By Emily Dattilo

Autodesk announced job cuts and strong quarterly results after markets closed Thursday, and Wall Street praised the company's approach to spending.

Autodesk stock gained 1.7% to $287.03 in premarket trading Friday.

The design-software company announced a restructuring plan that includes slashing about 9% of its workforce, or about 1,350 employees, other exit costs, and facility reductions.

William Blair analysts led by Dylan Becker, who rate shares at Outperform, weighed in on the restructuring.

"The company is remaining prudent in its spending, guiding to a 4% increase in total spending, down from a 7% increase in fiscal 2025," analysts wrote. "Together, we believe this emphasis on go-to-market optimization and cost efficiency better positions the company to drive more efficient top-line growth while also supporting operating margin expansion at scale."

For its fiscal fourth quarter ended Jan. 31, the company reported adjusted earnings of $2.29 per share, beating Wall Street's call for $2.14, according to FactSet. Total revenue of $1.64 billion was above the consensus estimate for $1.63 billion.

Total billings increased 23% to $2.11 billion and were higher than analysts' forecast of $2.06 billion.

"Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI," said CEO Andrew Anagnost in the earnings release. "We are reallocating internal resources toward these critical areas and beginning the optimization of our go-to-market functions to better meet the evolving needs of our customers and channel partners."

For its current fiscal first quarter ending April 30, the company expects adjusted earnings between $2.14 and $2.17 a share, while analysts had anticipated $2.07.

For fiscal 2026, the company forecasts adjusted earnings between $9.34 and $9.67 a share, while analysts had penciled in $9.25.

KeyBanc Capital Markets analysts led by Jason Celino increased their target price on Autodesk to $335 from $330 and reiterated an Overweight rating.

"Autodesk's F4Q earnings call had several moving parts," they wrote. "On one hand, investors will likely view the 9% RIF [reductions in force] and higher FY26 OM and FCF guidance positively."

"But on the other hand, investor pushback seems to be most focused on the 'pulling of the 10-15%' revenue growth framework without providing updated growth or margin targets," they added.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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February 28, 2025 07:49 ET (12:49 GMT)

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