Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Autodesk (ADSK - Free Report) San Francisco, CA-based Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
ADSK is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ADSK has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.6% for the current fiscal year.
10 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.21 to $12.58 per share. ADSK also boasts an average earnings surprise of +7.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ADSK should be on investors' short list.
Pre-Market Stock Futures: Futures are trading lower as more big earnings excitement ran into rising oil prices and geopolitical worries. When the final bell rang on Wednesday, all of the major indices finished the day lower, except the Dow Jones Industrial Average, which essientially closed flat at 52,239. The other three indices closed lower, with the small-cap Russell 2000 taking the biggest hit, closing down 1% at 2,957. At the same time, the tech-heavy Nasdaq finished the session at 25,690, down 0.57%. The S&P 500 closed the day at 7,498, down just 0.14%. The big news after the close was the second-quarter earnings from technology giant Alphabet (NASDAQ: GOOGL | GOOGL Price Prediction), and while they blew past analysts’ estimates, the shares were under pressure in the after-market, and are trading lower this morning in the pre-market action.
Treasury Bonds: The song remains the same in the Treasury complex, as yields were higher across the entire curve once again, and the same reasons for the weakness persist. Higher oil prices are fueling worries about a resurgence of inflation, which took a summer holiday in June and looks set to return when the July inflation numbers come out in the month. The 30-year long bond closed the session at 5.15%, while the ten-year note closed at 4.66%. BTIG pointed out yesterday that 4.65% was a key area for the benchmark bond, and a “decisive close above that level could trigger a move higher”. Investors looking to buy the 10-year should focus on the 4.75% level.
Oil and Gas: In what is becoming a daily story, oil prices moved higher once again. Despite assurances from Secretary of State Rubio that tankers will be able to pass, buyers continue to launch bullish energy bets. When the dust settled on Wednesday, Brent Crude was up 3.05% at $93.79, while West Texas Intermediate finished the day at $86.44, higher by 2.49%. Natural gas joined in, and was last seen at $2.95, up 2.79%.
Gold: Geopolitical worries and rising yields were all it took to keep precious metals on their recent upward trend, where prices hit a 2-week high on Wednesday. Some traders pointed to next week’s meeting of the Federal Reserve governors and said that some of the move higher is positioning ahead of it. Gold closed Wednesday’s session at $4,134, up 1.38%, while Silver closed at $59.62, up 1.68%.
Crypto: The global cryptocurrency market ended slightly lower on Wednesday, with total market capitalization holding steady around $2.24 trillion. Bitcoin traded near $65,900 after climbing to an intraday high of $67,000 earlier in the session. The mild pullback appeared driven mainly by investors locking in profits, alongside a broader shift toward safe-haven assets. Rising crude oil prices and escalating tensions in the Middle East added to the cautious sentiment across risk assets. At 8 AM EDT, Bitcoin was trading at $65,520, while Ethereum was quoted at $1,926.
24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. I would like to remind you that no single analyst report should ever be the sole basis for buying or selling a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Thursday, July 23, 2026.
Upgrades: Ameren (NYSE: AEE) was upgraded to Overweight from Sector Weight at KeryBanc, with a $122 target price. AT&T (NYSE: T) was upgraded to Outperform from Peer Perform at Wolfe Research, with a $29 target price. Duke Energy (NYSE: DUK) was raised to Overweight from Sector Weight at KeyBanc, with a $139 target price objective. JPMorgan Chase & Company (NYSE: JPM) was upgraded to Buy from Hold at Deutsche Bank, which moved the target price to $375 from $345. Verisk Analytics (NASDAQ: VRSK) was upgraded to Buy from Hold at Jefferies, which raised the target price on the shares to $235 from $192. Downgrades: Pegasystems (NASDAQ: PEGA) was downgraded to Loop Capital, which slashed the target price to $25 from $55. PNC Financial Services Group (NYSE: PNC) was downgraded to Hold from Buy at Deutsche Bank, with a $265 price target. Northern Trust (NASDAQ: NTRS) was downgraded to Sector Perform from Outperform at RBC Capital, with a $178 target price. Norwegian Cruise Line Holdings (NYSE: NCLH) was downgraded to Hold from Buy at Truist Financial, with a $20 target price. Southern Company (NYSE: SO) was cut to Underweight from Sector Weight at KeyBanc, with a $79 target price. Initiations: Applied Digital (NASDAQ: APLD) was initiated with an Equal Weight at Morgan Stanley, with a $36.50 target price. Autodesk (NASDAQ: ADSK) was initiated with a Buy rating at Guggenheim, with a $245 target price.
Exxon Mobil (NYSE: XOM) was assumed with a Neutral rating at Piper Sandler, which has a $158 target for the integrated oil giant. LiveNation Entertainment (NYSE: LYV) was initiated with a Buy rating at BTIG, with a $215 target price. Tyler Technologies (NYSE: TYL) was started with a Buy rating at Guggenheim, which has a $440 target price for the stock. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and JPMorgan Chase didn't make the cut. Grab the names FREE today.
Autodesk (ADSK - Free Report) closed at $211.15 in the latest trading session, marking a -3.05% move from the prior day. This change lagged the S&P 500's daily gain of 0.89%. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
The design software company's shares have seen an increase of 16.02% over the last month, surpassing the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
The upcoming earnings release of Autodesk will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.12, reflecting a 19.08% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, up 13.96% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.58 per share and a revenue of $8.19 billion, representing changes of +20.61% and +13.65%, respectively, from the prior year.
Any recent changes to analyst estimates for Autodesk should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Autodesk is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Autodesk is currently exchanging hands at a Forward P/E ratio of 17.32. This represents a discount compared to its industry average Forward P/E of 19.97.
Meanwhile, ADSK's PEG ratio is currently 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
SummaryAutodesk is upgraded to ‘Strong Buy’ due to durable competitive advantages, robust growth, and a discounted 17x forward P/E multiple.ADSK’s MaintainX acquisition positions it to expand into operations and maintenance, creating a valuable feedback loop with core design products.Fiscal Q1 2027 saw 16% YoY revenue growth, 15% billings growth, and a 2-point margin expansion, with management guiding for double-digit revenue and EPS growth this year.AI integration and proprietary engineering validation tools reinforce ADSK’s moat.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More » Richard Drury/DigitalVision via Getty Images
2026 hasn’t been kind to software stocks, as the tech sector has bifurcated between AI and non-AI. What gets lost in the narrative, however, are quality companies that stand to benefit from AI being integrated into their product
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ADSK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Adobe: Consistent Revenue ExpansionAdobe (ADBE +1.43%) primarily generates revenue by providing software subscriptions for digital media creation, document management, and digital marketing.
While undergoing executive transitions with the planned departures of its chief executive officer and chief financial officer, it acquired Semrush and reported 26% net income margin for the quarter ended May 29, 2026.
Autodesk: Stable Revenue With a Recent DipAutodesk (ADSK +0.65%) earns its revenue by delivering advanced software for three-dimensional design, engineering, and construction management.
It announced a strategic collaboration with Amazon Web Services alongside its intent to acquire MaintainX, and it reported 25% net income margin for the quarter ended April 30, 2026.
Why Revenue Matters for Retail InvestorsRevenue shows the total money a business brings in from its operations before any expenses are subtracted. Tracking this top-line figure helps evaluate whether an organization is successfully attracting customers and growing its overall business volume over time.
Quarterly Revenue for Adobe and AutodeskQuarter (Period End)Adobe RevenueAutodesk RevenueQ3 2024$5.4 billion (period ended Aug. 2024)$1.5 billion (period ended July 2024)Q4 2024$5.6 billion (period ended Nov. 2024)$1.6 billion (period ended Oct. 2024)Q1 2025$5.7 billion (period ended Feb. 2025)$1.6 billion (period ended Jan. 2025)Q2 2025$5.9 billion (period ended May 2025)$1.6 billion (period ended April 2025)Q3 2025$6.0 billion (period ended Aug. 2025)$1.8 billion (period ended July 2025)Q4 2025$6.2 billion (period ended Nov. 2025)$1.9 billion (period ended Oct. 2025)Q1 2026$6.4 billion (period ended Feb. 2026)$2.0 billion (period ended Jan. 2026)Q2 2026$6.6 billion (period ended May 2026)$1.9 billion (period ended April 2026)Data source: Company filings. Data as of July 16, 2026.
Foolish TakeAdobe and Autodesk are two leading software design companies serving different end markets. The former’s revenue towers over the latter because of its broader consumer focus compared to Autodesk’s niche industry dominance. Still, both are seeing impressive quarterly sales growth.
This trend stopped for Autodesk in its fiscal first quarter, ended April 30, as revenue dipped to $1.9 billion. That’s because the company underwent a reorganization of its sales team, which impacted its latest quarter’s results. Even so, Autodesk expects its current fiscal year to deliver strong performance, and raised its revenue guidance to around $8.5 billion, an impressive increase from the prior year’s $7.2 billion.
Adobe experienced a massive drop in its share price this year after Wall Street became fearful artificial intelligence will eat into its business, and its CEO and CFO announced they were leaving. As its revenue trend reveals, sales continue to grow. Certainly, there’s uncertainty with the change in leadership, but Adobe’s revenue demonstrates its leadership position and ability to continue gaining customer spend as it incorporates AI into its software. With its shares well below the 52-week high of $376.16 reached in 2025, now is a good time to consider buying its shares.
Robert Izquierdo has positions in Adobe and Amazon. The Motley Fool has positions in and recommends Adobe, Amazon, and Autodesk. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
Autodesk (ADSK - Free Report) closed at $208.98 in the latest trading session, marking a +1.49% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
The design software company's shares have seen an increase of 2.25% over the last month, surpassing the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
Market participants will be closely following the financial results of Autodesk in its upcoming release. The company is expected to report EPS of $3.12, up 19.08% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.01 billion, reflecting a 13.96% rise from the equivalent quarter last year.
ADSK's full-year Zacks Consensus Estimates are calling for earnings of $12.58 per share and revenue of $8.19 billion. These results would represent year-over-year changes of +20.61% and +13.65%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Autodesk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Autodesk is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Autodesk is currently exchanging hands at a Forward P/E ratio of 16.37. This expresses a discount compared to the average Forward P/E of 19.89 of its industry.
Meanwhile, ADSK's PEG ratio is currently 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.06.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ADSK in the coming trading sessions, be sure to utilize Zacks.com.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Autodesk (ADSK - Free Report) San Francisco, CA-based Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
ADSK is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. ADSK has a Momentum Style Score of B, and shares are up 5.1% over the past four weeks.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.22 to $12.58 per share. ADSK boasts an average earnings surprise of +7.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ADSK should be on investors' short list.
In the latest close session, Autodesk (ADSK - Free Report) was up +1.23% at $208.58. This change outpaced the S&P 500's 0.81% gain on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Coming into today, shares of the design software company had lost 6.89% in the past month. In that same time, the Computer and Technology sector lost 1.59%, while the S&P 500 gained 1.13%.
The investment community will be paying close attention to the earnings performance of Autodesk in its upcoming release. On that day, Autodesk is projected to report earnings of $3.12 per share, which would represent year-over-year growth of 19.08%. Alongside, our most recent consensus estimate is anticipating revenue of $2.01 billion, indicating a 13.96% upward movement from the same quarter last year.
ADSK's full-year Zacks Consensus Estimates are calling for earnings of $12.58 per share and revenue of $8.19 billion. These results would represent year-over-year changes of +20.61% and +13.65%, respectively.
It is also important to note the recent changes to analyst estimates for Autodesk. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Autodesk is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Autodesk's current valuation metrics, including its Forward P/E ratio of 16.38. This valuation marks a discount compared to its industry average Forward P/E of 19.31.
Meanwhile, ADSK's PEG ratio is currently 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Autodesk (ADSK - Free Report) San Francisco, CA-based Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
ADSK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ADSK has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.6% for the current fiscal year.
For fiscal 2027, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.21 to $12.58 per share. ADSK boasts an average earnings surprise of +7.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ADSK should be on investors' short list.
Autodesk is making a $350 million investment in training and tools to help people learn how to use artificial intelligence, said Dara Treseder, the company's chief marketing officer, in an interview at the 2026 Cannes Lions Festival.
Treseder cited insights gleaned from the company's recent AI jobs report. "It showed that while 82% of people are very comfortable using LLMs in their daily lives, only a third of people are comfortable using AI in their job," she said. In the report, respondents said they fear AI might not work properly or will make humans irrelevant.
"That education is so key, not only to give people the skills and the talent," she said, "but to change the mindset."
Autodesk is making a $350 million investment in training and tools to help people learn how to use artificial intelligence, said Dara Treseder, the company's chief marketing officer, in an interview at the 2026 Cannes Lions Festival.
Treseder cited insights gleaned from the company's recent AI jobs report. "It showed that while 82% of people are very comfortable using LLMs in their daily lives, only a third of people are comfortable using AI in their job," she said. In the report, respondents said they fear AI might not work properly or will make humans irrelevant.
"That education is so key, not only to give people the skills and the talent," she said, "but to change the mindset."
Key Takeaways Autodesk is expanding AI across design software to drive productivity, retention and future monetization.ADSK targets AI-led growth while protecting margins, with fiscal 2027 earnings growth pegged at 20%.Figma is seeing AI adoption and customer expansion, but costs and slower seat growth could pressure results. Figma (FIG - Free Report) and Autodesk (ADSK - Free Report) are both benefiting from AI integration in the design SaaS space. Although Figma offers collaborative digital product design, Autodesk provides engineering and industrial design software, and both are optimizing their offerings with AI.
While Figma is leveraging AI to expand creative productivity and user adoption, Autodesk uses AI for engineering optimization and risk reduction. Let's dive deeper and compare these companies to uncover growth prospects and strategies so investors can make an informed bet.
The Case for FIG StockFigma has implemented AI across its portfolio with the integration of AI agents in Figma Canvas that utilizes Figma’s MCP server, integration of tools like Claude Code and Codex, Gemini 3 Pro with Nano Banana Pro into its design workflows and several other features. Now the company has implemented AI credit limits across seats beginning in 2026, and management highlighted early enterprise uptake of additional credits.
As of April 30, 2026, more than 75% of Org and Enterprise users who had previously exceeded credit limits continued to use AI credits, and over 95% of those users remained active on the platform. Usage depth also continues to rise, with about 60% of customers above $100,000 in ARR using Figma Make weekly in the first quarter of 2026, up from over 50% in the prior quarter.
Figma is also experiencing strong seat expansion across its customer base, supported by large enterprise agreements, increasing adoption by developers and broader use of the platform beyond design teams. Organizations are expanding Figma usage across product, engineering and business teams, which is helping drive the company’s industry-leading 139% net dollar retention rate.
Figma’s adoption base broadened further in the first quarter of 2026, supporting expansion-led growth. As of March 31, 2026, FIG had 15,218 paid customers with more than $10,000 in ARR and 1,525 paid customers with more than $100,000 in ARR. Given Figma’s unique collaborative workspace design, product stickiness and rapid AI implementation, FIG is gaining from customer growth.
However, high infrastructure costs and AI serving expenses may continue to pressure margins for Figma. And since Figma’s retention and revenue growth depend heavily on customers adding users and widening platform adoption, any slowdown in seat growth could weigh on net dollar retention and revenue growth. The Zacks Consensus Estimate for FIG’s 2026 earnings shows a year-over-year decline of 6.7%. The estimates have been revised downward in the past seven days.
Image Source: Zacks Investment Research
The Case for ADSK StockAutodesk is strategically embedding artificial intelligence capabilities throughout its product portfolio, positioning itself as an innovation leader while strengthening customer dependency on its platforms. The integration of generative design, predictive analytics and automated workflows powered by AI is transforming how architects, engineers and designers work, delivering measurable productivity gains that justify premium pricing.
These AI-enhanced features are increasingly difficult for competitors to replicate, given Autodesk's massive proprietary dataset accumulated over decades. Management’s guidance highlights the accelerating adoption of AI-powered tools across AutoCAD, Revit and Fusion platforms. This technological differentiation not only supports customer retention but enables the company to capture greater wallet share as clients expand their software spending to access cutting-edge capabilities.
Autodesk is uniquely positioned to leverage decades of proprietary design, engineering, architecture and construction data to train its AI models. The integration of generative design, predictive analytics and automated workflows powered by AI is transforming how professionals are able to deliver measurable productivity gains that justify premium pricing.
With these factors, ADSK will be able to position itself to benefit from incremental AI monetization, consumption-based monetization for machine execution, APIs, MCPs and subscription revenues. These factors would also enable ADSK to protect its margins. ADSK’s fiscal 2027 year-over-year earnings growth rate is pegged at 20%. The estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
FIG vs. ADSK: Price Performance & Valuation CheckFigma shares have lost 50.1% year to date, while Autodesk has declined 34.9%.
YTD Performance Chart
Image Source: Zacks Investment Research
On the valuation front, Autodesk trades at a forward 12-month price-to-sales (P/S) multiple of 4.77X, below its six-month median of 6.15X, while Figma’s 5.30X trades below its median of 6.98X.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: FIG vs. ADSKBoth Autodesk and Figma are integrating AI to strengthen their platforms and drive long-term growth. Figma is seeing encouraging AI adoption, strong customer expansion and high net dollar retention, but its near-term outlook is clouded by elevated AI infrastructure costs and margin pressure. Autodesk, meanwhile, combines AI-driven product innovation with a more established business model. Its proprietary data, expanding AI capabilities and multiple monetization opportunities support customer retention, subscription growth and margin protection. Figma and Autodesk carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADSK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On June 17, 2026, Autodesk Inc ADSK shares fell 4.1% to a current price of $193.07, marking a significant decline within a challenging market environment. The stock has traded between $192.30 and $329.09 over the past year, reflecting a volatile trajectory that has raised questions about its valuation.
GF Value™ verdict: Current price of $193.07 is 43.1% below the GF Value™ of $339.60, indicating significant undervaluation.GF Score™ of 86/100 suggests a strong overall investment quality, based on various fundamental metrics.Notable signal: Insiders have bought $1.3M in shares over the last three months, indicating confidence in the company's future performance. Is ADSK Overvalued or Undervalued? Based on the GF Value™, Autodesk Inc ADSK is currently trading significantly below its estimated fair value of $339.60, which results in a margin of safety of 43.1%. This substantial gap between the market price and the intrinsic value suggests that Autodesk may present a compelling opportunity for value-focused investors. The GF Valuation label categorizes Autodesk as significantly undervalued, which signals that the underlying assets and growth potential of the company have not been fully recognized by the market.
However, while the undervaluation presents an opportunity, it is important to exercise caution. The predictability score is only 1 star, indicating that the company's earnings may be less stable than desired. Thus, while the undervaluation suggests a potential upside, it is accompanied by risks that investors should consider, particularly regarding the company's ability to sustain expected growth rates in the future. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ADSK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 28.1x 55.6x Forward P/E 15.3x - The current P/E ratio of 28.1x is significantly below Autodesk's 5-year median P/E of 55.6x, indicating that the stock is trading at a much lower valuation than its historical average. The forward P/E of 15.3x further reinforces the notion that the stock is priced attractively when compared to its historical valuation metrics. This analysis agrees with the GF Value™ verdict, suggesting that Autodesk is undervalued based on its earnings potential relative to historical performance.
What Does ADSK's GF Score™ Tell Us? Metric Rating GF Score™ 86 Financial Strength 7/10 Profitability 8/10 Growth 10/10 Valuation 4/10 Momentum 4/10 The GF Score™ of 86/100 indicates a strong overall investment quality for Autodesk. The company scores particularly high in Growth (10/10) and Profitability (8/10), highlighting its ability to generate earnings and expand effectively. However, the Valuation (4/10) and Momentum (4/10) scores reflect areas of concern, particularly in terms of recent price performance and relative valuation metrics. This combination suggests that while Autodesk has strong growth capabilities, it may face challenges in market sentiment and valuation perceptions.
What Are Insiders Doing with ADSK Stock? Recent insider activity indicates a bullish sentiment among Autodesk executives, with insiders purchasing $1.3 million worth of shares over the past three months and no recorded selling. This pattern of buying suggests confidence in the company's prospects and could signal to the market that insiders believe the current share price is undervalued. Such insider buying is often viewed as a positive indicator, potentially reflecting strong belief in the company's future growth trajectory.
What This Means for Investors Based on the analysis, Autodesk Inc ADSK is currently undervalued with a significant upside potential according to the GF Value™ assessment. However, investors should remain aware of the associated risks and challenges, particularly regarding earnings predictability and market momentum.
For the complete analysis, visit the Autodesk Inc ADSK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ADSK's GF Score™?
The GF Score™ for Autodesk is 86/100, indicating a strong overall investment quality based on multiple fundamental metrics.
Is ADSK overvalued or undervalued?
ADSK is currently undervalued, with a GF Value™ of $339.60 compared to its market price of $193.07, suggesting significant upside potential.
What is ADSK's P/E ratio?
The current P/E ratio for Autodesk is 28.1x, which is 49% below its 5-year median P/E of 55.6x, suggesting it is trading at an attractive valuation relative to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors with an interest in Internet - Software stocks have likely encountered both Digital Turbine (APPS) and Autodesk (ADSK). But which of these two companies is the best option for those looking for undervalued stocks?
Stocks can move because of the emotions that traders and investors experience.
When markets head lower, traders experience fear. If the selling that is pushing prices lower accelerates, some traders panic.
Those who wish to sell become reckless. They want out of their positions, and they don't care what price they receive.
This results in the shares being driven below their typical or average trading range. When this happens, traders say the stock is ‘oversold'. This can be a bullish dynamic.
When the price stops moving lower, it means the traders who were selling are gone. They have either finished or canceled their orders.
If new buyers enter the market, they will have a hard time finding sellers willing to sell shares. As a result, they will have to raise their bid prices to attract sellers back. This can force the shares into an uptrend.
The red line on the chart below is called a Bollinger Band. If the price is below this line, it indicates oversold conditions. As you can see, that's the case now.
Autodesk is also at a support level. Stocks tend to stop going lower when they drop to support levels.
There are people who sold shares at around $195 in 2024 and have regretted it ever since. A number of them decided that, if they could eventually, they would buy the shares at the same price at which they were sold.
These remorseful sellers are placing buy orders around $195. This has created support at the level.
The combination of being oversold while at support could set the stage for a move higher. Autodesk may have found a bottom.
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Starboard Value, the activist hedge fund led by Jeff Smith, fully exited its positions in Salesforce (NYSE:CRM | CRM Price Prediction) and Autodesk (NASDAQ:ADSK) during the first quarter of 2026, disclosed in a 13F filed May 15, 2026. In their place, Smith opened brand-new long positions in Lamb Weston (NYSE:LW) and CarMax (NYSE:KMX), and added to existing stakes in Riot Platforms and TripAdvisor.
From Software Activism to Old-Economy Turnarounds Starboard’s Salesforce campaign began in late 2022 and pushed Marc Benioff toward margin expansion and discipline. Three years later, the thesis cashed in. Salesforce just posted Q1 FY27 EPS of $3.88 versus a $3.13 consensus, funded a $25 billion accelerated share repurchase, and cut diluted share count to 871 million from 970 million. The activist work was effectively done. CRM is now down around 35% year to date, suggesting Smith trimmed before the broader software valuation reset accelerated.
The rotation is what’s striking. Smith abandoned two enterprise-software names and pivoted into frozen french fries and used cars, two of the more distressed corners of the consumer economy.
The Lamb Weston and CarMax Thesis Lamb Weston is the classic Starboard setup. The stock is down nearly 46% over five years, trades at a forward P/E of 13 and is mid-restructuring. The “Focus to Win” plan targets more than $250 million of savings by fiscal year-end 2028. The company posted Q3 FY26 adjusted EPS of 72 cents versus the 61-cent consensus — a third straight beat — and raised FY26 net sales guidance to $6.45 billion to $6.55 billion. Operational momentum is real, but profitability remains compressed: GAAP net income fell 63% year over year on restructuring charges and a raw potato write-off.
CarMax is even more distressed. Shares are down nearly 56% over five years. Starboard previously disclosed a $350 million stake and nominated two directors, pushing for a better digital experience, faster cost cuts, dynamic pricing, and roughly $300 million in identified savings. New CEO Keith Barr took over March 16, 2026 and raised the SG&A exit-rate reduction target to $200 million. KMX has rallied 26% year to date, indicating the market is starting to price in execution.
Smaller Adds: Riot and TripAdvisor Riot Platforms has surged 90% year to date as its pivot to AI data center hosting takes hold, anchored by an AMD lease worth $636 million over 10 years. TripAdvisor recorded $3.3 million in shareholder activism costs in Q1, signaling an engaged activist, though no fund is named in the filing.
Should Retail Investors Follow? Smith’s pattern is consistent: enter distressed names with identifiable cost-out catalysts, then push management toward execution. CarMax already shows the activist fingerprint: new CEO, raised savings target, board reshuffle. Lamb Weston has the operational rigor but lacks confirmed activist demands. For a retirement-focused investor, KMX offers the cleaner activist roadmap, while LW carries higher idiosyncratic risk through ongoing ERP-related securities litigation and price/mix pressure. The more durable lesson is understanding why Smith left CRM (job done) and why he’s buying potatoes and used cars (job beginning).
Autodesk President and CEO Andrew Anagnost details the company's $3.6 billion acquisition of MaintainX, emphasizing that the deal represents a strategic move to extend Autodesk's offerings from design and manufacturing into the operational phase of the built environment lifecycle. He speaks with Matt Miller on "Bloomberg Open Interest.
Shares of Autodesk ADSK fell sharply on Friday despite the company reporting stronger-than-expected quarterly earnings, as investors reacted cautiously to its planned $3.6 billion acquisition of maintenance software company MaintainX.
Autodesk stock dropped about 4% in trading to around $230 after the company announced the all-cash acquisition, its largest deal to date.
The decline extended the stock’s difficult year, with shares now down roughly 19% in 2026.
The selloff came even after Autodesk posted fiscal first-quarter adjusted earnings of $2.99 per share on revenue of $1.93 billion, beating analyst expectations of $2.84 per share and $1.89 billion in revenue.
The company also raised its full-year guidance for revenue and earnings.
MaintainX acquisition sparks valuation concernsInvestor attention quickly shifted from the earnings beat to Autodesk’s decision to acquire MaintainX, a maintenance and operations software platform focused on factory and facility management.
MaintainX expects to generate more than $135 million in annualized recurring revenue in 2026, with annual growth above 50%, according to Autodesk.
The acquisition is expected to expand Autodesk’s footprint beyond design and engineering into operations management, creating a new business unit called Autodesk Operations Solutions.
The division will combine MaintainX with products including Fusion Operations, Tandem, and Flexsim.
Chief Executive Andrew Anagnost said the deal is aimed at linking asset design and operation workflows more closely.
“Autodesk is expanding beyond design and make to operations, ensuring data and insights flow seamlessly in a continuous lifecycle,” Anagnost said in a statement. “Our goal with MaintainX is to bring deep operational expertise, contextual data, and workflows that enhance our ability to use AI to converge digital and physical worlds.”
Autodesk plans to fund the transaction with approximately $1.6 billion in cash and debt financing for the remainder.
The deal is expected to close before the end of Autodesk’s fiscal year in January 2027, pending regulatory approval.
Analysts remain positive despite investor skepticismWhile investors reacted negatively to the size and valuation of the acquisition, several Wall Street analysts maintained bullish views on Autodesk shares.
BTIG analyst Nick Altmann estimated that the transaction values MaintainX at roughly 18 times expected 2027 revenue, representing a premium to many software peers at a time when sector valuation multiples have compressed.
Still, BTIG maintained a Buy rating and a $300 price target on Autodesk stock, arguing the acquisition strengthens Autodesk’s customer workflow positioning while adding valuable operational data useful for virtual modeling and AI applications.
Oppenheimer analyst Ken Wong also viewed the acquisition favorably, calling operations a “natural extension” of Autodesk’s role in the design and building process.
However, Wong acknowledged investor concerns surrounding execution risks and slowing organic growth.
“In addition to the price tag, investors are wary of potential organic growth moderation and execution risks as go-to-market synergies aren’t apparent,” Wong wrote in a note on Friday.
UBS similarly reiterated its Buy rating and $290 price target following the results.
The bank said Autodesk’s quarter likely exceeded expectations, especially amid fears the company could reduce guidance.
UBS also noted that the company has been improving execution as it completes ongoing go-to-market and business model changes.
The MaintainX acquisition highlights Autodesk’s broader effort to position itself within AI-driven industrial software markets.
MaintainX’s software tracks work orders, inspection records, asset performance, and maintenance activity across factories and facilities.
Autodesk believes the operational data generated by the platform could support future AI-driven decision-making tools tied to physical infrastructure.
MaintainX founder and CEO Chris Turlica said the merger would help bridge operational and engineering workflows.
Despite Friday’s decline, analysts continue viewing Autodesk as capable of sustaining durable double-digit growth over the longer term, supported by expansion into operations software and AI-enabled infrastructure management.
Autodesk ADSK is experiencing a significant decline in trading, despite reporting a strong Q1 (April) performance that exceeded expectations. The design and make software provider achieved an 18.4% year-over-year revenue increase to $1.93 billion and raised its FY27 outlook for EPS, revenue, billings, and free cash flow. However, these positive results are being overshadowed by the company's planned $3.6 billion acquisition of MaintainX and concerns regarding growth quality linked to its transaction model.
Autodesk reported broad growth across its product lines and regions, with AECO leading the charge. AECO revenue rose 20% year-over-year to $970 million, AutoCAD and AutoCAD LT grew 15% to $474 million, and Manufacturing saw a 19% increase to $367 million. Additionally, Make revenue surged 25% to $224 million, driven by momentum in Forma for Construction and overall platform consolidation. Billings climbed 18% year-over-year to $1.69 billion, while current remaining performance obligations (cRPO) increased 18% to $5.38 billion. Notably, the new transaction model contributed approximately 3.5 percentage points to Q1 revenue growth and 1.5 points to billings growth. However, this revenue boost is expected to diminish over the year. The non-GAAP operating margin improved by 200 basis points year-over-year to 39%, benefiting from operational efficiencies and cost savings from Autodesk's sales optimization efforts. The company has also raised its FY27 non-GAAP operating margin outlook to approximately 39%, reflecting higher revenue and continued operational leverage. The $3.6 billion acquisition of MaintainX aligns with Autodesk's long-term strategy to integrate design, make, and operate data throughout the asset lifecycle. Although MaintainX is experiencing rapid growth, with a projected CY26 ARR exceeding $135 million and growth rates above 50%, Autodesk is perceived to be paying a high premium at a time when software valuations are under scrutiny. The acquisition enhances Autodesk's AI capabilities by incorporating real-world operational data into its design and make workflows. Management emphasizes that industrial AI requires geometry-rich data, workflow context, and domain expertise, which Autodesk claims to possess at scale, while MaintainX contributes asset-level data for predictive maintenance, digital twins, and more autonomous workflows. Despite a strong Q1 with raised guidance across key metrics, Autodesk's stock is facing downward pressure, primarily due to the planned MaintainX acquisition and concerns over growth quality. While the fundamentals remain robust, investors are cautious until there is clearer evidence that MaintainX, AI advancements, and Autodesk's cloud strategy can solidify its long-term competitive edge in industrial AI.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Analysts largely remained positive on the company’s long-term strategy, though the $3.6 billion MaintainX deal raised questions around integration and margin execution.
What Happened?The firm reported first-quarter results after Thursday’s closing bell, beating estimates on the top and bottom lines.
Autodesk raised its fiscal 2027 adjusted EPS guidance to $12.40 to $12.60, versus the $12.51 analyst estimate, and raised its revenue outlook to $8.16 billion to $8.22 billion, versus the $8.15 billion estimate.
Here are the analysts’ takes following the quarterly results:
RBC Capital Markets analyst Matthew Hedberg reiterated the Outperform rating on the stock, lowering the price target from $335 to $305. BTIG analyst Nick Altmann maintained the Buy rating on the stock, with a price target of $300. RBC Capital MarketsHedberg said Autodesk delivered a strong quarterly beat and raised its outlook. The analyst noted the MaintainX acquisition could spark investor questions around growth and margins.
Hedberg viewed the move into operations as a logical extension of Autodesk’s Design and Make strategy.
The analyst said management plans to replicate the playbook used in its Construction business.
According to Hedberg, Autodesk believes the operations opportunity could eventually surpass Construction.
The analyst noted that any margin dilution from the acquisition should remain within the existing fiscal 2027 and 2029 targets.
Hedberg added that Autodesk remains well-positioned to help shape the next generation of industrial AI.
BTIGAltmann highlighted the larger focus from Autodesk’s first-quarter results was its planned acquisition of MaintainX. The analyst estimated the deal values MaintainX at roughly 18 times projected calendar 2027 revenue.
Altmann said Autodesk has a strong track record of integrating acquisitions, including its construction business. However, the analyst noted the deal’s size and recent organizational changes could raise investor concerns.
Altmann added that those concerns may intensify amid an uncertain software spending environment. The analyst noted Autodesk continues expanding beyond its core CAD and BIM software franchises.
The company has built industry-focused cloud platforms, including Forma, Fusion and Flow.
According to Altmann, these offerings connect more stakeholders and improve workflows across design, manufacturing and operations.
The analyst said those efforts have significantly expanded Autodesk’s addressable market opportunity.
Altmann also highlighted ongoing innovation and new monetization opportunities as key long-term growth drivers.
The analyst added that Autodesk continues improving profitability and sees its fiscal 2029 operating margin target as achievable.
ADSK Price Action: Autodesk shares are trading lower by 3.83% to $231.73 at publication on Friday.
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Key Takeaways Autodesk posted Q1 FY2027 revenues of $1.93B, up 18% year over year and above estimates.ADSK saw AECO revenues rise 20% and manufacturing revenues increase 19% year over year.Autodesk raised its FY2027 outlook with revenues expected between $8.155B and $8.215B. Autodesk, Inc.(ADSK - Free Report) delivered a strong first-quarter fiscal 2027 performance, with non-GAAP earnings of $2.99 per share, up 30.6% year over year. The figure surpassed the Zacks Consensus Estimate of $2.84 by 5.3%.
Revenues rose 18% year over year to $1.93 billion, beating the Zacks Consensus Estimate by 2.1%, reflecting steady execution across core design and manufacturing workflows, and continued strength in construction and emerging markets.
Autodesk delivered a strong first-quarter fiscal 2027 performance, driven by sustained momentum across Architecture, Engineering, Construction and Operations (“AECO”), particularly in construction and emerging markets. Strength in industry segments tied to infrastructure, industrial buildings and data centers more than offset softness in commercial real estate.
The company also benefited from stronger-than-expected upfront revenues, solid renewal rates and healthy billings growth during the quarter. Management remains confident in Autodesk’s long-term growth trajectory, supported by its platform strategy centered on cloud, data and AI, expanding agentic AI capabilities. The company’s connected ecosystem is designed to enable more integrated and data-driven workflows across the design, make and operate lifecycle.
Net revenue retention remained above 110% on a constant-currency basis, supported in part by the company’s new transaction model and sustained expansion within its subscription base.
ADSK’s Q1 Top-Line DetailsAutodesk’s restructured revenue reporting continues to present results across Design, Make and Other categories.
Design revenues (82.9% of total revenues) increased 18% year over year to $1.61 billion, remaining the dominant contributor to total revenues.
Make Revenues (11.6% of total revenues) rose 25% year over year to $224 million, reflecting ongoing strength in manufacturing and industrial workflows.
Other revenues (5.1% of total revenues) increased 5% year over year to $98 million.
Billings increased 18% year over year to $1.69 billion. Management noted that the new transaction model contributed approximately 1.5 percentage points to billings growth during the quarter. The shift toward annual billing for most multi-year contracts is expected to reduce billing volatility going forward.
Region-wise, revenues from the Americas (43.6% of revenues) increased 16% year over year to $844 million. Revenues from EMEA (39.3% of revenues) climbed 21% to $761 million. Revenues from Asia-Pacific (17% of revenues) increased 17% to $329 million.
Billings of $1.7 billion increased 18% year over year in the reported quarter.
ADSK’s Product Line in DetailAutodesk continues to report performance across four core product families: AECO, AutoCAD and AutoCAD LT, Manufacturing (MFG), and Media and Entertainment (“M&E”).
AECO (Architecture, Engineering, Construction and Operations) revenues increased 20% year over year to $970 million, supported by continued resilience in construction and infrastructure activity.
AutoCAD and AutoCAD LT revenues rose 15% year over year to $474 million.
Manufacturing revenues increased 19% year over year to $367 million, reflecting sustained demand in industrial design and production workflows.
M&E revenues grew 13% year over year to $86 million.
“Other” product family revenues increased 32% year over year to $37 million, indicating continued expansion beyond core suites.
ADSK’s Operating ResultsNon-GAAP operating margin expanded to 39%, reflecting operating leverage and benefits from sales optimization initiatives.
GAAP operating margin was 28%, with the year-over-year improvement primarily driven by the absence of one-time charges recorded in prior periods.
ADSK’s Balance Sheet & Cash FlowAs of April 30, 2026, Autodesk had cash and cash equivalents (including marketable securities) of $2.92 billion compared with $2.59 billion as of Jan. 31, 2026.
As of the quarter, deferred revenues increased 13% year over year to $4.46 billion, while unbilled deferred revenues rose 4% to $3.35 billion.
Remaining performance obligations (RPO) increased 9% year over year to $7.81 billion, while current RPO rose 18% to $5.38 billion, reflecting strong visibility into future revenue conversion.
Cash flow from operating activities was $893 million, up 58% year over year. Free cash flow was $876 million, representing a 58% increase, supported by seasonal strength and partially offset by restructuring-related cash costs.
Autodesk returned capital to shareholders by repurchasing approximately 1.9 million shares for $448 million during the quarter and reiterated its long-term plan to return around 50% of free cash flow via buybacks.
ADSK Offers Q2 and FY27 GuidanceFor second-quarter fiscal 2027, Autodesk expects revenues between $2.005 billion and $2.015 billion, with non-GAAP EPS projected in the range of $3.10 to $3.14.
For full-year fiscal 2027, revenues are expected to be between $8.155 billion and $8.215 billion.
Billings are projected in the range of $8.505 billion to $8.58 billion.
Non-GAAP EPS is expected between $12.40 and $12.65, with the company continuing to model a non-GAAP operating margin of approximately 39% and free cash flow of $2.725 billion to $2.8 billion.
Management noted that benefits from the new transaction model are expected to moderate through the year, declining from roughly 3.5 percentage points in the first quarter to about 2 percentage points in the second quarter. The benefits are expected to average around 1.5 points for fiscal 2027, resulting in reduced quarter-to-quarter growth volatility.
ADSK’s Zacks Rank & Stocks to ConsiderCurrently, Autodesk carries a Zacks Rank #3 (Hold).
Micron Technology (MU - Free Report) , Ciena (CIEN - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and CIEN each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 225% in the year-to-date period. This Zacks Rank #1 company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 143.9% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4. CIEN currently carries a Zacks Rank #1.
Amphenol shares have gained 9.3% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29. APH currently carries a Zacks Rank #2.
On May 29, 2026, Autodesk Inc ADSK shares fell 4.1% to a current price of $231.13. This decline comes amid a challenging year for the stock, which has seen a year-to-date drop of 21.9% and a 52-week range between $214.10 and $329.09.
GF Value™ verdict: Current price is $231.13 vs GF Value™ of $333.18, indicating a 30.6% upside.GF Score™ of 90/100 (Strong) suggests Autodesk is in a solid position relative to its peers.Most notable signal: No insider transactions in the last 3 months. Is ADSK Overvalued or Undervalued? The current share price of Autodesk Inc ADSK at $231.13 is significantly below the GF Value™ of $333.18, representing a margin of safety of approximately 30.6%. This suggests that the stock is undervalued at present, presenting a potential opportunity for investors looking for growth in the software sector. The GF Valuation label indicates that Autodesk is "Significantly Undervalued," aligning with the notion that the market may not fully recognize the company's intrinsic value at this time.
However, potential investors should exercise caution, as the stock's performance has been volatile, reflecting broader market trends and possibly company-specific challenges. The GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates, which supports the claim of significant undervaluation in Autodesk's case.
How Does ADSK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 44.1x 55.6x Forward P/E 18.5x N/A Currently, Autodesk's P/E (TTM) of 44.1x is significantly below its 5-year median P/E of 55.6x, indicating that the stock is trading at a discount relative to its historical valuation metrics. Furthermore, the forward P/E ratio of 18.5x also suggests a favorable outlook compared to its historical performance. This P/E analysis agrees with the GF Value™ verdict, reinforcing the idea that the stock is undervalued based on both historical and forward-looking earnings potential.
What Does ADSK's GF Score™ Tell Us? Metric Rating GF Score™ 90/100 Financial Strength 7/10 Profitability 8/10 Growth 10/10 Valuation 8/10 Momentum 4/10 The GF Score™ of 90/100 indicates that Autodesk Inc has a strong overall ranking, particularly excelling in growth with a perfect score of 10/10. The company also performs well in profitability with a score of 8/10 and valuation with the same score. However, the momentum rank of 4/10 suggests some weakness in recent stock performance, which could be a concern for potential investors. Overall, the scores provide a comprehensive view of Autodesk's strengths and weaknesses, highlighting the company's robust growth potential while also indicating areas requiring attention.
What Are Insiders Doing with ADSK Stock? In the last three months, there have been no insider transactions reported for Autodesk Inc ADSK . This lack of activity can suggest several things: it may indicate that insiders are confident in the company's future and do not feel the need to buy or sell shares at this time, or it could reflect a wait-and-see approach amidst current market conditions. Without any insider buying, potential investors may wish to consider other signals before making a decision.
What This Means for Investors Based on the analysis of the GF Value™, Autodesk Inc ADSK is currently undervalued. The significant gap between the current price and the intrinsic value suggests potential upside for investors who are willing to look past recent stock performance trends. However, caution is warranted given the stock's volatility and momentum scores.
For the complete analysis, visit the Autodesk Inc ADSK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ADSK's GF Score™?
ADSK's GF Score™ is 90/100, indicating a strong overall ranking relative to its peers based on key factors like financial strength and growth.
Is ADSK overvalued or undervalued?
ADSK is currently undervalued according to the GF Value™, which estimates its fair value at $333.18 compared to the current price of $231.13.
What is ADSK's P/E ratio?
ADSK's P/E ratio (TTM) is 44.1x, which is 21% below its 5-year median P/E of 55.6x, indicating that the stock is trading at a discount to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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Stock to Watch: Autodesk (ADSK - Free Report) San Francisco, CA-based Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
ADSK is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ADSK has a Growth Style Score of A, forecasting year-over-year earnings growth of 18.8% for the current fiscal year.
For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $12.39 per share. ADSK boasts an average earnings surprise of +7.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ADSK should be on investors' short list.
Autodesk (ADSK - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Autodesk basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Autodesk, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
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Earnings Estimate Revisions for AutodeskThis design software company is expected to earn $12.39 per share for the fiscal year ending January 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Autodesk. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Autodesk to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
On June 01, 2026, Autodesk Inc ADSK shares rose 7.3% to $248.16. This increase comes as the stock has fluctuated between a 52-week high of $329.09 and a low of $214.10, illustrating a volatile year for the company.
GF Value™ verdict: Current price of $248.16 is 25.6% below the GF Value™ of $333.41.GF Score™: 86/100 indicates a strong investment opportunity based on multiple factors.Most notable signal: Insiders have bought $0.8M worth of shares in the last 3 months, signaling confidence in the company's future. Is ADSK Overvalued or Undervalued? Autodesk Inc ADSK is currently trading at $248.16, which represents a significant margin of safety with respect to its GF Value™ of $333.41. This means the stock is undervalued by approximately 25.6%. The GF Valuation label indicates that the stock is modestly undervalued, suggesting that there may be an attractive opportunity for potential investors looking for value in the software industry.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, ADSK presents a compelling case for those who believe in the company's future growth potential, though potential investors should remain cautious about market fluctuations and the company's recent performance, which has seen a year-to-date decline of 16.2%.
How Does ADSK's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)36.2x55.6x Forward P/E19.8xN/A The current P/E (TTM) of 36.2x is significantly lower than the 5-year median P/E of 55.6x, indicating that the stock is trading below its historical valuation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that ADSK is currently undervalued.
What Does ADSK's GF Score™ Tell Us? MetricRating GF Score™86/100 Financial Strength7/10 Profitability8/10 Growth10/10 Valuation4/10 Momentum4/10 The GF Score™ of 86/100 indicates that Autodesk Inc has strong fundamentals, particularly in growth (10/10) and profitability (8/10). However, it scores lower in valuation (4/10) and momentum (4/10), suggesting that while the company has excellent growth prospects, there may be concerns regarding its current price performance and valuation metrics.
What Are Insiders Doing with ADSK Stock? In the last three months, insiders at Autodesk have purchased $0.8 million worth of shares, with no recorded sales. This pattern of insider buying typically suggests that those with intimate knowledge of the company's operations and future prospects are confident in the stock's potential. Such activity can be seen as a positive signal about the company's future direction and performance.
What This Means for Investors Based on the GF Value™ analysis, Autodesk Inc ADSK is currently undervalued. The significant margin of safety indicated by the GF Value™ suggests that there is potential for appreciation in the stock price, provided that the company continues to execute its growth strategy effectively.
For the complete analysis, visit the Autodesk Inc ADSK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ADSK's GF Score™?
The GF Score™ for Autodesk Inc is 86/100, indicating a strong investment opportunity based on various fundamental factors.
Is ADSK overvalued or undervalued?
Autodesk Inc is currently undervalued, with a GF Value™ of $333.41 compared to its current price of $248.16, representing a 25.6% margin of safety.
What is ADSK's P/E ratio?
The P/E ratio for Autodesk Inc (TTM) is 36.2x, which is significantly lower than its 5-year median P/E of 55.6x, indicating that the stock is trading below its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways ADSK Q1 revenues were $1.93B (up 18% y/y) and non-GAAP EPS was $2.99, beating both estimates.Autodesk's MaintainX deal targets design-make-operate links and predictive digital-twin workflows.ADSK lifted its FY27 guidance but kept sales-reset weighting, saying AI needs engineering validation. Autodesk, Inc. (ADSK - Free Report) used its first-quarter fiscal 2027 earnings call to do more than discuss a revenue and earnings beat. Management centered the conversation on a broader push into operations, led by the planned acquisition of MaintainX.
The call also showed that Autodesk is still balancing near-term execution with a longer-term platform strategy. Raised fiscal 2027 guidance, steady renewal trends and repeated confidence in the sales reorganization framed the quarter.
Autodesk Moves Deeper Into OperationsChief executive officer Andrew Anagnost made the MaintainX deal the call’s defining strategic message. He described the acquisition as a way to connect design, make and operate workflows more tightly across the asset life cycle.
Autodesk said that MaintainX brings mobile-first maintenance and asset operations software, along with real-world asset data that can help extend Autodesk’s digital twin capabilities from static and dynamic models toward predictive workflows. Management tied that directly to a larger operation opportunity and a broader total addressable market.
Chief financial officer Janesh Moorjani added that MaintainX is expected to exceed $135 million in annualized recurring revenues this calendar year, with growth above 50%. Autodesk plans to fund the transaction with cash on hand and debt financing, and expects to include it in guidance after the deal closes later this fiscal year.
ADSK Keeps Core Momentum IntactThe quarter itself gave management room to press that strategy. Revenues rose 18% year over year, or 16% in constant currency, to $1.93 billion, while non-GAAP EPS climbed to $2.99 from $2.29 a year earlier.
Both figures topped the Zacks Consensus Estimate. EPS beat the consensus estimate of $2.84 by 5.28%, and revenues surpassed the estimate of $1.89 billion by 2.08%.
Moorjani said that the underlying business momentum was consistent with prior quarters and came in modestly better than the assumptions embedded in the guidance. He pointed to strength in AECO, especially construction and emerging markets, while renewal rates remained strong.
Autodesk Leaves Sales Reset Assumptions in PlaceEven with the strong start, management did not declare an early end to the disruption tied to its sales reorganization. Moorjani said that first-quarter new subscription growth landed within the company’s expected range, while upfront revenues were less affected than anticipated.
Autodesk kept its broader assumptions intact. The company expects billings to be somewhat more weighted to the second half as it works through the operational changes tied to the sales overhaul.
That stance mattered because analysts pressed on channel disruption and execution risks. In response, Anagnost said that the company saw the kind of softer new-business performance it expected during the transition, but also emphasized that the renewal performance held up and nothing emerged outside the original change-management plan.
ADSK Ties AI to Real-World ValidationAnagnost also used the call to sharpen Autodesk’s AI positioning. Rather than lean on generic productivity language, he argued that industrial AI needs data, context and domain expertise, and that Autodesk’s advantage is combining probabilistic generation with deterministic engineering validation.
He described Autodesk Assistant and MCP infrastructure as the harness layer that makes frontier models more controllable and useful through the product life cycle. He also highlighted Autodesk’s 3D foundation models and referred to products such as AutoConstrain in Fusion and the upcoming Building Layout Explorer in Forma.
That framing was notable because it tied AI directly to engineering accuracy and physical constraints. For investors, the message was that Autodesk wants to compete less as a general AI application vendor and more as a specialized platform for geometry-rich, workflow-specific use cases.
Autodesk Faces Deal & Valuation ScrutinyThe analyst Q&A focused heavily on MaintainX, and the line of questioning showed where investors are likely to press next. A Jefferies analyst asked why Autodesk was willing to pay a premium valuation in a weaker software multiple environment.
Moorjani defended the price by calling MaintainX a market-leading platform in a high-growth adjacency and by pointing to Autodesk’s prior construction playbook. Anagnost reinforced the point by arguing that asset-performance data is strategically valuable because it strengthens the company’s data and context layer for future AI-driven workflows.
Analysts also asked whether Autodesk could absorb a deal of this size without harming margins. Moorjani said that the company intends to hold its fiscal 2027 and fiscal 2029 margin goals, even though MaintainX itself carries a lower margin profile than Autodesk’s existing business.
ADSK Raises Outlook but Keeps Its Tone MeasuredAutodesk raised its fiscal 2027 guidance after the quarter. Revenues are expected to be $8.16-$8.21 billion, up from the prior range, while billings are projected to be $8.51-$8.58 billion.
The company also lifted its non-GAAP operating margin view to 39% and raised the low end of the free cash flow guidance to $2.725 billion. The fiscal second-quarter revenue guidance came in at $2.01-$2.02 billion, with a non-GAAP EPS of $3.10-$3.14.
Even with those increases, management kept its posture disciplined rather than celebratory. Executives repeatedly said that the guidance still indicates disruption from the sales restructuring and assumes a broadly stable macroeconomic backdrop.
Zacks Signals Stay Balanced on ADSKADSK carries a Zacks Rank #3 (Hold), which points to a more neutral near-term earnings estimate outlook than a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). That keeps the stock in a wait-and-see category even after the quarter’s better-than-expected results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Style Scores are stronger. Autodesk has a Value Score of C, a Growth Score of A, a Momentum Score of A and a VGM Score of A, which indicates favorable growth and momentum characteristics with a strong blended profile. Still, the Zacks Rank can change as analysts revise estimates following the quarter and as investors assess the impact of the MaintainX transaction.
On June 02, 2026, Autodesk Inc ADSK shares fell 4.6% to $236.66, continuing a year-to-date decline of 20.1%. Over the past year, the stock has experienced a high of $329.09 and a low of $214.10.
GF Value™ verdict: Current price of $236.66 vs GF Value™ of $337.17, indicating a 29.8% undervaluation.GF Score™: 90/100 (Strong), suggesting strong long-term potential.Most notable signal: Insider activity shows that insiders bought $0.8M in the last 3 months with no selling. Is ADSK Overvalued or Undervalued? According to the GF Value™, Autodesk Inc ADSK is currently undervalued at a price of $236.66 compared to its fair value estimate of $337.17. This represents a margin of safety of 29.8%, which can be considered an attractive opportunity for long-term investors. The GF Valuation label categorizes ADSK as significantly undervalued, indicating that the market price is not fully recognizing the company's potential based on its earnings and growth prospects.
While the undervaluation presents a potential opportunity, it is essential to remain cautious. Factors such as market volatility, economic conditions, and company-specific risks can impact future performance. Therefore, investors should conduct thorough research and consider these elements when assessing the stock's value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ADSK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 34.5x 55.6x Forward P/E 19.0x N/A Currently, Autodesk's P/E (TTM) ratio of 34.5x is significantly lower than its 5-year median P/E of 55.6x, indicating that the stock is trading below its historical valuation. Additionally, the forward P/E of 19.0x further supports the notion that the stock is undervalued. This P/E analysis aligns with the GF Value™ verdict, reaffirming that Autodesk appears to be trading at a discount compared to its historical averages.
What Does ADSK's GF Score™ Tell Us? Metric Rating GF Score™ 90 Financial Strength 7/10 Profitability 8/10 Growth 10/10 Valuation 8/10 Momentum 4/10 The GF Score™ of 90/100 indicates that Autodesk has strong ratings across several key metrics, particularly in Growth (10/10) and Profitability (8/10). Financial Strength also scores a solid 7/10, which supports the company's stability. However, the Momentum rank of 4/10 suggests that the stock may face challenges in gaining upward traction in the near term. Overall, the high GF Score™ reflects a favorable long-term outlook, with particular strengths in growth potential and profitability.
What Are Insiders Doing with ADSK Stock? Recent insider activity at Autodesk Inc has shown a positive trend, with insiders purchasing $0.8 million worth of shares in the last three months and no recorded selling. This pattern of buying can be interpreted as a bullish signal, indicating that those closest to the company have confidence in its future performance. Insiders typically have in-depth knowledge of the company's operations and prospects, making their buying activity a noteworthy indicator for potential investors.
What This Means for Investors Based on the current GF Value™ assessment, Autodesk Inc ADSK is considered undervalued. The significant gap between the current price and the estimated fair value suggests a potential opportunity for long-term investors. However, it is essential to remain aware of the broader market conditions and company-specific risks that could affect performance.
For the complete analysis, visit the Autodesk Inc ADSK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ADSK's GF Score™?
ADSK's GF Score™ is 90/100, indicating strong potential for long-term returns based on various fundamental metrics.
Is ADSK overvalued or undervalued?
ADSK is currently undervalued according to the GF Value™, with a significant margin of safety of 29.8% compared to its fair value estimate.
What is ADSK's P/E ratio?
ADSK's P/E (TTM) ratio is 34.5x, which is 38% below its 5-year median P/E of 55.6x, suggesting that the stock is trading at a lower valuation than historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Fusion products will be available via AWS Marketplace
, /PRNewswire/ -- Autodesk, Inc. (NASDAQ: ADSK), a global leader in design and make technology, today announced it has signed a strategic collaboration agreement (SCA) with Amazon Web Services, Inc. (AWS). Through this collaboration, Autodesk will work with AWS to advance cloud-based solutions that help customers design, build, and operate more efficiently at scale.
In addition to the SCA, Autodesk products will also be available for purchase through AWS Marketplace beginning in the second quarter of Autodesk's fiscal year. This introduces new ways for AWS customers to access Autodesk solutions — starting with Fusion for Product Design and Fusion Manage. Customers can take advantage of simple procurement and billing when purchasing Autodesk products while also honoring existing AWS Private Pricing Agreements.
Autodesk and AWS will also collaborate to accelerate innovation across Autodesk's cloud platform, including opportunities to leverage AWS cloud and AI capabilities to support increasingly complex design and make workflows. By offering Autodesk's industry-leading software through AWS Marketplace, customers can streamline procurement, leverage flexible cloud infrastructure, and accelerate time to value, enabling improved performance, greater agility, and deeper insights across the entire project lifecycle.
"By deepening our collaboration with AWS, we're taking another major step in helping customers choose how they design and make in the cloud," said Rachel Tuller, VP of Global Partner Ecosystem Sales at Autodesk. "Together, we can give organizations the flexibility to build, operate, and scale solutions that best meet their business needs while driving greater efficiency and innovation."
"This collaboration reflects what happens when partners align around customer success," said Colin Lazier, Vice President, Databases, Amazon Web Services. "By combining Autodesk's design and make expertise with AWS's cloud infrastructure and AI capabilities, we're helping customers innovate faster, work smarter, and scale with confidence — and we're just getting started."
The collaboration also creates new opportunities for customers and partners across the broader AWS ecosystem. Matterport, a customer and partner of both AWS and Autodesk whose spatial data platform integrates with Autodesk workflows, sees the agreement as a way to deliver a more seamless experience for shared customers.
"As a customer and partner of both AWS and Autodesk, we see firsthand how this collaboration can benefit organizations like ours," said Rob Hines, Interim President at Matterport. "Customers using Matterport's spatial data platform with Autodesk workflows will gain a more unified experience on AWS, and we're excited about the possibilities that creates for the customers we serve together."
Through this collaboration, Autodesk and AWS are helping customers modernize workflows, improve collaboration, and scale with confidence.
This collaboration underscores Autodesk and AWS's shared commitment to delivering flexibility and unlocking greater business value for customers across industries.
About Autodesk
The world's designers, engineers, builders, and creators trust Autodesk to help them design and make anything. From the buildings we live and work in, to the cars we drive and the bridges we drive over. From the products we use and rely on, to the movies and games that inspire us. Autodesk's Design and Make Platform unlocks the power of data to accelerate insights and automate processes, empowering our customers with the technology to create the world around us and deliver better outcomes for their business and the planet. For more information, visit autodesk.com or follow @autodesk. #MakeAnything
Autodesk Stock Rally: Why Momentum May Not Be Done YetAutodesk NASDAQ: ADSK Chief Financial Officer Janesh Moorjani said the company’s recent business model changes and planned acquisition of MaintainX are intended to position the design software maker for broader participation across the full asset lifecycle, including operations and artificial intelligence-enabled workflows.
Speaking at a Bank of America conference with Tomer Zilberman, lead analyst of vertical software and back office applications, Moorjani said Autodesk has completed several major transitions in recent years, including moving from perpetual licenses to subscriptions, shifting from upfront billing of total contract value to annual billing on multi-year contracts, and changing the customer buying experience in many markets to a more direct relationship with Autodesk.
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Analysts Love These 3 Companies Reporting Earnings This WeekMoorjani said the latest of those transitions is largely working through the financial model and should be mostly completed this fiscal year. He said the changes give Autodesk richer information about how customers use its products and support the company’s investments in its platform and industry clouds.
MaintainX Acquisition Expands Autodesk Into Operations A major focus of the discussion was Autodesk’s announced $3.6 billion acquisition of MaintainX, which Moorjani described as the company’s largest acquisition to date and a logical extension of its historical strengths in planning and design into “make” and now “operate.”
Autodesk Stock Ready to Rip? Q3 May Be the Turning PointMoorjani said Autodesk historically began as a planning and design company before expanding into construction and Fusion-related manufacturing workflows about seven to eight years ago. MaintainX, he said, helps Autodesk “close the loop” across plan, design, make and operate by giving customers insight into how assets perform after they are built.
He said the operations market represents roughly a $40 billion total addressable market. Moorjani compared Autodesk’s strategy in operations to its approach in construction, where the company made a cornerstone acquisition, followed by organic investment and smaller bolt-on deals. He said Autodesk invested about $1.8 billion of acquisition capital in construction and built a business of about $600 million that is growing north of 20%.
MaintainX brings about 14,000 customers and roughly 10 million assets under management, according to Moorjani. He said the company has collected operational data and workflow context around asset performance, which Autodesk expects to pair with its existing design and construction data.
“When you pair that up with the data and the context that we have on the plan, design, and make space, that allows us to close the full loop,” Moorjani said.
Autodesk Says Core Business Remains Strong Moorjani rejected the idea that the MaintainX acquisition was prompted by concern about slowing demand in Autodesk’s core design and make markets. He said the underlying business has been resilient across fiscal 2024, 2025 and 2026, supported by secular demand drivers.
He pointed to continued growth opportunities in construction, Fusion, infrastructure and transportation. Moorjani said Autodesk had already discussed its interest in operations about eight months earlier and framed the acquisition as an extension from a position of strength.
Asked about the competitive landscape in operations, Moorjani described the market as highly fragmented, with legacy providers, slower-moving desktop-based vendors and a large amount of white space. He said MaintainX is one of the larger and faster-growing companies among next-generation intelligent maintenance and asset management software providers.
Margin Targets and Capital Allocation Remain Intact Autodesk plans to raise $2 billion of new debt to help fund the MaintainX acquisition. Moorjani said the company’s capital allocation framework remains unchanged, with the first priority being organic investment, followed by targeted tuck-in acquisitions and continued capital returns.
He reiterated Autodesk’s prior statement that it aims to return approximately 50% of free cash flow, subject to acquisitions, to investors. Moorjani said Autodesk returned a little more than half of free cash flow last year and remains on track to do so again this year.
Moorjani also said MaintainX will be operating margin dilutive because it is a high-growth company still in investment mode. However, he said Autodesk’s fiscal 2027 and fiscal 2029 operating margin goals remain unchanged after the deal closes. He clarified that Autodesk’s stated fiscal 2029 target is 41% non-GAAP operating margin.
AI Strategy Emphasizes Deterministic Outcomes On artificial intelligence, Moorjani said Autodesk’s advantage is rooted in data, context and expertise. He contrasted Autodesk’s engineering and design requirements with general-purpose frontier AI models, which he said remain probabilistic.
“If there’s 100 people that gave the model the exact same instructions that you give the model, you’d get 100 different answers,” Moorjani said. “That doesn’t work in our world.”
He said Autodesk customers need deterministic outcomes with millimeter-level precision because designs carry safety, cost and liability implications. Moorjani said Autodesk’s models are trained on real-world data from actual customer projects and are paired with deterministic algorithms built into products such as AutoCAD and Revit.
He also said general models often lack the design and construction context needed to understand what is behind a wall, whether a design change conflicts with mechanical, electrical and plumbing systems, or whether a field team is working from the latest design.
Moorjani said Autodesk monetizes productivity gains through both subscription pricing and consumption-based pricing. He said consumption-based revenue is about 17% of the business, including roughly 2% from Flex and about 15% from enterprise business agreements. He said Flex could become a larger portion of the business over time, especially with smaller customers or users with burst-capacity needs, but he does not expect it to create near-term revenue volatility.
Quarterly Performance, Demand and Data Centers Moorjani said Autodesk’s recent quarter “played out quite nicely,” with renewals remaining strong and upfront revenue outperforming expectations. He said about half of the revenue outperformance in the quarter came from upfront license revenue under ASC 606, driven largely by product mix. Autodesk raised full-year guidance by more than the quarterly outperformance, reflecting strength in the underlying business, he said.
On margins, Moorjani said Autodesk does not explicitly guide to gross margin percentage. He said cloud offerings carry lower gross margin percentages than desktop products, but cloud revenue is still expected to be accretive to gross profit dollars. He said those dynamics are embedded in Autodesk’s fiscal 2029 non-GAAP operating margin outlook.
Moorjani also said Autodesk participates in data center build-outs through both the data centers themselves and related infrastructure such as utilities and other supporting projects. He emphasized that Autodesk’s business is diversified across industries, geographies and segments, which helps the company as customer demand shifts among project types.
Asked about construction and architectural indicators, Moorjani said demand has been stable, but cautioned that such indicators are not perfect read-throughs for Autodesk’s business. He said even when some leading indicators softened, Autodesk’s business continued to perform well.
About Autodesk NASDAQ: ADSKAutodesk, Inc NASDAQ: ADSK is a software company that develops design and creation tools for the architecture, engineering and construction (AEC), manufacturing, and media and entertainment industries. Headquartered in San Rafael, California, the company was founded in 1982 and is best known for pioneering CAD (computer-aided design) software. Autodesk sells products and services to a global customer base, including architects, engineers, contractors, product designers, and content creators.
The company's product portfolio includes industry-standard design and modeling applications such as AutoCAD, Revit, Inventor, Fusion 360, Maya and 3ds Max, as well as cloud-based collaboration and project management platforms like BIM 360 and Autodesk Construction Cloud.
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Starting June 4, customers globally can purchase Autodesk Flex with a new lower minimum of 33 tokens for $99, a reduction from the previous minimum of 100 tokens for $300. The lower minimum is designed to make it more flexible and affordable for small businesses to get started, pay for only what they need, and scale usage as project needs change.
Autodesk Stock Rally: Why Momentum May Not Be Done YetAutodesk NASDAQ: ADSK executives said the company’s recently announced acquisition of MaintainX is intended to extend its software strategy from design and construction into the operations phase of an asset’s life cycle, positioning the company to address a larger market tied to maintenance and facility operations.
Speaking at a Baird fireside chat, Simon Mays-Smith, Autodesk’s vice president of investor relations, said the company’s broader goal is to connect workflows “end-to-end in the cloud” with artificial intelligence layered on top. He said Autodesk has spent nearly a decade building cloud-connected data environments across architecture, engineering and construction, manufacturing, and media and entertainment.
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Analysts Love These 3 Companies Reporting Earnings This WeekMays-Smith said the “ultimate customer” across Autodesk’s business is the asset owner, who needs data to understand how an asset performs over time. Today, he said, that data is often “stuck in silos.”
“In simple terms, what we’re trying to do is to create a single model from right at the beginning of the process in conceptual design through to the end,” Mays-Smith said.
MaintainX Seen as Cornerstone of Operations Strategy Autodesk Stock Ready to Rip? Q3 May Be the Turning PointMays-Smith described MaintainX as a “cornerstone acquisition” in the operations market because it addresses computerized maintenance management systems, or CMMS, which he said represent the largest portion of an estimated $40 billion operations total addressable market.
He said MaintainX focuses on maintenance workflows that apply across factories, commercial buildings and infrastructure. The company’s software helps teams take action when something goes wrong with an asset, complementing Autodesk’s existing digital twin capabilities, which can monitor buildings through sensors and, over time, use AI to predict potential faults.
Mays-Smith said the operations opportunity differs from Autodesk’s design and construction businesses because it can last for decades after an asset is built. He noted that roughly 80% of a building’s cost comes after construction, while Autodesk has historically addressed the 20% tied to design and construction.
He also said MaintainX is cloud-native and mobile-first, contrasting it with traditional incumbents that are often on-premise and dependent on custom integrations. Access to MaintainX’s data, he said, could support AI use cases in operations and eventually influence earlier design decisions.
“When you’re doing conceptual design, right at the beginning of the process, if you can have something saying, ‘Don’t install that HVAC system, because two years after construction, you’re going to have a problem,’ that is immensely valuable information,” Mays-Smith said.
Executives Point to Construction Playbook Mays-Smith compared the MaintainX acquisition to Autodesk’s construction strategy, saying the company spent about $1.8 billion to build a construction business that has generated about $600 million in revenue over the last 12 months and is growing more than 20%.
He declined to provide a revenue or annual recurring revenue forecast for MaintainX but said Autodesk can help the business expand beyond its current focus on factories. He highlighted three potential areas of support: moving into architecture, engineering and construction; expanding into enterprise accounts with multiple assets; and growing internationally through Autodesk’s sales teams, e-store and channel partners.
Sidharth Haksar, Autodesk’s vice president and head of construction strategy and partnerships, said the MaintainX deal follows more than four years of Autodesk studying the operations market. He said the move is a “natural progression” as Autodesk serves owners’ capital projects teams and then their facilities teams.
Haksar also noted Autodesk previously invested in Eptura, a company owned by Thoma Bravo, which he said helped Autodesk learn the operations space and “de-risk” its thinking before the MaintainX acquisition.
Construction Demand Supported by Digitization On the construction market, Haksar said several end markets are seeing growth, including data centers, power grid upgrades, healthcare and stadiums. He said the broader industry remains under-digitized, with many companies still relying on Excel, paper or lower-grade enterprise resource planning systems to manage projects.
Haksar said that trend is not limited to the United States. He pointed to India, which he described as the third-largest construction market globally, where infrastructure growth is fueling demand but construction work is still often managed with paper and spreadsheets.
“People have to invest in tech to become more efficient,” Haksar said, citing labor shortages, compressed schedules and more complex projects as reasons companies are adopting construction software.
Haksar said Autodesk’s advantage in construction comes from combining design and construction tools on one platform. He said Autodesk generates more than $1 billion from the construction industry when including both cloud construction tools and desktop modeling products. He also cited pricing flexibility and Autodesk’s geographic footprint through channel partners as differentiators.
AI Adoption Still Early in Construction Asked where construction professionals are on a 10-point scale of AI-driven change, Haksar said the industry is still early, placing it between “one and two.” He said AI can nevertheless deliver immediate benefits in simple field workflows.
As an example, Haksar described a superintendent documenting a cracked pipe on a job site. Today, he said, the worker may take a photo and manually write a description. Autodesk’s AI can identify the issue from the photo and auto-populate the description, reducing a task that might take two minutes to about 15 to 20 seconds.
Haksar said AI is also gaining attention in pre-construction because mistakes in bids, scopes of work or specifications can lead to margin pressure and rework once projects move to the field. He characterized pre-construction AI as a risk mitigation tool, while field AI could drive productivity gains.
Mays-Smith said many companies lack the data, context and 3D engineering capabilities needed for more advanced AI. He said Autodesk’s cloud-based data access, 3D inference capabilities and platform services are central to its AI strategy.
Sales Changes and Consumption Models Mays-Smith said Autodesk’s sales reorganization is designed to create more direct integration with customers, supported by self-service, auto-renewal and co-terming. He said the company also moved away from customized Salesforce systems and onto the base Salesforce platform, allowing it to adopt newer AI-enabled sales productivity tools.
On monetization, Mays-Smith said subscriptions will remain in place for a long time, with core functionality and capacity included. Customers that need additional capacity for high-compute workloads such as AI may buy more capacity. He said 17% of Autodesk’s business is already consumption-based, which he described as financially similar to subscription when customers buy capacity ahead of time and consume it on a “use it or lose it” basis.
“Consumption doesn’t have to be volatile,” Mays-Smith said. “You can give the customer the benefit of flexibility and certainty, while also enabling us to have predictable and ratable revenue streams.”
About Autodesk NASDAQ: ADSKAutodesk, Inc NASDAQ: ADSK is a software company that develops design and creation tools for the architecture, engineering and construction (AEC), manufacturing, and media and entertainment industries. Headquartered in San Rafael, California, the company was founded in 1982 and is best known for pioneering CAD (computer-aided design) software. Autodesk sells products and services to a global customer base, including architects, engineers, contractors, product designers, and content creators.
The company's product portfolio includes industry-standard design and modeling applications such as AutoCAD, Revit, Inventor, Fusion 360, Maya and 3ds Max, as well as cloud-based collaboration and project management platforms like BIM 360 and Autodesk Construction Cloud.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Autodesk Right Now?Before you consider Autodesk, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Autodesk wasn't on the list.
While Autodesk currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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