Autodesk Reveals Bold Plans To Boost Profits

Core Insights - Autodesk is pivoting towards maximizing profitability and leveraging AI-driven monetization, indicating a strategic evolution of its business model [1] - The company aims for long-term efficiency while balancing sustainable growth with aggressive financial targets [1] Strategic Focus - Autodesk's strategy includes expanding AI-driven monetization and enhancing its position in infrastructure and operations software, with a goal of achieving 41% EBIT margins by 2029 [2] - The company is committed to maintaining growth alongside its focus on efficiency and profitability, reflecting ambition in a changing market [3] Financial Projections - Piper Sandler forecasts Autodesk's fiscal year 2026 revenue at $7.05 billion and EPS at $9.89, increasing to $7.78 billion and $11.32 in fiscal year 2027 [7] - Free cash flow margins are expected to approach 36.1% by 2029, with a base-case price forecast of $373, suggesting a 19% upside, and a bull-case scenario indicating potential upside to $508 [7] Revenue Composition - Currently, 17% of Autodesk's revenue is consumption-driven, with new API monetization initiatives anticipated to accelerate this mix [4] - The company is preparing for a future where design work increasingly shifts from human to machine hours, which may lower gross margins but is expected to generate incremental gross profit [5] Market Positioning - Autodesk is expanding its focus beyond traditional vertical construction into Infrastructure, Water, and Operations, indicating a competitive stance against Bentley Systems, Inc. [5][6] - The company plans to invest both organically and inorganically in these segments, following a multi-year strategy similar to that of Autodesk Construction Cloud [6]