Q4 Revenue +19% YoY to $1.96B Above High End of Guide; Billings +33% Reported (+30% CC); Non-GAAP Operating Margin 38% (+120bp YoY); FCF $972M; FY26 Closes With All-Line Beat; FY27 Guide: Billings $8.48-$8.58B / Revenue $8.10-$8.17B / GAAP OM 26-28% / Non-GAAP OM 38.5-39% / FCF $2.7-$2.8B; AI AutoConstrain at 3.8M+ Uses With ~2/3 Acceptance; Building Agentic AI Moats Around Data + Context + Expertise + Platform; FY26 Buyback $1.4B (50%+ FCF, Above Guide); Sales Optimization Final Phase Completed — Maintaining Outperform
Key Takeaways
- Q4 FY26 closes FY26 with all-line beat across billings/revenue/margin/EPS/FCF. Q4 revenue $1.96B +19% YoY (+14% CC ex-NTM). Billings +33% reported (+30% CC, +32% ex-NTM CC). Non-GAAP operating margin 38% (+120bp YoY). GAAP operating margin 22% broadly flat YoY (reflecting $100M restructuring charge for go-to-market optimization culmination). FCF $972M benefiting from billings strength + linearity. CEO: "We have successfully executed one of the most far-reaching transformations in enterprise software, redefining our business model, evolving our go-to-market, reimagining our products and scaling our platform."
- FY27 guide articulated with multi-year framework intact. Billings $8.48-$8.58B; Revenue $8.10-$8.17B; GAAP operating margin 26-28%; Non-GAAP operating margin 38.5-39%; FCF $2.7-$2.8B. NTM noise diminishing — from 3.5pp tailwind Q1 FY27 to 1.5pp tailwind for full year. SBC expected to fall below 10% of revenue. ~50% of FCF to buybacks continuing.
- FY26 buyback finished $1.4B — above guidance (50%+ FCF). Recent share price weakness triggered greater buyback under programmatic grid — increased activity above guidance, lowered average purchase price, further reduced share count. 2.1M shares reduced for the year. FY27 expectation: similar to FY26 in total dollars (~$1.4B). Multi-year framework: ~50% of FCF to buybacks.
- Building agentic AI moats — data + context + expertise + platform. CEO articulated the multi-year agentic AI competitive framework explicitly: (1) Data — large quantities of physical world data; high-fidelity, contextual, geometry-rich, 2D + 3D, physics + engineering principles for entire design/make/operate lifecycle; (2) Context — Autodesk as system of record where authoritative project + product context lives; natural control point for agentic workflows; (3) Expertise — almost a decade of building world-class AI team for 3D design/make/operate; (4) Platform — Autodesk Platform Services (APS) open platform purpose-built for agentic AI world. "Few companies have all this. Autodesk does."
- Autodesk Construction Cloud rebranded as Forma for Construction. Q4 brand consolidation — Autodesk Construction Cloud now Forma for Construction. Fast-growing component of make solutions with momentum across owners, designers, GCs, subcontractors. Multiple Q4 customer wins including major US utility, hyperscaler partnership expansion across 2,000+ company ecosystem, global pharmaceutical strategic partnership, Arup standardization, three ENR Top 400 contractors adopting Forma for Construction.
- AI AutoConstrain compounding to 3.8M uses. 3.8M commercial constraints (up from 2.6M Q3). Acceptance rate now "almost 2/3" with 90% fully constrained. The trajectory of adoption + improvement validates the AI monetization framework. Building on Project Bernini + frontier models + proprietary 3D models being rolled out in coming months.
- Sales optimization final phase completed January 2026. Two-year transformation program culminated in January with final restructuring charge. The action announced in January reflects sustained commitment to investing in strategic priorities + achieving long-term margin goal. FY27 will see disruption risk built into guidance — particularly H1 — as sales restructuring effects manifest.
- AECO momentum continues with construction + emerging markets strength. Q4 AECO strength: construction + emerging markets + sustained investment in data centers, infrastructure, industrial buildings — more than offsetting commercial softness. EBA + product subscription billings + linearity + upfront revenue all strong. Multiple competitive displacements in Construction Cloud / Forma for Construction.
- Industry cloud + platform investment accelerating. Autodesk Platform Services (APS) — open platform purpose-built for agentic AI world; ingests + processes data more efficiently, accelerates agentic AI innovation, deploys agentic AI solutions at scale. Forma + Fusion + Forma for Construction as the three industry cloud + platform offerings supporting convergence narrative.
- Rating: Maintaining Outperform. FY26 closes with strong all-line beat + FY27 guide articulated + agentic AI moats deepening + sales optimization completed + capital return continuing. Fair value range maintained at $335-$385. Stock at ~$300 pre-print (some pullback into print on FY27 sales restructuring concern). The FY27 guide is conservatively framed but supportive of continued multi-year compounding. We expect the stock to grind higher post-print as FY27 trajectory becomes more visible. Key risks: H1 FY27 sales restructuring disruption magnitude; macro deceleration; commercial real estate continued weakness; FY27 NTM mechanical lap impact.
Coverage Update from Q3 FY26
Three months ago at Q3 FY26 print, we maintained Outperform at ~$310 with a $335-$385 fair value range. Our thesis: continued multi-quarter execution + Investor Day multi-year framework + AI traction compounding + capital return acceleration. The Q4 FY26 print + FY26 close + FY27 guide validates on every dimension:
- FY26 closes with all-line beat: Across billings/revenue/margin/EPS/FCF
- FY27 guide articulated: Revenue +13-14% / op margin 38.5-39% / FCF $2.7-$2.8B
- Agentic AI moats articulated: Data + context + expertise + platform multi-year framework
- AI AutoConstrain compounding: 3.8M+ uses (up from 2.6M Q3, 1.2M Q2, 580K Q1)
- Sales optimization completed: Two-year transformation culminated January 2026
- Buyback above guidance: $1.4B FY26 (50%+ FCF) — programmatic grid captured share price weakness
Maintaining Outperform with fair value range $335-$385.
Results vs. Consensus — Q4 / FY 2026
Q4 Scorecard
| Metric | Q4 FY26 Actual | Guide / Consensus | Result |
|---|---|---|---|
| Revenue | $1.96B (+19% YoY) | $1.91B / consensus $1.92B | Above high end of guide |
| Billings | +33% reported (+30% CC, +32% ex-NTM) | — | Strong beat |
| Non-GAAP op margin | 38% | ~37% | +100bp above |
| GAAP op margin | 22% | — | $100M restructuring drag |
| FCF | $972M | — | Strong cash flow |
| Buyback (Q4) | $333M (1.1M shares) | — | Continued acceleration |
| Buyback (FY26) | $1.4B (2.1M shares) | $1.3B guide | Above guide |
FY26 Full Year Performance
| Metric | FY26 Actual | FY26 Initial Guide | Result |
|---|---|---|---|
| Revenue | ~$7.16B (+17% YoY) | $6.895-$6.965B | +$200M-$265M above initial |
| Non-GAAP op margin | ~37.5% reported / ~40.5% underlying | ~36% | ~150bp above initial |
| FCF | ~$2.29B | $2.075-$2.175B | +$115M-$215M above initial |
| Buyback | $1.4B (50%+ FCF) | ~$1.1B (50% above FY25) | +$300M above initial |
| Shares reduced | 2.1M shares | — | Multi-year share count reduction |
FY27 Guide
| Metric | FY27 Guide | Implication |
|---|---|---|
| Billings | $8.48-$8.58B | +13.5% to +14.8% YoY |
| Revenue | $8.10-$8.17B | +13.1% to +14.1% YoY |
| GAAP operating margin | 26-28% | Reflects reduced restructuring + expansion |
| Non-GAAP operating margin | 38.5-39% | +100bp above FY26 ~37.5% |
| FCF | $2.7-$2.8B | +18-22% above FY26 ~$2.29B |
| NTM revenue tailwind | ~1.5pp full year (3.5pp Q1) | Diminishing throughout year |
| Restructuring outflows | $135-160M cash | Sales restructuring final wave |
| SBC % of revenue | Below 10% | Target achieved |
| Buyback | ~$1.4B (similar to FY26) | Continued ~50% FCF allocation |
| Underlying revenue growth ex-NTM | ~11-13% CC | Multi-year compounding |
Quality-of-Print Callout
Segment Performance
AECO — Forma for Construction Rebrand + Multi-Customer Wins
AECO strong with major brand consolidation: Autodesk Construction Cloud rebranded as Forma for Construction. Multi-segment wins: major US utility (winning back from competitive solution); major hyperscaler partnership expansion across 2,000+ company ecosystem (data center digital twin workflows); global pharmaceutical strategic partnership; Arup global engineering consultancy standardizing on Forma for Construction; three ENR Top 400 contractors adopting Forma for Construction; Prestige Group (top 3 India real estate developer) selecting Autodesk as core design-to-delivery platform.
Assessment: AECO continues as the multi-year growth engine with the Forma rebrand simplifying the platform narrative + Construction Cloud competitive displacement at scale + multi-year customer relationships expanding.
Manufacturing — Fusion Multi-Seat Scale
Multiple Fusion competitive displacements: global brewing company expanding Fusion deployment; specialized shipbuilding/marine engineering firm with 2,000+ employees adopting Fusion Manage; Typhoon (Belgian industrial) selecting Autodesk solutions; multinational automotive manufacturer replacing competitive solution; diversified industrial manufacturer transitioning 900+ users; global lithium-ion battery manufacturer leveraging Autodesk for digital factory simulation.
Assessment: Manufacturing continues structural multi-year growth with Fusion competitive displacements + multi-seat enterprise deals + extension attach + ASP expansion.
FY27 Outlook Framework
The FY27 guide is structurally important:
- Revenue $8.10-$8.17B — +13-14% YoY supporting continued multi-quarter compounding
- Operating margin 38.5-39% — +100bp from FY26 ~37.5%; multi-year path toward FY29 41% reported / 45% underlying
- FCF $2.7-$2.8B — +18-22% YoY; FCF stack rebuild continuing
- NTM diminishing: 3.5pp Q1 tailwind → 1.5pp full year (mechanical noise diminishing)
- Sales restructuring disruption H1: $135-160M cash restructuring outflows; conservative guide built in
- SBC below 10% of revenue — target achieved
- ~50% FCF to buybacks continuing — multi-year framework
Key Topics & Management Commentary
Overall Management Tone: Confident on transformation completion + FY27 framework articulation + agentic AI moats narrative. CEO Anagnost: "I've never been more confident in the long-term value we are creating for our customers, for the industries that shape the world and for you, our shareholders." Multi-year framework signaling extends beyond FY27 into the 3D agentic AI era.
1. Agentic AI Moats — Multi-Year Competitive Framework
"Building agentic AI for design and make requires data, context and talent. Scaling and monetizing it requires a platform and next-generation business models in go-to-market. Few companies have all these advantages. Autodesk does. It is not a coincidence. We have been preparing for and working towards the cloud and AI for more than a decade."
— Andrew Anagnost, CEO
The CEO articulated the multi-year agentic AI competitive framework explicitly:
- Data: Large quantities of physical world data; high-fidelity, contextual, geometry-rich, 2D + 3D, physics + engineering principles for entire design/make/operate lifecycle. Few companies have this scale.
- Context: Autodesk operates at the intersection of digital + physical worlds. System of record where authoritative project + product context lives + where changes are executed/checked/recorded. Natural control point for agentic workflows. Autodesk AI can propose; humans verify and safely commit. Decisions must be compliant, coordinated, traceable, reversible.
- Expertise: Almost a decade of building world-class AI team for 3D design/make/operate. Strong reputation for cutting-edge research + access to right data + solving most complex problems in 3D AI. Attracting and retaining top talent.
- Platform: Autodesk Platform Services (APS) — open platform purpose-built for agentic AI world. Identity, permissions, geometry kernels, data models, compute infrastructure. Ingests + processes data efficiently + accelerates agentic AI innovation + deploys at scale.
The multi-year framework — "Few companies have all this. Autodesk does" — positions Autodesk as the structural winner in the AI revolution for design + make + operate.
Assessment: The agentic AI competitive framework is the multi-year structural anchor. The data + context + expertise + platform advantages compound into multi-year value capture. Multi-year monetization framework supports continued share gain + ASP expansion.
2. FY27 Guide Framework
"Our guidance philosophy is unchanged. Our guidance continues to be based on the range of possible outcomes in our bottom-up sales forecast, which is grounded in the momentum of our business. We've assumed the macroeconomic environment will remain broadly stable through the year. … Like last year, our constant currency guidance incorporates prudence to reflect temporary risk to billings and revenue as we operationalize our sales optimization plan."
— Janesh Moorjani, CFO
FY27 guide framework: bottom-up sales forecast + macro stability assumption + temporary risk for sales optimization disruption. Billings $8.48-$8.58B (+13.5-14.8%); Revenue $8.10-$8.17B (+13-14%); Op margin 38.5-39% (+100bp); FCF $2.7-$2.8B (+18-22%).
The guide explicitly captures sales restructuring disruption risk — particularly H1 FY27 — with billings + revenue more weighted to H2. NTM noise diminishing throughout the year.
Assessment: FY27 guide is conservative with explicit disruption risk built in. Upside potential remains if disruption is less than feared. Multi-year framework toward FY29 margins intact.
3. Sales Optimization Final Phase Completed January 2026
"In January, we completed the final phase of our go-to-market optimization. While initiatives like this are difficult and complex, they are making Autodesk more resilient and unlocking new avenues for growth and margin expansion."
— Andrew Anagnost, CEO
Two-year sales optimization program culminated in January 2026 with $100M restructuring charge. Final phase focused on customer-facing sales functions — higher disruption risk than prior phases. CFO: "the focus of the restructuring this year is on customer-facing sales functions. We have embedded this risk discretely into our guidance for fiscal '27."
Assessment: Sales optimization completion is structurally important. The conservative FY27 guide accommodates near-term disruption while supporting multi-year margin expansion.
4. AI AutoConstrain at 3.8M Uses — Continued Compounding
"We have continued to see success with our AI-powered Sketch AutoConstrain in Fusion. Since its launch last year, the AI model has delivered over 3.8 million constraints, up from 2.6 million last quarter. Along the way, the model has been retrained and the UX improved. As a result, the acceptance rates by AutoConstrain suggestions to commercial users have now grown to almost 2/3 with 90% of those sketches fully constrained."
— Andrew Anagnost, CEO
AI AutoConstrain continues compounding: 3.8M+ commercial uses (up from 2.6M Q3, 1.2M Q2, 580K Q1). Acceptance rate at "almost 2/3" with 90% fully constrained. The trajectory validates the multi-year AI monetization framework.
The CEO confirmed: "In the coming months, Autodesk will roll out powerful AI capabilities built on a combination of frontier models and our proprietary models that understand 3D design and make."
Assessment: AI traction continues compounding. Multi-year framework supports continued value capture + ASP expansion.
5. FY26 Buyback $1.4B Above Guide
"For the year, our share repurchases increased to $1.4 billion, a bit more than 50% of our free cash flow and reduced our shares outstanding by 2.1 million shares. Recent share price weakness triggered greater share repurchases under our programmatic share repurchase grid. This increased share repurchase activity above guidance, lowered our average purchase price and further reduced share count."
— Janesh Moorjani, CFO
FY26 buyback finished at $1.4B (above $1.2-$1.3B guide). 50%+ of FCF. 2.1M shares reduced. Programmatic grid captured share price weakness — lowered average purchase price + further reduced share count. FY27 expected: similar $1.4B total.
Assessment: Buyback discipline + opportunistic execution. Multi-year framework supports continued ~50% FCF allocation to buybacks.
6. Forma for Construction Rebrand
"Forma for Construction, previously known as Autodesk Construction Cloud, is a fast-growing component of our make solutions and has strong momentum with owners, designers, GCs and subcontractors seeking to converge design and construction workflows."
— Andrew Anagnost, CEO
Brand consolidation: Autodesk Construction Cloud → Forma for Construction. Simplifies platform narrative with Forma + Fusion + Forma for Construction as the three industry cloud + platform offerings. Multiple competitive wins continuing.
7. Hyperscaler Partnership Expansion
"A major hyperscaler is expanding its partnership with Autodesk to accelerate time to operation, cost management and digital twin workflows across data centers and facilities while improving collaboration and coordination across an ecosystem of more than 2,000 companies, including GCs and subcontractors."
— Andrew Anagnost, CEO
Hyperscaler partnership scaling — major data center buildout + digital twin workflows + 2,000+ company ecosystem. Multi-year framework for hyperscaler-led data center buildout supports continued AECO growth.
8. World Labs Investment
Autodesk's investment in World Labs (referenced in CEO commentary on AI ecosystem) signals continued partnership network expansion in the agentic AI space. World Labs is Fei-Fei Li's spatial intelligence startup — strategic positioning for Autodesk's 3D + spatial AI framework.
9. Construction Cloud Operations Extension
"To better serve these needs, we intend to deploy capital to extend our footprint deeper into operations, applying the same playbook that proved successful in construction."
— Andrew Anagnost, CEO
Strategic direction: extending into operations applying the construction playbook. Multi-year framework — Forma + Fusion + Forma for Construction + Operations represents the full design + make + operate lifecycle coverage.
10. Fusion Manage + Operate Expansion
Multiple customer examples for Fusion expansion: brewing company expanding Fusion deployment; shipbuilding firm adopting Fusion Manage as mission-critical; battery manufacturer leveraging digital factory simulation. Fusion expansion into operate workflows continues multi-year framework.
11. Capital Allocation Framework Multi-Year
"Subject to acquisitions, we expect to apply approximately 50% of our free cash flow towards share buybacks over a multiyear period."
— Janesh Moorjani, CFO
Multi-year capital allocation framework: ~50% FCF to buybacks consistently. ~30-40% for organic investment + tuck-in acquisitions. The framework supports continued share count reduction multi-year.
Analyst Q&A Highlights
AI Competitive Moats and LLM Relationships
Q: "Andrew, maybe just to start with you. I want to zoom into your AI comments a little bit because I thought they were super interesting. When you think back to Investor Day last year, I think you talked about Autodesk's path to AI monetization, and today, you're talking about sort of the AI competitive moats. Could we maybe talk about where Autodesk fits into the broader AI ecosystem? And maybe specifically, how do you sort of see your relationship with the LLMs evolving over time? And how do those competitive moats maybe help balance that relationship?"
— Saket Kalia, Barclays
A: "Building agentic AI for design and make requires data, context and talent. Scaling and monetizing it requires a platform and next-generation business models in go-to-market. Few companies have all these advantages. Autodesk does. … While some new entrants have some of the required capabilities, they lack the data and context needed to deliver value."
— Andrew Anagnost, CEO
Assessment: Agentic AI competitive moats articulated as structural multi-year framework.
FY27 Guide Framework Composition
Q: "Can you frame the FY27 guide composition — sales restructuring risk + NTM diminishing + underlying growth?"
— Various analysts (paraphrased)
A: "Like last year, our constant currency guidance incorporates prudence to reflect temporary risk to billings and revenue as we operationalize our sales optimization plan. … On revenue, the noise from the new transaction model will significantly diminish during the year from a tailwind of roughly 3.5 percentage points in the first quarter to roughly 1.5 percentage points for the full year."
— Janesh Moorjani, CFO
Assessment: FY27 guide is conservative with sales restructuring + NTM diminishing built in. Underlying growth 11-13% CC.
Sales Restructuring Final Phase Impact
Q: "Can you frame the sales restructuring disruption risk for FY27?"
— Various analysts (paraphrased)
A: "As we entered fiscal '26, we anticipated potential disruption from our restructuring and marketing, customer success and sales operations. We see the potential for disruption again in fiscal '27 and we believe that both the probability and the potential impact of disruption are higher given the focus of the restructuring this year is on customer-facing sales functions. We have embedded this risk discretely into our guidance for fiscal '27."
— Janesh Moorjani, CFO
Assessment: Sales restructuring disruption risk explicitly built into FY27 guide. Higher probability + impact than prior years.
Capital Return Framework
Q: "Can you frame the multi-year capital allocation framework?"
— Various analysts (paraphrased)
A: "Over the last few years, we've applied approximately 50% of our free cash flow towards share buybacks, and we expect to do the same in fiscal '27. We expect our share buyback in fiscal '27 to be similar to fiscal '26 in total dollars with the precise amount determined by our purchasing grids. Subject to acquisitions, we expect to apply approximately 50% of our free cash flow towards share buybacks over a multiyear period."
— Janesh Moorjani, CFO
Assessment: Multi-year ~50% FCF allocation to buybacks. ~$1.4B FY27 expected continuing trajectory.
Forma for Construction Rebrand Rationale
Q: "Can you frame the Forma for Construction rebrand strategic rationale?"
— Various analysts (paraphrased)
A: "Forma for Construction, previously known as Autodesk Construction Cloud, is a fast-growing component of our make solutions and has strong momentum with owners, designers, GCs and subcontractors seeking to converge design and construction workflows."
— Andrew Anagnost, CEO
Assessment: Brand consolidation simplifies platform narrative — Forma + Fusion + Forma for Construction as the three industry cloud offerings supporting convergence.
What They're NOT Saying
- Specific FY27 quarterly cadence. Guide annual; quarterly modeling assumptions in deck.
- Specific AI revenue contribution. Framework articulated; specific monetization detail deferred.
- Specific FY27 sales restructuring magnitude detail. Disruption risk built in; specific impact deferred.
- Specific competitive market share trends. Customer wins detailed; market share metrics deferred.
- Specific commercial real estate exposure. "More than offset" framing.
- M&A pipeline. Targeted tuck-in framework.
- Specific platform/operations roadmap details. "Deploy capital deeper into operations" framing.
- Specific FY29 framework progression. Multi-year framework; specific milestones deferred.
Market Reaction
- Pre-print setup: ADSK closed Feb 26, 2026 at ~$300. YTD -2%; trailing 30-day -3%; trailing 12-month +2%. Stock pulled back into print on FY27 sales restructuring concern.
- After-hours / next-session move: Stock indicated +2-4% AH on FY26 close beat + FY27 guide framework + agentic AI moats articulation.
- Volume: Elevated to ~3-4x average.
- Peers: ANSS, PTC, Cadence trading flat to +1%.
Interpretive read: Market processing FY26 strong close + FY27 guide as supportive of continued multi-year framework. Sales restructuring risk H1 FY27 is the binding near-term concern. We expect the stock to find support in the $290-$310 range with potential acceleration as FY27 trajectory becomes clearer through Q1-Q2 FY27 prints.
Street Perspective
Debate 1: FY27 Sales Restructuring Disruption Magnitude
Bull view: Sales restructuring conservative built into guide. Multi-year framework supports continued revenue growth + margin expansion. Disruption transient.
Bear view: Customer-facing sales restructuring riskier than prior phases. H1 FY27 disruption could exceed guide. NTM mechanical lap further pressures.
Our take: Disruption real but contained. FY27 revenue lands at $8.1-$8.15B with H2 stronger than H1.
Debate 2: Agentic AI Monetization Path Realization
Bull view: Agentic AI moats (data + context + expertise + platform) compound into multi-year value capture. Multiple AI initiatives + Project Bernini + World Labs partnership support framework.
Bear view: AI monetization realization timing uncertain. Customer pricing sensitivity.
Our take: AI monetization meaningful by FY28-FY29. Multi-year framework structurally positive.
Debate 3: Multi-Year Margin Expansion Toward FY29 41% / 45%
Bull view: Multi-year framework articulated. FY27 38.5-39% supports trajectory.
Bear view: AI investment costs + macro uncertainty could pressure margin path.
Our take: Multi-year path achievable. FY28 ~40% / FY29 ~41% reported margin trajectory.
Model Implications & Thesis Scorecard
Model Update
- FY26 (actual): Revenue ~$7.16B (+17%); op margin ~37.5% reported / 40.5% underlying; FCF ~$2.29B; Buyback $1.4B
- FY27 (guide): Revenue $8.10-$8.17B (+13-14%); op margin 38.5-39%; FCF $2.7-$2.8B; Buyback ~$1.4B
- FY28: Revenue ~$8.8B (+8-9%); op margin 39.5-40%; FCF $2.9-$3.1B
- FY29 (framework): Op margin 41% reported / 45% underlying — multi-year anchor
Thesis Scorecard
| Thesis Pillar | Q4 / FY26 Status |
|---|---|
| Q4 revenue +19% YoY | Above high end |
| FY26 closes with all-line beat | Multi-quarter consistency |
| FY27 guide articulated | +13-14% revenue, 100bp margin |
| Agentic AI moats framework | Data + context + expertise + platform |
| AI AutoConstrain 3.8M uses | Continued compounding |
| Sales optimization completed | Two-year transformation done |
| Buyback $1.4B FY26 (above guide) | 50%+ FCF allocation |
| FY27 sales restructuring risk | Built into guide |
| Forma for Construction rebrand | Brand consolidation |
| Multi-customer wins (hyperscaler etc.) | Pipeline depth |
| FY29 framework toward 41/45% | Multi-year anchor |
| SBC below 10% revenue target | Achieved |
Rating & Action
Maintaining Outperform. Q4 FY26 closes FY26 with all-line beat + FY27 guide articulated + agentic AI moats deepening + sales optimization completed + capital return continuing. Fair value range maintained at $335-$385.
Key watch items into Q1 FY27 (May 2026):
- H1 FY27 sales restructuring disruption magnitude
- NTM mechanical effect diminishing
- FY27 EBA renewal cycle
- Agentic AI rollout pace
- AECO continued momentum
- Capital return continued pace
- Forma platform roadmap delivery
- Operations + Forma for Construction extension