Autodesk (ADSK) Stock Forecast & Price Target

Autodesk reports a strong outlook for Q3 with expected total revenue of $1,804.7 million, reflecting a 15% year-over-year increase, primarily driven by the architecture, engineering, and construction (AEC) segment, which is expected to grow by 20%. The company's revenue growth is further supported by significant billings, which grew by 21% year-over-year, contributing to a robust total remaining performance obligations (RPO) of $7.36 billion, also up by 20%. Additionally, an increase in the U.S. Manufacturing PMI to 52.5 signals positive economic momentum, enhancing Autodesk’s position in a favorable market environment.

Autodesk's stock outlook appears negative due to several concerning financial indicators, including a modest decline in billings reported by architecture firms and expectations of a significant reduction in transaction model tailwinds by FY27. The company's exposure to deteriorating global macroeconomic conditions, along with a weak medium to long-term price momentum, suggests challenges in sustaining market performance amidst increasing competition and potential difficulties in executing strategic initiatives. Additionally, ongoing uncertainties surrounding leadership transitions and lower-than-anticipated sales and margin growth further compound the risks facing Autodesk, particularly as high office vacancy rates negatively impact commercial design activity through at least 2026.