On May 29, Autodesk declined 6.48% overnight, trading at $225.54/share. The sell-off was triggered by a classic buy-the-rumor-sell-the-news pattern following Q1 earnings release.

Autodesk reported Q1 adjusted EPS of $2.99, beating the consensus estimate of $2.84 by 5.28%, while revenue of $1.934 billion also topped the $1.893 billion expectation. However, fiscal 2027 full-year adjusted EPS guidance of $12.40-$12.65 merely aligned with the FactSet estimate of $12.42, failing to deliver meaningful upside. The stock had already climbed 3.08% during regular trading on optimistic expectations ahead of the report, setting the stage for a post-earnings reversal.

Additionally, the company announced a $3.6 billion all-cash acquisition of maintenance and operations software firm MaintainX, to be funded through cash and debt financing. The deal raised investor concerns over increased financial leverage. Morgan Stanley had previously cut its price target to $315 from $350 while maintaining an Overweight rating.

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