Autodesk (ADSK) Stock Forecast & Price Target

Autodesk's financial performance demonstrates a strong growth trajectory, with billings increasing by 23% to $2.109 billion and exceeding consensus expectations, primarily due to a successful transition to annual billings for multiyear contracts. The company also reported a notable improvement in its non-GAAP operating margin, which reached 37%, reflecting effective financial discipline and a year-over-year increase. Additionally, Autodesk anticipates sustained growth of 8-9% in constant currency for FY26, supported by broad-based expansion across its product lines and regions, alongside a significant contribution from direct revenue, which increased by 35% year-over-year.

The financial outlook for Autodesk presents several significant downside risks, including the deterioration of global macroeconomic conditions and challenges associated with transitioning to new transaction models and billing practices. Additionally, the company’s lower-than-expected GAAP EPS guidance, primarily due to restructuring costs from workforce reduction, raises concerns about operational stability. Furthermore, while Autodesk exhibits growth potential reflected in RPO metrics, the overall valuation appears over-priced compared to peers, indicating potential investor caution amid macroeconomic uncertainties.