Autodesk (ADSK) Reports Better-Than-Expected Earnings and Guidance Increase According to Baird

Core Insights - Autodesk Inc. is recognized as a highly profitable tech stock, with Baird raising its price target to $377 from $367 while maintaining an Outperform rating following strong earnings results [1] Financial Performance - Autodesk's revenue for FQ3 2026 increased by 18% year-over-year to $1.85 billion, with non-GAAP EPS reported at $2.67 [2] - Billings rose by 21% to $1.85 billion, and free cash flow surged by 116% year-over-year, reaching $430 million [2] - The Architecture, Engineering, Construction, and Operations (AECO) segment experienced a robust growth of 23%, totaling $921 million [2] Strategic Developments - Autodesk is undergoing a transformation in enterprise software, enhancing its offerings with cloud-based platforms and AI capabilities [3] - The Autodesk Construction Cloud is gaining traction, evidenced by significant customer migrations and increased project penetration [3] - The Fusion platform is also showing strong growth, characterized by higher extension attached rates and increased average sales prices [3] Revenue Visibility - Remaining Performance Obligations (RPO) grew by 20% year-over-year to $7.4 billion, indicating strong revenue visibility [3] - For the full fiscal year 2026, Autodesk projects revenue between $7.15 billion and $7.165 billion, billings between $7.465 billion and $7.525 billion, and non-GAAP EPS between $10.18 and $10.25 [3]