Core Insights - Autodesk, Inc. reported strong third-quarter results for fiscal 2026, with revenue increasing 18% year-over-year to $1.85 billion, exceeding estimates of $1.81 billion [1] - The company achieved adjusted earnings of $2.67 per share, surpassing expectations of $2.50 [2] - Autodesk raised its full-year guidance, forecasting revenue between $7.15 billion and $7.17 billion, and adjusted earnings per share between $10.18 and $10.25, above prior estimates [3] Financial Performance - Total billings grew 21%, slightly ahead of consensus, indicating strong demand in the Architecture, Engineering, and Construction (AEC) sector [4] - Operating margin improved to 38%, driven by cost discipline and higher revenue, while adjusted EPS of $2.67 beat both analyst and market expectations [5] - Free cash flow reached $430 million, with the company repurchasing 1.2 million shares, indicating strong cash generation [7] Business Segments - AEC revenue exceeded analyst forecasts, with solid growth in AutoCAD/LT and Manufacturing segments, while the Media & Entertainment segment remained soft [6] - The Fusion 360 platform is gaining traction with strong adoption of new AI features [6] Geographic Performance - The U.S. and Europe experienced double-digit growth in constant currency, while Asia showed mid-teens growth [8] - Direct sales now account for 66% of total revenue as the new transaction model is implemented globally [8] Analyst Perspectives - Analysts from Rosenblatt and RBC Capital Markets maintained positive ratings on Autodesk, with price targets raised to $375 and $380, respectively [9] - Analysts noted broad-based momentum across the business and highlighted the effectiveness of the transaction model in enhancing customer relationships and operational efficiency [10][12] Future Outlook - For the fourth quarter, Autodesk expects revenue between $1.90 billion and $1.92 billion, with adjusted EPS between $2.59 and $2.67 [3] - Analysts project fiscal 2027 revenue growth of 9%, below consensus expectations of 11%, but see potential upside in early guidance [14]