Autodesk Stock (ADSK) Higher on Strong Trading Update, Restructuring

Autodesk's stock (NASDAQ:ADSK) has climbed 2.97% to $265.09  as the design software company delivered a fourth-quarter trading update that exceeded analyst expectations and unveiled a restructuring plan aimed at optimizing its sales operations while doubling down on artificial intelligence and cloud computing initiatives.

For the fiscal fourth quarter ending January 31, 2025, Autodesk expects revenue of $1.64 billion, representing a 12% year-over-year increase and surpassing the consensus estimate of $1.63 billion. Non-GAAP earnings per share came in at $2.29, beating expectations of $2.13 and marking a 9.6% improvement from the prior-year period. The company's non-GAAP operating margin expanded to 37.1%, up from 36% in the previous year, demonstrating improved operational efficiency despite ongoing investments in growth initiatives.

Free cash flow is now indicated at $678 million on the quarter, an increase of $251 million compared to the same period last year. Management indicated that full-year billings, revenue, non-GAAP operating margin, non-GAAP earnings per share, and free cash flow would all exceed the top end of prior guidance ranges.

Concurrent with the trading update, Autodesk announced a global restructuring plan that will reduce its workforce by approximately 7%, affecting roughly 1,000 employees. The majority of these reductions will occur within customer-facing sales functions as the company streamlines its go-to-market strategy and reallocates resources toward higher-growth opportunities in cloud and AI technologies.

The company expects to incur pre-tax restructuring charges between $135 million and $160 million, with $90 million to $110 million recognized in the fourth quarter of fiscal 2026 and the remainder spread across fiscal 2027.

CEO Andrew Anagnost characterized the restructuring as the culmination of a multi-year sales and marketing optimization program designed to enhance efficiency and focus resources on critical growth areas. The company has been evolving its customer engagement model and sales channels to drive sustainable growth while improving profitability metrics.

The stock's positive reaction indicates that markets view the restructuring as a strategic realignment rather than a sign of underlying business weakness, particularly given the company's ability to exceed financial guidance while implementing organizational changes.