Autodesk fell about 1 percent today, its third straight down day, and now sits about 4 percent below the high it reached on Monday. We think this is mostly ordinary movement and a bit of cooling off after a very strong month, especially since there was no new company news today.
Our view
Autodesk owns the design standards that architects and engineers rely on every day, which makes it very hard for customers to switch to a rival. If you already own it, there is nothing to do here but sit tight and let that competitive edge work for you.
Wholesale prices, which track what businesses pay for goods and services before they reach consumers, did not rise at all in July. This is a sign that the cost of living is cooling down across the broader economy.
For a company like Autodesk, this matters because its software is the standard for the construction and manufacturing industries. When inflation is high, building projects often get delayed or canceled due to rising costs. Lower price pressure makes it easier for these firms to plan new projects, which supports steady demand for design and engineering software.
Orders for German factory goods rose in June, defying expectations of a drop. While the rise was partly due to companies stockpiling parts to avoid shipping delays, it shows that manufacturing demand remains resilient despite higher costs. This is a small positive for Autodesk because its software is the standard for designing the machines and products these factories build. When manufacturing activity stays steady, it supports the company's efforts to grow its Fusion platform beyond its core architectural business.
The company has set the date for its next quarterly earnings update. This will be an important check on how the transition to its new direct-sales model is progressing, which has been a temporary drag on cash flow recently. We will also be looking for updates on growth in the construction and manufacturing segments. These areas are key to the company's plan to expand its reach as more of the building industry moves from paper plans to 3D digital models.
Analysts recently issued a flurry of updates following a period of mixed stock performance. Most analysts, 38 of 51, rate the stock a buy, and the average target of $306 suggests a 24% gain from today's price.
Average target$305.64+24%vs $247.16 today
TodayAvg price
Low $260High $369
Strong Buy51 analysts
4Bearish
9Neutral
38Bullish
FirmRatingPrice TargetDate
Goldman Sachs
—
$260
8/11/2026
BNP Paribas
Outperform
$295
6/18/2026
BMO Capital
Market Perform
$279→$262
5/29/2026
Piper Sandler
Overweight
$383→$369
5/29/2026
RBC Capital
Outperform
$305
5/29/2026
Morgan Stanley
Overweight
$350→$315
5/26/2026
KeyBanc
Overweight
$365→$341
5/21/2026
Jefferies
Buy
$300
4/15/2026
BMO Capital
Market Perform
$279
3/2/2026
Oppenheimer
Outperform
$375→$325
2/24/2026
Morgan Stanley
Overweight
$385→$350
2/23/2026
UBS
Buy
$400→$290
2/23/2026
Autodesk earnings
Management has a perfect record of clearing the bar they set for themselves. They have beaten profit estimates for eight straight quarters, usually by a double-digit margin.
Earnings history
EstimateBeatMiss
Autodesk past earnings results
Expected
Actual
Surprise
EPS
$2.84
$2.99
+5.3%
Revenue
$1.89B
$1.93B
+2.1%
Key highlights
Profit outlook raised: Management increased the full year profit forecast to a range of $12.40 to $12.65 per share, up from previous expectations as business momentum stays strong. This updated outlook reflects a 39% non-GAAP operating margin, which is the percentage of revenue left after paying for the costs of running the business.
Backlog growth lagging: Total remaining performance obligations, which represent the value of work the company has contracted but not yet finished, grew 9% to $7.81 billion. This is a bit lower than the $8 billion level we look for to ensure a healthy pipeline of future revenue.
Construction segment leading: The Architecture, Engineering, Construction, and Operations division grew revenue 20% to $970 million, outpacing the total company growth rate of 18%. This core business now accounts for 50% of the company's total sales, showing how critical building design software is to the overall results.
Manufacturing growth accelerating: Revenue for the Make product family, which includes software used on factory floors, grew 25% to $224 million compared to a year ago. This segment continues to grow faster than the 18% growth seen in the larger Design business, proving that customers are adopting more of the company's specialized industrial tools.
Sales shift continuing: The company is currently reorganizing how it sells to customers and warned that this could still cause some disruption, even though first quarter revenue grew 16% when ignoring currency changes. Despite the transition, total billings reached $1.69 billion, an 18% increase from the same period last year.
Our take: A very solid start to the year, and the higher profit guidance shows management is confident even while they restructure their sales teams. The fast growth in manufacturing tools and strong margins are the real winners here. This quarter reinforces the case for the business as it successfully moves more customers onto its unified data platform.
