Autodesk Response to Starboard Value's Comments: A Commitment to Shareholders
On March 26, 2025, Autodesk, Inc. (NASDAQ: ADSK) publicized a response to the commentary from Starboard Value LP, coinciding with heightened scrutiny regarding its governance and strategy. Autodesk's leadership conveyed their satisfaction with the company's strong financial performance, highlighting significant advancements in revenues, operating margins, and shareholder value generation.
With an impressive revenue figure of $6.1 billion for fiscal year 2025—a 16% increase since fiscal year 2019, and a 12% year-over-year growth—Autodesk has showcased its ability to maintain robust financial health. Moreover, the company reported a tremendous rise in non-GAAP operating margins, surging over 2,400 basis points within the same time frame. Looking forward, Autodesk anticipates an additional margin increase ranging from 200 to 300 basis points in fiscal year 2026, reflecting ongoing operational improvements and strategies.
Furthermore, Autodesk's free cash flow showed notable momentum, climbing from $1.3 billion in FY 2024 to $1.6 billion in FY 2025, marking a substantial growth of 22%. This positive trajectory has prompted an upward adjustment in their FY 2026 free cash flow projection to between $2.075 billion and $2.175 billion, indicating strong expectations for continued operational success.
The company addressed its share repurchase program, emphasizing a significant increase in its authorization for stock buybacks. Autodesk aims to repurchase between $1.1 billion and $1.2 billion worth of shares in FY 2026, which represents a considerable 30-40% increase over the previous fiscal year. This commitment aligns with Autodesk’s objective to enhance shareholder value consistently.
In response to Starboard's complaints, Autodesk expressed its dedication to engaging constructively with its shareholders. The management indicated that they have interacted with investors holding more than 50% of the company's outstanding shares. They criticized Starboard's approach as lacking in collaborative intent, emphasizing that the company has always shown a willingness to engage in meaningful dialogue.
Starboard has attempted various tactics that Autodesk framed as 'self-serving,' including a failed proxy fight and previous legal attempts in Delaware to influence the company’s governance. Autodesk highlighted that during their interactions with Starboard, the latter declined to engage in legitimate discussions, aiming instead to push an agenda through public misrepresentation.
The Autodesk Board has actively undertaken steps to refresh its governance by appointing two independent directors, further enhancing the company’s strategy toward value creation. While Autodesk maintains reservations regarding Starboard's nominees, they have indicated an openness to reviewing and meeting with them, understanding the importance of assessing all potential directors thoroughly.
Overall, Autodesk remains focused on its mission to support its diverse clientele ranging from designers and builders to engineers and creators. The company is committed to leveraging its Design and Make Platform to drive innovation and empower its customers, thereby nurturing both business growth and sustainable outcomes for the planet.
For more information on Autodesk and its initiatives, visit the official website or follow them on social media.
With an impressive revenue figure of $6.1 billion for fiscal year 2025—a 16% increase since fiscal year 2019, and a 12% year-over-year growth—Autodesk has showcased its ability to maintain robust financial health. Moreover, the company reported a tremendous rise in non-GAAP operating margins, surging over 2,400 basis points within the same time frame. Looking forward, Autodesk anticipates an additional margin increase ranging from 200 to 300 basis points in fiscal year 2026, reflecting ongoing operational improvements and strategies.
Furthermore, Autodesk's free cash flow showed notable momentum, climbing from $1.3 billion in FY 2024 to $1.6 billion in FY 2025, marking a substantial growth of 22%. This positive trajectory has prompted an upward adjustment in their FY 2026 free cash flow projection to between $2.075 billion and $2.175 billion, indicating strong expectations for continued operational success.
The company addressed its share repurchase program, emphasizing a significant increase in its authorization for stock buybacks. Autodesk aims to repurchase between $1.1 billion and $1.2 billion worth of shares in FY 2026, which represents a considerable 30-40% increase over the previous fiscal year. This commitment aligns with Autodesk’s objective to enhance shareholder value consistently.
In response to Starboard's complaints, Autodesk expressed its dedication to engaging constructively with its shareholders. The management indicated that they have interacted with investors holding more than 50% of the company's outstanding shares. They criticized Starboard's approach as lacking in collaborative intent, emphasizing that the company has always shown a willingness to engage in meaningful dialogue.
Starboard has attempted various tactics that Autodesk framed as 'self-serving,' including a failed proxy fight and previous legal attempts in Delaware to influence the company’s governance. Autodesk highlighted that during their interactions with Starboard, the latter declined to engage in legitimate discussions, aiming instead to push an agenda through public misrepresentation.
The Autodesk Board has actively undertaken steps to refresh its governance by appointing two independent directors, further enhancing the company’s strategy toward value creation. While Autodesk maintains reservations regarding Starboard's nominees, they have indicated an openness to reviewing and meeting with them, understanding the importance of assessing all potential directors thoroughly.
Overall, Autodesk remains focused on its mission to support its diverse clientele ranging from designers and builders to engineers and creators. The company is committed to leveraging its Design and Make Platform to drive innovation and empower its customers, thereby nurturing both business growth and sustainable outcomes for the planet.
For more information on Autodesk and its initiatives, visit the official website or follow them on social media.
Topics General Business）
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