Adobe vs. Autodesk: Which Software Stock is a Stronger Buy?

Adobe ADBE and Autodesk ADSK are well-known creative software providers. Both companies have been leveraging artificial intelligence (AI) to offer software for creators and improve workflow efficiency. Per Statista, the creative software market is expected to hit $9.64 billion in 2025 and is anticipated to see a 1.54% CAGR to reach $10.25 billion by 2029.

However, both Adobe and Autodesk shares have suffered from tech sell-off year-to-date (YTD) due to the uncertainties resulting from higher tariffs. While Adobe shares have lost 17.3% YTD, Autodesk plunged 8.6%.

ADBE and ADSK Stock’s Performance

So, Autodesk or Adobe, which is a better stock to invest in now?

The Case for Adobe Stock

Adobe’s prospects are expected to benefit from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products have been driving top-line growth. Adobe’s new AI book of business (more than $125 million exiting the first quarter of fiscal 2025) was a roughly low single-digit percentage of total revenues ($4.23 billion in the fiscal first quarter). ADBE expects this AI book of business to double by the end of fiscal 2025.

Adobe has expanded its AI portfolio with Adobe GenStudio and Firefly Services, which help brands and their agency partners collaborate on marketing campaigns. Adobe launched Firefly Video Model-powered Generative Extend in Premiere Pro, which leverages AI to instantly generate and expand the length of video and audio clips. Adobe introduced a new version of After Effects with a high-performance preview playback engine, powerful new 3D motion design tools, and HDR monitoring. New Frame.io V4 upgrades include expanded storage that scales with teams.

Adobe plans to monetize standalone subscriptions for Firefly through the introduction of multiple Creative Cloud offerings that include Firefly tiering. Adobe plans to invest in its sales capacity to deliver Adobe-wide offerings across business, education and government. The integration of AI Assistant in Acrobat, Reader and Express bodes well for Adobe’s prospects. ADBE is infusing Gen AI innovations across its portfolio, including AI-first standalone and add-on products such as Acrobat AI Assistant, Firefly App and Services, and GenStudio for Performance Marketing. These factors are expected to boost top-line growth.

For fiscal 2025, ADBE expects total revenues between $23.30 billion and $23.55 billion. Adobe expects Digital Media revenues between $17.25 billion and $17.40 billion. The Digital Experience segment’s revenues are anticipated to be between $5.8 billion and $5.9 billion. Experience Subscription revenues are expected to be $5.38-$5.43 billion. ADBE expects fiscal 2025 non-GAAP earnings between $20.20 and $20.50 per share.

The Case for Autodesk Stock

Autodesk’s performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites is expected to drive the company’s revenues over the long haul. The rapid adoption of BIM 360 products and the success of the maintenance of the subscription program bode well for the growth of the company.

Autodesk is making solid progress in high-growth segments like Construction and Manufacturing. The company added nearly 400 new construction customers in the fourth quarter of fiscal 2025 and is seeing strong adoption of its cloud-based platforms like Fusion and Forma. These offerings support end-to-end workflows, helping customers increase productivity, reduce costs, and streamline operations.

Autodesk is investing in AI to enhance product capabilities and user efficiency. Tools like the AutoConstrain feature in Fusion, which simplifies sketching through AI-driven suggestions, are already gaining traction. The company’s strategic focus on converging design and manufacturing workflows positions it well to serve evolving industry needs and expand its long-term customer base.

For fiscal 2026, Autodesk expects revenues between $6.895 billion and $6.965 billion. Billings are estimated in the $7.06-$7.21 billion band. Non-GAAP earnings are anticipated in the range of $9.34-$9.67 per share.

ADSK’s Earnings Estimate Revision Steady, ADBE’s Goes South

The Zacks Consensus Estimate for Adobe’s fiscal 2025 earnings is pegged at $20.36 per share, down by a nickel over the past 30 days, indicating a 10.53% increase over fiscal 2024’s reported figure.
 

Adobe Inc. Price and Consensus

Adobe Inc. price-consensus-chart | Adobe Inc. Quote

However, the consensus mark for ADSK’s fiscal 2026 earnings has been steady at $9.48 per share over the past 30 days, suggesting 11.92% growth over 2024.
 

Autodesk, Inc. Price and Consensus

Autodesk, Inc. price-consensus-chart | Autodesk, Inc. Quote

Both Adobe’s and Autodesk’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. Autodesk’s average surprise of 5.73% is better than Adobe’s surprise of 2.53%, reflecting a good quality of earnings beat on a consistent basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Valuation: Adobe is Cheaper Than Autodesk

Valuation-wise, both Autodesk and Adobe are overvalued, as suggested by the Value Score of D. 

In terms of forward 12-month Price/Sales, Adobe shares are trading at 6.44X, lower than Autodesk’s 8.09X.

ADBE and ADSK Valuation

Conclusion

Autodesk’s top-line growth is expected to remain strong, thanks to the demand for its AEC, AutoCAD and manufacturing product families, while Adobe’s deepening generative GenAI focus and innovative GenAI-powered portfolio is noteworthy.

Currently, Autodesk has a Zacks Rank #2 (Buy), making the stock a stronger pick compared with Adobe, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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