Autodesk (ADSK) AI Stock Analysis

• Market Cap: $61.34B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 61.4
• Beta (1Y): 1.14
• Revenue Growth: 12.89%
• EPS Growth: 1.23%
• Country: US
• Employees: 15,300
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 2.29
• Shares Outstanding: 213,944,530
• 10 Day Avg. Volume: 1,494,726
• 30 Day Avg. Volume: 1,697,743
• PEG Ratio: 2.57
• Price to Book (P/B): 25.54
• Price to Sales (P/S): 10.92
• P/FCF Ratio: 44.48
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 9.41
• Enterprise Value/Gross Profit: 10.40
• Enterprise Value/Ebitda: 39.99
• 1Y Price Target: $347.76
• Price Target Upside: 20.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 75 Outperform
• Price Target: $326.00 ▲(12.55% Upside)

Autodesk's strong financial performance and positive earnings call insights are the most significant factors, reflecting robust growth and strategic focus. However, technical analysis and valuation concerns, such as overvaluation and bearish momentum, slightly temper the overall score.

Positive Factors

Earnings & Financial Performance

Increased confidence to improve EPS and FCF with catalysts in both margin and revenue.

Market Reaction

Shares of Autodesk increased by 5%, reflecting relief that the company will likely not pursue material mergers and acquisitions.

Strategic Initiatives

Autodesk's focus on core strategic initiatives is encouraging, as there is a belief that investor appetite for large mergers and acquisitions was low.

Negative Factors

Acquisition Concerns

Autodesk shares had previously traded down 11% since it was reported that the company might acquire PTC.

Macroeconomic Conditions

Macro headwinds from higher rates and building costs, as well as geopolitical issues, have pressured architectural billings for the past 24+ months.

Autodesk Business Overview & Revenue Model

Company Description

Autodesk, Inc. is a leading American software company that specializes in 3D design, engineering, and entertainment software. Founded in 1982, Autodesk is best known for its AutoCAD software, which supports architects, engineers, and construction professionals in their design and drafting tasks. The company operates in various sectors, including architecture, engineering, construction (AEC), manufacturing, and media and entertainment. Its core products and services include software solutions like Revit, Maya, and Fusion 360, which cater to a wide range of industries, enabling users to create, visualize, and simulate their designs.

How the Company Makes Money

Autodesk primarily generates revenue through a subscription-based model, offering its software products and services on a recurring basis. This model allows the company to provide ongoing updates and support to its customers while ensuring a steady stream of income. Key revenue streams include subscription fees for individual software licenses, enterprise agreements for large organizations, and cloud-based services that enhance collaboration and accessibility. Additionally, Autodesk benefits from strategic partnerships with major industry players, educational institutions, and resellers, further expanding its market reach and driving sales. The company's strong focus on innovation and development of new features also helps retain existing customers and attract new ones.

Autodesk Financial Statement Overview

Summary

Autodesk demonstrates strong financial performance with impressive revenue growth, high profitability, and efficient cash management. The balance sheet is solid, with a balanced leverage profile, although there is potential to increase equity proportion.

Income Statement

Autodesk demonstrates strong revenue growth with a TTM revenue of $6.35 billion, up from $5.44 billion in 2024, indicating robust demand for its products. The gross profit margin is impressive at 90.53%, reflecting efficient cost management. The net profit margin stands at 18.53%, showing significant profitability. Revenue growth and expanding margins indicate a positive financial trajectory.

Balance Sheet

The company's balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.90, reflecting balanced leverage. The return on equity (ROE) is 44.94%, indicating efficient use of equity to generate profit. An equity ratio of 24.71% suggests a reasonable level of equity financing. The balance sheet reflects sound financial health, although there is room for improvement in equity proportion.

Cash Flow

Autodesk's cash flow analysis shows strong operational efficiency with an operating cash flow to net income ratio of 1.43, indicating healthy cash generation relative to profit. Free cash flow grew by 6.72% from the previous year, underscoring solid cash management. The free cash flow to net income ratio is 1.37, highlighting effective conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.35B	6.11B	5.44B	4.95B	4.40B	3.79B
Gross Profit	5.75B	5.49B	4.89B	4.43B	3.94B	3.42B
EBITDA	1.49B	1.56B	1.27B	1.17B	789.00M	720.80M
Net Income	1.18B	1.11B	906.00M	823.00M	497.00M	1.21B
Balance Sheet
Total Assets	10.59B	10.83B	9.91B	9.44B	8.61B	7.28B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.89B	2.25B	2.07B	1.76B	1.86B
Total Debt	2.35B	2.56B	2.63B	2.67B	3.06B	2.10B
Total Liabilities	7.97B	8.21B	8.06B	8.29B	7.76B	6.31B
Stockholders Equity	2.62B	2.62B	1.85B	1.15B	849.10M	965.50M
Cash Flow
Free Cash Flow	1.61B	1.50B	1.28B	2.02B	1.46B	1.34B
Operating Cash Flow	1.68B	1.61B	1.31B	2.07B	1.53B	1.44B
Investing Cash Flow	-207.00M	-903.00M	-502.00M	-143.00M	-1.59B	-403.90M
Financing Cash Flow	-1.34B	-987.00M	-852.00M	-1.49B	-168.60M	-1.05B

Autodesk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 289.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADSK, the sentiment is Negative. The current price of 289.66 is below the 20-day moving average (MA) of 296.47, below the 50-day MA of 298.51, and below the 200-day MA of 290.33, indicating a bearish trend. The MACD of -3.55 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADSK.

Autodesk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANH	77 Outperform	$12.99B	59.86	85.16%	―	6.13%	9.17%
ADSK	75 Outperform	$61.34B	61.44	42.36%	―	12.89%	1.23%
CDNS	71 Outperform	$95.34B	94.67	21.84%	―	22.29%	-4.94%
BSY	65 Neutral	$16.13B	67.90	23.69%	0.48%	10.45%	-32.43%
Sector *	57 Neutral	HK$14.83B	9.08	-0.60%	4.27%	7.14%	-38.21%

Autodesk Corporate Events

Autodesk Reaffirms Strategic Priorities Amid Global Risks

On July 14, 2025, Autodesk reaffirmed its commitment to enhancing shareholder value through strategic priorities in cloud, platform, and AI, optimizing sales and marketing for higher margins, and investing in organic growth and acquisitions. The company also highlighted potential risks, including global economic conditions, geopolitical tensions, and technological changes, which could impact its operations and financial results.

Autodesk Confirms New Board Members and Audit Roles

On April 24, 2025, Autodesk announced the appointment of Jeff Epstein and A. Christine Simons to its Board of Directors, with their roles on the Audit Committee confirmed on June 18, 2025. The company also held its 2025 annual meeting of stockholders, where ten directors were elected, and several proposals, including the amendment of the 2022 Equity Incentive Plan, were approved.

Autodesk Receives Legal Opinion on 5.300% Notes

On June 6, 2025, Autodesk, Inc. received a legal opinion from Wilson Sonsini Goodrich & Rosati regarding the legality of its 5.300% Notes due 2035. This follows the underwriting agreement dated June 3, 2025, with major financial institutions like Citigroup Global Markets Inc., BofA Securities, Inc., and J.P. Morgan Securities LLC. The issuance of these notes is part of Autodesk’s strategic financial operations, potentially impacting its market positioning and stakeholder interests.

Autodesk Announces Leadership Change Amid Strong Q1 Results

On May 22, 2025, Autodesk announced that Stephen W. Hope, the Senior Vice President and Chief Accounting Officer, would step down following the filing of the company’s quarterly report. Janesh Moorjani, the Chief Financial Officer, will assume the role of principal accounting officer. Additionally, Autodesk reported a strong financial performance for the first quarter of fiscal 2026, with a 15% revenue growth to $1.6 billion, driven by strategic priorities in cloud, platform, and AI. The company remains focused on optimizing sales and marketing to enhance margins and increasing capital allocation for share repurchases.