Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [8] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 and 120 basis points [10] - Third quarter free cash flow was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers and infrastructure, offsetting softness in commercial [7] - The Autodesk Construction Cloud is gaining momentum, with significant migrations from competitors, indicating strong demand for integrated solutions [17][18] Market Data and Key Metrics Changes - The macroeconomic environment appears broadly stable, but uncertainty remains elevated, impacting guidance for fiscal 2027 [12] - The company is seeing strong engagement from customers, particularly in the AECO sector, with continued investment in digital infrastructure [59] Company Strategy and Development Direction - Autodesk is focused on the convergence of design and make in the cloud, leveraging AI and industry clouds to enhance product offerings and customer value [15][16] - The company aims to redefine its business model and go-to-market strategies, positioning itself for long-term growth and margin expansion [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and macroeconomic uncertainties while executing on strategic initiatives [4] - The company has raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [12][13] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [13] - Autodesk is integrating AI capabilities deeply into its products, enhancing customer workflows and driving productivity [16][20] Q&A Session Summary Question: Insights on seats versus consumption AI monetization - Management highlighted a capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][27] Question: Fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [31] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of their platform [35][37] Question: AI capabilities and their impact on retention and pricing power - Management confirmed that AI-driven capabilities are enhancing customer satisfaction and retention, with potential for incremental monetization opportunities [67][69] Question: Channel productivity and operational elements - Management stated that operational friction from the new transaction model is being addressed, and partners are beginning to see improved productivity [89][90]

Market Overview - The trading day ended with the Dow Jones Industrial Average up more than 600 points, a 1.4% increase, and the S&P 500 rising over 60 points, or 0.9% [6] - The Nasdaq composite finished higher by about 0.7%, with small and mid-cap stocks, particularly the Russell 2000, outperforming, up 2% [7] - Overall, 426 names in the S&P 500 gained ground, while only 74 declined, indicating strong market breadth [8] Company Performance - Alphabet shares have seen a significant year-to-date gain of approximately 70%, outperforming many competitors [5] - Autodesk reported a third-quarter EPS of $2.67, beating expectations of $2.50, with net revenue of $1.85 billion, slightly above the forecast of $1.81 billion [11] - Workday's after-hours share price increased by about 7% after it raised its full-year subscription revenue forecast, projecting fourth-quarter subscription revenue of $2.36 billion, above the estimate of $2.35 billion [13] - NetApp shares surged by 4% in after-hours trading after the company boosted its fiscal year adjusted EPS forecast and reported third-quarter net revenue expectations of $1.77 billion, exceeding estimates [15] - Urban Outfitters saw a significant increase in share price, up 9% in regular trading and 16% in after-hours, with third-quarter comp retail segment sales up 8%, surpassing the 5% estimate [25] Sector Insights - The technology sector experienced mixed results, with Alphabet hitting an all-time high while Nvidia shares fell by 2.6% [9][20] - Retailers showed strong performance, with Abercrombie and Fitch gaining about 36-37% after raising its 2026 net sales and EPS guidance [17] - Dell raised its full-year adjusted EPS outlook to $9.92, up from $9.55, and increased revenue guidance to a range of $11.2 billion to $12.2 billion [22][24]

Core Viewpoint - Autodesk forecasts fourth-quarter revenue and profit exceeding Wall Street estimates, driven by consistent subscription renewals and increasing demand for cloud-based design solutions [1] Group 1: Financial Performance - The company anticipates strong financial results for the fourth quarter, with revenue and profit projections above market expectations [1] - Steady subscription renewals are a key factor contributing to the positive outlook [1] Group 2: Market Demand - There is a growing demand for Autodesk's cloud-based design software, which supports the company's revenue growth [1]

This presentation contains forward looking statements about revenue, billings, free cash flow, operating margin, EPS, products, future performance, financial and otherwise, and strategy, including statements regarding our progress on our key priorities, business models, guidance for the fourth fiscal quarter and full fiscal year 2026, our business momentum, the macroeconomic environment, and our long-term financial objectives. There are a significant number of factors that could cause actual results to diff ...

Core Insights - The company, known for AutoCAD and other digital design software, has successfully leveraged the surge in investment within the data center sector [1] Company Summary - The company has capitalized on increased funding in data centers, indicating a strategic alignment with industry trends [1]

Financial Performance - Third quarter revenue increased by 18% year-over-year to $1.85 billion, with billings reaching $1.855 billion, a 21% increase[1][3] - Total net revenue for the three months ended October 31, 2025, was $1,853 million, a 18% increase from $1,570 million in the same period of 2024[38] - Subscription revenue reached $1,734 million, up 19% from $1,457 million year-over-year[38] - Net income for the nine months ended October 31, 2025, was $808 million, compared to $809 million for the same period in 2024[40] - Operating cash flow for the nine months ended October 31, 2025, was $1,463 million, significantly higher than $915 million in the prior year[40] - The company reported a gross profit of $1,688 million for the three months ended October 31, 2025, representing a gross margin of approximately 91%[38] Guidance and Projections - Autodesk raised its full-year guidance, projecting total revenue between $7.150 billion and $7.165 billion for fiscal 2026[10] - Fourth quarter revenue guidance is set between $1.901 billion and $1.917 billion, with GAAP EPS expected to be between $1.40 and $1.57[10] - For Q4 FY26, the GAAP EPS is projected to be between $1.40 and $1.57, with a non-GAAP EPS forecasted between $2.59 and $2.67[46] - The GAAP operating margin for FY26 is expected to be 23%, while the non-GAAP operating margin is projected at 37.5%[46] - For FY26, the GAAP EPS is estimated to be between $5.16 and $5.33, with a non-GAAP EPS forecasted between $10.18 and $10.25[47] Cash Flow and Assets - Free cash flow for the third quarter was $430 million, representing a 116% increase year-over-year[3] - The company had cash and cash equivalents of $1,989 million at the end of the period, up from $1,599 million at the beginning of the year[39] - Total current assets increased to $3,895 million as of October 31, 2025, compared to $3,482 million at the beginning of the year[39] - Total assets grew to $11,198 million from $10,833 million since January 31, 2025[39] - Net cash provided by operating activities was $439 million, resulting in free cash flow of $430 million[44] Revenue Breakdown - Revenue from the AECO product family grew by 23% year-over-year, totaling $921 million[7] - The Americas region generated $820 million in revenue, a 16% increase, while EMEA saw a 23% increase to $715 million[5] - Remaining performance obligations (RPO) increased by 20% year-over-year to $7.361 billion, with current RPO at $4.830 billion[7] - Unbilled deferred revenue rose by 43% year-over-year, totaling $3.515 billion[7] - Deferred revenue stood at $3,577 million as of October 31, 2025, down from $3,787 million at the beginning of the year[39] Operating Margins - GAAP operating margin improved to 25%, up 3 percentage points year-over-year, while non-GAAP operating margin was 38%, up 1 percentage point[3] - Autodesk's GAAP operating margin for the three months ended October 31, 2025, was 25%, while the non-GAAP operating margin was 38%[44] Research and Development - Research and development expenses for the three months ended October 31, 2025, were $416 million, an increase from $378 million in the same period of 2024[38] Non-GAAP Measures - The company emphasizes the importance of reviewing the reconciliation of non-GAAP financial measures to GAAP measures in its public disclosures[42] - Autodesk's financial results include inherent limitations due to the exclusion of certain items in non-GAAP measures, which may impact reported financial results[42]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Autodesk reported a third quarter revenue growth of 18% year-over-year, reaching $1.85 billion, with a constant currency growth also at 18% [1][3] - The company is focusing on defining the AI revolution in design and manufacturing, enhancing customer workflows through automation, and optimizing its sales and marketing strategies [2][3] - Autodesk raised its full-year guidance due to strong business momentum, particularly in the AECO (Architecture, Engineering, Construction, and Operations) sector [2] Financial Performance - Billings for Q3 FY26 were $1.855 billion, reflecting a 21% year-over-year increase [3] - GAAP operating margin improved to 25%, up 3 percentage points from the previous year, while non-GAAP operating margin was 38%, up 1 percentage point [3] - GAAP EPS was reported at $1.60, an increase of $0.33 year-over-year, and non-GAAP EPS was $2.67, up by $0.50 [3] Revenue Breakdown - Total net revenue was $1.853 billion, with the design segment contributing $1.537 billion (19% growth), the make segment at $205 million (20% growth), and other revenues at $111 million (7% growth) [4] - Geographic revenue distribution showed the Americas at $820 million (16% growth), EMEA at $715 million (23% growth), and APAC at $318 million (12% growth) [6] Product Family Performance - The AECO product family generated $921 million in revenue, marking a 23% increase year-over-year [8] - AutoCAD and AutoCAD LT contributed $458 million, with a 15% growth, while the manufacturing segment generated $355 million, reflecting a 16% increase [8] Future Outlook - For Q4 FY26, Autodesk projects revenue between $1.901 billion and $1.917 billion, with GAAP EPS expected to be between $1.40 and $1.57 [11] - Full-year FY26 guidance estimates billings between $7.465 billion and $7.525 billion, with total revenue projected between $7.150 billion and $7.165 billion [12][14]

Core Viewpoint - Autodesk, Inc. is a significant player in the 3D design, engineering, and entertainment software industry, with a diverse product range and strong market presence [1] Price Target Analysis - The consensus price target for Autodesk has slightly decreased from $372.21 to $367, indicating a modest reduction in analysts' expectations [2][6] - Over the past year, the average price target increased from $352.62 to $367, reflecting generally positive sentiment among analysts [3] Performance and Challenges - Autodesk's strong performance in the Architecture, Engineering, Construction, and Operations (AECO) segment and gains in recurring revenue contribute to a positive outlook [3] - The company faces challenges such as foreign exchange pressures and the implementation of a new transaction model, which could impact performance [4] Strategic Initiatives - The successful shift in Autodesk's transaction model and rapid adoption of artificial intelligence are seen as strengths, contributing to a buy rating and a $300 price target by KeyBanc [4] - Investors should monitor the upcoming earnings report on November 25, 2025, as it could influence stock movements and analysts' price targets [5][6] Market Capitalization - Autodesk has a market capitalization of $62 billion, which is a key factor to watch for potential future changes in analysts' expectations [5]

Core Insights - Autodesk (NASDAQ: ADSK) is set to announce its earnings on November 25, 2025, with a current market capitalization of $62 billion [2] - The company reported revenue of $6.6 billion over the past twelve months, achieving operational profitability with $1.5 billion in operating profits and a net income of $1.0 billion [2] - The stock's reaction post-earnings will depend on the alignment of results and predictions with investor expectations, suggesting the importance of analyzing past performance for event-driven trading [2] Historical Performance - Over the past five years, Autodesk has recorded 19 earnings data points, resulting in 10 positive and 9 negative one-day (1D) returns, indicating a 53% chance of positive returns [7] - This percentage increases to 64% when considering data from the last three years [7] - The median of the 10 positive returns is 1.4%, while the median of the 9 negative returns is -6.9% [7] Trading Strategies - Investors can prepare for earnings announcements by understanding historical probabilities and positioning themselves accordingly [3] - Analyzing the correlation between short-term (1D) and medium-term (5D) returns can inform trading strategies, particularly if a strong correlation is identified [5][6]