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Autodesk (ADSK)
NASDAQ:ADSK

Autodesk (ADSK) AI Stock Analysis

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Autodesk

(NASDAQ:ADSK)

Rating:79Outperform
Price Target:
$338.00
▲(6.74%Upside)
Autodesk's overall stock score is bolstered by its strong financial performance and positive earnings call results. While technical indicators show moderate bullish sentiment, high valuation metrics suggest caution. Recent corporate events positively impact strategic outlook.
Positive Factors
Financial Performance
Autodesk reported broadly better than projected F1Q26 results.
Investor Sentiment
Shares trading at a discount to peers plus a catalyst path for improved demand, margin, and investor sentiment frames a favorable risk/reward.
Profitability
Adjusted operating margin was reported at 37.2%, well above estimates and consensus.
Negative Factors
Construction Activity
Business conditions remained sluggish nationwide, with nonresidential construction activity continuing to decline in several major metro areas.
Market Conditions
Overall billings continued to suggest a downtick in the overall design cycle, with a score below 50 indicating a decrease in billings.

Autodesk (ADSK) vs. SPDR S&P 500 ETF (SPY)

Autodesk Business Overview & Revenue Model

Company DescriptionAutodesk, Inc. is a leading American software company that primarily serves the architecture, engineering, construction, manufacturing, media, and entertainment industries. Founded in 1982 and headquartered in San Rafael, California, Autodesk is best known for its AutoCAD software, used for computer-aided design (CAD) and drafting. Over the years, the company has expanded its product offerings to include a comprehensive suite of design, engineering, and entertainment software, facilitating 3D design, visualization, and simulation tools that help professionals across various industries to design and create innovative products and projects.
How the Company Makes MoneyAutodesk generates revenue predominantly through the sale of subscriptions to its software products. The company transitioned from a perpetual licensing model to a subscription-based revenue model, which has become a significant source of its income. Autodesk offers several subscription plans, including term-based subscriptions and maintenance subscriptions, which provide users with access to software updates, technical support, and cloud services. Additionally, Autodesk earns revenue from its cloud-based solutions, such as Autodesk Construction Cloud, which offers tools for project management and collaboration in the construction industry. The company also leverages partnerships with educational institutions to promote its software, ensuring a steady influx of new users familiar with its products. Furthermore, Autodesk invests in strategic acquisitions to expand its portfolio and enter new markets, thereby enhancing its revenue potential.

Autodesk Key Performance Indicators (KPIs)

Any
Any
Annual Recurring Revenue
Annual Recurring Revenue
Highlights the predictable revenue stream from subscription-based services, indicating business stability and customer retention strength.
Chart InsightsAutodesk's Annual Recurring Revenue (ARR) has shown consistent growth, with a notable acceleration in recent quarters, reflecting strong performance in construction and make segments. Despite macroeconomic uncertainties and challenges in new business growth, the company's focus on cloud and AI leadership is driving resilience. The latest earnings call highlights a robust financial outlook, with expectations of significant billings and revenue growth in fiscal 2026, supported by strategic share buybacks and operational efficiency improvements, positioning Autodesk for sustained momentum.
Data provided by:Main Street Data

Autodesk Earnings Call Summary

Earnings Call Date:May 23, 2025
(Q1-2026)
|
% Change Since: 7.22%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong start to the fiscal year with impressive revenue and billings growth. Strategic investments in AI and cloud platforms are paying off, and partnerships are contributing to performance. However, there are challenges with restructuring impacts on margins and macroeconomic uncertainties. Despite these issues, the overall momentum of the business remains solid.
Q1-2026 Updates
Positive Updates
Strong Start to Fiscal 2026
Revenue and non-GAAP earnings per share exceeded the higher end of guidance ranges. Billings, non-GAAP margins, and free cash flow also surpassed expectations.
Impressive Revenue Growth
Total revenue in the first quarter grew 15% as reported and 16% in constant currency. The new transaction model contributed $78 million to revenue.
Significant Billings Growth
Billings increased 29% as reported and 30% in constant currency. The new transaction model contributed $105 million to billings.
Positive Operating Margin Trends
Non-GAAP operating margins increased by three percentage points, reflecting operating leverage from ongoing cost discipline.
Strategic Partnerships and Renewals
Strong performance in AECO and strategic partnerships, including a major EBA with a leading infrastructure consulting firm and a renewal with Hitachi Energy.
AI and Platform Advancements
Continued investment in cloud, platform, and AI, with positive developments in Fusion and Forma, enhancing customer collaboration and productivity.
Negative Updates
Restructuring Charges Impact Margins
GAAP operating margins decreased by seven percentage points due to restructuring charges of $105 million and a one-time noncash charge of $54 million.
Macroeconomic Uncertainty
Increased macroeconomic uncertainty has been factored into guidance, reflecting potential challenges in the second half of the year.
Softness in Asia Pacific Region
A little more softness observed in Asia Pacific, particularly in Japan, China, and Korea, due to macroeconomic turmoil and trade discussions.
Company Guidance
During the Autodesk, Inc. fiscal 2026 first-quarter earnings call, the company reported that revenue and non-GAAP earnings per share surpassed the high end of their guidance ranges, while billings, non-GAAP margins, and free cash flow exceeded expectations. Total revenue increased by 15% as reported, and 16% in constant currency, with the new transaction model contributing $78 million to revenue. Billings grew by 29% as reported and 30% in constant currency. The company's first-quarter GAAP and non-GAAP operating margins were 14% and 37%, respectively, with non-GAAP operating margins increasing by three percentage points. Autodesk provided fiscal 2026 guidance, adjusting for currency and macroeconomic uncertainties, with billings projected to reach between $7.16 billion and $7.31 billion, revenue between $6.925 billion and $6.995 billion, and free cash flow expected to range from $2.1 billion to $2.2 billion.

Autodesk Financial Statement Overview

Summary
Autodesk exhibits strong financial health with impressive revenue growth, high profitability, and efficient cash management. The balance sheet is solid with balanced leverage, but there is room to increase equity proportion. Overall, the financial trajectory is positive.
Income Statement
92
Very Positive
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
85
Very Positive
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
88
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue6.35B6.13B5.44B5.00B4.39B3.79B
Gross Profit5.75B5.55B4.98B4.53B3.97B3.45B
EBITDA1.49B1.53B1.22B1.10B765.70M720.80M
Net Income1.18B1.11B906.00M823.00M497.00M1.21B
Balance Sheet
Total Assets10.59B10.83B9.91B9.44B8.61B7.28B
Cash, Cash Equivalents and Short-Term Investments2.04B1.89B2.25B2.07B1.76B1.86B
Total Debt2.35B2.56B2.63B2.67B3.06B2.10B
Total Liabilities7.97B8.21B8.06B8.29B7.76B6.31B
Stockholders Equity2.62B2.62B1.85B1.15B849.10M965.50M
Cash Flow
Free Cash Flow1.61B1.50B1.28B2.02B1.46B1.34B
Operating Cash Flow1.68B1.61B1.31B2.07B1.53B1.44B
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
Positive
Last Price316.66
Price Trends
50DMA
293.41
Positive
100DMA
281.28
Positive
200DMA
287.31
Positive
Market Momentum
MACD
5.34
Negative
RSI
72.68
Negative
STOCH
92.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADSK, the sentiment is Positive. The current price of 316.66 is above the 20-day moving average (MA) of 301.63, above the 50-day MA of 293.41, and above the 200-day MA of 287.31, indicating a bullish trend. The MACD of 5.34 indicates Negative momentum. The RSI at 72.68 is Negative, neither overbought nor oversold. The STOCH value of 92.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADSK.

Autodesk Risk Analysis

Autodesk disclosed 41 risk factors in its most recent earnings report. Autodesk reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Autodesk Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$89.23B82.7725.92%19.55%2.35%
79
Outperform
$67.75B67.8542.36%12.89%1.23%
78
Outperform
$12.14B56.9989.60%9.18%14.35%
75
Outperform
$32.31B54.5610.23%15.98%35.52%
BSBSY
74
Outperform
$16.79B70.3625.20%0.51%10.71%-27.64%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADSK
Autodesk
316.66
68.70
27.71%
ANSS
Ansys
367.48
39.84
12.16%
CDNS
Cadence Design
326.81
9.45
2.98%
MANH
Manhattan Associates
199.93
-46.29
-18.80%
BSY
Bentley Systems
55.34
6.26
12.75%

Autodesk Corporate Events

Executive/Board ChangesShareholder Meetings
Autodesk Confirms New Board Members and Audit Roles
Neutral
Jun 20, 2025

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.

The most recent analyst rating on (ADSK) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Autodesk stock, see the ADSK Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Autodesk Receives Legal Opinion on 5.300% Notes
Neutral
Jun 6, 2025

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.

The most recent analyst rating on (ADSK) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Autodesk stock, see the ADSK Stock Forecast page.

Executive/Board ChangesStock BuybackBusiness Operations and StrategyFinancial Disclosures
Autodesk Announces Leadership Change Amid Strong Q1 Results
Positive
May 22, 2025

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.

The most recent analyst rating on (ADSK) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Autodesk stock, see the ADSK Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Autodesk Enters Strategic Credit Agreement with Citibank
Neutral
May 8, 2025

On May 8, 2025, Autodesk, Inc. entered into a Credit Agreement with Citibank, N.A. as the administrative agent, which involves various lenders. This agreement signifies a strategic financial move for Autodesk, potentially impacting its financial operations and market positioning.

Executive/Board ChangesBusiness Operations and Strategy
Autodesk Announces New Board Members After Agreement
Positive
Apr 24, 2025

On April 23, 2025, Autodesk entered into a cooperation agreement with Starboard Value, leading to the appointment of Jeff Epstein and Christie Simons to its Board of Directors following the 2025 Annual Meeting. This agreement, which includes Starboard withdrawing its director nominees and agreeing to certain standstill provisions, aims to enhance Autodesk’s board capabilities and drive long-term shareholder value. The new directors bring significant expertise in technology, finance, and audit, which is expected to support Autodesk’s strategic initiatives in industry cloud, platform, and AI strategies.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 12, 2025