Adobe and Autodesk: AI Integration Drives Growth Amid Fierce Competition

Autodesk's SWOT analysis: stock poised for growth amid AI integration and margin expansion By Investing.com

Autodesk, Inc. (NASDAQ:ADSK), a leading provider of design and engineering software solutions, is navigating a period of transition and opportunity as it seeks to capitalize on emerging technologies and improve operational efficiency. The company's recent performance and strategic initiatives have drawn significant attention from investors and analysts, with a focus on its potential for growth and margin expansion in the coming years. Autodesk's recent financial results have been encouraging, with the company reporting solid growth in key metrics. Analysts expect the company to post revenue of approximately $1.42 billion for the first quarter of fiscal year 2025, representing a year-over-year growth of around 12%. Earnings per share (EPS) for the same period are estimated at $1.87. Looking ahead, guidance for the second quarter of fiscal year 2025 suggests revenue of $1.48 billion and EPS of about $2.01, both slightly above analyst estimates. For the full fiscal year 2025, Autodesk has maintained its billings and free cash flow guidance while increasing its EPS guidance to approximately $8.10 at the midpoint. Autodesk is in the midst of a significant transition in its business model, moving towards a subscription-based approach. This shift has shown early signs of success, with the company reporting healthy customer backlogs and improved recurring revenue streams. The transition is expected to provide more stable and predictable revenue over time. A key focus for Autodesk has been the integration of artificial intelligence (AI) and data across its platform. This initiative aims to transform customer workflows and enhance the value proposition of its software solutions. The company's efforts in this area were highlighted at Autodesk University 2024, where the potential impact of AI integration on customer productivity and innovation was showcased. Autodesk is also positioning itself to capitalize on growth opportunities in the construction and infrastructure sectors. These industries are increasingly adopting digital solutions, and Autodesk's software offerings are well-suited to meet the evolving needs of professionals in these fields. Autodesk operates in a competitive software industry, but its strong brand and established market position provide a solid foundation for growth. The company's shares are trading at a discount compared to peers, despite strong fundamentals, which some analysts view as an opportunity for potential multiple expansion. The broader market trend towards digital transformation and the increasing importance of data-driven decision-making in design and engineering processes play to Autodesk's strengths. The company's focus on AI integration and its comprehensive suite of software solutions position it well to capitalize on these industry trends. Recent developments in Autodesk's management team and governance structure have attracted investor attention. The company announced the transition of CFO Debbie Clifford to the role of Chief Strategy Officer, signaling a potential shift in strategic focus. Additionally, activist investor Starboard Value has taken a significant stake in the company, calling for improved governance, board changes, and better capital allocation. These developments have led to increased scrutiny of Autodesk's management practices and strategic direction. The company's response to these pressures and its ability to execute on strategic initiatives will be closely watched by investors in the coming months. A key focus for Autodesk and its investors is the potential for margin expansion and improved operational efficiency. The company's current adjusted operating margins stand at approximately 32%, with analysts projecting the potential to exceed 40% in the medium to long term. Management has indicated a goal to achieve GAAP margins "among the best in the industry," which some analysts interpret as approximately 29% by fiscal year 2028, up from the current 22%. This focus on margin improvement is expected to drive earnings growth and potentially lead to a re-rating of the stock. Autodesk, like many technology companies, is not immune to broader economic challenges. Ongoing macroeconomic uncertainties, including potential economic slowdowns or recessions, could impact customer spending on software solutions. This could lead to delayed purchasing decisions or reduced adoption of Autodesk's products, potentially slowing the company's growth trajectory. Additionally, the timing and magnitude of interest rate cuts remain uncertain factors that could affect Autodesk's financial performance and valuation. A prolonged period of high interest rates could impact the company's cost of capital and potentially reduce the attractiveness of growth stocks like Autodesk to investors. While the recent accounting investigation concluded without the need for financial restatements, it has raised questions about Autodesk's past financial practices. The investigation revealed that fiscal year 2023 multi-year upfront billings were higher than usual to meet free cash flow goals, which could lead to concerns about the sustainability of the company's financial performance. Although the immediate impact appears limited, the investigation may have eroded some investor confidence in the short term. The company will need to demonstrate consistent and transparent financial reporting going forward to fully regain trust and alleviate any lingering concerns among investors and analysts. Autodesk's strategic focus on integrating AI and data across its platform has the potential to drive significant long-term value creation. By leveraging AI technologies, the company can enhance the capabilities of its software solutions, improving productivity and innovation for its customers. This could lead to increased customer adoption, higher retention rates, and potentially higher pricing power for Autodesk's products. The integration of AI and data analytics into Autodesk's offerings could also open up new revenue streams and market opportunities. As industries increasingly rely on data-driven decision-making and automated processes, Autodesk's AI-enhanced solutions could become indispensable tools for professionals in design, engineering, and construction fields. Autodesk's focus on margin expansion presents a significant opportunity for improved profitability and shareholder value creation. With current adjusted operating margins around 32% and a target to exceed 40% in the medium to long term, there is substantial room for improvement. The company's transition to a subscription-based model is expected to contribute to margin expansion by providing more predictable revenue streams and potentially reducing customer acquisition costs. Additionally, operational efficiencies and economies of scale as the company grows could further drive margin improvements. If Autodesk can successfully execute on its margin expansion initiatives, it could lead to a "rule of 55+" scenario, with around 10% revenue growth and 40-45% operating margins. This would likely result in significant earnings growth and could drive a re-rating of the stock, potentially leading to substantial returns for investors. This analysis is based on information available up to October 24, 2024, and reflects the views and projections of various financial analysts and institutions regarding Autodesk's stock performance and future prospects. Gain an edge in your investment decisions with InvestingPro's in-depth analysis and exclusive insights on ADSK. Our Pro platform offers fair value estimates, performance predictions, and risk assessments, along with additional tips and expert analysis. Explore ADSK's full potential at InvestingPro. Should you invest in ADSK right now? Consider this first: Investing.com's ProPicks, an AI-driven service trusted by over 130,000 paying members globally, provides easy-to-follow model portfolios designed for wealth accumulation. Curious if ADSK is one of these AI-selected gems? Check out our ProPicks platform to find out and take your investment strategy to the next level. To evaluate ADSK further, use InvestingPro's Fair Value tool for a comprehensive valuation based on various factors. You can also see if ADSK appears on our undervalued or overvalued stock lists. These tools provide a clearer picture of investment opportunities, enabling more informed decisions about where to allocate your funds.

Mizuho maintains Neutral rating on Autodesk stock By Investing.com

Mizuho has reiterated its Neutral rating on Autodesk (NASDAQ:ADSK) with a steady price target of $260.00. The reaffirmation came after Autodesk University 2024, an event that took place this week in San Diego, where Autodesk presented its latest products and innovations, emphasizing cloud and AI technologies. The annual conference, which was well-received by a large user base, focused on new AI-related product releases and features across Autodesk's industry clouds. Autodesk's event highlighted Platform Services as the key to its strategy for connected data and workflows. The company also organized an in-person investor relations event where CTO Raji Arasu and D&M EVP Jeff Kinder addressed attendees, alongside a customer panel. While the discussions with customers and partners indicated a positive response to product adoption, Mizuho noted that there was no significant new information regarding improvements in the broader market demand. The gathering served as a showcase for Autodesk's commitment to integrating cloud and AI into its services, aligning with the company's vision for the future. Despite the absence of any material information that would suggest changes in the macro demand environment, the interactions at the event were reportedly positive concerning the adoption of Autodesk's products. Mizuho's stance on Autodesk remains unchanged following the event, as the analyst firm did not perceive any indicators that would warrant a change in the stock's valuation. The $260.00 price target reflects Mizuho's current assessment of Autodesk's market position and future prospects based on the information shared at Autodesk University 2024. In other recent news, Autodesk showcased new AI/GenAI features at Autodesk University, which sparked significant customer interest despite some uncertainty about implementation. Autodesk reported a 2% increase in revenue and earnings per share of $2.15 for the second quarter, with a free cash flow of $203 million. This positive financial performance is linked to the company's successful transition to an agency model and a direct customer billing transaction model in North America, which is projected to boost its full-year 2025 revenue growth guidance by 11%. Several analyst firms have recently updated their views on Autodesk. Citi maintained a Buy rating, BofA Securities raised the price target to $325, and Oppenheimer kept an Outperform rating with a $300 price target. BMO Capital and DA Davidson maintained neutral ratings, with price targets of $287 and $260 respectively. Following Autodesk's (NASDAQ:ADSK) recent showcase at Autodesk University 2024, InvestingPro data provides additional context to the company's financial position and market performance. Autodesk's market capitalization stands at $62.48 billion, reflecting its significant presence in the software industry. The company's revenue for the last twelve months as of Q2 2025 was $5,805 million, with a notable revenue growth of 11.38% over the same period. Autodesk's focus on cloud and AI technologies aligns with its strong financial performance. The company boasts an impressive gross profit margin of 91.92%, underscoring its efficiency in product development and delivery. This high margin is particularly relevant given Autodesk's emphasis on Platform Services and AI-related product releases discussed at the recent event. InvestingPro Tips highlight that Autodesk has been profitable over the last twelve months, with analysts predicting continued profitability this year. This positive outlook is consistent with the company's strategic initiatives presented at Autodesk University 2024. Additionally, the stock has shown a strong return over the last three months, which may reflect investor confidence in Autodesk's product innovations and market position. For readers interested in a deeper analysis, InvestingPro offers 15 additional tips for Autodesk, providing a comprehensive view of the company's financial health and market performance.

Autodesk shares maintain $300 target, Outperform rating by Oppenheimer By Investing.com

On Thursday, Oppenheimer maintained an Outperform rating with a $300.00 price target on Autodesk (NASDAQ:ADSK), after gaining insights from the company's recent Autodesk University event. At the conference, key Autodesk executives including CTO Raji Arasu and Jeff Kinder, EVP Product Development and Manufacturing Solutions, provided business updates. The firm's long-term strategy focuses on leveraging artificial intelligence (AI) to enhance its product offerings and increase productivity gains, which could widen the gap in value proposition compared to its competitors. During the event, feedback from Autodesk's partners aligned with the company's messaging, particularly about its transaction model. Although market demand is perceived as stable, it remains somewhat lackluster, with cautious optimism prevailing for a potential uptick by the year 2025. Positive remarks were also noted regarding Autodesk Construction Cloud (ACC) and its competitive edge over Procore, suggesting an improvement in Autodesk's market positioning. The analyst from Oppenheimer highlighted that Autodesk's intention to deepen its product portfolio and focus on AI monetization could lead to significant productivity gains. This approach aims to strengthen Autodesk's competitive position in the long run, despite current market conditions that show demand is not as robust as it could be. The stable but tepid demand observed in the market was a recurring theme during discussions at Autodesk University. However, there is an expectation of a more favorable environment in the coming years, with 2025 being mentioned as a year when optimism might translate into stronger demand. In summary, Oppenheimer's reiteration of the Outperform rating and price target for Autodesk reflects a positive outlook on the company's strategic initiatives and product enhancements. The analyst's perspective is backed by recent interactions with Autodesk's partners, customers, and management, which suggest that the company is well-positioned to capitalize on future market opportunities. In other recent news, Autodesk reported a 2% increase in revenue and earnings per share of $2.15 for the second quarter, along with a free cash flow of $203 million. These financial results come alongside Autodesk's successful transition to an agency model and the implementation of a direct customer billing transaction model in North America, leading to a projected 11% increase in its full-year 2025 revenue growth guidance. BMO Capital and DA Davidson maintained their Market Perform and Neutral ratings on Autodesk, respectively, while Baird and KeyBanc Capital Markets reiterated their positive outlooks. HSBC (LON:HSBA) upgraded Autodesk from Hold to Buy, and Goldman Sachs (NYSE:GS) shifted its stance from Sell to Neutral. Autodesk's strategic initiatives to modernize and gain market share in construction and manufacturing, as well as to enhance its artificial intelligence capabilities, were recognized by the analyst firms. However, they noted that it might take time for these initiatives to significantly impact Autodesk's financial estimates. The company's progress towards achieving its fiscal year 2026 operating margin targets of 38-40% ahead of schedule in fiscal year 2025 was also highlighted. These are the recent developments in Autodesk's strategic direction and financial performance. Autodesk's strategic focus on AI and product enhancement aligns well with its current market position, as reflected in recent InvestingPro data. The company boasts a substantial market capitalization of $62.11 billion, indicating its significant presence in the software industry. Autodesk's impressive gross profit margin of 91.92% for the last twelve months as of Q2 2025 underscores its operational efficiency, which could be further bolstered by its AI-driven productivity initiatives. InvestingPro Tips highlight that Autodesk has been profitable over the last twelve months, with analysts predicting continued profitability this year. This financial health supports the company's ability to invest in AI and expand its product portfolio, as discussed at the Autodesk University event. Additionally, the tip noting that 11 analysts have revised their earnings upwards for the upcoming period suggests growing confidence in Autodesk's strategic direction. While the current P/E ratio of 58.6 indicates a high valuation, it may be justified by the company's strong market position and future growth potential, especially considering the anticipated demand uptick by 2025 mentioned in the article. Investors seeking more comprehensive analysis can access 15 additional InvestingPro Tips for Autodesk, providing a deeper understanding of the company's financial health and market performance.

Citi maintains Buy rating on Autodesk stock By Investing.com

The endorsement follows the company's recent showcase of new AI/GenAI features at Autodesk University in San Diego earlier this week. The event provided a platform for discussions on current demand trends, revealing a mix of responses from customers and partners. While some highlighted the adoption of new features and a shift from competitor platforms, others indicated delays in projects and expressed caution due to potential election risks. Autodesk's introduction of AI capabilities has garnered significant interest from customers, although there is some uncertainty on which features to implement first. Additionally, many customers are not yet prepared with the necessary data infrastructure to fully leverage the advanced AI functionalities. Despite these challenges, the feedback suggests that Autodesk is on a positive trajectory with its innovation efforts and is gaining competitive edge. However, the demand environment in the near term remains uncertain. Citi plans to conduct a detailed quarterly reseller survey to acquire a clearer picture of demand trends for Autodesk in the third fiscal quarter. The survey's insights will be crucial in assessing the company's market position and customer adoption rates moving forward. In other recent news, Autodesk reported a 2% increase in revenue and earnings per share of $2.15 for the second quarter, and a free cash flow of $203 million. These results come alongside the company's successful transition to an agency model and the implementation of a direct customer billing transaction model in North America, leading to a projected 11% increase in its full-year 2025 revenue growth guidance. Analyst firms including BofA Securities, Oppenheimer, BMO Capital, DA Davidson, and Baird have recently updated their views on Autodesk. BofA Securities raised Autodesk's price target to $325, while Oppenheimer maintained an Outperform rating with a $300 price target. BMO Capital maintained a Market Perform rating with a steady price target of $287, DA Davidson initiated coverage with a neutral rating and a price target of $260, and Baird reaffirmed an Outperform rating with a price target of $305. Autodesk's recent AI innovations and Citi's bullish stance are further supported by data from InvestingPro. The company's impressive gross profit margin of 91.92% for the last twelve months as of Q2 2025 underscores its strong financial position and ability to invest in cutting-edge technologies like AI. This aligns with one of the InvestingPro Tips, which highlights Autodesk's "impressive gross profit margins." Moreover, Autodesk's revenue growth of 11.38% over the same period indicates steady expansion, potentially driven by the adoption of new features and the shift from competitor platforms mentioned in the article. The company's operating income margin of 23.36% suggests efficient operations, which could provide a buffer as it navigates the uncertain demand environment discussed by Citi. It's worth noting that Autodesk is trading near its 52-week high, with a price that is 99.21% of its peak. This performance, combined with a strong return of 19.67% over the last three months, reflects investor confidence in the company's direction and potential. However, investors should be aware that the stock's RSI suggests it may be in overbought territory, as pointed out by another InvestingPro Tip. For readers interested in a more comprehensive analysis, InvestingPro offers 20 additional tips for Autodesk, providing a deeper understanding of the company's financial health and market position.

Adobe's SWOT analysis: stock poised for AI-driven growth amid fierce competition By Investing.com

Adobe Inc. (NASDAQ:ADBE), a leading software company renowned for its creative and digital marketing solutions, finds itself at a pivotal juncture as it navigates the rapidly evolving landscape of artificial intelligence (AI) and fierce competition in the creative software market. This comprehensive analysis delves into Adobe's recent performance, strategic initiatives, and future prospects, providing investors with a balanced view of the company's potential in an increasingly AI-driven world. Adobe's financial performance in the third quarter of fiscal year 2024 demonstrated the company's resilience and ability to exceed expectations. The company reported non-GAAP earnings per share (EPS) of $4.65, surpassing consensus estimates. Revenue for the quarter reached $5.41 billion, marking an 11% year-over-year increase. The Digital Media segment, which includes Creative Cloud and Document Cloud, maintained its 11% growth rate, while the Digital Experience segment saw an uptick to 10% growth from 9% in the previous quarter. A standout metric from the quarter was the net new Digital Media Annual Recurring Revenue (ARR) of $504 million, which significantly outperformed guidance of approximately $440 million. This strong performance in ARR growth suggests that Adobe's subscription-based model continues to gain traction and that the company is successfully navigating past pricing headwinds that had previously affected creative net new ARR. Despite these positive results, Adobe's stock has experienced some volatility, with a reported 23% decline year-to-date as of June 2024, underperforming compared to broader market indices. This underperformance highlights the challenges and uncertainties facing the company in a rapidly changing technological landscape. At the heart of Adobe's strategy is its commitment to integrating AI capabilities across its product portfolio. The company has made significant strides in this area, with over 100 AI features now available in Creative Cloud, Document Cloud, and Experience Cloud. The introduction of Adobe Firefly, the company's family of creative generative AI models, has been particularly noteworthy. Firefly has shown strong momentum, with reports indicating that it generated 6.5 billion images within a year of its launch. Additionally, over 40% of mobile beta users of Adobe Express are utilizing a generative AI feature, demonstrating the rapid adoption of these new technologies among Adobe's user base. The company is also making moves in the video space, with the public beta of Adobe's Firefly Video Model and Premiere Pro integration called Generative Extend. These innovations, along with enhancements to core products like Photoshop and Illustrator, showcase Adobe's commitment to staying at the forefront of creative technology. While Adobe maintains a strong position in its core markets, the company faces increasing competition from both established players and new entrants leveraging AI technologies. Canva, a user-friendly design platform, has emerged as a significant competitor, particularly in the casual creator segment. Canva's recent acquisition of Affinity and the introduction of its Enterprise SKU signal an intent to compete more directly with Adobe's professional offerings. The partnership between Microsoft (NASDAQ:MSFT) and OpenAI also presents a potential threat, as it could lead to the integration of powerful AI capabilities into Microsoft's suite of productivity tools. This collaboration has raised concerns about the potential impact on Adobe's market share in certain segments. Furthermore, the ongoing New York Times v. Microsoft and OpenAI case adds an element of uncertainty to the AI landscape, potentially affecting how companies like Adobe can develop and deploy their AI models. Despite the challenges, Adobe's future outlook remains generally positive. The company has raised its guidance for fiscal year 2024, now expecting EPS between $18.00 and $18.20, up from the previous range of $17.60 to $18.00. Total revenue for FY2024 is projected to be between $21.40 billion and $21.50 billion, a slight increase from earlier projections. Analysts are particularly focused on Adobe's ability to monetize its AI offerings, especially as the company transitions from widespread adoption to revenue generation. The pricing strategy around generative credits and the integration of Firefly models into core products are seen as key factors that could drive future growth. Adobe's total addressable market (TAM) is expected to grow from approximately $205 billion to $293 billion by 2027, providing ample opportunity for expansion. The company's strong position in creativity and document processing, with over 80% and 20% market share respectively, provides a solid foundation for capitalizing on this growing market. The creative software market is becoming increasingly crowded, with companies like Canva making significant inroads. Canva's user-friendly interface and recent moves to enhance its professional offerings could attract users away from Adobe's more complex tools. Additionally, the Microsoft-OpenAI partnership could lead to the integration of powerful AI features into widely-used productivity software, potentially eroding Adobe's competitive advantage in certain areas. Adobe may need to invest heavily in marketing and product development to maintain its market position, which could pressure margins. There's also a risk that as AI democratizes content creation, the perceived value of Adobe's professional-grade tools could diminish among certain user segments. While Adobe has made significant strides in integrating AI into its products, the path to monetization remains uncertain. The company is still in the early stages of determining optimal pricing strategies for its AI features, such as generative credits for Firefly. There's a risk that users may be reluctant to pay premium prices for AI capabilities if they perceive similar functionalities available through other platforms or open-source alternatives. Moreover, the rapidly evolving nature of AI technology means that Adobe must continually invest in research and development to stay ahead. If the company fails to keep pace with AI advancements or if competitors offer more compelling AI-powered features, Adobe could struggle to justify premium pricing for its AI-enhanced products. Adobe's early and aggressive integration of AI across its product suite positions the company as a leader in AI-powered creative tools. The strong adoption of Firefly and other AI features demonstrates that there is significant demand for these capabilities among Adobe's user base. As the company refines its AI offerings and develops more sophisticated models, it could unlock new revenue streams and enhance user productivity, potentially justifying higher subscription prices or additional paid features. Furthermore, Adobe's focus on developing copyright-compliant and commercially safe AI solutions could give it a competitive edge, especially among enterprise customers who prioritize legal and ethical considerations in their creative workflows. This approach could lead to increased adoption in regulated industries and among risk-averse clients, expanding Adobe's market reach. Adobe's long-standing reputation and deep integration into professional creative workflows provide a strong moat against competition. The company's comprehensive suite of tools, from image editing to video production and document management, offers a level of integration and consistency that is difficult for competitors to match. This ecosystem effect can make it challenging for users to switch to alternative platforms, even as new competitors emerge. Additionally, Adobe's vast trove of user data and content could be leveraged to train more effective AI models, potentially leading to superior AI-powered features compared to newer entrants in the market. The company's established relationships with enterprise customers and its understanding of professional creative needs also position it well to develop and monetize AI tools that cater to high-value market segments. Adobe Inc. stands at a critical juncture, balancing its strong market position with the need to innovate in an AI-driven landscape. While the company faces significant challenges from emerging competitors and the rapid pace of AI development, its strategic focus on AI integration and product innovation positions it well for potential growth. Investors should closely monitor Adobe's ability to monetize its AI offerings and maintain its competitive edge in the evolving creative software market. This analysis is based on information available up to October 24, 2024. Gain an edge in your investment decisions with InvestingPro's in-depth analysis and exclusive insights on ADBE. Our Pro platform offers fair value estimates, performance predictions, and risk assessments, along with additional tips and expert analysis. Explore ADBE's full potential at InvestingPro. Should you invest in ADBE right now? Consider this first: Investing.com's ProPicks, an AI-driven service trusted by over 130,000 paying members globally, provides easy-to-follow model portfolios designed for wealth accumulation. Curious if ADBE is one of these AI-selected gems? Check out our ProPicks platform to find out and take your investment strategy to the next level. To evaluate ADBE further, use InvestingPro's Fair Value tool for a comprehensive valuation based on various factors. You can also see if ADBE appears on our undervalued or overvalued stock lists. These tools provide a clearer picture of investment opportunities, enabling more informed decisions about where to allocate your funds.

Can ADSK's AI-Powered Product Enhancements Push the Stock Higher? - Ansys (NASDAQ:ANSS), Autodesk (NASDAQ:ADSK)

Autodesk ADSK recently announced AI-integrated product developments across segments to enhance performance and efficiency. It aims to simplify complexities related to the manufacturing and designing of products by introducing AI capabilities to Fusion and Alias. Autodesk Adds AI-Powered Capabilities to Fusion Autodesk Fusion will be integrated with new Autodesk AI-supported automation to enable time-saving. A combination of performance enhancements and the latest granular Manufacturing Dada Model API is expected to make Fusion faster. Integration with tools across the design will also become easier. MDM API helps authorized third-party apps to feed their data into Fusion models. This helps in integrating Fusion better into existing workflows and connections with cloud and desktop tools like OpenBOM and Cideon become easier. Autodesk, Inc. Price and Consensus Autodesk, Inc. price-consensus-chart | Autodesk, Inc. Quote ADSK is introducing AutoConstrain in Fusion Automated Sketching. Autodesk AI will assist in analyzing and detecting intended spatial connections in project data and will provide dimensional constraints to manage design intention throughout the project. Autodesk AI will allow users to examine 3D models through Drawing Automation and will generate 2D drawings needed to manufacture parts. This will save time. Autodesk has launched an AI-powered Assistant in Fusion to provide real-time and on-demand expert insights related to ADSK-specific and general industry data. ADSK is also integrating Paperless Parts and Avnet plugins into Fusion. Alias Gets Form Explorer, ADSK Adds AI to Tools Autodesk Alias will be powered by Form Explorer, an automative design generation tool. The enhancements will be easy to integrate across the segments and will aid in designing and manufacturing complex products. ADSK has acquired NAVASTO, a company focused on the use of AI to accelerate design and engineering. NAVASTO brings wind tunnel simulation into Alias' early creative design process. It enables designers to predict and optimize the drag coefficient over an automotive exterior and its aerodynamics. This reduces the likelihood of redesigns during engineering. ADSK is integrating AI in creative tools -- Arnold, Flame, Maya, and Wonder Studio -- to fasten creative workflow. ADSK's Wonder Studio will be made capable of anticipating character movement in spite of object obstruction and making natural poses with less noise and shaking. Neutral Motion Control, Autodesk's latest prototype, will allow animators to direct action using limited keyframes and neural networks. Autodesk also announced that it will now connect Autodesk Forma with Autodesk Docs to increase collaboration between platforms. Autodesk Rides on Strong Portfolio Autodesk shares have returned 9.5% in a month, outperforming the broader Zacks Computer and Technology sector's appreciation of 4.7%. ADSK has outperformed the Zacks Computer - Software industry and its peers like Intuit INTU, ANSYS ANSS and Verint Systems VRNT. Over the same time frame, shares of ANSYS have returned 3.3%, while Intuit and Verint have declined 3.7% and 11.6%, respectively. The industry has returned break-even YTD. Autodesk's performance is gaining from new business growth, steady subscription renewal rates, and strong competitive performance. Higher demand for its cloud-based products, mobile solutions, and design suites is expected to drive the company's revenues over the long haul. The rapid adoption of BIM 360 products and the success of the maintenance of the subscription program bode well for the growth of the company. ADSK Guidance Positive For fiscal 2025, ADSK expects revenues between $6.08 billion and $6.13 billion. In fiscal 2024, Autodesk generated total revenues of $5.5 billion. For fiscal 2025, ADSK expects its non-GAAP earnings between $8.18 per share and $8.31 per share. For the third quarter of fiscal 2025, Autodesk expects revenues between $1.555 billion and $1.57 billion. Non-GAAP earnings are anticipated between $2.08 per share and $2.14 per share. Earnings Estimates Are Bright for Autodesk The Zacks Consensus Estimate for ADSK's third-quarter fiscal 2025 earnings is pegged at $2.11 per share, up by a penny over the past 30 days, and indicates 1.93% year-over-year growth. The consensus mark for fiscal 2025 earnings is pegged at $8.24 per share, unchanged in the past 30 days, and indicates 8.42% year-over-year growth. Autodesk's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.94%. Autodesk Shares - Is it the Right Time to Jump in? ADSK shares are overvalued, as suggested by a Value Score of D. In terms of the forward 12-month Price/Earnings (P/E) ratio, ADSK is trading at 45.76X, higher than the Zacks Computer & Technology sector's 27.09X. However, ADSK's growth prospects, driven by product portfolio enhancement capable of capitalizing on the rapid adoption of designing and manufacturing, justifies the premium valuation. Autodesk currently has a Zacks Rank #2 (Buy), which implies that it is the right time for investors to accumulate ADSK stock. To read this article on Zacks.com click here. Market News and Data brought to you by Benzinga APIs