Autodesk, Inc. (ADSK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Autodesk, Inc. (ADSK) Technology Profile & Competitive Position

Autodesk, Inc. provides comprehensive 3D design and engineering software solutions, including AutoCAD and BIM 360, serving architecture, engineering, construction, and media sectors globally. With a robust subscription model and a focus on digital transformation, Autodesk facilitates innovation and collaboration across industries, maintaining a strong market position.

What Is the Investment Thesis for ADSK?

With a market capitalization of $44.7B and a P/E ratio of 27.27, Autodesk demonstrates strong financial performance. The company's robust gross margin of 92.0% and a profit margin of 15.6% highlight its operational efficiency. Growth catalysts include the increasing adoption of BIM in the construction industry and the expansion of cloud-based services. Key value drivers include recurring subscription revenue, expansion into emerging markets, and continued innovation in its product offerings. However, potential risks include competition from established players like CDNS: Cadence Design Systems, Inc. and SNPS: Synopsys, Inc., as well as the cyclical nature of the construction and manufacturing industries.

Based on FMP financials and quantitative analysis

ADSK Key Highlights

Market capitalization of $44.7B reflects strong investor confidence in Autodesk's market leadership.

• Gross margin of 92.0% indicates efficient cost management and premium pricing power.
• Profit margin of 15.6% demonstrates solid profitability and operational efficiency.
• Free cash flow of $2.88 billion provides financial flexibility for investments and acquisitions.
• Beta of 1.47 suggests higher volatility compared to the market, reflecting growth potential and sensitivity to economic cycles.

Who Are ADSK's Competitors?

ADSK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ADSK's Key Strengths?

Dominant market position in design and engineering software.

• Comprehensive product portfolio catering to diverse industries.
• Successful transition to a subscription-based model.
• Strong brand recognition and customer loyalty.

What Are ADSK's Weaknesses?

High price point may limit adoption among smaller businesses.

• Dependence on the cyclical nature of the construction and manufacturing industries.
• Exposure to piracy and unauthorized software use.
• Complex product offerings may require extensive training and support.

What Could Drive ADSK Stock Higher?

Continued adoption of BIM in the construction industry driving demand for BIM 360.

• Expansion of cloud-based services and subscription revenue.
• Launch of new AI-powered features in Autodesk's software solutions in Q3 2026.
• Strategic acquisitions to expand product portfolio and enter new markets by Q4 2026.

What Are the Key Risks for ADSK?

Insider selling — insiders were net sellers of roughly $16.9M recently.

• Economic downturns impacting the construction and manufacturing industries.
• Competition from established players and new entrants in the design software market.
• Technological disruptions and the emergence of new design tools.
• Exposure to piracy and unauthorized software use.
• Changes in government regulations and industry standards.

What Are the Growth Opportunities for ADSK?

• Growth opportunity 1: Expansion of BIM Solutions: The increasing adoption of Building Information Modeling (BIM) in the construction industry presents a significant growth opportunity for Autodesk. The global BIM market is projected to reach $15.7 billion by 2027. Autodesk's BIM 360 platform is well-positioned to capitalize on this trend by providing a comprehensive cloud-based solution for construction management, collaboration, and project delivery. This expansion will drive subscription revenue and enhance Autodesk's market share in the construction sector.
• Growth opportunity 2: Cloud-Based Services: Autodesk's transition to a subscription-based model and the expansion of its cloud-based services offer substantial growth potential. Cloud-based solutions provide recurring revenue streams, enhance customer engagement, and enable scalability. By offering cloud-based versions of its flagship products, such as AutoCAD and Revit, Autodesk can attract new customers and increase adoption among existing users.
• Growth opportunity 3: Emerging Markets: Expanding into emerging markets, such as Asia-Pacific and Latin America, presents a significant growth opportunity for Autodesk. These regions are experiencing rapid urbanization and infrastructure development, driving demand for design and engineering software. By establishing a stronger presence in these markets, Autodesk can tap into new customer segments and increase its global market share. This expansion requires localized product offerings, strategic partnerships, and targeted marketing efforts.
• Growth opportunity 4: Integration of AI and Machine Learning: The integration of artificial intelligence (AI) and machine learning (ML) into Autodesk's software solutions offers opportunities to enhance functionality, improve user experience, and drive innovation. AI-powered features can automate repetitive tasks, optimize designs, and provide valuable insights to users. By incorporating AI and ML into its products, Autodesk can differentiate itself from competitors and attract customers seeking advanced design and engineering tools. The global AI market is projected to reach $190.61 billion in 2025.
• Growth opportunity 5: Strategic Acquisitions: Autodesk has a history of strategic acquisitions to expand its product portfolio and enter new markets. By acquiring companies with complementary technologies and expertise, Autodesk can accelerate innovation and strengthen its competitive position. Potential acquisition targets include companies specializing in AI, cloud computing, and virtual reality. These acquisitions can provide access to new customer segments, enhance Autodesk's product offerings, and drive long-term growth.

What Are ADSK's Competitive Advantages?

• Strong brand recognition and reputation in the design and engineering software market.
• Extensive product portfolio catering to a wide range of industries and applications.
• High switching costs due to the integration of Autodesk's software into customers' workflows.
• Large and active user community providing support and feedback.
• Proprietary technology and intellectual property.

What Does ADSK Do?

Founded in 1982 and headquartered in San Rafael, California, Autodesk, Inc. has evolved into a global leader in 3D design, engineering, and entertainment software. The company's initial success stemmed from AutoCAD, a foundational software for computer-aided design (CAD), which revolutionized drafting and design processes. Over the years, Autodesk has expanded its product portfolio through organic development and strategic acquisitions, catering to a wide array of industries. Key offerings include AutoCAD Civil 3D, providing solutions for civil engineering projects; BIM 360, a cloud-based construction management platform; Fusion 360, an integrated CAD, CAM, and CAE tool; and Maya and 3ds Max, industry-standard software for 3D modeling, animation, and visual effects. Autodesk serves customers directly and through a network of resellers and distributors, maintaining a strong presence in architecture, engineering, construction, product design, manufacturing, and media and entertainment sectors. The company's transition to a subscription-based model has provided recurring revenue streams and enhanced customer engagement.

What Products and Services Does ADSK Offer?

• Provides 3D design, engineering, and entertainment software solutions.
• Offers AutoCAD software for professional design, drafting, detailing, and visualization.
• Develops BIM 360, a cloud-based construction management software.
• Provides computer-aided manufacturing (CAM) software for computer numeric control machining.
• Offers Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool.
• Provides Maya and 3ds Max software for 3D modeling, animation, and visual effects.
• Offers Vault, a data management software to manage data in one central location and streamline collaboration.

How Does ADSK Make Money?

• Generates revenue through subscription-based access to its software products.
• Sells software licenses directly to customers and through a network of resellers and distributors.
• Offers cloud-based services, providing recurring revenue streams.
• Provides training and support services to customers.

What Industry Does ADSK Operate In?

Autodesk operates in the application software industry, which is experiencing substantial growth driven by digital transformation and the increasing adoption of cloud-based solutions. The market is characterized by intense competition, with key players including CDNS: Cadence Design Systems, Inc. and SNPS: Synopsys, Inc. Autodesk's focus on providing comprehensive design and engineering solutions positions it favorably to capitalize on the growing demand for digital tools in architecture, engineering, construction, and manufacturing. The industry is also influenced by trends such as Building Information Modeling (BIM) and the integration of AI and machine learning into design processes.

Who Are ADSK's Key Customers?

• Architects and engineers designing buildings and infrastructure.
• Construction companies managing projects and collaborating with stakeholders.
• Product designers and manufacturers creating consumer and industrial goods.
• Media and entertainment companies producing visual effects and animations.

Autodesk, Inc. Financial Trajectory

Autodesk, Inc. (ADSK) reported $2.05B in revenue for Q2 FY2027, reflecting 5.8% growth compared to the prior quarter. The company recorded net income of $492.0M, with diluted EPS of $2.32. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Technology. Across the four most recent quarters, ADSK averaged $1.93 in diluted EPS.

Company Profile

Autodesk, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in San Francisco, US. The company is led by CEO Andrew Anagnost. ADSK has traded publicly since 1985.

How Autodesk, Inc. Is Valued

Autodesk, Inc. carries a market capitalization of $44.7B, placing it in the large-cap category. Analyst price targets span from $260.00 to $341.00, with a consensus of $309.00. At the current price of $211.61, that implies approximately 46% upside potential. Relative to its peer group, ADSK's quantitative score of 75/100 is roughly in line with the peer average of 77/100.

Return on equity for Autodesk, Inc. stands at 49.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 12.3%, showing how much profit it generates from its asset base. ADSK trades at a trailing price-to-earnings ratio of 27.27, below the Technology sector average of ~32.70x. Its free cash flow yield is 5.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.83 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 3.0%, the inverse of the P/E and a quick read on earnings relative to price.

Autodesk, Inc.'s Piotroski F-Score is 9/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.71 places it in the safe zone, indicating low near-term bankruptcy risk.

Autodesk, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 6.0% above estimates on average.

Over the past six months, Autodesk, Inc. insiders filed 42 SEC Form 4 transactions — 9 sales and 33 purchases. On net that is roughly 138K shares acquired (about $16.9M) — insiders putting money in tends to read as conviction.

ADSK Financials

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ADSK Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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