Autodesk Boosts Fiscal 2026 Outlook on Strong Cloud and AI-Driven Software Demand

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Autodesk Inc. raised its fiscal 2026 revenue and earnings forecast on Thursday, citing continued strong demand for its cloud-based design and engineering software across sectors such as architecture, engineering, construction, manufacturing, and media. The company’s shares rose about 2% in extended trading following the announcement.

Autodesk has also seen an uptick in AI-driven customer spending, aligning with its strategic pivot to enhance cloud infrastructure and integrate artificial intelligence into its software tools.

“We have not seen changes in overall business momentum when compared to recent quarters,” said CFO Janesh Moorjani.

CEO Andrew Anagnost added that Autodesk is prioritizing cloud, platform development, and AI investments to drive higher margins and long-term growth.

Updated Fiscal 2026 Outlook:

  • Revenue:
    Raised to $6.93B–$7.00B (previously $6.90B–$6.97B)

  • Adjusted EPS:
    Raised to $9.50–$9.73 (from $9.34–$9.67)

  • Q2 Revenue Forecast:
    $1.72B–$1.73B, ahead of LSEG consensus estimate of $1.70B

Q1 Financial Highlights:

  • Revenue:
    $1.63 billion, beating estimates of $1.61 billion

  • Outlook:
    Company signals steady momentum, buoyed by enterprise renewals and broad industry adoption

Strategic Moves & Recent Developments:

  • In February, Autodesk announced a 9% workforce reduction to reallocate resources into AI and cloud technologies

  • Resolved an activist investor battle with Starboard Value, agreeing to add two new board members amid scrutiny over operating margins

  • Reaffirmed focus on margin expansion, despite increased AI investment costs

Industry Context:

Autodesk’s cloud-first strategy and continued push into AI position it competitively against peers like PTC, Bentley Systems, and Dassault Systèmes, as enterprises across the globe digitize design, simulation, and construction workflows.

UAE’s ‘Stargate’ AI Megaproject to Launch in 2026 with 100,000 Nvidia Chips

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A landmark AI infrastructure project in Abu Dhabi, dubbed Stargate UAE, is set to begin operations in 2026, becoming one of the largest and most advanced artificial intelligence data centers outside the United States. The project will be powered by an estimated 100,000 Nvidia chips, marking a significant step in the UAE’s ambition to become a global AI superhub.

The 1-gigawatt first phase is part of a broader 5-gigawatt, 10-square-mile site and represents the first outcome of a U.S.-brokered deal led by President Donald Trump. The partnership involves a collaboration between UAE’s state-backed G42, and major U.S. and Japanese tech firms: OpenAI, Oracle, Nvidia, Cisco Systems, and SoftBank.

Key Highlights:

  • Launch Timeline:

    • First phase (200MW) to be operational by 2026

  • Hardware:

    • Uses Nvidia Grace Blackwell GB300 systems, Nvidia’s most powerful AI chips

    • TrendForce estimates point to 1,400 servers, each with 72 chips, totalling ~100,000 chips

  • Scale:

    • Part of a 5-gigawatt megaproject to house the largest AI infrastructure outside the U.S.

    • Located on a 26 sq-km site in Abu Dhabi

  • Purpose:

    • Will allow UAE government bodies and businesses to access cutting-edge generative AI models

    • Positioned as a “first-in-the-world platform”, according to Oracle’s Larry Ellison

U.S. Policy Reversal

The announcement follows a significant policy shift by the Trump administration, which reversed Biden-era restrictions on exporting advanced AI chips to the UAE due to concerns over the country’s ties to China.

The U.S. Commerce Department will oversee a bilateral working group with the UAE to ensure compliance with:

  • National security standards

  • Ethical AI deployment

  • Global oversight of AI infrastructure

Strategic Implications

  • Geopolitical Impact:

    • The project cements UAE’s growing alignment with U.S. tech interests, even amid global tensions over AI dominance

    • Could challenge China’s AI influence in the Middle East and Africa

  • Commercial Influence:

    • Strengthens partnerships between OpenAI, Nvidia, and Oracle, anchoring them in the Gulf region

    • Offers a new AI deployment and monetization model based on national infrastructure rather than global cloud platforms

  • Regional AI Race:

    • The Stargate initiative follows Saudi Arabia’s recent moves to create its own multimodal Arabic LLMs

    • Marks a regional AI arms race underpinned by state-backed funding and global tech partnerships

Embracer Relies on Older Games Amid Rising Delays and Industry Profit Pressure

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Embracer Group, the Swedish gaming conglomerate behind franchises like Tomb Raider, is increasingly depending on its back catalogue to sustain cash flow as delays and costs balloon across the gaming industry, CEO Lars Wingefors said on Thursday.

The shift, however, is not a permanent strategy, Wingefors emphasized, as the industry grapples with longer development cycles, soaring production budgets, and tempered consumer spending. Major releases — known as AAA titles — are now riskier than ever, and studios must deliver polished, high-quality games to avoid reputation and revenue damage.

“It’s very hard to repair a buggy or unfinished product,” Wingefors told Reuters.

Key Developments:

  • Embracer will lean on legacy titles to support operations in the near term.

  • It expects slight revenue growth and flat earnings for the fiscal year 2025/26.

  • The group plans to split into three separate listed companies.

  • Of nine planned AAA releases for FY2026–2028, at least one will be delayed, though no titles were specified.

Broader Industry Trend: Delay and Divide

The slowdown reflects a broader crisis in the games sector:

  • Ubisoft, Embracer’s French peer, has twice delayed its new Assassin’s Creed title — which launched to praise after a polished rollout.

  • The company has acknowledged it will now be more selective with new intellectual properties and focus on creating “evergreen” franchises that yield revenue over extended periods.

  • Like Embracer, Ubisoft is shifting toward games that offer longer monetization windows rather than one-time launches.

Why Back Catalogues Matter Now

  • Studios like Embracer are monetizing proven titles, which carry lower marketing risk, established fan bases, and predictable cash flows.

  • During and post-COVID, demand for games surged, but current economic conditions and weaker consumer confidence are squeezing the profitability of newer, costlier ventures.

Looking Ahead: AI and Efficiency

Wingefors added that AI tools may boost efficiency for mid- and lower-tier titles, helping developers reduce costs and development times. Although still in early use, automation and generative design tools could help studios remain agile while tackling delays and budget constraints.