Autodesk (ADSK Quick QuoteADSK - Free Report) , a leader in 3D design software, is scheduled to report its third-quarter fiscal 2025 results on Nov. 26.

The company anticipates revenues between $1.55 billion and $1.57 billion for the fiscal third quarter. The Zacks Consensus Estimate for the same is pegged at $1.56 billion, suggesting growth of 10.51% from the year-ago quarter.

Autodesk projects non-GAAP earnings in the band of $2.08-$2.14 per share. The Zacks Consensus Estimate for the same is pegged at $2.11 per share, unchanged over the past 30 days. The figure indicates a 1.93% year-over-year rise.

In the last reported quarter, Autodesk delivered an earnings surprise of 7.5%. Markedly, the company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.94%.

Autodesk has seen its stock price climb 31.9% year to date, outperforming the broader Zacks Computer and Technology sector’s growth of 17.4%.

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Autodesk, Inc. Price and EPS Surprise

Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote

Factors Likely to Shape Autodesk’s Upcoming Results

The company's fiscal third-quarter performance is expected to have benefited from strong growth in subscription revenues. ADSK’s subscription model, along with its expanding geographical reach, is expected to have driven the top line in the to-be-reported quarter. The Zacks Consensus Estimate for subscription revenues is pegged at $1.453 billion, indicating growth of 10.6% year over year.

This growth is attributed to the increasing trend of cloud migration, which is being accelerated by the ongoing digital transformation across industries like Architecture, Engineering and Construction. The demand for Autodesk's cloud solutions is benefiting from this broader trend. Further, development in AI technology along with enhanced end-to-end digital transformation offerings bodes well for investors.

Autodesk’s transaction model is expected to drive business momentum due to co-terming and self-service functionality. Paired with go-to-market optimization, investors are expected to benefit from this structural transformation in the third quarter of fiscal 2025.

Autodesk Fusion’s enhancement and expanded capabilities in configuration, drawing automation, collaboration, as well as electronics and PCB design are expected to have driven the top line by increasing market reach in the manufacturing industry.

The strength of the AutoCAD and AutoCAD LT product family is anticipated to have favored ADSK's top line. The Zacks Consensus Estimate for the AutoCAD and AutoCAD LT product family’s fiscal third-quarter revenues is pegged at $398 million.

Gains from Autodesk Construction Cloud are expected to have contributed to the to-be-reported quarter's top line as the company has been witnessing steady traction with owners, general contractors and subcontractors across the construction industry.

The Zacks Consensus Estimate for the Media & Entertainment, Manufacturing and Other product family’s fiscal third-quarter revenues is pegged at $77 million, $285 million and $27.03 million, respectively.

However, inflationary pressure, geopolitical tension, foreign exchange movements and macroeconomic headwinds might have negatively impacted ADSK’s fiscal third-quarter performance.

ADSK’s third quarter fiscal 2025 prospects are expected to be negatively affected by the softness in the media and entertainment industry. 

Autodesk’s transaction model aimed to drive business momentum by increasing the top line and efficiency but did not make a material contribution in the second quarter of fiscal 2025 due to bottlenecks faced in the transition from multiyear contracts to annual billings and the same is expected to have continued in the to-be-reported quarter.

Autodesk’s transaction model is expected to have negatively impacted the third quarter fiscal 2025 top line due to mechanical and timing impacts on ADSK’s billings, operating costs, top line and deferred revenues, along with challenges related to the adoption amongst channel partners.

Sluggish growth of Maintenance revenues, mainly due to the migration of maintenance plans to the subscription model, remains a concern for top-line growth in the to-be-reported quarter. In the second quarter of fiscal 2025, Maintenance revenues declined 21.4% from the year-ago quarter to $11 million and the trend is expected to have continued in the third quarter of fiscal 2025.

What Our Model Unveils for ADSK Stock

Our proven model does not conclusively predict an earnings beat for Autodesk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Autodesk has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks, which, according to our model, have the right combination of elements.

Fortinet (FTNT Quick QuoteFTNT - Free Report) has an Earnings ESP of +4.78% and sports a Zacks Rank #1 at present.

The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $18.3 per share. Shares of FTNT have returned 58.5% in the year-to-date period.

Meta Platforms (META Quick QuoteMETA - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $20.1 per share. Shares of META have returned 58% in the year-to-date period.

Reddit Inc. (RDDT Quick QuoteRDDT - Free Report) has an Earnings ESP of +10.57% and carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $36 per share. Shares of RDDT have returned 190.8% in the year-to-date period.