Core Viewpoint - Autodesk is set to report its first-quarter fiscal 2026 results on May 22, following a strong fourth-quarter performance where revenues grew 12% to $1.64 billion and non-GAAP operating margin reached 37.1% [1][2]. Financial Performance - The company expects first-quarter fiscal 2026 revenues to be between $1.60 billion and $1.61 billion, with non-GAAP EPS projected in the range of $2.14 to $2.17, indicating modest sequential growth [2]. - The Zacks Consensus Estimate for revenues is $1.61 billion, reflecting a year-over-year growth of 13.39% [2]. - The Zacks Consensus Estimate for EPS is $2.14, unchanged over the past 60 days, indicating a year-over-year increase of 14.44% [3]. Recent Developments - Autodesk's fourth-quarter results exceeded expectations, with an earnings surprise of 7.51%, and the company has beaten the Zacks Consensus Estimate in each of the last four quarters, averaging a surprise of 5.73% [3]. - The company is undergoing a restructuring that involves approximately 9% of its workforce (about 1,350 employees), which may cause short-term disruptions despite potential long-term benefits [2]. Market Factors - Several factors may influence the upcoming fiscal first-quarter results, including the optimization of Autodesk's go-to-market approach, macroeconomic uncertainty affecting customer spending, and a transition in the company's Chief Revenue Officer [5]. - Autodesk is experiencing strong momentum in its Construction business, adding nearly 400 new logos last quarter, and reallocating resources to focus on cloud, platform, and AI initiatives [6]. Margin Outlook - The underlying non-GAAP operating margin is expected to reach 39-40% for fiscal 2026, although this should be weighed against moderating top-line growth [7]. - Management plans to provide more details about future margin expansion during an analyst day scheduled for the third quarter [7]. Investment Considerations - Given the mixed signals, it may be prudent for investors to maintain current positions while awaiting clarity on how effectively Autodesk navigates its organizational changes and executes its optimization strategy [8]. - According to the Zacks model, Autodesk currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating that the odds of an earnings beat are not favorable at this time [9].

Group 1: Microsoft - Microsoft has strong fundamentals and a powerful brand, making it difficult for competitors to gain market share [4] - The company generated over $270 billion in sales in the trailing 12 months, with profits nearing $97 billion, resulting in a profit margin of 36% [7] - Microsoft is focusing on cloud and AI technologies to enhance growth prospects, as stated by CEO Satya Nadella [6] Group 2: Uber Technologies - Uber is an asset-light business, relying on its app to connect drivers and riders, which allows for healthy profit margins [9] - The company reported a net income exceeding $12 billion, approximately 27% of its total revenue of $45 billion [10] - Uber has partnered with Waymo for the rollout of self-driving cars, which could enhance its market position rather than detract from it [11] Group 3: Enbridge - Enbridge is recognized for its consistency and reliability in the energy sector, aligning with Buffett's investment preferences [12] - The company has met its financial guidance for 19 consecutive years, providing visibility into its earnings through long-term contracts [13] - Enbridge projects 4% to 6% growth in adjusted earnings per share over the next few years, supporting its long history of dividend increases [14]

Group 1 - Microsoft is laying off approximately 6,000 employees, which is about 3% of its workforce, to streamline management layers [1] - This layoff is the largest since 2023, when the company cut 10,000 roles, and follows earlier performance-based cuts in January [2] - The layoffs will impact employees across all levels, teams, and geographies [1] Group 2 - Microsoft plans to continue investing in capital expenditures through fiscal year 2026, driven by revenue gains from cloud and AI offerings [2] - CFO Amy Hood emphasized that investments and focused execution will help the company lead in cloud and AI opportunities [3] Group 3 - In January 2023, Microsoft announced layoffs of 10,000 workers, about 5% of its workforce, due to significant changes in customer spending [5] - The company had previously cut about 1% of its staff in 2022 as part of broader cost-reduction efforts, including a hiring freeze and reduced spending on travel and events [5] - The consulting division implemented a hiring pause and instructed employees to minimize travel and cut marketing expenses by 35% [4]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,130,000,000, an increase of 4% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][22] - Non-GAAP earnings per share (EPS) was $1.78, above the guidance range, primarily due to a lower than expected non-GAAP effective tax rate [6][24] - The twelve-month backlog increased by 3.5% year-over-year to $4,170,000,000, indicating strong demand and a healthy pipeline [6][29] Business Line Data and Key Metrics Changes - Revenue from managed services reached a record $747,000,000, up 3.7% from the previous year, accounting for 66% of total revenue [24] - The company reported a non-GAAP operating margin of 21.3%, which improved by 10 basis points sequentially and by 290 basis points year-over-year [23][24] Market Data and Key Metrics Changes - North America showed slight sequential growth and a 1.4% increase year-over-year in pro forma constant currency [22] - Europe rebounded from previous weaknesses, benefiting from new deal activities and contributions from acquisitions [22] - Southeast Asia experienced healthy customer activity, while Latin America showed mixed trends, leading to a sequential decline in the Rest of the World [22] Company Strategy and Development Direction - The company is focused on accelerating the adoption of GenAI in the telecom industry, collaborating with NVIDIA to enhance AI capabilities [16][17] - Amdocs aims to deliver double-digit growth in cloud-related revenue for fiscal 2025, supported by strong sales momentum and strategic partnerships [10][30] - The multi-pillar growth strategy emphasizes innovation in cloud, digital transformation, and network automation to meet customer needs [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted rising global macroeconomic uncertainty but believes Amdocs is well-positioned to navigate the environment due to its unique business model [18][19] - The company reiterated a revenue growth outlook of 2.7% for fiscal 2025, with a tightened range of 1.7% to 3.7% [19][30] - Amdocs expects to achieve double-digit total shareholder returns for the fifth consecutive year, supported by improved profitability and cash conversion [31] Other Important Information - The company repurchased $135,000,000 of its own shares and authorized a new share repurchase plan of $1,000,000,000 [27][28] - Free cash flow for Q2 was $181,000,000, with a target of $710,000,000 to $730,000,000 for fiscal 2025 [28] Q&A Session Summary Question: Focus on AI contributions to revenue growth - Management indicated that GenAI activities are closely linked to data, with positive signs of proof of concepts maturing into real deals [34][36] Question: Customer spending behavior - Management reported no significant changes in customer spending behavior despite rising macroeconomic concerns [46][47] Question: Fluctuations in accounts receivable - Management explained that fluctuations in accounts receivable are normal due to the nature of project milestones and invoicing cycles [48][50] Question: Progress on AI offerings and contracting - Management noted good progress in data-related activities supporting GenAI, with several customers making significant strides [53][54]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,130,000,000, an increase of 4% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][21] - Non-GAAP earnings per share (EPS) was $1.78, above the guidance range, primarily due to a lower than expected non-GAAP effective tax rate [6][24] - The twelve-month backlog increased by 3.5% year-over-year to $4,170,000,000, supported by a strong pipeline [6][29] Business Line Data and Key Metrics Changes - Revenue from managed services reached a record $747,000,000, up 3.7% from a year ago, accounting for 66% of total revenue [24] - The company reported a non-GAAP operating margin of 21.3%, improving by 10 basis points sequentially and by 290 basis points year-over-year [23] Market Data and Key Metrics Changes - North America saw a slight sequential increase and a 1.4% year-over-year increase in pro forma constant currency [22] - Europe rebounded from previous weaknesses, benefiting from new deal activities and contributions from acquisitions [22] Company Strategy and Development Direction - The company is focused on accelerating the telco industry's adoption of GenAI and enhancing cloud services, with expectations of double-digit growth in cloud-related revenue for fiscal 2025 [16][30] - Amdocs is collaborating with Microsoft for cloud migrations and has secured significant projects in various regions, including the Philippines and Japan [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted rising global macroeconomic uncertainty but believes the company is well-positioned due to its unique business model [18] - The company reiterated a revenue growth outlook of 2.7% for fiscal 2025, with a tightened range of 1.7% to 3.7% [19][30] Other Important Information - The company repurchased $135,000,000 of its own shares and authorized a new share repurchase plan of $1,000,000,000 [27][28] - Free cash flow before restructuring payments was $181,000,000, with a target of $710,000,000 to $730,000,000 for fiscal 2025 [28] Q&A Session Summary Question: Focus on AI contributions to revenue growth and collaboration with NVIDIA - Management indicated that GenAI activities are closely linked to data, with ongoing progress in AI-related projects contributing to revenue growth [34][35] Question: Customer spending behavior changes - Management reported no significant changes in customer spending behavior despite rising macroeconomic concerns [45][46] Question: Fluctuations in accounts receivable and unbilled balances - Management explained that fluctuations are normal due to the nature of various projects and milestones, and they do not guide for these balances due to their unpredictability [47][49] Question: Progress on AI offerings and contracting - Management noted good progress in data-related activities supporting GenAI, with several customers making significant strides, although specific names could not be disclosed [52][54]

Intapp (INTA) Q3 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 and welcome to the NTAP Fiscal Third Quarter twenty twenty five Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. Now it's my pleasure to turn the call over to the Senior Vice President of Investor Relations, David Trone. The floor is yours. Speaker1 Thank you. Welcome to NTAP's fisca ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $2,005 million, up 27.6% year-over-year, exceeding guidance of $1,930 million to $1,970 million [20][21] - Non-GAAP gross margin was 64.1%, slightly down from 64.2% in the previous quarter but above guidance of approximately 63% [21][24] - Net income for the quarter was $826.2 million, representing 41.2% of revenue, with diluted earnings per share of $0.65, up 30% from the prior year [24] Business Line Data and Key Metrics Changes - Software and service renewals contributed approximately 17.1% of revenue [7] - International revenue accounted for 20% of total revenue, up from 16% in the last quarter [20] - Operating expenses were $327.4 million, or 16.3% of revenue, down slightly from the previous quarter [21] Market Data and Key Metrics Changes - The Americas contributed 80% of international revenue, indicating strong performance in this region [8] - The company is experiencing momentum in the cloud and AI sectors, with a goal of $750 million in front-end AI revenue by 2025 [8][9] Company Strategy and Development Direction - The company is focusing on redefining data-driven networking and expanding its presence in AI, cloud, and campus enterprises [8][9] - Arista aims to achieve $10 billion in revenue sooner than previously expected, driven by strong customer demand and operational discipline [18][30] - The company is also investing in expanding its facilities in Santa Clara, with an expected capital expenditure of approximately $100 million for this project [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand from cloud enterprise and providers despite macroeconomic uncertainties [30][31] - The company is taking a cautious approach to guidance due to potential tariff impacts and is committed to updating forecasts as conditions evolve [30][31] - Management noted that they do not currently see signs of a recession and are experiencing strong demand across various sectors [99][100] Other Important Information - The company repurchased $787.1 million of its common stock during the quarter, marking the largest repurchase in its history [24][25] - Deferred revenue balance increased to $3.1 billion, primarily linked to service contracts [27] Q&A Session Summary Question: Impact of tariffs on revenue - Management indicated that they are absorbing some tariffs and expect to manage the impact on gross margins, but the situation remains uncertain [37][40] Question: Progress of AI customers - All four key AI customers are progressing well, with two expected to reach 50,000 GPU deployments by year-end [46][47] Question: Seasonal strength in Q2 - Some pull forwards in orders were noted due to tariff concerns, but not significantly material [52] Question: Product deferred revenue balance - The increase in deferred revenue is tied to new product introductions and customer interest in AI-related products [55][57] Question: Visibility on customer spending - Management expressed confidence in 2026 based on current execution and customer visibility, despite uncertainties around tariffs [70][71] Question: Traditional cloud demand - There is a balanced demand between AI and traditional cloud services, with no significant pivot away from cloud spending [115][116]

Core Viewpoint - Microsoft is committed to ongoing investments in capital expenditures, particularly in cloud and AI, to maintain its leadership in these sectors and drive revenue growth [1][2]. Group 1: Revenue Growth - Microsoft's overall revenue increased by 13% year over year, with the Intelligent Cloud business leading this growth at 21% [2]. - The Productivity and Business Processes segment grew by 10%, while More Personal Computing saw a 6% increase [2]. Group 2: Cloud and AI Strategy - The company emphasizes that cloud and AI are critical for businesses to enhance output, reduce costs, and accelerate growth [3]. - Microsoft opened data centers in 10 countries across four continents during the recent quarter, indicating a significant expansion of its infrastructure [3]. Group 3: AI Innovations - Microsoft is launching AI agents tailored for various roles and business processes, including a Sales Agent and a Customer Service Agent [4]. - In the last quarter, customers created over 1 million custom agents across SharePoint and Copilot Studio, marking a 130% increase quarter over quarter [4]. Group 4: Future Expectations - Microsoft anticipates its Intelligent Cloud business will achieve revenue growth of 20% to 22% in constant currency for the current quarter [5]. - The company acknowledges potential AI capacity constraints beyond June due to demand outpacing the planned data center capacity [6].

Core Insights - IBM has established a new Microsoft Practice within IBM Consulting to enhance business outcomes for clients undergoing AI, cloud, and security transformations [1][2] - The new practice integrates IBM's industry expertise with Microsoft's technology portfolio, including Copilot, Azure OpenAI, and Azure Cloud, to simplify digital transformation for businesses [2][4] Company Developments - The Microsoft Practice will leverage a team of over 33,000 Microsoft-certified professionals across various markets, aiming to deliver tailored solutions for clients [3] - This initiative is expected to foster innovation and operational excellence, helping businesses unlock new growth opportunities [5] Client Impact - The practice will focus on developing industry-specific solutions for sectors such as retail, government, and financial services, building on existing offerings like IBM Copilot Runway [5][6] - IBM has successfully completed over 14,000 Microsoft projects globally, demonstrating its capability in implementing Microsoft generative AI solutions [6] Technology Integration - The Microsoft Practice will incorporate Microsoft's technology ecosystem into IBM Consulting's AI-powered delivery platform, enhancing flexibility and governance for clients [4][7] - More than 30 IBM Software offerings are already running on Microsoft Azure, facilitating easy integration for automation and AI solutions [7]

Core Viewpoint - Atlassian's stock has declined 28.3% over the past month, significantly underperforming compared to the broader market and its industry peers, raising questions about whether to hold or sell the stock. Despite short-term challenges, the long-term growth potential remains strong, suggesting that holding the stock may be advisable [1]. Group 1: Stock Performance - Atlassian shares have dropped 28.3% in the last month, while the Zacks Computer Technology sector, Zacks Internet Software industry, and S&P 500 have seen declines of 12.4%, 17.7%, and 7.9%, respectively [1]. - The company is facing real near-term headwinds, but its long-term growth story is still intact, making a case for holding the stock [1]. Group 2: Factors Contributing to Underperformance - Broader market weakness and fears of increased tariffs affecting data center services and networking equipment costs have contributed to Atlassian's stock decline, impacting its margins [3][4]. - The company has experienced a slowdown in sales growth post-pandemic, with revenue growth rates dropping from mid-30s percentage range in fiscal 2022 to low-to-mid 20s percentage range in the past two fiscal years [5]. Group 3: Competitive Landscape - Atlassian faces intense competition in the collaboration and workflow software market from major players like Microsoft, Salesforce, and Monday.com, which may pressure its pricing and margins [6][8]. - The company’s products, such as JIRA and Confluence, compete directly with offerings from industry leaders, which could necessitate increased investment in R&D [7][8]. Group 4: Growth Opportunities - Atlassian is integrating AI across its product suite, leading to a 40% year-over-year increase in sales for its Premium and Enterprise editions, indicating strong customer adoption of higher-value AI products [10]. - The company is focused on migrating customers to a subscription-based cloud model, which generates stable recurring revenues and is nearing FedRAMP Moderate Authorization to attract U.S. government agencies [11]. Group 5: Conclusion - Despite facing regulatory, macroeconomic, and competitive challenges, Atlassian is enhancing its product portfolio and implementing AI and cloud strategies to drive future growth, suggesting that investors should consider retaining the stock for now [12].