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Artificial intelligence (AI) demand continues to surge as industries race to automate, analyze, and innovate. Autodesk (ADSK), a firm known for its 3D design software used in architecture, engineering, construction, and product development, has recently slashed over 1,300 jobs. Despite its industry dominance, the strategic move was to double down on cloud and AI.
With AI demand soaring, Autodesk’s machine learning-driven design tools are poised to become indispensable. Yet, with the stock 13% off its 52-week high of $326.62, does this pullback scream “buy,” or is patience the smarter move?
With AI-driven transformation fueling Autodesk’s next chapter, the answer may lie in how swiftly it capitalizes on this technological wave. Let’s dive deeper into the numbers and narratives shaping its trajectory.
About Autodesk Stock
Autodesk (ADSK) supports industries such as architecture, engineering, and entertainment with its 3D design software. With a $59 billion market cap, the firm stands at the crossroads of innovation and opportunity.
Autodesk rode a steady wave in 2024, but 2025 brought rougher waters. Shares of the specialty software company rose just 3.7% over the past 52 weeks and climbed 5.7% in six months. ADSK has dropped 8.6% on a year-to-date basis and tumbled nearly 12% over the past month.
Meanwhile, news of a restructuring plan and job cuts have sparked investor concern.
Autodesk’s stock may have stumbled, but it is still wearing a premium price tag, trading at 41.31 times forward earnings and 9.62 times forward sales. While pricier than Adobe (ADBE) and Trimble (TRMB), these multiples mark a discount to its five-year averages, hinting at a valuation reset.
Autodesk Tops Q4 Estimates
Autodesk closed the fourth quarter of its fiscal 2025 with a stronger-than-expected performance. Revenue climbed 11.6% year over year to $1.64 billion, fueled by subscription sales, making up nearly 93% of the total. With subscription revenue up 13.7% to $1.5 billion, the company’s cloud transformation is paying off, deepening customer ties and ensuring steady cash flow.
Operationally, Autodesk flexed its efficiency. Non-GAAP net income from operations surged 16.5% to $608 million, pushing operating margins to 37%. Adjusted EPS landed at $2.29, up 9.6% annually and topping estimates. Billings soared 23% to $2.11 billion, while remaining performance obligations (RPO) hit $6.94 billion, reflecting strong future demand.
Cash flow was another bright spot. Operating cash flow jumped 22.4% to $1.6 billion, with free cash flow reaching $1.57 billion for fiscal 2025. With $1.89 billion in cash and cash equivalents (including marketable securities) as of Jan. 31, 2025, Autodesk enters the current year in a solid position, proving its subscription model is working.
Meanwhile, Autodesk is playing the tech industry’s new game – cut jobs, double down on AI. Fresh off stellar earnings, the design software giant announced it is slashing 9% of its workforce - while sharpening its focus on AI and cloud innovation. It’s a familiar move. Meta (META), Google (GOOGL), and Workday (WDAY) have all trimmed headcounts to fund next-gen tech bets.
CEO Andrew Anagnost framed the layoffs as a shift toward efficiency, aligning Autodesk’s sales model with its subscription-driven future. Autodesk is betting that leaner operations and deeper tech investments will keep it ahead.
Autodesk is charting a steady course for fiscal 2026, projecting revenues between $6.895 billion and $6.965 billion and non-GAAP EPS between $9.34 and $9.67. First-quarter guidance sees sales between $1.60 billion and $1.61 billion and non-GAAP EPS between $2.14 and $2.17. The company is banking on AI and cloud investments to fuel growth, but macroeconomic uncertainty and competition loom. With a 36% to 37% operating margin target and over $2 billion in free cash flow expected for the fiscal year, Autodesk’s management is optimistic.
Analysts tracking Autodesk anticipate a 13.3% rise in the company’s EPS to $6.64 in fiscal 2026, followed by approximately 19.3% growth in fiscal 2027 to $7.92.
What Do Analysts Expect for Autodesk Stock?
Multiple brokerages adjusted their target prices on ADSK after Autodesk’s latest earnings report. For instance, DA Davidson sees Autodesk’s Q4 as a step in the right direction, raising its price target to $285 while keeping a “Neutral” rating. Analyst William Jellison points to Autodesk’s workforce reduction as a move toward efficiency and long-term value creation. The firm also highlights Autodesk Construction Cloud’s growth as a key driver. While cautious, DA Davidson believes these strategic shifts could strengthen Autodesk’s position and reward shareholders over time.
Overall, analysts have upgraded ADSK to a “Strong Buy,” marking a bullish shift from “Moderate Buy” two months ago. Out of the 26 analysts in coverage, 18 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining seven analysts are playing it safe with a “Hold” rating.
Meanwhile, ADSK’s mean price target of $338.31 suggests that it could rally as much as 26% from the current price levels. The street-high of $400 implies potential upside of 50%.
