Autodesk, Inc. (NASDAQ: ADSK) has reported higher quarterly revenue and earnings so far in FY25, leveraging the ongoing digitization across industries, and is expected to maintain that trend when it reports Q4 results next week. The company has raised its full-year guidance for revenue and earnings, despite economic uncertainties and geopolitical tensions.
After reversing most of their early gains this year, the design software maker’s shares ended the last trading session close to the levels from four months ago. The stock has grown about 14% in the past twelve months. Trading well below the record highs of mid-2021, the stock looks reasonably valued. Analysts, in general, are optimistic about ADSK’s prospects, and the majority of them recommend buying the stock.
Autodesk’s financial results for the quarter ended in January 2025 will be out on Thursday, February 27, at 4:00 pm ET. As per analysts’ consensus estimates, adjusted profit and revenue for the December quarter are expected to be $2.14 per share and $1.63 billion respectively. In the corresponding quarter of fiscal 2024, the company earned $2.09 per share on revenues of $1.47 billion. Interestingly, quarterly revenues and earnings have consistently beaten or matched estimates for about five years.
In the third quarter of 2025, net income increased to $ 275 million or $1.27 per share from $241 million or $1.12 per share in the same period last year. Adjusted earnings were $2.17 per share in the October quarter, up 5% year-over-year. The bottom line benefited from an 11% annual increase in revenues to $1.57 billion in Q3. Revenue rose in all three geographical segments. The Subscription business, which represents more than 90% of total revenues, grew 11%.
Buoyed by the positive outcome, the management raised the midpoint of its FY25 revenue guidance to the range of $6.12 billion to $6.13 billion. It also increased the midpoint of margin guidance by 25 basis points – the revised unadjusted margin guidance range is 21.5% to 22%, and the guidance for adjusted margin is 35.5% to 36%.
“We continue to see good momentum in AEC, particularly in infrastructure and construction, fueled by customers consolidating onto our solutions to connect and optimize previously siloed workflows through the cloud. The cornerstone of that growing interest is our comprehensive end-to-end solutions in completing designs, preconstruction, field execution through handover and into operations. This breadth of connected capability enables us to extend our footprint further into infrastructure and construction and also expand our reach into the mid-market,” Autodesk’s CEO Andrew Anagnost said at the Q3 earnings call.
Of late, the relevance of Autodesk’s products and solutions has grown significantly as businesses aggressively digitize their workflows across industries, especially architecture, engineering, construction, and manufacturing. While the company keeps investing with a focus on enhancing its cloud and AI capabilities, it faces competition from rival design maker Adobe in certain areas of the business.
On Thursday, Autodesk’s stock opened slightly below $300 and traded lower throughout the session. It has gained about 16% in the past six months.
The post Autodesk set to report Q4 earnings on Feb. 27. Here’s what to expect first appeared on AlphaStreet.
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