Which Gives You More Of The AI Software Bet, Workday Or Autodesk?

For questions about this article or underlying research, email help@trefis.com.

Investors hold Workday (WDAY) and Autodesk (ADSK) to capitalize on the same bet: companies already selling software subscriptions to businesses will also be the ones paid for AI. Workday sells that software for HR and finance, and Autodesk for design and construction. Both vendors are moving their AI tools toward usage-based pricing. The two companies reported earnings on August 27, 2026. So what did each company tell investors about that bet?

What Workday And Autodesk Said About AI In August

Workday highlighted fast-growing sales of its AI products. During the fiscal Q2 2027 call, management said the company had nearly $600 million in annual recurring revenue from its AI products, climbing more than 200% from a year earlier. Because many of those products are priced by usage, management said their revenue will not show up for months or a year. Workday only nudged up its fiscal 2027 subscription revenue guide, setting a new range of $9.94 billion to $9.95 billion.

Autodesk said its AI offerings will add gross profit dollars as they grow, though they will put a little compression on gross margin. The company delivered its biggest August news on revenue. Management raised the fiscal 2027 revenue forecast to $8.32 billion at the midpoint, up from a prior forecast of $8.19 billion, and said its usage-based Flex offering has been net accretive to the business. That updated guide now includes MaintainX, a business Autodesk finished buying on August 3. Autodesk also lowered its fiscal 2027 GAAP earnings per share guide to $8.31 at the midpoint, down from $8.35.

Workday’s news is AI revenue still to come, while Autodesk presented a larger revenue guide that incorporates an acquired business.

Autodesk Keeps More Per Sale, Workday Returns More Cash

Autodesk keeps more of each dollar it sells. The company recorded a gross margin of 91.2% over the twelve months to July 31, 2026, compared with 75.8% for Workday. Management expects MaintainX to drag on Autodesk’s operating margin in fiscal 2027.

Workday’s margin is widening, and the company is handing cash back. Its operating margin reached 12.0% over the twelve months to July 31, 2026, up from 8.6% a year earlier. In fiscal Q2 2027 alone, Workday bought back $1.3 billion of its own shares. The company has a buyback yield, buybacks measured against market value, of 10.5%, against the 3.1% yield for Autodesk.

Workday Versus Autodesk On Price, Growth And Margin

Autodesk is the cheaper stock on earnings. It closed at 31.4 times trailing earnings on October 20, 2026, against a multiple of 40.0 for Workday. Because Workday’s twelve-month profit includes a one-time tax benefit of $374 million, its P/E ratio would be higher without it.

Revenue for Autodesk rose 17.9% over the twelve months to July 31, 2026, compared with 13.3% for Workday. Management said a new transaction model added roughly 2 points to Autodesk’s fiscal Q2 2027 growth, a benefit that will not recur in fiscal 2028. Autodesk posted an operating margin of 27.9%, more than twice Workday’s. Debt is about even, representing 7.5% of Workday’s market value and 7.2% of Autodesk’s.

Workday’s edge is narrow. Over the three twelve-month periods to July 31, 2026, its revenue growth averaged 14.8%, against 14.4% for Autodesk. However, Workday’s growth slowed from 17.1% to 13.3% over that timeframe, while Autodesk’s rose from 11.4% to 17.9%. Furthermore, Workday issued August guidance that raised one core forecast and lowered none. Autodesk, by contrast, raised two forecasts and lowered two, lifting revenue and non-GAAP earnings per share but cutting GAAP earnings per share and free cash flow.

For more of the AI bet, we think that Workday is a better pick: it has nearly $600 million in annual recurring revenue from AI products, up more than 200%, with more usage-priced revenue still to come. Autodesk leads on earnings multiple, recent growth and margin. Workday’s subscription revenue growth, guided at 12% for fiscal Q3 2027, is the measure to watch at its next report, expected on or around November 23, 2026.

Does This Mean You Should Act On WDAY?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

Spot an error or want more like this? Tell us in 10 seconds.