Market Overview - U.S. markets closed higher, with the Nasdaq up 0.67% to 23,025.59, S&P 500 advancing 0.9% to 6,765.88, and Dow Jones Industrial Average climbing 1.43% to 47,112.45 [1] Dell Technologies - Dell reported third-quarter revenue of $27.01 billion, slightly below estimates, while adjusted earnings rose to $2.59 per share, beating expectations [2] - Revenue grew 11% year-over-year, driven by a 37% increase in servers and networking to $10.1 billion, while storage and consumer segments declined [2] - The company highlighted record AI server orders of $12.3 billion for the quarter and raised its fourth-quarter revenue outlook to up to $32 billion, with full-year revenue projected at $111.2–$112.2 billion [3] Kohl's - Kohl's appointed interim chief Michael Bender as permanent CEO, marking its third leadership change in three years [4] - The company reported third-quarter net sales of $3.4 billion, down 2.8% year-over-year, with comparable sales falling 1.7% and EPS at $0.07 [5] - Kohl's raised its full-year outlook, noting a stronger cash flow of $124 million and a 5% reduction in inventory [5] Zscaler - Zscaler's stock rose 3.35% to $289.73, but dipped 7.99% to $267 in after-hours trading [6] - The company beat first-quarter expectations with revenue of $788.1 million and EPS of 96 cents, while deferred revenue rose 32% to $2.35 billion [6] Workday - Workday's stock increased by 3.11% to $233.69, but slipped nearly 6.2% to $219.25 in after-hours trading [7] - The company beat third-quarter estimates with revenue of $2.43 billion and EPS of $2.32, supported by strong demand in its subscription business [8] - Subscription revenue rose 14.6% to $2.24 billion, and the 12-month backlog grew 17.6% to $8.21 billion [8] Autodesk - Autodesk shares climbed 1.58% to $294.43, jumping 6.14% to $312.50 in extended trading [9] - The company reported third-quarter revenue up 18% to $1.85 billion and adjusted EPS rising to $2.67, both ahead of expectations [9] - Autodesk lifted full-year earnings guidance to $10.18–$10.25 per share and projected fourth-quarter revenue of up to $1.92 billion [10]

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Core Insights - Autodesk reported $1.85 billion in revenue for the quarter ended October 2025, marking an 18% year-over-year increase and an EPS of $2.67 compared to $2.17 a year ago, exceeding both revenue and EPS estimates [1] - The revenue surprise was +2.67% over the Zacks Consensus Estimate of $1.8 billion, while the EPS surprise was +7.23% over the consensus estimate of $2.49 [1] Financial Performance Metrics - Billings reached $1.86 billion, surpassing the average estimate of $1.84 billion [4] - Net Revenue from Maintenance was $8 million, below the average estimate of $8.95 million, reflecting an 11.1% year-over-year decline [4] - Net Revenue from Other sources was $111 million, exceeding the estimated $103.57 million, with a 6.7% year-over-year increase [4] - Net Revenue from Subscription services was $1.73 billion, above the estimated $1.69 billion, showing a 19% year-over-year growth [4] - Total Subscription and Maintenance Revenue was $1.74 billion, exceeding the average estimate of $1.7 billion, representing an 18.8% year-over-year increase [4] Product Family Performance - Net Revenue from Media and Entertainment (M&E) was $86 million, below the average estimate of $102.45 million, with a 3.6% year-over-year increase [4] - Net Revenue from Other product families was $33 million, below the average estimate of $40.6 million, reflecting a 6.5% year-over-year increase [4] - Net Revenue from Architecture, Engineering, Construction and Operations (AECO) was $921 million, exceeding the average estimate of $877.99 million, with a 22.6% year-over-year increase [4] - Net Revenue from Manufacturing (MFG) was $355 million, slightly above the average estimate of $348.82 million, showing a 15.6% year-over-year increase [4] - Net Revenue from AutoCAD and AutoCAD LT was $458 million, surpassing the average estimate of $425.22 million, with a 15.1% year-over-year increase [4]

Core Viewpoint - Autodesk reported quarterly earnings of $2.67 per share, exceeding the Zacks Consensus Estimate of $2.49 per share, and showing an increase from $2.17 per share a year ago, indicating a positive earnings surprise of +7.23% [1][2] Financial Performance - The company achieved revenues of $1.85 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.67%, and up from $1.57 billion in the same quarter last year [2] - Over the last four quarters, Autodesk has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Autodesk shares have declined approximately 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 14% [3] - The future performance of Autodesk's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.52, with expected revenues of $1.85 billion, and for the current fiscal year, the EPS estimate is $9.92 on revenues of $7.06 billion [7] Industry Context - The Internet - Software industry, to which Autodesk belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

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][9] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9][10] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 basis points and 120 basis points [10][14] - Free cash flow for Q3 was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10][14] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers, infrastructure, and industrial buildings [8][9] - The Autodesk Store and billing linearity during the quarter were stronger than expected, contributing to overall revenue growth [8][9] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) of $7.4 billion and current RPO of $4.8 billion both grew 20%, benefiting from the new transaction model [9][10] - The macroeconomic environment appears broadly stable, but uncertainty remains elevated [12][14] Company Strategy and Development Direction - The company is focused on enhancing products with cloud-based platforms and capabilities, redefining its business model and go-to-market strategies [5][6] - Autodesk aims to capture shared value through subscription, consumption, and outcome-based business models that blend human and machine capabilities [6][22] - The strategy includes building a vibrant third-party ecosystem to enhance solution value and efficiency [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value being created for customers and shareholders, despite geopolitical and macroeconomic uncertainties [5][6] - The company raised its full-year guidance for billings and revenue, reflecting current business momentum [13][14] - Management acknowledged potential disruptions in the sales and marketing optimization plan but remains focused on controllable factors driving revenue and margins [12][14] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [14] - The transition to annual billing for most multi-year contracts is expected to significantly diminish tailwinds next year [10][12] Q&A Session Summary Question: Discussion on seats versus consumption AI monetization - Management highlighted the capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][28] Question: Insights on 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 [30][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 the Autodesk Construction Cloud [35][37] Question: PLM market opportunities - Management stated that many mid-market customers lack strong data management solutions and that Autodesk aims to provide them with modern, SaaS-based platforms [39][40] Question: Customer migration and packaging strategies - Management discussed efforts to ensure customers are not left behind during transitions and the importance of seamless integration between existing and new products [44][46] Question: Trends in usage telemetry - Management confirmed that momentum in Q3 was consistent with previous quarters, with no new emerging trends to highlight [48] Question: Billings growth mechanics - Management clarified that there was no unusual M&A activity affecting growth rates and attributed outperformance to strong execution and favorable macro conditions [51][62] Question: Customer spending plans for 2026 - Management reported that customers are maintaining their spending patterns and investing in digital infrastructure [58][59] Question: Fiscal 2027 growth expectations - Management emphasized the importance of considering macro risks and the performance of the underlying business when guiding for fiscal 2027 [84]

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 [9][10] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [10] - 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 [11][12] - Free cash flow for Q3 was $430 million, benefiting from earlier timing of billings and lower cash tax payments [11] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers, infrastructure, and industrial buildings [9] - The Autodesk Store and billing linearity during the quarter were stronger than expected, contributing to overall revenue growth [9] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) of $7.4 billion and current RPO of $4.8 billion both grew 20%, benefiting from the new transaction model [10] - The macroeconomic environment appears broadly stable, but uncertainty remains elevated [13] Company Strategy and Development Direction - The company is focused on the convergence of design and make in the cloud, leveraging AI and platform capabilities to enhance customer value [17][18] - Autodesk is building a vibrant third-party ecosystem to enhance its solutions and create new monetization opportunities [7][19] - The strategy includes redefining business models and go-to-market approaches to capture shared value through subscription and consumption-based models [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value being created for customers and shareholders, despite geopolitical and macroeconomic uncertainties [5][6] - The company raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [14][15] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [15] - The transition to annual billing for most multi-year contracts is expected to significantly diminish tailwinds next year [11][14] 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 [28][30] 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 [32] 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 the Autodesk Construction Cloud [36][39] Question: PLM market opportunities - Management stated that many mid-market customers lack strong data management solutions and Autodesk aims to provide them with modern, cloud-based platforms [41][42] Question: Customer migration and packaging - Management discussed efforts to ensure customers are not left behind during transitions and emphasized the importance of seamless integration between existing and new products [47][48] Question: AI capabilities and retention - Management confirmed that AI-driven capabilities like auto-constraints are enhancing customer retention and creating opportunities for incremental monetization [68][70] Question: Margin expansion drivers - Management identified go-to-market optimization and operating leverage as key levers for achieving margin targets [72][73]

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]