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Investing.com - Stifel maintained its Buy rating and $375.00 price target on Autodesk (NASDAQ:ADSK) following the company’s quarterly earnings report that exceeded expectations. This aligns with the broader analyst consensus of "Buy" and suggests potential upside from the current price of $294.43.
Autodesk delivered revenue growth of 18% year-over-year, surpassing expectations of 15%, while billings growth reached 21% year-over-year, above the anticipated 20%. Both remaining performance obligation (RPO) and current RPO grew 20% compared to the same period last year. This recent performance continues the company’s strong trajectory, with InvestingPro data showing a 13.78% revenue growth over the last twelve months to $6.61 billion, supported by an impressive 92.04% gross profit margin.
The strong performance was attributed to solid execution, consistent macroeconomic conditions, strength in the architecture, engineering, construction, and operations (AECO) segment, up-front revenue, the Autodesk store, and better-than-expected linearity against what Stifel described as conservative guidance. As a prominent player in the Software industry with a market capitalization of $62.64 billion, Autodesk maintains a GOOD overall financial health score according to InvestingPro metrics.
Following these results, Autodesk raised its full-year guidance by more than the amount of the quarterly beat, reinforcing Stifel’s confidence in the company’s outlook. Based on InvestingPro’s Fair Value assessment, the stock currently appears slightly undervalued despite trading at a high P/E ratio of 61.72. InvestingPro offers 13 additional tips and comprehensive analysis on Autodesk in its Pro Research Report, available to subscribers.
Stifel expressed bullishness on Autodesk’s strategy and competitive positioning, noting the company has multiple drivers to sustain at least high-single digit top-line growth and improving profitability in coming years, despite ongoing macroeconomic uncertainty. This outlook is supported by the company’s track record, with InvestingPro data showing Autodesk operates with a moderate level of debt while maintaining strong profitability over the last twelve months.
In other recent news, Autodesk reported its third-quarter earnings for the fiscal year 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $2.67, exceeding the forecasted $2.50. Revenue also outperformed projections, reaching $1.85 billion compared to the anticipated $1.81 billion. William Blair reiterated an Outperform rating on Autodesk, citing strong third-quarter results, with revenue growth of 12% in constant currency and an operating margin of approximately 40% when normalized for certain factors. These figures significantly surpassed Wall Street expectations. BMO Capital raised its price target on Autodesk to $343 from $333, maintaining a Market Perform rating, following what it described as a "good set of results" with sequential improvement in growth. These developments reflect positively on Autodesk’s recent performance and market reception.
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