Autodesk (ADSK) Stock Forecast & Price Target

Autodesk expects its total revenue for Q3 to reach $1,804.7 million, marking a 15% year-over-year increase, largely supported by a 20% rise in the Architecture, Engineering, and Construction (AEC) segment and a 9% increase in AutoCAD. The company's billings grew by 21% year-over-year, reflecting robust demand and successful renewals from large customers, while the total remaining performance obligations (RPO) increased by 20% to $7.36 billion. Additionally, Autodesk has revised its fiscal year 2026 revenue estimate upwards to $7,161 million, indicating a strong trajectory for continued growth driven by a newly implemented direct billing model.

Autodesk's stock outlook is negatively impacted by a decline in billings estimated by architecture firms and a significant anticipated downturn in transaction model advantages by FY27. Furthermore, concerning macroeconomic conditions, coupled with high U.S. office vacancy rates and challenges transitioning to new business models, suggest continued weakness in commercial design activity through 2026. Compounding these issues are risks related to increased competition, potential leadership uncertainty, and lower-than-expected sales and margin growth, all of which pose considerable threats to Autodesk's market position and financial stability.