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Investing.com - Goldman Sachs raised its price target on Autodesk (NASDAQ:ADSK) to $320 from $300 while maintaining a Neutral rating following the company’s strong fiscal second-quarter 2026 results. According to InvestingPro data, the software giant currently appears slightly undervalued, with analyst targets ranging from $271 to $430.
The software company reported revenue that exceeded consensus estimates by 2.2%, with operating income 6% above expectations, earnings per share 7% higher, and free cash flow surpassing forecasts by 103%. The company’s impressive 92% gross profit margin and robust revenue growth of nearly 14% over the last twelve months underscore its strong performance. Autodesk shares jumped 11% in after-hours trading following the announcement.
Goldman Sachs noted several positive developments, including Autodesk’s continued momentum from its new Transaction Model, which contributed 7 percentage points to growth in the second quarter compared to 5 percentage points in the first quarter. The firm also highlighted improving new business momentum from channel partners following go-to-market optimization initiatives implemented at the start of the year.
Autodesk raised its fiscal 2026 constant currency revenue growth guidance from 8-9% to 9-10% excluding the Transaction Model, and increased its constant currency billings growth guidance from 16-18% to 17-19% excluding the Transaction Model.
Despite these improvements and Autodesk’s initial fiscal 2029 operating margin guidance of 41%, Goldman Sachs maintained its Neutral stance, preferring to await further clarity on other elements of the company’s long-term strategic framework at its upcoming Investor Day on October 7. InvestingPro analysis reveals 15+ additional insights about Autodesk, including its financial health score of GOOD and its position as a prominent player in the software industry. Get access to the complete Autodesk Pro Research Report, along with detailed analysis of 1,400+ other US stocks, exclusively on InvestingPro.
In other recent news, Autodesk reported its financial results for the second quarter of fiscal year 2026, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $2.62, exceeding the forecasted $2.45, and reported revenue of $1.76 billion, which was above the anticipated $1.72 billion. This revenue figure represents an 11% growth when adjusted for currency effects and Autodesk’s new transaction model. Piper Sandler responded to these developments by raising its price target for Autodesk to $373, citing the company’s improved fiscal year 2026 forecasts for revenue growth, billings growth, operating margin, and free cash flow. KeyBanc also increased its price target to $365 from $350, maintaining an Overweight rating due to Autodesk’s accelerating normalized constant currency revenue growth. Meanwhile, William Blair reiterated its Outperform rating, highlighting the company’s strong quarterly performance. Loop Capital maintained its Hold rating and a $320 price target after Autodesk’s strong second-quarter results. These recent developments reflect a positive outlook from several analyst firms following Autodesk’s performance.
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