Autodesk raises annual results forecast on strong software demand

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(Reuters) -Autodesk raised its forecast for fiscal 2026 revenue and adjusted profit on Thursday, anticipating strong demand for its design and engineering software used across various industries, sending its shares up around 2% in extended trading.

Autodesk’s broad portfolio of cloud-based design products is seeing strong adoption from companies across industries ranging from architecture to animation, while its investment in artificial intelligence has further boosted spending.

“We have not seen changes in overall business momentum when compared to recent quarters,” said Janesh Moorjani, Autodesk finance chief.

The company’s CEO, Andrew Anagnost, said Autodesk is focusing on its priorities in cloud, platform and AI while working on driving higher margins.

In February, the company said it would reduce workforce by about 9% and laid out plans to invest more in cloud and AI.

Autodesk was embroiled in an activist proxy fight with Starboard Value over the past two months, with the hedge fund expressing concerns over the software-design company’s margins and high costs.

The company last month said it will add two newcomers to its board and settle the matter with Starboard.

Autodesk raised its annual revenue forecast to between $6.93 billion and $7 billion, compared with its earlier expectations of $6.90 billion to $6.97 billion.

It also raised its adjusted earnings outlook for fiscal 2026 to a range of $9.50 to $9.73 per share, compared with its prior projection of $9.34 and $9.67 per share.

It forecast second-quarter revenue of between $1.72 billion and $1.73 billion, compared with estimates of $1.70 billion, according to data compiled by LSEG.

For the first quarter, the company reported revenue of $1.63 billion, beating estimates of $1.61 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)