Autodesk (ADSK) reported strong Q2 results and raised its fiscal 2026 guidance, backed by strengths in its transaction model and operational efficiencies, RBC Capital Markets said in a note Thursday.

"We like that the transaction model continues to progress well and is driving tighter customer relationships," RBC said.

Increased automation, recent restructuring, and investment allocation are showing through on operating margins, RBC noted.

The company introduced a 41% operating margin target for fiscal 2029, which RBC said was a "highlight" and was likely to be well received.

RBC noted the management boosted its full-year targets to revenue between $7.03 billion to $7.08 billion and non-GAAP EPS between $9.80 to $9.98.

RBC maintained its outperform rating on Autodesk and raised its price target on the stock to $380 from $345.