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On Monday, JPMorgan analyst Alexei Gogolev updated the financial outlook for Autodesk (NASDAQ:ADSK), increasing the company’s price target to $296 from the previous $280, while maintaining a Neutral rating on the stock. The adjustment follows Autodesk’s first-quarter financial results for fiscal year 2026, which ended in April 2025, described by the analyst as a "solid print." According to InvestingPro data, 21 analysts have recently revised their earnings estimates upward for the upcoming period, with the company maintaining a "GREAT" overall financial health score.
Gogolev noted that Autodesk’s management has taken a more cautious approach to the full-year 2026 guidance, choosing to account for potential risks in the second half of the year. Despite not observing any decline in customer demand during April and early May, with the company maintaining impressive 92% gross profit margins and 12.4% revenue growth, the company’s Chief Financial Officer decided against factoring in favorable foreign exchange (FX) conditions for the rest of the year. Instead, the forecast for underlying constant currency (CC) billings growth was reduced by one percentage point to account for increased macroeconomic uncertainty and adjustments related to a new transaction model.
The report highlighted that while billings in the first quarter showed robust performance, management cautioned that growth momentum might slow down in the latter half of the year due to the impact of mergers and acquisitions in the third quarter of fiscal year 2026. This anticipated change in growth dynamics is a reflection of the company’s past M&A activities.
In response to the first-quarter results and the stronger FX environment, JPMorgan raised its price target for Autodesk by 6%. Gogolev expressed optimism about Autodesk’s progress in strengthening its position as a leading software provider in the industrial sector. The company’s recent financial performance and strategic outlook appear to support this positive trajectory.
In other recent news, Autodesk reported a robust performance for the first quarter of 2025, surpassing earnings and revenue expectations. The company achieved an earnings per share (EPS) of $2.29, exceeding the forecasted $2.15, while revenue reached $1.63 billion, above the anticipated $1.61 billion. Autodesk’s revenue showed a 15% year-over-year increase, highlighting strong demand in its key sectors. Following these results, KeyBanc Capital Markets raised its price target for Autodesk to $350, maintaining an Overweight rating. Analyst Jason Celino noted Autodesk’s accelerated revenue growth and suggested optimism for the company’s long-term prospects. Meanwhile, BMO Capital Markets also adjusted its price target to $333, acknowledging Autodesk’s strong start to the fiscal year and its strategic business model transition. RBC Capital Markets maintained an Outperform rating with a stable price target of $345, citing Autodesk’s positive financial performance and increased free cash flow guidance. These developments reflect Autodesk’s strategic focus on AI and cloud investments, aiming to capture emerging market opportunities amidst macroeconomic uncertainties.
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