On Wednesday, Mizuho (NYSE:MFG) Securities updated its outlook on Autodesk (NASDAQ:ADSK), a leader in 3D design, engineering, and entertainment software. The firm increased its price target on the stock to $280 from $260, while maintaining a Neutral rating. This adjustment follows Autodesk's announcement of robust third-quarter results for fiscal year 2025 and an upward revision of its full-year guidance.
Autodesk's third-quarter performance demonstrated the effectiveness of its new transaction model, particularly in Western Europe, with progress continuing in North America. The company has adapted well to the new model and is on track to rebuild its free cash flow (FCF) for the fiscal year 2025. Autodesk anticipates further acceleration in FCF for fiscal year 2026, with a target of approximately $2.05 billion, as confirmed by management.
In addition to financial updates, Autodesk's management highlighted that construction trends are holding steady, and the momentum in business is consistent with previous quarters. This suggests a continued stable growth environment for the company's diverse portfolio.
Adding to the company's strategic financial leadership, Autodesk announced the appointment of Janesh Moorjani, formerly of Elastic N.V. (NYSE:NYSE:ESTC), as its new Chief Financial Officer. Moorjani will assume his role on December 16, bringing his expertise to Autodesk's financial operations.
The positive adjustments in Autodesk's financial targets and the smooth transition to a new transaction model reflect the company's confidence in its business strategy and operational efficiency. With these developments, Mizuho's revised price target of $280 represents a recognition of Autodesk's solid fiscal trajectory and management's ability to execute on its financial goals.
In other recent news, Autodesk Inc (NASDAQ:ADSK). has reported a strong third-quarter fiscal 2025 performance, with a 12% revenue increase in constant currency terms. The company's total revenue saw an 11% rise, with AutoCAD and AutoCAD LT revenue growing by 8%, and AEC and manufacturing segments witnessing increases of 12% and 16%, respectively. Direct revenue experienced a notable 23% jump, now making up 42% of the total revenue. Additionally, billings surged by 28%, partly due to the implementation of a new transaction model in Western Europe.
Oppenheimer reconfirmed its Outperform rating for Autodesk, maintaining a $350 target. The firm cited Autodesk's resilience and ability to navigate operational disruptions effectively, as evidenced by the company's rebound from a July system outage and the subsequent improvement in performance. Despite ongoing challenges, Autodesk has adjusted its net new ARR forecasts for the fourth quarter, which Oppenheimer views as a strategic approach to managing expectations.
In terms of future expectations, Autodesk aims to maintain a 10-15% growth framework over the long term and is preparing for strong free cash flow growth in fiscal 2026. Autodesk's new CFO Janesh, with a rich background from Elastic, VMware (NYSE:VMW), Cisco (NASDAQ:CSCO), and PTC (NASDAQ:PTC), is expected to contribute to optimization and scaling efforts.
InvestingPro Insights
Autodesk's recent performance and Mizuho's updated outlook are further supported by data from InvestingPro. The company's market capitalization stands at $68.37 billion, reflecting its significant presence in the software industry. Autodesk's impressive gross profit margin of 91.92% for the last twelve months as of Q2 2025 underscores its operational efficiency, aligning with the company's successful adaptation to its new transaction model.
InvestingPro Tips highlight Autodesk's strong financial position. The company has shown a high return over the last year, with a one-year price total return of 57.2% as of the latest data. This performance is consistent with the positive momentum mentioned in the article and the upward revision of full-year guidance.
Additionally, Autodesk is trading near its 52-week high, with its current price at 97.35% of the 52-week high. This suggests investor confidence in the company's growth trajectory and aligns with Mizuho's increased price target.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Autodesk, providing a deeper understanding of the company's financial health and market position.
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