Valued at a market cap of $65 billion, Autodesk (NASDAQ:ADSK) is the world leader in design and engineering software.
Buildings need to be smarter, factories must become more efficient, and infrastructure requires modernization. All of this creates massive demand for the software that makes design possible.
Architects use AutoCAD and Revit to design buildings, engineers use Fusion to create products, and construction companies use Autodesk Construction Cloud to manage projects from start to finish.
ADSK stock offers investors exposure to multiple growth drivers. The company is transitioning customers from desktop software to cloud subscriptions. It’s also developing AI tools that significantly enhance designer productivity. And it’s expanding from design into construction management and manufacturing.
In fiscal Q2 of 2026, it grew sales by 11% year over year to $1.75 billion. The company raised full-year guidance and announced a new long-term margin target of 41% by fiscal 2029.
ADSK stock has returned 500% to shareholders in the last decade, outpacing the broader markets by a wide margin. With an overall Ziggma Stock Score of 67, ADSK outscores two-thirds of its peers and scores particularly high on profitability.
Autodesk has spent over a decade building specialized AI models that understand 3D design data.
The company continues to invest heavily in AI and is building tools for architecture, engineering, and manufacturing workflows, making it a top stock to own in October 2025.
Profile: Essential Software for the Built World
Autodesk makes software that professionals use to design and build everything around us – buildings, roads, factories, cars, movies, and video games.
Architecture, Engineering & Construction (AEC): This segment generates the largest revenue. Products include AutoCAD (2D drafting), Revit (building information modeling), and Civil 3D (infrastructure design).
The latest product is Autodesk Construction Cloud, a platform that manages construction projects from design through completion. It handles documents, coordinates subcontractors, tracks schedules, and processes payments.
Construction Cloud is growing fast, and the segment delivered strong double-digit growth in Q2. Momentum continues from data center construction, industrial building projects, and infrastructure investment.
Manufacturing : Fusion 360 is Autodesk’s cloud-based product design platform. Engineers use it to design everything from consumer products to aerospace components.
Fusion combines CAD (computer-aided design), CAM (computer-aided manufacturing), and simulation in one tool. This integration enables engineers to design a part, simulate its performance, and generate instructions for the machines that will produce it.
Extension attach rates are increasing, indicating that customers are purchasing more advanced capabilities beyond their base subscription, driving higher revenue per customer.
Media & Entertainment: Maya and 3ds Max are industry-standard tools for creating 3D content in movies, games, and television. This segment is smaller but highly profitable and strategically important for developing 3D AI capabilities.
Autodesk completed its shift from perpetual licenses to subscriptions years ago. The company is now implementing a “transaction model” that changes how it works with reseller partners.
Previously, partners renewed their multi-year contracts on an annual basis. Now they process renewals directly through Autodesk systems, which provides Autodesk better data on end customers and improves efficiency.
The transition creates short-term accounting noise but generates long-term benefits through improved partner productivity and direct customer relationships.
Strong Financial Performance
Autodesk reported excellent Q2 fiscal 2026 results for the period ending July 31, 2025.
Revenue Growth Acceleration Total revenue hit $1.75 billion, up 18% as reported (11% excluding the transaction model impact), exceeding the higher end of its guidance.
Data centers, infrastructure, and industrial buildings drove demand which more than offset weakness in commercial real estate.
Margin Expansion Continues: Non-GAAP operating margin reached 39%, up 140 basis points year-over-year. Management raised full-year margin guidance to approximately 37% (40% excluding transaction model impacts).
The company announced a fiscal 2029 target of 41% operating margin (45% excluding transaction model), a 500 basis points of improvement since starting the transaction model rollout.
Margin expansion comes from three sources: go-to-market optimization (reducing sales and marketing costs), operating leverage (revenue growing faster than expenses), and efficiency improvements.
Billings and Cash Flow: Billings jumped 34% in constant currency (26% excluding transaction model), which indicates a the shift to annual billings for most multi-year contracts.
Remaining performance obligations (RPOs) hit $7.3 billion, up 24%. This represents contracted revenue that will be recognized in future periods.
Free cash flow stood at $451 million in Q2, benefiting from earlier billing timing during the quarter. Full-year free cash flow guidance increased to $2.2-2.28 billion.
Capital Allocation: Autodesk repurchased 1.2 million shares for $356 million in Q2 at an average price of $298. Year-to-date buybacks total $709 million.
Management raised the full-year repurchase target by $100 million to $1.2-1.3 billion, a 40-50% growth versus fiscal 2025.
Impact Leader in Technology
Autodesk is an overall impact leader. The company is exemplary in many domains. It can be described as an outstanding corporate citizen. Autodesk receives particularly high marks in business accountability and free flow of information.
What’s more, it’s products enable tertiary impact effects.
Environmental Innovation Through Design: Autodesk’s software enables sustainable design. Revit lets architects simulate building energy performance before construction begins. This helps create more efficient buildings that use less energy for decades.
Civil 3D helps engineers design roads and infrastructure that minimize environmental disruption. The software optimizes grading to reduce earth movement and fuel consumption during construction.
Fusion’s simulation capabilities let manufacturers test designs virtually, which eliminates physical prototypes, saving materials and energy.
Quality Education Access: Autodesk provides free software to students and educators worldwide. Over 140 million students and teachers use Autodesk tools in schools and universities.
The recent partnership with Anna University in India will equip 400+ affiliated colleges with modern design tools, while an innovation center will provide hands-on training in digital manufacturing and BIM.
This educational access creates opportunity while building the next generation of Autodesk users.
Decent Work and Economic Opportunity: Autodesk certifications provide pathways to well-paying careers in design, engineering, and construction. The company’s training programs help workers gain skills for the digital economy.
The Bull Case for Autodesk Stock
Autodesk benefits from multiple powerful growth drivers that should accelerate over the coming years.
AI Productivity Revolution: Autodesk has invested in AI for over a decade. The company developed specialized AI models trained on 3D design data, rather than relying solely on text like ChatGPT.
AutoConstrain in Fusion now achieves 60% user acceptance, automatically constraining 90% of sketches. This turns week-long tasks into hours of work as more AI features are coming at the Autodesk University conference.
Construction Cloud Momentum: Construction Cloud maintains strong double-digit growth with no deceleration. The platform wins deals against incumbents because it’s modern, comprehensive, and connects design to field execution.
Manufacturing Digitization: Factories are moving from 2D drawings to 3D models. Fusion adoption is accelerating as manufacturers need to design products faster and simulate performance virtually. Extension attach rates are rising, driving higher revenue per customer.
Transaction Model Benefits: The new partner model is proving effective as lower-tier reseller businesses shift directly to Autodesk, thereby improving efficiency.
Partner productivity is increasing as they complete their first renewal cycles and new business from partners is growing month-over-month.
Secular Market Growth: Key drivers of demand for design software include infrastructure investment, data center build-outs, industrial reshoring, and factory automation. These are multi-year trends independent of economic cycles.
Analyst forecasts show strong long-term growth potential. Revenue should increase from $6.13 billion in fiscal 2025 to $10.77 billion by fiscal 2030. That equals 12% annual growth over five years.
Operating margins will expand dramatically. The company targets 41% by fiscal 2029 (45% excluding transaction model impacts). This expansion comes from:
- Sales and marketing optimization (reducing non-selling functions, improving self-service)
- Operating leverage (cloud infrastructure scales efficiently)
- AI efficiency gains (automating internal processes)
Earnings per share growth will outpace revenue. Analysts project EPS increasing from $8.47 in fiscal 2025 to $18.01 in fiscal 2030 – representing 16% annual growth.
The company announced plans to repurchase $1.2-1.3 billion of stock in fiscal 2026, up 40-50% from the prior year. With strong free cash flow generation, buybacks will continue at elevated levels.
AI monetization will create new revenue streams as Autodesk builds consumption-based pricing for resource-intensive AI workloads.
Simple task automation is integrated into subscriptions, whereas complex workflow automation requires compute credits or tokens. This creates two growth vectors: more value captured from existing users, plus new machine-based consumption that runs 24/7.
Conclusion: Designing the Future with AI
ADSK stock positions investors at the intersection of three powerful trends – cloud transformation, AI revolution, and global infrastructure investment.
Market conditions favor Autodesk’s business model as every building, product, and infrastructure project starts with design software. The company owns the industry-standard tools and maintains pricing power through continuous innovation.
Autodesk’s AI advantage is real and defensible, given that competitors need 4-5 years to reach Autodesk’s current AI capabilities, according to management. The company’s 3D data, customer relationships, and specialized AI infrastructure create formidable moats.
Environmental and social leadership provides additional investment appeal. Autodesk enables sustainable design, provides educational access globally, and creates economic opportunity through skills training.
Given the company’s AI leadership, margin expansion trajectory, and position in essential design workflows, ADSK stock offers compelling value for investors seeking growth and profitability improvements backed by technological innovation.