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Investing.com - Rosenblatt raised its price target on Autodesk (NASDAQ:ADSK) to $355 from $345 on Friday, maintaining a Buy rating following the company’s strong second-quarter performance. The new target sits within the analyst range of $271 to $430, with InvestingPro data showing the stock currently trades at a P/E ratio of 62.35.
The software company reported revenue growth of 17% year-over-year, or 11% on a constant currency basis excluding model changes, exceeding Rosenblatt’s forecast by approximately 2%. Total billings grew 36% year-over-year to $1.678 billion, about 5% ahead of analyst estimates. The company maintains impressive gross profit margins of 92%, according to InvestingPro data, which offers 15+ additional key insights about Autodesk’s performance.
Autodesk’s revenue was supported by ongoing strength in its Architecture, Engineering and Construction (AEC) segment, which grew approximately 17% excluding model changes. The company also benefited from healthy upfront Enterprise Business Agreement renewals and direct store traction.
Recent restructuring actions led to lower sequential operating expenses, resulting in operating margins of 39% and non-GAAP earnings per share of $2.62, surpassing both Rosenblatt’s estimate of $2.41 and consensus expectations of $2.45.
Following the strong quarterly results, Autodesk increased its fiscal year 2026 revenue growth outlook to 9-10%, representing an increase of approximately 1% excluding model changes, along with slightly improved operating margins of 37%. With a market capitalization of $62.28 billion and an overall Financial Health score of "GOOD" from InvestingPro’s comprehensive analysis, the company maintains a solid position in the software industry.
In other recent news, Autodesk’s fiscal second-quarter results have garnered attention from multiple analyst firms, leading to several price target adjustments. Mizuho raised its price target for Autodesk to $375, noting a significant revenue beat of $39 million, driven by growth in the Architecture, Engineering, Construction, and Operations segment. Similarly, Goldman Sachs increased its price target to $320, highlighting that Autodesk’s revenue exceeded consensus estimates by 2.2%, with operating income and earnings per share also surpassing expectations. Piper Sandler adjusted its price target to $373, attributing the increase to Autodesk’s revised forecasts for revenue growth, billings growth, operating margin, and free cash flow.
William Blair reiterated its Outperform rating on Autodesk, pointing to an 11% revenue growth in constant currency and an operating margin of 39%, both exceeding market forecasts. KeyBanc also raised its price target to $365, recognizing the company’s accelerated revenue growth in constant currency terms. These developments follow Autodesk’s strong quarterly performance, which has been well-received by analysts. Overall, the company’s recent earnings have positively influenced analysts’ outlooks, resulting in multiple upward revisions of price targets.
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