Autodesk raises annual results forecast on strong software demand
May 22 (Reuters) - Autodesk (ADSK.O), opens new tab raised its forecast for fiscal 2026 revenue and adjusted profit on Thursday, anticipating strong demand for its design and engineering software used across various industries, sending its shares up around 2% in extended trading.
Autodesk's broad portfolio of cloud-based design products is seeing strong adoption from companies across industries ranging from architecture to animation, while its investment in artificial intelligence has further boosted spending.
"We have not seen changes in overall business momentum when compared to recent quarters," said Janesh Moorjani, Autodesk finance chief.
The company's CEO, Andrew Anagnost, said Autodesk is focusing on its priorities in cloud, platform and AI while working on driving higher margins.
In February, the company said it would reduce workforce by about 9% and laid out plans to invest more in cloud and AI.
Autodesk was embroiled in an activist proxy fight with Starboard Value over the past two months, with the hedge fund expressing concerns over the software-design company's margins and high costs.
The company last month said it will add two newcomers to its board and settle the matter with Starboard.
Autodesk raised its annual revenue forecast to between $6.93 billion and $7 billion, compared with its earlier expectations of $6.90 billion to $6.97 billion.
It also raised its adjusted earnings outlook for fiscal 2026 to a range of $9.50 to $9.73 per share, compared with its prior projection of $9.34 and $9.67 per share.
It forecast second-quarter revenue of between $1.72 billion and $1.73 billion, compared with estimates of $1.70 billion, according to data compiled by LSEG.
For the first quarter, the company reported revenue of $1.63 billion, beating estimates of $1.61 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times
13 minutes ago
- Times
Virgin Australia returns to stock market five years after collapse
Act now to keep your subscription We've tried to contact you several times as we haven't been able to take payment. You must update your payment details via My Account or by clicking update payment details to keep your subscription.
Reuters
13 minutes ago
- Reuters
AI-driven search ad spending set to surge to $26 billion by 2029, data shows
June 4 (Reuters) - Spending on AI-powered search advertising is poised to surge to nearly $26 billion by 2029 from just over $1 billion this year in the U.S., driven by rapid adoption of the technology and more sophisticated user targeting, data from Emarketer showed on Wednesday. Companies that rely on traditional keyword-based search ads could experience revenue declines due to the growing popularity of AI search ads, which offer greater convenience and engagement for users, according to the research firm. Search giants such as Alphabet-owned (GOOGL.O), opens new tab Google and Microsoft's (MSFT.O), opens new tab Bing have added AI capabilities to better compete with chatbots such as OpenAI's ChatGPT and Perplexity AI, which provide users with direct information without requiring to click through multiple results. Apple (AAPL.O), opens new tab is exploring the integration of AI-driven search capabilities into its Safari browser, potentially moving away from its longstanding partnership with Google. The report has come as concerns grew about users increasingly turning to the chatbots for conversational search and AI-powered search results could upend business models of some companies. Online education firm Chegg (CHGG.N), opens new tab said in May that it would lay off about 248 employees as it looks to cut costs and streamline operations because students are using AI-powered tools including ChatGPT over traditional edtech platforms. "Publishers and other sites are feeling the pain from AI search. As they lose out on traffic, we're seeing publishers lean into subscriptions and paid AI licensing deals to bolster revenue," Emarketer analyst Minda Smiley said. GRAPHIC AI search ad spending is expected to constitute nearly 1% of total search ad spending this year and 13.6% by 2029 in the U.S., according to Emarketer. Sectors such as financial services, technology, telecom, and healthcare are embracing AI as they are seeing clear advantages in using the technology to enhance their ad strategies, while the retail industry's adoption is slow, the report said. Google recently announced the expansion of its AI-powered search capabilities into the consumer packaged goods sector through enhancements in Google Shopping.
The Guardian
13 minutes ago
- The Guardian
Abba singer Björn Ulvaeus teases fans in London with AI-assisted musical
After bringing a blockbuster hologram version of Abba to a purpose-built venue in east London, Björn Ulvaeus's next technological exploration is a musical that he's written with the help of artificial intelligence. Ulvaeus told an audience at SXSW London that he was 'three-quarters' of the way through writing a new musical which he has created with assistance from AI songwriting tools. He did admit the technology had limitations when it comes to songwriting, saying it was 'lousy at [writing a whole song]' and 'very bad at lyrics' but was helpful whenever the 80-year-old songwriter reached a creative impasse. 'You can prompt a lyric you have written about something, and you're stuck maybe, and you want this song to be in a certain style,' Ulvaeus said. 'You can ask it, how would you extend? Where would you go from here? It usually comes out with garbage, but sometimes there is something in it that gives you another idea.' The use of AI is a hugely contentious issue in the music industry. This year, Dua Lipa and Paul McCartney were among hundreds of artists who signed an open letter urging the prime minister to protect artists' copyright and not 'give our work away' to big tech. Ulvaeus said AI isn't the creative threat but rather a collaborator. 'It's fantastic. It is such a great tool,' he added. 'It is like having another songwriter in the room with a huge reference frame. It is really an extension of your mind. You have access to things that you didn't think of before.' The musical is far from Ulvaeus's first flirtation with technology. Abba Voyage, the concert which launched three years ago in a purpose-built arena that featured digital avatars of the band, has been a huge success and was described as a 'dazzling retro-futurist extravaganza' by the Guardian. It was a risky venture as Pophouse Entertainment, the company behind the project needed to bring in £140m in order to break even. He told the audience at SXSW London that he embraced experimental approaches to songwriting and studio technology much earlier in his career. This experimental approach is characteristic of Ulvaeus's career-long fascination with technological innovation. During his time in Abba, he along with bandmate Benny Andersson 'always wanted the latest thing', and were among the first to use the Mini Moog synthesizer and use digital recording machines in their studio. 'We were always on the lookout for, you know, you would hear a sound on the record. How was that done? And then you get that stuff,' said. The Abba songwriter told the audience that he sees AI as the latest evolution in his career rather than a threat which is how it is perceived by many. 'I actually wake up curious every morning,' Ulvaeus said, explaining the drive that has kept him creating decades after Abba's peak. 'Everything's really after our wanting to try new things.'
