Investment Thesis
Autodesk demonstrates exceptional profitability with industry-leading 91% gross margins and strong free cash flow generation ($2.4B annually at 33.4% FCF margin), indicating pricing power and operational efficiency in software delivery. The dramatic revenue growth signal and solid interest coverage (19.7x) reflect underlying business strength, though near-term working capital management and debt reduction should be monitored.
ADSK Strengths
- Exceptional gross margin of 91% demonstrates strong pricing power and product-market fit in prepackaged software
- Robust free cash flow generation at $2.4B (33.4% FCF margin) with minimal capex requirements typical of software businesses
- Strong interest coverage ratio of 19.7x indicates low financial distress risk despite $2.5B long-term debt
- High ROE of 36.9% and ROA of 9.0% demonstrate efficient capital deployment
- Operating margin of 21.9% reflects disciplined cost management and operating leverage
ADSK Risks
- Current ratio of 0.85x indicates potential near-term liquidity pressure that requires monitoring
- Revenue growth metric appears anomalous (28724% YoY) suggesting potential data quality or accounting adjustment issues requiring verification
- Long-term debt of $2.5B represents 83% of stockholders equity (Debt/Equity 0.82x), limiting financial flexibility
- Zero insider Form 4 filings in last 90 days may indicate restricted trading periods or limited management confidence signals
- Quick ratio equal to current ratio (0.85x) suggests limited inventory buffer and tight working capital management
Key Metrics to Watch
- Quarterly revenue trends to validate sustainability of growth trajectory and rule out one-time accounting adjustments
- Operating cash flow consistency and working capital dynamics affecting liquidity position
- Debt paydown progress and trajectory toward balanced capital structure
- Gross margin maintenance as competitive intensity in software market potentially increases
- Customer retention and ARR (Annual Recurring Revenue) metrics to assess subscription model health
ADSK Financial Metrics
ADSK Profitability Ratios
ADSK Balance Sheet & Liquidity
ADSK 5-Year Financial Trend
5-Year Trend Summary: Autodesk, Inc.'s revenue has grown significantly by 64% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.19 reflects profitable operations.
ADSK Growth Metrics (YoY)
ADSK Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.6B | $152.0M | $1.27 |
| Q2 2026 | $1.5B | $152.0M | $1.30 |
| Q1 2026 | $1.4B | $152.0M | $0.70 |
| Q3 2025 | $1.4B | $161.0M | $1.12 |
| Q2 2025 | $1.3B | $161.0M | $1.03 |
| Q1 2025 | $1.3B | $161.0M | $0.75 |
| Q3 2024 | $1.3B | $146.0M | $0.91 |
| Q2 2024 | $1.2B | $146.0M | $0.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ADSK Capital Allocation
ADSK SEC Filings
Access official SEC EDGAR filings for Autodesk, Inc. (CIK: 0000769397)