With a market capitalization of $55.4 billion, Autodesk (ADSK) has emerged as a major player in the computer-aided design (CAD) and engineering software industries. From architects to mechanical engineers, Autodesk’s suite of software solutions has influenced how professionals design and build. Autodesk is best known for its flagship product, AutoCAD, a design software that is widely used across industries. It serves professionals in architecture, construction, engineering, manufacturing, and digital media and entertainment.
While Autodesk’s stock is down 8.6% in the year to date, Wall Street sees enormous long-term potential, thanks to its subscription-based model, artificial intelligence (AI)-driven innovations, and strong financials, rating it a “Strong Buy.” Let’s find out why.
Autodesk Has Shown Resilience
Autodesk uses a subscription-based model, which ensures a steady stream of recurring revenue. Some of its most popular products are Revit, Fusion 360, Maya, Inventor, and BIM Collaborate Pro. Regardless of economic fluctuations, the company has demonstrated financial resilience.
In the fourth quarter of its fiscal 2025, total revenue rose 12% year-over-year to $1.64 billion, outpacing the consensus estimate by $7.01 million. Adjusted earnings per share (EPS) came in at $2.29, surpassing analysts’ expectations and increasing 9.6% year-over-year. Total billings surged 23% year-over-year, reaching $2.11 billion. These figures highlight Autodesk’s ability to expand despite larger market challenges. Subscription revenue increased 14% and accounted for more than 92% of total revenue in the quarter, ensuring consistency and predictability. As more customers adopt cloud-based design solutions, Autodesk is well-positioned to continue growing its revenue. Its net revenue retention rate ranged from 100% to 110%. Furthermore, the current (remaining performance obligation (orRPO), which represents the revenue expected to be earned over the next 12 months, stood at $4.46 billion.
For fiscal 2025, total revenue increased 12% to $6.13 billion, while adjusted EPS rose 11.4% to $8.47 per share.
Autodesk is increasing its emphasis on cloud-based design and AI-powered solutions, reallocating internal resources to critical areas such as industry clouds and platform development. For this reason, the company announced a global restructuring plan that includes a 9% workforce reduction, affecting roughly 1,350 employees. The company anticipates pre-tax restructuring charges ranging between $135 million and $150 million.
During the Q4 earnings call, CEO Andrew Anagnost emphasized Autodesk’s leadership in cloud-based design and manufacturing, citing notable client partnerships like Power Design and MSC Industrial Supply. Management also discussed the company’s long-term vision of expanding profitability by entering high-growth segments like construction and infrastructure. In fiscal 2025, the company generated free cash flow of $1.57 billion, and it expects to generate between $2.07 billion and $2.175 billion in fiscal 2026.
Autodesk’s growth trajectory appears to be strong, as the company raised its full-year earnings outlook. It expects revenue to be between $6.9 billion and $6.97 billion, with adjusted EPS ranging from $9.34 to $9.67. This would represent 13% revenue growth at the midpoint, with earnings growth of approximately 12.2% in fiscal 2026.
What Is the Price Target for Autodesk Stock?
Analysts remain bullish on Autodesk, rating it a “Strong Buy.”
Of the 26 analysts covering ADSK stock, 18 rate it a “Strong Buy,” one says it is a “Moderate Buy,” and seven rate it a “Hold.” The mean target price of $336.92 suggests the stock can rally 25% from current levels. Additionally, its Street-high estimate of $400 implies the stock has upside potential of 50% over the next 12 months.
Long-term investors could benefit significantly as the company expands its AI capabilities, cloud solutions, and presence in emerging markets. Autodesk’s strong fundamentals and growth trajectory make it an appealing growth stock to buy right now for long-term investors with high risk tolerance.
