Autodesk projects quarterly results above estimates on cloud subscription, AI design tools demand

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(Reuters) -Design software maker Autodesk forecast fourth-quarter revenue and profit above Wall Street estimates on Tuesday, supported by steady subscription renewals and growing demand for its cloud-based design tools.

Shares of the San Francisco-based company rose more than 5% in extended trading after it also topped market expectations for third-quarter results.

Steady demand trends in data center construction, infrastructure upgrades and industrial building projects have continued to bolster the long-term outlook for companies such as Autodesk.

Enterprise customers are adopting Autodesk’s software to streamline project delivery, with heavier use of AutoCAD and other architecture and engineering tools, lifting engagement for the company.

Autodesk expects revenue between $1.90 billion and $1.92 billion for the fourth quarter, ending January 31, the midpoint of which is higher than analysts’ average estimate of $1.86 billion, according to data compiled by LSEG.

The company expects full-year billings between $7.47 billion and $7.53 billion, compared with its prior estimate of $7.36 billion to $7.45 billion.

Autodesk’s shift to cloud-based subscriptions has provided stable recurring revenue and strong visibility. Rising performance obligations and increased use of its flexible token-based access model have supported customer retention while expanding access among occasional users.

The company has also advanced its AI integration across products. Autodesk’s industry-specific foundation models — including Project Bernini, which can generate detailed 3D objects — are able to understand geometry, design data and complex structures, enabling more automated workflows.

For the quarter ended October 31, Autodesk reported revenue of $1.85 billion, topping analysts’ average expectation of $1.81 billion. Adjusted earnings came in at $2.67 per share, beating estimates of $2.50 per share.

It expects current-quarter earnings per share between $2.59 and $2.67 on an adjusted basis, higher than estimates of $2.53.

(Reporting by Arnav Mishra in Bengaluru; Editing by Alan Barona)