Core Insights - Adobe and Autodesk are leveraging AI to enhance their creative software offerings and improve workflow efficiency, with the creative software market projected to reach $10.25 billion by 2029, growing at a CAGR of 1.54% [1] - Both companies have faced stock declines due to tech sell-offs, with Adobe down 17.3% YTD and Autodesk down 8.6% [2] Adobe Insights - Adobe's growth is driven by strong demand for its Creative Cloud, Document Cloud, and Adobe Experience Cloud, with an AI business expected to double by the end of fiscal 2025 [5][8] - The company has expanded its AI portfolio with new tools like Adobe GenStudio and Firefly Services, enhancing collaboration and productivity for brands [6][7] - For fiscal 2025, Adobe anticipates total revenues between $23.30 billion and $23.55 billion, with Digital Media revenues projected at $17.25 billion to $17.40 billion [8] Autodesk Insights - Autodesk is benefiting from new business growth and strong subscription renewal rates, with a focus on cloud-based products and design suites [9] - The company has made significant progress in high-growth segments like Construction and Manufacturing, adding nearly 400 new construction customers in Q4 of fiscal 2025 [10] - Autodesk expects revenues for fiscal 2026 to be between $6.895 billion and $6.965 billion, with billings estimated at $7.06 billion to $7.21 billion [12] Earnings Estimates - Adobe's fiscal 2025 earnings estimate is $20.36 per share, reflecting a 10.53% increase from fiscal 2024 [13] - Autodesk's fiscal 2026 earnings estimate remains steady at $9.48 per share, indicating an 11.92% growth over 2024 [14] Valuation Insights - Both companies are considered overvalued, with Adobe trading at a forward Price/Sales ratio of 6.44X, lower than Autodesk's 8.09X [16] - Autodesk holds a Zacks Rank 2 (Buy), while Adobe has a Zacks Rank 3 (Hold), indicating a stronger investment case for Autodesk [18]

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Core Insights - Autodesk has announced the appointment of Jeff Epstein and Christie Simons to its Board of Directors as part of a cooperation agreement with Starboard Value LP, with their full voting membership commencing at the 2025 Annual Meeting on June 18, 2025 [1][2] - The Board will consist of 12 directors post-appointment, with 11 being independent, enhancing the governance structure of Autodesk [1] - Starboard Value LP will withdraw its director nominees and has agreed to customary standstill, voting, and other provisions as part of the cooperation agreement [3] Company and Board Enhancements - Jeff Epstein brings extensive experience in finance and corporate development, having served as EVP and CFO of Oracle and currently advising Bessemer Venture Partners [4] - Christie Simons has over 30 years of experience in technology and audit, previously a Senior Partner at Deloitte, and currently serves on the Board of Micron Technology [5] - The appointments are expected to strengthen Autodesk's strategy in industry cloud, platform, and AI, aimed at enhancing profitability and shareholder value [2] Strategic Collaboration - Autodesk and Starboard have entered into an Information Sharing and Discussion Agreement to facilitate ongoing collaboration for sustainable value creation [2][3] - Starboard's investment in Autodesk is based on the belief in its potential to improve profitability and create significant value [2]

Core Insights - The 2025 State of Design & Make report by Autodesk reveals that despite geopolitical and economic uncertainties, industry leaders are continuing to invest in AI, technology advancements, acquisitions, and sustainability [1][3][10] Investment Trends - Companies are still prioritizing AI investments, with tech-advanced firms feeling optimistic about opportunities and increasing training investments [5][10] - 77% of tech-advanced companies plan to increase investments in digital training, compared to 59% of less tech-advanced companies [16] Skills Gap and Workforce Challenges - A significant skills gap persists, with 58% of professionals citing a lack of access to skilled talent as a barrier to growth, a 15-point increase from the previous year [8][16] - Nearly half (48%) of professionals report that their organizations lack the resources to design internal training programs, a 10-point increase from last year [8][16] AI Adoption and Trust Issues - AI adoption is accelerating, but trust in AI has declined, with only 65% of respondents expressing trust in AI, reflecting an 11-point decline [8] - Confidence in AI decision-making has dropped, with 69% of professionals expressing confidence in their company's AI choices, down nine points [8] Sustainability as a Competitive Advantage - Sustainability is becoming a key differentiator for companies, with 72% of business leaders believing it can generate more than 5% of their annual revenue [10][17] - 39% of companies are using AI to enhance sustainability efforts, an increase from 34% in 2024 [17] Industry Outlook - The Design and Make industries employ nearly 300 million people globally and are projected to represent $30 trillion in value by 2027 [3] - Companies investing in modernization are reporting gains in customer satisfaction, productivity, and innovation, with 72% noting improvements in company reputation [12]

Core Viewpoint - Autodesk's stock has underperformed in the past six months, declining 10%, while facing challenges from a new transaction model, restructuring efforts, and macroeconomic uncertainties [1][2]. Group 1: Performance Overview - Autodesk shares have dropped 10% over the last six months, compared to a 0.5% decline in the Zacks Internet-Software industry and a 6.4% decline in the S&P 500 index [1]. - The stock has slightly outperformed the Zacks Computer and Technology sector, which saw a decline of 10.2% during the same period [1]. Group 2: Growth Drivers - Autodesk is making progress in high-growth segments such as Construction and Manufacturing, adding nearly 400 new construction customers in Q4 of fiscal 2025 [3]. - The company is seeing strong adoption of its cloud-based platforms like Fusion and Forma, which enhance productivity and reduce costs for customers [3]. - Investments in AI, such as the AutoConstrain feature in Fusion, are improving product capabilities and user efficiency [4]. - The strategic focus on converging design and manufacturing workflows positions Autodesk well to meet evolving industry needs [4]. Group 3: Challenges - Autodesk faces intense competition in its core verticals, with competitors like Trimble in AEC and Dassault Systemes and Siemens in manufacturing [5]. - The ongoing shift from perpetual licenses to cloud-based subscriptions is pressuring top-line growth, alongside higher operating expenses and restructuring costs [6]. - Sustained earnings improvement will depend on Autodesk's ability to drive meaningful revenue growth over time [6]. Group 4: Guidance and Estimates - Autodesk expects non-GAAP earnings per share in the range of $2.14-$2.17 and revenues between $1.60-$1.61 billion for Q1 of fiscal 2026 [7]. - The Zacks Consensus Estimate for Q1 fiscal 2026 earnings is $2.14 per share, indicating a year-over-year growth of 14.44%, with revenues expected to increase by 13.32% to $1.61 billion [8]. - Autodesk has beaten the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average surprise of 5.73% [8]. Group 5: Conclusion - Despite near-term challenges, Autodesk shows promise in key growth areas like cloud, AI, and construction, suggesting a cautious approach for investors [10]. - A significant portion of Autodesk's revenues comes from international operations, making it vulnerable to foreign currency fluctuations, particularly with a strengthening U.S. dollar [11].

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Core Insights - Autodesk, Inc. announced that Elizabeth "Betsy" Rafael will not seek re-election at the 2025 Annual Meeting of Stockholders, concluding her advisory tenure on April 30, 2025 [1] - Rafael has been a board member since September 2013, served as Audit Committee chair from March 2016 to May 2024, and acted as Interim CFO from May 31, 2024, to December 16, 2024 [1][2] - Autodesk's president and CEO, Andrew Anagnost, praised Rafael for her significant contributions and leadership during a period of growth for the company [2] Company Overview - Autodesk is a trusted partner for designers, engineers, builders, and creators, providing technology to design and make various products, including buildings, vehicles, and entertainment [3] - The company's Design and Make Platform leverages data to enhance insights and automate processes, empowering customers to achieve better outcomes for their businesses and the environment [3]

Core Viewpoint - Autodesk is achieving strong business and financial results, indicating effective strategy implementation and commitment to shareholder value [1][5]. Financial Performance - FY 2025 revenue reached $6.1 billion, reflecting a 16% increase since FY 2019 and a 12% year-over-year growth [5]. - Non-GAAP operating margins improved by over 2,400 basis points since FY 2019, with expectations of an additional 200 to 300 basis points margin expansion in FY 2026 [5]. - Free cash flow increased from $1.3 billion in FY 2024 to $1.6 billion in FY 2025, marking a 22% growth, with a target of $2.075 billion to $2.175 billion for FY 2026 [5]. - The company plans to repurchase $1.1 billion to $1.2 billion of stock in FY 2026, representing a 30% to 40% increase over FY 2025 [5]. Shareholder Engagement - Autodesk has engaged with investors representing over 50% of its outstanding shares, maintaining a commitment to constructive dialogue despite challenges posed by Starboard Value LP [3][6]. - The company expressed concerns regarding Starboard's nomination approach but remains open to reviewing their nominees [4]. Strategic Initiatives - Autodesk has completed the launch of a new go-to-market approach in FY 2025 and is currently in the optimization phase, expecting continued growth and margin expansion [5].

Core Viewpoint - Autodesk is committed to acting in the best interests of its company and shareholders, highlighting strong financial results and strategic initiatives aimed at generating long-term value [1] Financial Performance - Autodesk achieved a non-GAAP operating margin of approximately 39% in FY 2025, an increase of over 2,400 basis points since FY 2019 and 300 basis points since FY 2023, reaching its target a year ahead of schedule [2] - The company has implemented a new go-to-market approach and is currently in the optimization phase, focusing on driving growth and expanding operating margins [2] Board Governance - Autodesk has appointed five new independent directors in the past six years, including two recent appointments in December 2024, demonstrating a commitment to board refreshment and strong corporate governance [3][4] - The board consists of a majority of independent directors with extensive industry expertise and operational experience [3] Engagement with Starboard - Autodesk has engaged constructively with Starboard Value LP over the past year, inviting them to present ideas to the board and offering participation in the director nomination process, which Starboard declined [5] - If Starboard proceeds with its nomination, Autodesk's Corporate Governance Committee will review the candidates as part of the regular evaluation process [6]

Core Insights - Autodesk (NASDAQ: ADSK) has experienced significant stock volatility but has shown strong performance, with a stock increase of approximately 50% since the start of 2023 [1] - The stock has increased by about 7% since a previous Buy recommendation in June 2024, still outperforming the market [1] Company Performance - The company has consistently beaten the market through a portfolio focused on tech-related securities [1] Analyst Perspective - The analysis emphasizes growth opportunities in various technology sectors, driven by current and future trends [1]