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On Friday, Stifel analysts raised their price target on shares of Autodesk (NASDAQ:ADSK) to $350 from the previous $310, while reiterating a Buy rating on the stock. According to InvestingPro data, 21 analysts have recently revised their earnings estimates upward, with analyst targets ranging from $271 to $430, reflecting strong confidence in this prominent software industry player. This adjustment follows Autodesk’s first-quarter fiscal year 2026 results, which exceeded both Stifel’s and Wall Street’s expectations in terms of revenue, operating margin, earnings per share (EPS), and cash flow from operations/free cash flow (CFFO/FCF).
Autodesk reported billings that not only surpassed their own forecasts but also indicated a healthy year-over-year constant currency (CC) billings growth of 22%. Revenue growth also showed improvement, with an 11% increase year-over-year on a constant currency basis. The company maintains impressive gross profit margins of 92%, demonstrating strong operational efficiency. InvestingPro analysis reveals the company’s overall financial health score is rated as GREAT, supported by robust profitability metrics. The company achieved these results amid heightened macroeconomic uncertainty without any notable change to its business fundamentals. The quarter was marked by strong performance throughout the period and included the closure of Autodesk’s second-largest deal in its history.
The company’s transition to a subscription model and go-to-market (GTM) restructuring initiatives were highlighted by Stifel as positive steps. Looking forward to the full fiscal year 2026, Autodesk has raised its guidance for billings, revenue, operating margin, and free cash flow, attributing the increases to favorable foreign exchange tailwinds. This boost is somewhat tempered by a more cautious outlook included in the guidance. On an underlying constant currency basis, the billings forecast has been slightly adjusted down by one percentage point, while revenue guidance remains steady and operating margin expectations have been revised upward.
Autodesk’s solid financial performance and the upward revision of its fiscal year 2026 guidance reflect the company’s resilience and adaptability in a challenging economic landscape. The raised price target from Stifel signals confidence in Autodesk’s continued growth and operational efficiency. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Investors seeking deeper insights can access comprehensive analysis and 15 additional ProTips through InvestingPro’s detailed research report, available for over 1,400 US stocks.
In other recent news, Autodesk reported impressive first-quarter results for fiscal year 2026, surpassing both earnings and revenue expectations. The company recorded earnings per share of $2.29, exceeding the forecast of $2.15, and generated revenue of $1.63 billion, which was higher than the anticipated $1.61 billion. Following these results, several financial firms have updated their outlook on Autodesk. KeyBanc raised its price target to $350, maintaining an Overweight rating, citing accelerated revenue growth and optimism about the company’s long-term prospects. Similarly, BMO increased its price target to $333, acknowledging Autodesk’s strong start to the fiscal year and resilience in demand conditions.
Meanwhile, JPMorgan adjusted its price target to $296, keeping a Neutral rating, and noted a cautious approach in Autodesk’s full-year guidance due to potential macroeconomic uncertainties. RBC maintained an Outperform rating with a stable price target of $345, highlighting Autodesk’s positive financial performance and strategic investments. These developments reflect a general confidence among analysts in Autodesk’s ability to navigate current market conditions and continue its growth trajectory.
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