Autodesk (ADSK)
Information Technology · $55.0B market cap · SEC CIK 0000769397
ahead of 73% of the S&P 500 · #23 of 73 in Information Technology
Next reports on Nov 24, 2026, with analysts expecting $3.13 in earnings per share.
52-week range $185.50 to $320.00. 19% below its 52-week high and 40% above its low.
The case for ADSK
- Earns 53% back on shareholder equity.
- Generated $2.4B of free cash flow in FY2026, 33% of revenue.
- 21% of revenue drops through to net profit.
- Revenue growing 17.9% year over year.
- Earnings per share up 59.9%.
- Has compounded revenue at 13.7% a year over five years.
The case against
- Pricey for its growth: 33.5× earnings, where 10% a year of growth would justify about 23×.
- Current liabilities exceed current assets (ratio 0.86).
- Trailed the S&P 500 by 21 points over the past year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 47 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 58 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 80 |
| Momentumhow the price has behaved lately | 50 |
| Stabilityhow violently it moves, what it owes and what it pays you | 76 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +17.9% |
|---|---|
| Over 5 years | +13.7% a year |
| FY2026 revenue | $7.2B (+18%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $2.4B |
|---|---|
| Of revenue | 33% |
| Of profit | 214% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 91% |
|---|---|
| Operating margin | 26% |
| Net margin, FY25 → FY26 → now | 18.1% → 15.6% → 21.1% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $2.2B |
|---|---|
| Long-term debt | $2.5B |
| Net debt | $251M |
| Years to repay | 1.0 yrs |
Valuation
Is the stock price reasonable? Mixed: pricey on earnings, fair on cash
| P/E | 33.5× |
|---|---|
| Fair P/E for its growth | 23× |
| P/FCF | 22.8× |
| Forward P/E | 18.1× |
| EV / EBITDA | 26.0× |
At 33.5× earnings it trades above the 23× that 10% a year of growth would justify. At 22.8× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Autodesk's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $7.2B | $6.1B | $5.5B | $5.0B | $4.4B |
| Change on the year | +18% | +12% | +10% | +14% | — |
| Free cash flow | |||||
| Free cash flow | $2.4B | $1.6B | $1.3B | $2.0B | $1.5B |
| Of revenue | 33% | 26% | 23% | 41% | 34% |
| Profit margins | |||||
| Gross margin | 91.0% | 90.6% | 90.7% | 90.4% | 90.5% |
| Operating margin | 21.9% | 22.1% | 20.5% | 19.8% | 14.1% |
| Net margin | 15.6% | 18.1% | 16.5% | 16.4% | 11.3% |
| Debt vs. cash | |||||
| Cash | $2.2B | $1.6B | $1.9B | $1.9B | $1.5B |
| Long-term debt | $2.5B | $2.3B | $2.3B | $2.3B | $2.6B |
| Net cash (debt) | −$251M | −$701M | −$408M | −$353M | −$1.1B |
What Autodesk says it does
Note: A glossary of terms used in this Form 10-K appears at the end of this Item 1. GENERAL We are a global leader in 3D design, engineering and entertainment technology solutions, spanning architecture, engineering, construction, product design, manufacturing, media, and entertainment. Our customers design, fabricate, manufacture, and build anything by visualizing, simulating, and analyzing real-world performance early in the design process. These capabilities allow our customers to foster innovation, optimize their designs, streamline their manufacturing and construction processes, save time and money, improve quality, deliver more sustainable outcomes, communicate plans, and collaborate with others. Our professional software products are sold globally through a combination of indirect and direct channels. Corporate Information Our internet address is www.autodesk.com. The information posted on our website is not incorporated into…
Risk factors ADSK lists in its 10-K
- Existing and increased competition and rapidly evolving technological changes may reduce our revenue and profits
- Global economic and political conditions may further impact our industries, business, and financial results
- Our business could be adversely impacted by the costs and challenges associated with strategic acquisitions and investments
- We may not be able to predict subscription renewal rates and their impact on our future revenue and operating results
- Our financial results, key metrics, and other operating metrics fluctuate within each quarter and from quarter to quarter, making our future revenue and financial results difficult to predict
- From time to time we realign or introduce new business and sales initiatives; if we fail to successfully execute and manage these initiatives, our results of operations could be negatively impacted
- We may not successfully execute or achieve the expected benefits of our restructuring plan and other measures we may take in the future, and our efforts may adversely affect our business
- Net revenue, billings, earnings, cash flow, or subscriptions shortfalls or volatility of the market generally may cause the market price of our stock to decline
- As a result of our strategy of partnering with other companies for product development, our product delivery schedules could be adversely affected if we experience difficulties with our product development partners
- We incorporate AI into our offerings, and challenges with properly managing its use could result in competitive harm, reputational harm, or liability, and adversely affect our results of operations
- The Audit Committee internal investigation has been time-consuming and expensive, has resulted in the filing of lawsuits, and may result in additional expense and/or litigation
- subject us to possible litigation and greater security risks
- Delays in service from third-party service providers could expose us to liability, harm our reputation, damage our competitiveness, and adversely impact our financial results
- We rely on software from third parties, and a failure to properly manage our use of third-party software could result in increased costs or loss of revenue
- Our business could be adversely affected if we are unable to attract and retain key personnel
- We rely on third-party technologies and if we are unable to use or integrate these technologies, our solutions and service development may be delayed and our financial results negatively impacted
- Disruptions in licensing relationships and with third-party developers could adversely impact our business
- We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls
- If we are not able to adequately protect our proprietary rights, our business could be harmed
- We may face intellectual property infringement claims that could be costly to defend and result in the loss of significant rights
- Contracting with government entities exposes us to additional risks inherent in the government procurement process
- We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows
- Our debt service obligations may adversely affect our financial condition and cash flows from operations
- Changes in tax rules and regulations, and uncertainties in interpretation and application, could materially affect our tax obligations and effective tax rate
- If we were required to record an impairment charge related to the value of our long-lived assets or an additional valuation allowance against our deferred tax assets, our results of operations would be adversely affected
- Our business may be significantly disrupted upon the occurrence of a catastrophic event
- Changes in existing financial accounting standards or practices, or taxation rules or practices may adversely affect our results of operations