Autodesk IncADSK
▼ NegativeCapitalrelevance
Soft Q3 profit guidance and acquisition costs weigh on shares despite strong cash flow.
Impact on stocks 1
Cloud & Digital Infrastructure
Autodesk IncAutodesk shares slid more than 5% in after-hours trading to $259.39 after the design-software company issued soft third-quarter adjusted profit guidance, with costs from its MaintainX acquisition and financing beginning to bite. The quarter itself showed strength: revenue rose 16% to $2.046 billion, operating cash flow climbed 25% to $575 million, and free cash flow hit $561 million, a 27.4% margin. Make revenue surged 26%, outpacing Design's 16% growth. The stock now trades 25.63% below its $348.77 GF Value estimate, reflecting skepticism about whether the $3.6 billion MaintainX deal can expand Autodesk's platform faster than acquisition costs and general-purpose AI can squeeze it. Cash generation is not the problem; convincing investors that the expansion will create durable value is.
Autodesk IncSoft Q3 profit guidance and acquisition costs weigh on shares despite strong cash flow.