum from Nvidia and peers Nvidia's blowout earnings and strong guidance, plus CoreWeave's accelerating backlog, lifted AI infrastructure stocks including Applied Digital. Nvidia remains supply constrained, making contracted power and hosting capacity more valuable. This sector-wide demand signal pushes APLD higher.

    Shows how broader AI compute demand and peer results directly lift APLD's stock.

  • Financing risks and peer impairment IREN's $638.8 million impairment on obsolete mining gear triggered a sector selloff, with APLD down 7%. APLD's high forward P/E of 526x and $1.59 billion in 7% senior secured notes leave little cushion. Financing large projects and customer concentration remain real risks.

    Provides the key counterweight: financing and peer risks that can pressure APLD's stock.

Latest
▲3▼1

AI demand and $36B backlog drive APLD, but financing and peer risk weigh

  • AI data center demand remains red-hot Applied Digital's $36 billion lease pipeline and 167% revenue growth show strong demand for AI data centers. Goldman Sachs estimates $7.6 trillion in AI infrastructure spending through 2031, a huge tailwind. This supports the stock because it means more future revenue and growth.

    Explains the core demand driver behind APLD's move and its long-term growth potential.

  • Earnings beat and accelerated profit target Q4 revenue surged 407% to $258.7 million, beating estimates, and management now expects to hit its $1 billion annual net operating income target three years early. This shows the AI buildout is translating into real profits, pushing the stock up.

    Highlights the fundamental earnings strength that directly boosts investor confidence and the stock price.

  • Sector momentum from Nvidia and peers Nvidia's blowout earnings and strong guidance, plus CoreWeave's accelerating backlog, lifted AI infrastructure stocks including Applied Digital. Nvidia remains supply constrained, making contracted power and hosting capacity more valuable. This sector-wide demand signal pushes APLD higher.

    Shows how broader AI compute demand and peer results directly lift APLD's stock.

  • Financing risks and peer impairment IREN's $638.8 million impairment on obsolete mining gear triggered a sector selloff, with APLD down 7%. APLD's high forward P/E of 526x and $1.59 billion in 7% senior secured notes leave little cushion. Financing large projects and customer concentration remain real risks.

    Provides the key counterweight: financing and peer risks that can pressure APLD's stock.

July 2026
▲3

Applied Digital's AI Data Center Backlog Hits $36B as Earnings Soar

  • Fiscal Q4 Revenue Surges 407%, Beats Estimates Applied Digital reported Q4 revenue of $258.7 million, up 407% year over year, crushing the $94.8 million estimate. Adjusted earnings per share came in at 4 cents versus an expected 22-cent loss. This shows the AI data center buildout is translating into real, accelerating revenue, pushing the stock up.

    This is the core new financial result that directly answers why APLD is moving now.

  • Contracted Lease Backlog Reaches $36 Billion Across 1.41 GW On its earnings call, Applied Digital said it has 1.41 gigawatts of contracted IT load across five campuses, supporting about $36 billion in base-term lease revenue. Over 70% is backed by investment-grade hyperscalers. This massive backlog gives long-term cash flow visibility, boosting investor confidence and the stock.

    This is a new, concrete metric that quantifies the company's future revenue and validates demand.

  • B. Riley Reiterates Buy, $66 Target After EBITDA Beat B. Riley kept its Buy rating and $66 price target after Applied Digital's Q4 adjusted EBITDA of $42.4 million beat its $24.6 million estimate. The analyst also noted improving construction times and lower financing costs. This analyst endorsement reinforces the bullish case and supports the stock price.

    This is a new analyst action that directly reflects the earnings beat and provides a price target.

  • Morgan Stanley Initiates Equal-weight, Citing Lower Returns and Financing Risks Morgan Stanley started coverage with an Equal-weight rating and $36.50 target, noting Applied Digital's lower returns on invested capital and financing risks compared to peers. While it acknowledges the sizable lease portfolio, this cautious view tempers upside and could weigh on the stock.

    This is a new counterweight that provides a balanced view of the risks and limits the bullish narrative.

▲3

Applied Digital's AI Data Center Backlog Hits $36B as Earnings Soar

  • Fiscal Q4 Revenue Surges 407%, Beats Estimates Applied Digital reported Q4 revenue of $258.7 million, up 407% year over year, crushing the $94.8 million estimate. Adjusted earnings per share came in at 4 cents versus an expected 22-cent loss. This shows the AI data center buildout is translating into real, accelerating revenue, pushing the stock up.

    This is the core new financial result that directly answers why APLD is moving now.

  • Contracted Lease Backlog Reaches $36 Billion Across 1.41 GW On its earnings call, Applied Digital said it has 1.41 gigawatts of contracted IT load across five campuses, supporting about $36 billion in base-term lease revenue. Over 70% is backed by investment-grade hyperscalers. This massive backlog gives long-term cash flow visibility, boosting investor confidence and the stock.

    This is a new, concrete metric that quantifies the company's future revenue and validates demand.

  • B. Riley Reiterates Buy, $66 Target After EBITDA Beat B. Riley kept its Buy rating and $66 price target after Applied Digital's Q4 adjusted EBITDA of $42.4 million beat its $24.6 million estimate. The analyst also noted improving construction times and lower financing costs. This analyst endorsement reinforces the bullish case and supports the stock price.

    This is a new analyst action that directly reflects the earnings beat and provides a price target.

  • Morgan Stanley Initiates Equal-weight, Citing Lower Returns and Financing Risks Morgan Stanley started coverage with an Equal-weight rating and $36.50 target, noting Applied Digital's lower returns on invested capital and financing risks compared to peers. While it acknowledges the sizable lease portfolio, this cautious view tempers upside and could weigh on the stock.

    This is a new counterweight that provides a balanced view of the risks and limits the bullish narrative.

Q2 2026
▲4

Applied Digital's AI Data Center Buildout Accelerates with New Leases and On-Time Delivery

  • New 210 MW Hyperscaler Lease Adds $5.2B Contracted Revenue Applied Digital signed a 15-year lease with a high-investment-grade hyperscaler for 210 MW, expected to generate $5.2 billion in base revenue. This boosts future cash flow and validates demand, pushing the stock up as investors see growing backlog.

    This is a new major contract that directly increases APLD's future revenue and is a key reason for the recent price target hike.

  • Polaris Forge 1 Delivers Second Building, Live Capacity Hits 175 MW Applied Digital brought 75 MW online on schedule at Polaris Forge 1, reaching 175 MW of live capacity. This shows execution strength and supports revenue growth, lifting investor confidence and the stock price.

    This operational milestone demonstrates the company's ability to deliver on its backlog, a key driver of the stock's momentum.

  • Fiscal Q3 Revenue Surges 139%, Adjusted EBITDA $44.1M Applied Digital reported Q3 revenue of $126.6 million, up 139% year over year, with adjusted EBITDA of $44.1 million. Strong financial performance signals accelerating demand and improving profitability, pushing the stock higher.

    This is a new earnings report that confirms the company's rapid growth and is a fundamental driver of the stock's recent rise.

  • Montana-Dakota Utilities Signs Power Agreement for Polaris Forge 3 Montana-Dakota Utilities agreed to supply power to Applied Digital's proposed 430 MW AI factory in North Dakota. This secures critical infrastructure for future growth, boosting investor confidence in the company's expansion plans.

    This is a new agreement that de-risks the power supply for a major future campus, supporting the growth narrative.

June 2026
▲4

Applied Digital's AI Data Center Buildout Accelerates with New Leases and On-Time Delivery

  • New 210 MW Hyperscaler Lease Adds $5.2B Contracted Revenue Applied Digital signed a 15-year lease with a high-investment-grade hyperscaler for 210 MW, expected to generate $5.2 billion in base revenue. This boosts future cash flow and validates demand, pushing the stock up as investors see growing backlog.

    This is a new major contract that directly increases APLD's future revenue and is a key reason for the recent price target hike.

  • Polaris Forge 1 Delivers Second Building, Live Capacity Hits 175 MW Applied Digital brought 75 MW online on schedule at Polaris Forge 1, reaching 175 MW of live capacity. This shows execution strength and supports revenue growth, lifting investor confidence and the stock price.

    This operational milestone demonstrates the company's ability to deliver on its backlog, a key driver of the stock's momentum.

  • Fiscal Q3 Revenue Surges 139%, Adjusted EBITDA $44.1M Applied Digital reported Q3 revenue of $126.6 million, up 139% year over year, with adjusted EBITDA of $44.1 million. Strong financial performance signals accelerating demand and improving profitability, pushing the stock higher.

    This is a new earnings report that confirms the company's rapid growth and is a fundamental driver of the stock's recent rise.

  • Montana-Dakota Utilities Signs Power Agreement for Polaris Forge 3 Montana-Dakota Utilities agreed to supply power to Applied Digital's proposed 430 MW AI factory in North Dakota. This secures critical infrastructure for future growth, boosting investor confidence in the company's expansion plans.

    This is a new agreement that de-risks the power supply for a major future campus, supporting the growth narrative.

▲4

Applied Digital's AI Data Center Buildout Accelerates with New Leases and On-Time Delivery

  • New 210 MW Hyperscaler Lease Adds $5.2B Contracted Revenue Applied Digital signed a 15-year lease with a high-investment-grade hyperscaler for 210 MW, expected to generate $5.2 billion in base revenue. This boosts future cash flow and validates demand, pushing the stock up as investors see growing backlog.

    This is a new major contract that directly increases APLD's future revenue and is a key reason for the recent price target hike.

  • Polaris Forge 1 Delivers Second Building, Live Capacity Hits 175 MW Applied Digital brought 75 MW online on schedule at Polaris Forge 1, reaching 175 MW of live capacity. This shows execution strength and supports revenue growth, lifting investor confidence and the stock price.

    This operational milestone demonstrates the company's ability to deliver on its backlog, a key driver of the stock's momentum.

  • Fiscal Q3 Revenue Surges 139%, Adjusted EBITDA $44.1M Applied Digital reported Q3 revenue of $126.6 million, up 139% year over year, with adjusted EBITDA of $44.1 million. Strong financial performance signals accelerating demand and improving profitability, pushing the stock higher.

    This is a new earnings report that confirms the company's rapid growth and is a fundamental driver of the stock's recent rise.

  • Montana-Dakota Utilities Signs Power Agreement for Polaris Forge 3 Montana-Dakota Utilities agreed to supply power to Applied Digital's proposed 430 MW AI factory in North Dakota. This secures critical infrastructure for future growth, boosting investor confidence in the company's expansion plans.

    This is a new agreement that de-risks the power supply for a major future campus, supporting the growth narrative.

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