Core Insights - The article compares Five9 (FIVN) and Autodesk (ADSK) to determine which stock offers better value for investors [1] - FIVN has a stronger Zacks Rank of 2 (Buy) compared to ADSK's 3 (Hold), indicating a more favorable earnings outlook for FIVN [3] Valuation Metrics - FIVN has a forward P/E ratio of 6.78, significantly lower than ADSK's forward P/E of 29.88, suggesting FIVN is undervalued [5] - The PEG ratio for FIVN is 0.42, while ADSK's PEG ratio is 1.76, indicating FIVN's earnings growth is more attractive relative to its price [5] - FIVN's P/B ratio is 1.98, compared to ADSK's P/B of 22.36, further highlighting FIVN's undervaluation [6] Investment Outlook - FIVN's improving earnings outlook positions it as a superior value option compared to ADSK, supported by its strong valuation metrics [7]

Summary of Autodesk Q3 2025 Conference Call Company Overview - **Company**: Autodesk (NasdaqGS:ADSK) - **Date of Conference**: December 02, 2025 Key Points Industry and Market Performance - **Strong Q3 Results**: Autodesk reported strong performance in Q3, with continued momentum from the first half of the year, particularly in data centers, industrial, and infrastructure sectors [2][3] - **Geographic Strength**: Notable growth was observed in various regions, especially in emerging markets [2] - **Diversification and Resilience**: The company emphasized the diversification built over the years, contributing to consistent growth and resilience in the business [3][5] Growth Drivers and Future Outlook - **Capacity Constraints**: Autodesk highlighted a significant capacity constraint in the market, indicating that customers need more capacity to execute projects efficiently [7][8] - **Incremental Capacity through Automation**: The company plans to add capacity through automation, particularly in construction and manufacturing sectors, which are expected to provide durable growth opportunities [9][10] - **AI Integration**: Autodesk is focusing on AI initiatives, including task and workflow automation, to enhance productivity and customer satisfaction [19][20] Financial Guidance and Revenue Model - **Guidance for Q4 and Beyond**: Autodesk raised its guidance for Q4 and expressed confidence in sustaining growth into fiscal 2027, driven by consistent performance and ongoing go-to-market optimization [3][14] - **Revenue Growth Areas**: Key areas for growth include construction, Fusion (a manufacturing application), and infrastructure projects, with expectations of continued strong performance [13][14][42] Go-to-Market Strategy - **Transition to Self-Service**: Autodesk is transitioning to a self-service model, which is expected to enhance customer engagement and streamline renewals [61][64] - **Partner Compensation Changes**: Changes in partner compensation structures are being implemented to incentivize new business generation over renewals [64][66] Data and Cloud Strategy - **Importance of Data Layer**: The data flow is crucial for connecting various processes from design to operations, facilitating automation and enhancing customer value [30][31] - **SaaS Adoption**: Autodesk is witnessing rapid growth in its SaaS offerings, with a significant shift towards cloud-based solutions, which is essential for future AI and automation initiatives [32][34] Operational Efficiency and Margins - **Operating Margin Targets**: Autodesk aims for adjusted operating margins of 41%-45%, with expectations of non-linear growth due to ongoing optimization and inherent operating leverage [72][78] - **Pricing Strategy**: The company is considering pricing adjustments based on value delivered, with potential for new monetization models, especially in AI [80][84] Customer Sentiment and Spending - **Consistent Customer Investment**: Customer sentiment remains positive, with no downsizing of Enterprise Business Agreements (EBAs) and indications of consistent technology investment heading into the next year [48][49] Conclusion - Autodesk is positioned for continued growth through strategic focus on automation, AI integration, and a robust go-to-market strategy, while navigating macroeconomic uncertainties and optimizing its operational efficiencies. The emphasis on cloud solutions and data management is expected to drive future opportunities across various sectors.

Core Insights - Autodesk (ADSK) experienced an 8% surge in after-hours trading following the release of its FQ3 earnings but ended the trading day with only a 2% increase, indicating volatility in investor sentiment [1]. Financial Performance - The earnings report for FQ3 showed significant fluctuations in stock price, highlighting the market's reaction to the company's financial results [1].

Core Insights - Autodesk (ADSK) experienced an 8% surge in after-hours trading following the release of its FQ3 earnings but ended the trading day with only a 2% increase, indicating volatility in investor sentiment [1]. Financial Performance - The earnings report for FQ3 showed significant fluctuations in stock price, highlighting the market's reaction to the company's financial results [1].

Core Insights - Autodesk Inc. reported stronger-than-expected third-quarter fiscal 2026 results, with earnings and revenue exceeding analyst forecasts, leading to a full-year guidance raise [1][2] - Shares of Autodesk advanced more than 3% following the announcement [1] Financial Performance - The company posted adjusted earnings of $2.67 per share, surpassing the consensus estimate of $2.50 [2] - Revenue increased by 18% year over year to $1.85 billion, exceeding expectations of $1.81 billion, indicating broad strength across business lines [2] Future Outlook - Autodesk raised its fiscal 2026 outlook, now anticipating adjusted EPS of $10.18 to $10.25, significantly above the $9.95 analyst consensus [2] - Full-year revenue is projected to be between $7.15 billion and $7.17 billion [2] - For the fiscal fourth quarter, the company expects revenue of $1.90 billion to $1.92 billion, with adjusted EPS estimated at $2.59 to $2.67 [3]

Core Viewpoint - Autodesk (ADSK) reported strong Q3 financials, exceeding market expectations, and raised its full-year revenue guidance to at least $7.15 billion from a previous estimate of $7.075 billion, indicating confidence in operational execution and demand driven by digital transformation and AI [1][3][4]. Financial Performance - Autodesk's stock closed positively on November 26, showing upward momentum as it traded above its 50-day and 100-day moving averages [1]. - Despite a post-earnings rally, Autodesk's stock is only up 2% year-to-date [2]. - The company achieved a 100 basis points year-over-year increase in margin, reflecting operational efficiency [5]. Analyst Ratings and Price Targets - Baird analysts reiterated an "Outperform" rating for Autodesk, raising the price target to $377, suggesting a potential upside of 25% from current levels [4]. - The investment firm noted that Autodesk shares are relatively inexpensive at a sales multiple of about 10x, especially with anticipated benefits from AI [6]. Future Outlook - Wall Street analysts expect a strong year ahead for Autodesk, contrasting with a muted performance in 2025 [7][8]. - Barchart's options data indicates potential upside for ADSK to $337 by the end of Q1 next year [6].

Revenue Performance - Total net revenue for the three months ended October 31, 2025, was $1.853 billion, a 18% increase from $1.570 billion in the same period of 2024[25]. - For the nine months ended October 31, 2025, total net revenue reached $5.249 billion, up 17% from $4.492 billion in the prior year[25]. - Revenue recognized during the three months ended October 31, 2025, from deferred revenue was $843 million, compared to $790 million in the same period of 2024[29]. - The Americas contributed $2.331 billion to total net revenue for the nine months ended October 31, 2025, representing a 17% increase from $1.986 billion in 2024[25]. - Consolidated net income for the nine months ended October 31, 2025, was $808 million, slightly down from $809 million in the same period of 2024[114]. Performance Obligations - Remaining performance obligations as of October 31, 2025, amounted to $7.36 billion, with an expected revenue recognition of $4.83 billion (66%) in the next 12 months[26]. - The company expects to recognize the remaining $2.53 billion (34%) of performance obligations as revenue after the next 12 months[26]. - Remaining Performance Obligations (RPO) represent the sum of total short-term, long-term, and unbilled deferred revenue, indicating expected revenue recognition in the next twelve months[235]. Cash and Investments - Cash and cash equivalents, including marketable securities, totaled $1.966 billion as of October 31, 2025[32]. - As of January 31, 2025, Autodesk reported total cash equivalents and marketable securities of $1,436 million, with cash equivalents at $1,424 million and marketable securities at $13 million[35]. - The fair value of Autodesk's marketable debt securities as of October 31, 2025, was $602 million, with $267 million due within one year and $314 million due after one year through five years[37]. - Autodesk had no material unrealized losses for marketable debt securities as of both October 31, 2025, and January 31, 2025, and total unrealized gains were not material for the nine months ended October 31, 2025[37]. - The company had $156 million in direct investments in privately held companies as of October 31, 2025, down from $168 million as of January 31, 2025[41]. Stock-Based Compensation - Autodesk's stock-based compensation expense related to restricted stock units was $449 million for the nine months ended October 31, 2025, compared to $432 million for the same period in 2024[53]. - The fair value of shares vested during the nine months ended October 31, 2025, was $730 million, an increase from $634 million in the same period of 2024[52]. - Stock-based compensation expense related to performance stock units was $19 million for the three months ended October 31, 2025, compared to $22 million for the same period in 2024, and $58 million for the nine months ended October 31, 2025, compared to $36 million in 2024[58]. - Autodesk's stock-based compensation expense for the nine months ended October 31, 2025, totaled $607 million, compared to $500 million in 2024[61]. Debt and Financing - Autodesk entered into a new unsecured revolving loan facility under the 2025 Credit Agreement, providing for an aggregate principal amount of $1.5 billion, with an option to increase to $2 billion[78]. - The total principal outstanding for Autodesk's borrowings as of October 31, 2025, was $2.5 billion, with a fair value of $2.482 billion after accounting for unamortized debt discount and issuance costs[80]. - The expected future principal payments for all borrowings include $500 million due in 2028, $500 million in 2030, and $1.5 billion thereafter[83]. Tax and Income - Autodesk recorded an income tax expense of $125 million on pre-tax income of $468 million for the three months ended October 31, 2025, resulting in an effective tax rate differing from the U.S. federal statutory rate of 21%[67]. - Basic net income per share for the three months ended October 31, 2025, was $1.61, compared to $1.28 for the same period in 2024, reflecting a 25.8% increase[20]. - Autodesk's net income for the nine months ended October 31, 2025, was $152 million for the first quarter, $313 million for the second quarter, and $343 million for the third quarter[106]. Share Repurchase and Equity - During the three and nine months ended October 31, 2025, Autodesk repurchased 1 million and 3 million shares at average prices of $306.35 and $290.04 per share, respectively[106]. - As of October 31, 2024, Autodesk had $4.3 billion remaining for repurchase under the November 2022 repurchase program[108]. - The company has $2.81 billion and $5 billion remaining available for repurchase under its November 2022 and November 2024 stock repurchase programs, respectively[220]. Operational Changes and Investigations - Autodesk's restructuring plan initiated in fiscal 2026 aims to optimize its go-to-market organization and reallocate resources towards investments in cloud, platform, and artificial intelligence[95]. - The company faced a federal securities class action complaint filed in April 2024, alleging false and misleading statements, with the court granting a motion to dismiss in July 2025[104][105]. - Autodesk's internal investigation regarding free cash flow and non-GAAP operating margin practices was initiated in March 2024, with the SEC closing its matter in August 2025[103]. Other Financial Metrics - The company recorded total operating lease right-of-use assets impairment charges of $1 million and $12 million for the three and nine months ended October 31, 2025, respectively[85]. - Autodesk's total intangible assets amounted to $493 million as of October 31, 2025, down from $574 million as of January 31, 2025[70]. - Long-lived assets totaled $270 million as of October 31, 2025, down from $286 million as of January 31, 2025[117]. - The balance of assets recognized from costs to obtain a contract with a customer was $755 million as of October 31, 2025, up from $467 million as of January 31, 2025[76].

Market Overview - U.S. equities continued to rise, with major indexes extending a multi-day winning streak, driven by optimism for a Federal Reserve interest rate cut in December and dovish economic data releases [1][8] - The Nasdaq Composite led the gains, climbing 1%, while the S&P 500 and Dow Jones Industrial Average rose 0.9% each, marking their fourth consecutive day of gains [2][3] Economic Indicators - Expectations for a 25-basis-point rate cut by the Federal Reserve in December are high, with probabilities around 80-85%, supported by weaker-than-expected economic data [3][6] - Recent economic data included a decline in September retail sales, a softer Producer Price Index (PPI), decreased consumer confidence, and a drop in private payrolls [3] Sector Performance - Technology stocks were the primary drivers of the market rally, with the "Magnificent Seven" technology stocks significantly contributing to the overall market performance [4] - The Health Care Select Sector SPDR and Consumer Discretionary Select SPDR also performed well, gaining 2.3% and 2.1% respectively, while the housing sector benefited from a decline in Treasury yields [4] Corporate News and Stock Highlights - Apple shares rose about 1% as it is expected to surpass Samsung in global smartphone shipments for the first time in 14 years [7] - Dell Technologies surged 6-6.4% after announcing record orders for its AI servers, indicating strong demand in the AI infrastructure space [11] - Advanced Micro Devices (AMD) rose approximately 3.5%, while Broadcom gained about 3% [11] - Nvidia experienced a significant drop of 2.6-3.9% on Tuesday but rebounded slightly on Wednesday, facing increased competition in the AI chip market [11] - Urban Outfitters soared between 10% and 12.1% after reporting stronger-than-expected quarterly results, while Workday sank 9% despite positive earnings [11] - Petco surged 19.8% after raising its fiscal year earnings outlook, and Robinhood Markets jumped 10.7% following plans to launch a futures and derivatives exchange [11]

Core Insights - Autodesk, Inc. reported strong third-quarter results for fiscal 2026, with revenue increasing 18% year-over-year to $1.85 billion, exceeding estimates of $1.81 billion [1] - The company achieved adjusted earnings of $2.67 per share, surpassing expectations of $2.50 [2] - Autodesk raised its full-year guidance, forecasting revenue between $7.15 billion and $7.17 billion, and adjusted earnings per share between $10.18 and $10.25, above prior estimates [3] Financial Performance - Total billings grew 21%, slightly ahead of consensus, indicating strong demand in the Architecture, Engineering, and Construction (AEC) sector [4] - Operating margin improved to 38%, driven by cost discipline and higher revenue, while adjusted EPS of $2.67 beat both analyst and market expectations [5] - Free cash flow reached $430 million, with the company repurchasing 1.2 million shares, indicating strong cash generation [7] Business Segments - AEC revenue exceeded analyst forecasts, with solid growth in AutoCAD/LT and Manufacturing segments, while the Media & Entertainment segment remained soft [6] - The Fusion 360 platform is gaining traction with strong adoption of new AI features [6] Geographic Performance - The U.S. and Europe experienced double-digit growth in constant currency, while Asia showed mid-teens growth [8] - Direct sales now account for 66% of total revenue as the new transaction model is implemented globally [8] Analyst Perspectives - Analysts from Rosenblatt and RBC Capital Markets maintained positive ratings on Autodesk, with price targets raised to $375 and $380, respectively [9] - Analysts noted broad-based momentum across the business and highlighted the effectiveness of the transaction model in enhancing customer relationships and operational efficiency [10][12] Future Outlook - For the fourth quarter, Autodesk expects revenue between $1.90 billion and $1.92 billion, with adjusted EPS between $2.59 and $2.67 [3] - Analysts project fiscal 2027 revenue growth of 9%, below consensus expectations of 11%, but see potential upside in early guidance [14]

Group 1: Company Overview - Autodesk Inc. (NASDAQ: ADSK) is a leading software company known for its design and engineering software, widely used in architecture, engineering, and construction industries [1] - Autodesk's stock price increased by 1.58%, or $4.58, trading between $287.11 and $297.67 in premarket trading [4] - The company has a market capitalization of approximately $62.99 billion, with a high of $329.09 and a low of $232.67 over the past year [4] Group 2: Market Context - The broader market context is favorable for Autodesk, with U.S. stock futures on an upward trend during a holiday-shortened week [2] - There is an 84.9% probability of a rate reduction in December, which could benefit companies like Autodesk by reducing borrowing costs and encouraging investment [3] - Major indices showed gains, indicating strong investor interest, with Autodesk's trading volume on the NASDAQ reaching 2,327,384 shares [5] Group 3: Analyst Outlook - UBS set a price target of $400 for Autodesk, suggesting a potential upside of 35.86% from its current trading price of $294.43 [1][6] - The positive momentum in the broader market and anticipation of a December interest rate cut could benefit Autodesk [6]