Is Autodesk Stock Underperforming the Dow?

Autodesk, Inc. (ADSK), headquartered in San Francisco, California, provides 3D design, engineering, and entertainment technology solutions. Valued at $44.4 billion by market cap, the company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and ADSK definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the software - application industry. ADSK is a leader in design and engineering software, built on a legacy of innovation and a diverse product portfolio. The company showcases strong financials and customer trust. Strategic acquisitions, and cloud-based platforms, enhance its market position and workflow convergence. A successful subscription model provides predictable income, allowing Autodesk to scale offerings and adapt to market demands while maintaining a loyal customer base.

Despite its notable strength, ADSK slipped 35.1% from its 52-week high of $326.87, achieved on Sep. 9, 2025. Over the past three months, ADSK stock declined 5.7%, underperforming the Dow Jones Industrials Average’s ($DOWI) 3.9% gains during the same time frame.

Shares of ADSK fell 28.3% on a YTD basis and dipped 35.1% over the past 52 weeks, notably underperforming DOWI’s YTD gains of 9.8% and 16% returns over the last year.

To confirm the bearish trend, ADSK has been trading below its 200-day moving averages recently, while continuing to hover near its 50-day moving average amid short-term fluctuations.

ADSK has underperformed due to margin compression and softer earnings guidance. Despite beating top-line and bottom-line Q2 estimates, the stock was hit by a lowered GAAP operating margin outlook caused by integration costs from its $3.6 billion MaintainX acquisition. This margin pressure, combined with lighter forward profit guidance and broader enterprise software valuation drawdowns, has outweighed the company's steady revenue growth.   

On Aug. 27, ADSK shares closed up more than 6% after reporting its Q2 results. Its adjusted EPS of $3.30 topped Wall Street expectations of $3.12. The company’s revenue was $2.1 billion, beating Wall Street forecasts of $2 billion. ADSK expects full-year adjusted EPS in the range of $12.52 to $12.60, and revenue ranging from $8.3 billion to $8.4 billion.

In the competitive arena of software - application, Dassault Systèmes SE (DASTY) has taken the lead over ADSK, with a 15.2% loss on a YTD basis and a 26.3% downtick over the past 52 weeks. 

Wall Street analysts are bullish on ADSK’s prospects. The stock has a consensus “Strong Buy” rating from the 32 analysts covering it, and the mean price target of $322.47 suggests a notable potential upside of 52% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.