Latest news with #AutodeskInc
Yahoo
26-05-2025
- Business
- Yahoo
Barclays Maintains Overweight Rating on Autodesk (ADSK), Lifts PT
On Friday, Barclays increased its price target for Autodesk Inc. (NASDAQ:ADSK) to $355 from $325, while maintaining an Overweight rating on the shares. This adjustment followed Autodesk's strong performance in Q1 FY2026, which saw improved billings, revenue, and margins, partly driven by increased e-store traffic. A software engineer using AutoCAD Civil 3D to create a 3D design in a modern office setting. Autodesk's total revenue in FQ1 increased by 15% year-over-year as reported and totaled $1.63 billion. The new transaction model contributed $78 million to this revenue. For FY2026, Autodesk has provided revenue guidance ranging from $6.925 to $6.995 billion. However, the company is navigating uncertainties from geopolitical and macroeconomic factors, which could impact customer bidding processes and material costs. There is also a potential risk of disruption from ongoing sales and marketing optimization and the transition to a new Chief Revenue Officer. The Asia Pacific region, particularly Japan, China, and Korea, showed some softness due to macroeconomic turmoil and trade discussions. The transition to the new transaction model is still in progress, with channel partners adapting and onboarding their long tail of customers. Autodesk Inc. (NASDAQ:ADSK) provides 3D design, engineering, and entertainment technology solutions worldwide. While we acknowledge the potential of ADSK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADSK and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Autodesk Inc (ADSK) Q1 2026 Earnings Call Highlights: Strong Revenue Growth Amidst Strategic ...
Total Revenue Growth: 15% as reported, 16% in constant currency. New Transaction Model Revenue Contribution: $78 million in Q1. Billings Growth: 29% as reported, 30% in constant currency. New Transaction Model Billings Contribution: $105 million in Q1. Remaining Performance Obligations (RPO): $7.2 billion, up 21%. Current Annualized Recurring Revenue (ARPU): $4.6 billion, up 16%. GAAP Operating Margin: 14%, decreased by 7 percentage points due to restructuring charges. Non-GAAP Operating Margin: 37%, increased by 3 percentage points. Free Cash Flow: $556 million in Q1. Share Repurchases: Approximately 1.3 million shares for $353 million at an average price of $269 per share. Revenue Guidance Range for Fiscal '26: $6.925 billion to $6.995 billion. Billings Guidance Range for Fiscal '26: $7.16 billion to $7.31 billion. Free Cash Flow Guidance Range for Fiscal '26: $2.1 billion to $2.2 billion. Warning! GuruFocus has detected 2 Warning Sign with PLUS. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Autodesk Inc (NASDAQ:ADSK) delivered strong first-quarter results, with revenue and non-GAAP earnings per share exceeding the higher end of guidance ranges. The company saw a 15% increase in total revenue as reported and 16% in constant currency, driven by the new transaction model and strong performance in AECO and the Autodesk store. Billings increased by 29% as reported and 30% in constant currency, reflecting the shift to annual billings for most multi-year contracts. Non-GAAP operating margins increased by 3 percentage points due to operating leverage from ongoing cost discipline and timing benefits from restructuring. Autodesk Inc (NASDAQ:ADSK) is focusing on strategic growth investments in cloud, platform, and AI, which are expected to drive long-term shareholder value. GAAP operating margins decreased by 7 percentage points, primarily due to restructuring charges and a one-time non-cash charge related to stock-based compensation. The company is facing uncertainty due to geopolitical and macroeconomic factors, which could impact customer bidding processes and material costs. There is a potential risk of disruption from ongoing sales and marketing optimization and the transition to a new Chief Revenue Officer. The Asia Pacific region showed some softness, particularly in Japan, China, and Korea, due to macroeconomic turmoil and trade discussions. The transition to the new transaction model is still ongoing, with channel partners adapting and onboarding their long tail of customers. Q: Andrew, given the significant uncertainty out there, could you talk about how customer conversations are evolving, if at all? And maybe just touch on your thoughts on the macro, given how much time you spend with customers. A: Andrew Anagnost, CEO: Customers are flagging uncertainty due to trade policy and supply chain costs, but they are more concerned about the second half of the year. Despite this, construction backlog increased, and we saw more activity on our platforms, indicating that while there's concern, it's not yet impacting their or our business. Q: Janesh, Q1 margins were better than expected. Could you talk about your margin momentum and the sales and marketing optimization plan? A: Janesh Moorjani, CFO: The strong Q1 performance was due to revenue outperformance and expense discipline. The restructuring initiated our go-to-market optimization, and we're building capabilities for future sales and marketing evolution. We're on track with our optimization plan for the year. Q: Andrew, you mentioned accelerating roadmaps for industry clouds. Could you elaborate on this, especially regarding the integration of ACC with Forma? A: Andrew Anagnost, CEO: We're accelerating Fusion's roadmap, focusing on data management and customer priorities. For Forma, we're enhancing collaboration across disciplines and integrating it with tools like Revit. Expect more emphasis on AI features and collaboration tools like Forma Board. Q: Andrew, regarding the channel, how is the transaction model progressing, and is there an opportunity for it to become a tailwind? A: Andrew Anagnost, CEO: We're not seeing the disruptions we saw last year. Channel partners are adapting to the new transaction model, and productivity should increase as they focus on new business growth. This phase should lead to better channel productivity. Q: Janesh, could you clarify the guidance prudence regarding macroeconomic uncertainty? Are you seeing anything in the business that warrants this caution? A: Janesh Moorjani, CFO: We haven't seen any impact yet; the business momentum is strong. The guidance prudence is due to macroeconomic uncertainty and customer conversations, not current business performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Morgan Stanley Maintains $330 Price Target on Autodesk (ADSK) Despite Soft ABI Data
Morgan Stanley maintained its Overweight rating and $330 price target for Autodesk Inc. (NASDAQ:ADSK) on May 21. The firm's remarks followed the release of the Architecture Billings Index (ABI) for April, which indicated that architectural activity remained soft. The ABI showed a further decline in billings, falling from 43.1 in March to 43.2 in April. Considering its noteworthy involvement in the engineering, construction, and architecture sectors, the ABI decline points towards future construction projects potentially slowing down, which could affect Autodesk's operations. Pixabay/Public Domain That said, Elizabeth Porter of Morgan Stanley noted that several early indicators, such as design contracts and client inquiries, are starting to show tentative signs of stabilization, suggesting that the downturn may be beginning to moderate. According to the analyst, Autodesk Inc. (NASDAQ:ADSK) is expected to meet its first-quarter targets and commit to its full-year fiscal 2026 guidance. Robust earnings from peers in the industry support this outlook. Although the declining ABI indicates softness in architectural billings, Morgan Stanley's position reflects a nuanced view of the market, with stable demand observed through reseller activity serving as a counterbalance, which boosts confidence in Autodesk's short-term performance. While we acknowledge the potential of ADSK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADSK and that has 100x upside potential, check out our report about the cheapest AI stock. Read Next: and Disclosure: None.
