ADSK
Autodesk, Inc.
Technology · Software - Application · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong revenue growth of 17.5% and solid profitability metrics including a 21.9% operating margin contributed positively to the composite score.
- Quarterly momentum was a key driver, with operating income and net income both trending upward through 2027Q1, earning a high factor score.
- The zero scores on dividend and macro theme assignment, combined with muted bottom-line growth relative to revenue, pulled the composite score to the mid-range, yielding a Medium risk rating and Research Further label.
Why Not Higher
- Net income grew only 1.1% and diluted EPS only 2.1% despite 17.5% revenue growth, indicating that earnings conversion is weak and limiting the growth factor score.
- The confirmed absence of a dividend and no macro theme assignment together contribute zero points across two full factors, creating a structural ceiling on the total composite score.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $6,131,000,000 to FY2026's $7,206,000,000, a gain of +17.5%, reflecting strong top-line expansion. However, net income rose only modestly from FY2025's $1,112,000,000 to FY2026's $1,124,000,000 (+1.1%), and diluted EPS increased from FY2025's $5.12 to FY2026's $5.23 (+2.1%), indicating that bottom-line growth lagged revenue growth considerably.
The model rewarded the robust revenue acceleration but tempered the score because earnings and per-share growth were far more muted, suggesting that cost or investment pressures limited the conversion of top-line gains into bottom-line expansion.
In FY2026, Autodesk posted an operating margin of 21.9%, a net margin of 15.6%, and a return on assets of 9.0%, demonstrating meaningful profitability across multiple measures.
The model rewarded the combination of a solid operating margin, a healthy net margin, and a positive return on assets, reflecting the company's ability to convert revenue into profit and deploy assets productively, though there remains room relative to a perfect score.
In FY2026, Autodesk carried a debt-to-equity ratio of 0.82 and an interest coverage ratio of 19.7, against a total asset base of $12,467,000,000, indicating manageable leverage and a strong capacity to service interest obligations.
The model recognized the comfortable interest coverage and moderate leverage, but the mid-range score suggests that other dimensions of financial health not fully captured in the available data may have constrained the result.
Quarterly revenue rose from $1,763,000,000 in 2026Q2 to $1,957,000,000 in 2026Q4 before settling at $1,934,000,000 in 2027Q1, showing a broadly upward trend. Operating income climbed from $444,000,000 in 2026Q2 to $541,000,000 in 2027Q1, and net income surged to $491,000,000 in 2027Q1 after ranging between $313,000,000 and $343,000,000 in the prior three quarters.
The model rewarded the consistent upward trajectory in revenue and operating income across the four quarters, amplified by a sharp acceleration in net income in 2027Q1, signaling strong and broadening operational momentum.
Autodesk does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards dividend income and yield, a confirmed non-payer receives a score of zero on this factor by design.
Autodesk is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification outcome; it does not reflect negatively on the company's business or prospects, but it does mean the model awarded no theme-based score uplift under its current methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Autodesk delivered strong top-line growth of 17.5% year-over-year in FY2026, reaching $7,206,000,000 in revenue, though bottom-line expansion was far more muted with net income rising only 1.1% to $1,124,000,000 and diluted EPS growing just 2.1% to $5.23. The company maintains solid profitability metrics including a 21.9% operating margin and 15.6% net margin, alongside manageable leverage with a debt-to-equity ratio of 0.82 and strong interest coverage of 19.7x. Quarterly momentum has been notably positive, with operating income climbing from $444,000,000 in 2026Q2 to $541,000,000 in 2027Q1 and net income surging to $491,000,000 in 2027Q1. The absence of a dividend and no current macro theme assignment limit the model's composite score, resulting in a Medium risk rating and a Research Further label.
Plain English
Autodesk is growing its sales quickly—up 17.5% last year—and is genuinely profitable, but its actual profits barely budged, it pays no dividend, and it doesn't fit neatly into any of the model's big investment themes, which keeps its overall score in the middle of the pack.
Bull Case vs. Bear Case
Bull Case
- Revenue surged 17.5% year-over-year to $7,206,000,000 in FY2026, demonstrating robust top-line momentum that continued into recent quarters with revenue reaching $1,957,000,000 in 2026Q4.
- Profitability is meaningful across multiple measures, with a 21.9% operating margin, 15.6% net margin, and 9.0% return on assets in FY2026, showing the company can convert revenue into profit effectively.
- Quarterly operating income rose consistently from $444,000,000 in 2026Q2 to $541,000,000 in 2027Q1, and net income surged to $491,000,000 in 2027Q1, signaling broadening operational momentum.
Bear Case
- Despite 17.5% revenue growth, net income rose only 1.1% and diluted EPS grew just 2.1% in FY2026, indicating significant cost or investment pressures that prevented top-line gains from flowing through to the bottom line.
- Autodesk pays no dividend, meaning income-oriented investors receive no return from holding the stock, and the model assigns a zero score on this factor by design.
- Autodesk is not assigned to any of the 24 tracked macro themes, meaning it receives no theme-based score uplift, which constrains the composite score regardless of underlying business performance.
What Could Change the Picture
Bullish Triggers
- If future quarters show net income and EPS growth converging toward the 17.5% revenue growth rate, it would signal that cost pressures are easing and top-line gains are translating more fully into bottom-line expansion.
- A sustained continuation of the 2027Q1 net income surge of $491,000,000 would provide evidence that the recent acceleration is structural rather than one-time.
Bearish Triggers
- If operating income growth stalls or reverses from the $541,000,000 level reached in 2027Q1, it would suggest the recent momentum is not durable.
- A meaningful increase in the debt-to-equity ratio beyond the current 0.82 could signal rising financial risk and pressure on the interest coverage ratio currently at 19.7x.
Risk Profile
Medium RiskAutodesk's debt-to-equity ratio of 0.82 and interest coverage of 19.7x in FY2026 suggest leverage is manageable and debt service is not an immediate concern. However, the gap between strong revenue momentum and muted net income growth warrants monitoring to assess whether cost pressures could widen and affect financial stability.
Key Catalysts to Watch
The sharp acceleration in net income to $491,000,000 in 2027Q1, well above the prior three quarters' range of $313,000,000 to $343,000,000, could represent an emerging inflection point in earnings conversion if sustained.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.