Autodesk(ADSK) ZACKS·2025-01-07 19:00Industry Overview - The Zacks Computer Software industry is experiencing uncertainty due to global macroeconomic conditions and inflationary pressures, but is well-positioned to benefit from accelerated digital transformation [1][3] - The industry is primarily gaining from the ongoing cloud transition and the increasing demand for voice and video communication and productivity software due to the hybrid work model [1][2] IT Spending Trends - Worldwide IT spending is projected to reach 1.23 trillion, with IT services spending projected to grow 9.4% in 2025 [4] Software Procurement and SaaS Growth - Higher enterprise spending on software procurement and the ongoing adoption of Software as a Service (SaaS) are expected to open up opportunities for industry players [5] - SaaS companies are likely to see strong top-line growth due to a higher percentage of recurring revenues and lower churn rates [5] Cloud Computing and Cybersecurity - The increasing need for secure cloud platforms amid rising cyber-attacks is driving demand for cybersecurity software [6] - Rapid migration to cloud and DevOps technologies is enhancing scalability and agility in software development and IT operations [6] Industry Performance and Valuation - The Zacks Computer Software industry has underperformed both the S&P 500 and the broader Zacks Computer and Technology sector, with a 17.9% increase over the past year compared to 26.8% and 38.2% for the S&P 500 and sector, respectively [9] - The industry is currently trading at a forward 12-month P/E of 31.73X, higher than the S&P 500's 22.23X and the sector's 27.25X [11] Company Highlights - BlackBerry: The company is experiencing growth in its IoT business, particularly in the automotive segment, with a 13% year-over-year revenue increase [15][18] - Autodesk: The company is benefiting from strong demand for its cloud-based products, with subscription revenues increasing 10.88% year-over-year to 2.3 million to total revenues [25][27]