Workday's stock jumped about 18% on reports that private equity firm Silver Lake is in talks to buy the company for as much as $43 billion, potentially the largest software buyout to date.

CEO changes: Aneel Bhusri has resumed the CEO role in early 2026 after Carl Eschenbach stepped down amid AI-related pressures, with Bhusri having previously served as CEO in 2021.

Investors had previously weighed AI disruption risks to legacy software, a dynamic that has influenced Workday’s stock performance and valuation.

Analysts at Citi suggest European share prices reflect a mid-term growth slowdown and modest terminal growth, implying room for upside if performance improves.

Despite concerns around AI monetization and margins, a consensus among analysts remains bullish on Workday, with price targets above current levels indicating underappreciated medium-term earnings potential.

TeamViewer’s decision to guide for full-year revenue growth at essentially flat to low single digits and a roughly 43% EBITDA margin contributed to a sense of operational stability amid execution risks.

The macro backdrop includes strength in European equities and a resilient pan-European tech sector supported by robust IT services demand.

Citi maintains a three-vector framework for software stock evaluation: AI resilience/moat/price risk, demand and earnings revisions, and valuation versus growth embedded in prices.

Analysts note that application software has shown resilience despite rapid AI advances, though sector valuations still reflect growth risks if large take-private opportunities remain limited.

AI disruption fears have not fully materialized in practice, with software firms showing resilient fundamentals and margin improvements driven by productivity gains.

The article references AI-generated content with editorial oversight and notes market reactions specific to Nemetschek rather than broad gains.

A bull scenario with 6% growth and a 15x free cash flow multiple suggests a value near $60 billion, implying about 3% annualized returns, with the author favoring the bullish case due to expanding margins and strong FCF.