As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the design software industry, including Autodesk (NASDAQ: ADSK) and its peers.

The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.

The 7 design software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 1% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% since the latest earnings results.

Autodesk (NASDAQ: ADSK)

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.93 billion, up 18.4% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter beating analysts’ expectations.

"Our customers need AI that produces outputs that are accurate in the real world. That requires data, context, and expertise. Each one is scarce and what differentiates Autodesk is that we have all three at scale. We can validate AI-generated outputs against real-world constraints using our existing parametric and physics-based 3D technology," said Andrew Anagnost, CEO of Autodesk.

Autodesk delivered the weakest full-year guidance update of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 19.4% since reporting and currently trades at $194.33.

Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it’s free.

Best Q1: Adobe (NASDAQ: ADBE)

Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.

Adobe reported revenues of $6.62 billion, up 12.7% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Adobe pulled off the highest guidance raise and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 9.6% since reporting. It currently trades at $197.73.

Is now the time to buy Adobe? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Dolby Laboratories (NYSE: DLB)

Known for its iconic "D" logo that appears before countless movies and TV shows, Dolby Laboratories (NYSE: DLB) designs and licenses audio and video technologies that enhance entertainment experiences in movies, TV shows, music, and other media.

Dolby Laboratories reported revenues of $395.6 million, up 7.1% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations.

Dolby Laboratories delivered the weakest guidance update and slowest revenue growth in the group. As expected, the stock is down 19.6% since the results and currently trades at $51.54.

Read our full analysis of Dolby Laboratories’s results here.

Procore Technologies (NYSE: PCOR)

With a mission to build software for the people that build the world, Procore Technologies (NYSE: PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.

Procore Technologies reported revenues of $359.3 million, up 15.7% year on year. This number surpassed analysts’ expectations by 1.9%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ annual recurring revenue estimates but billings in line with analysts’ estimates.

The stock is down 34.5% since reporting and currently trades at $40.65.

Read our full, actionable report on Procore Technologies here, it’s free.

PTC (NASDAQ: PTC)

Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.

PTC reported revenues of $774.3 million, up 21.7% year on year. This print topped analysts’ expectations by 8.6%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

PTC pulled off the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is down 14.1% since reporting and currently trades at $117.50.

Read our full, actionable report on PTC here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.