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  "documentTitle": "Autodesk, Inc. (ADSK)",
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  "authorName": "Jeffrey Smith",
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  "presentationDate": "2025-03-19 00:00:00",
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      "text": "We Believe Autodesk’s FY2026 Guidance Does Not Make Sense in Light of the 9% Workforce Reduction",
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      "text": "adjusted operating margins: 55%",
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      "text": "In our view, Autodesk can generate at least 55% incremental adjusted operating margins on revenue growth moving forward, which would drive significant operating leverage.",
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      "text": "In addition to higher incremental margins, we also believe Autodesk's path to improved profitability should incorporate a large net reduction in operating expenses.",
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      "text": "First and foremost, the Company’s FY2026 margin guidance must be viewed in the context of the recently announced reduction-in-force, which affects approximately 1,350 employees.",
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      "text": "In addition, Autodesk management noted the Company expects underlying revenue growth this year of approximately 8.5%, or $521 million of incremental revenue compared to last year.",
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      "text": "On February 27, 2025, Autodesk reported Q4 FY2025 earnings and concurrently provided FY2026 guidance, which calls for underlying adjusted operating margins in the range of 39% to 40%.",
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      "text": "3 Reflects Adjusted Operating Margins on constant currency basis and adjusted for the new transaction model. 4 Based upon average annual cash cost per employee of $150,000 to $200,000.",
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