Skip to content
    ADSK
    Earnings call· Oct 2025(Q3 FY26)

    Autodesk, Inc. ADSK

    Nov 25, 2025 Source

    Executive summary

    Autodesk Q3 FY26 — Strong Revenue and Earnings Beat, Full-Year Guidance Raised

    Autodesk delivered a strong Q3 FY26, exceeding expectations across key financial metrics and raising full-year guidance, driven by consistent execution and a stable macro environment. The company continues to advance its cloud, platform, and AI strategies, particularly in AECO and manufacturing, while navigating ongoing business model transitions and macroeconomic uncertainties. Management remains focused on operational efficiency and capital allocation to drive long-term shareholder value.

    Highlights

    5

    • Total revenue grew 18% as reported, topping the high end of guidance.

    • Non-GAAP EPS topped the high end of guidance.

    • Billings increased 21% as reported, exceeding expectations.

    • Non-GAAP operating margin reached 38%, reflecting a 120 basis point year-over-year increase.

    • Full-year guidance for revenue, billings, non-GAAP operating margin, and free cash flow was raised across the board.

    Concerns

    3

    • Macroeconomic uncertainty remains elevated, requiring a prudent posture for FY27 guidance.

    • Transition to annual billings for multiyear contracts and the new transaction model will significantly diminish tailwinds to billings and free cash flow growth in FY27.

    • Incremental headwinds to reported operating margins are expected in FY27 from the new transaction model.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year FY26 Billings
    $7.465B - $7.525B
    high materiality
    High
    Full-year FY26 Revenue
    $7.15B - $7.165B
    high materiality
    High
    Full-year FY26 Non-GAAP Operating Margin (Reported)
    approximately 37.5%
    high materiality
    High
    Full-year FY26 Non-GAAP Operating Margin (Underlying ex-NTM)
    approximately 40.5%
    high materiality
    High
    Full-year FY26 Free Cash Flow
    $2.26B - $2.29B
    high materiality
    High
    Full-year FY26 Stock Buyback
    approximately $1.3B
    high materiality
    High

    Operational metrics

    13
    Revenue growth
    18%YoY
    Q3 FY26

    Total revenue in the third quarter grew 18% as reported

    Revenue growth
    12%YoY
    Q3 FY26

    Total revenue grew 12% in constant currency and excluding the impact of the new transaction model.

    New Transaction Model Revenue Contribution
    $124M
    Q3 FY26

    The contribution from the new transaction model to revenue was approximately $124 million in the third quarter.

    Billings growth
    21%YoY
    Q3 FY26

    Billings increased 21% as reported

    Billings growth
    20%YoY
    Q3 FY26

    and 20% in constant currency.

    Billings growth
    16%YoY
    Q3 FY26

    Billings grew 16% in constant currency and excluding the impact of the new transaction model.

    New Transaction Model Billings Contribution
    $135M
    Q3 FY26

    The contribution from the new transaction model to billings was approximately $135 million in the third quarter.

    GAAP operating margin
    25%up 330 bps YoY
    Q3 FY26

    Third quarter GAAP and non-GAAP operating margins were 25% and 38%, respectively, reflecting year-over-year increases of approximately 330 and 120 basis points, respectively.

    Non-GAAP operating margin
    38%up 120 bps YoY
    Q3 FY26

    Third quarter GAAP and non-GAAP operating margins were 25% and 38%, respectively, reflecting year-over-year increases of approximately 330 and 120 basis points, respectively.

    Shares repurchased
    1.2M
    Q3 FY26

    We purchased approximately 1.2 million shares for $361 million at an average price of approximately $306 per share.

    Shares repurchased
    3.7M
    YTD FY26

    Year-to-date, we have repurchased 3.7 million shares for approximately $1.07 million.

    Sketch AutoConstrain constraints delivered
    2.6M
    since launch this year

    Since its launch this year, the AI model has delivered over 2.6 million constraints and has been retrained and the UX improved all along the way.

    Sketch AutoConstrain acceptance rate
    60%
    current

    The acceptance rates for AutoConstrain suggestions to commercial users have grown to more than 60%, with 90% of those sketches fully constrained.

    Industry KPIs

    5
    MetricValueDetails
    Revenue growth18%%
    Rpo current rpo$4.8BUSD
    Bookings billings$135MUSD
    Operating FCF margin rule of 4038%%
    Ai product adoption monetization60%%

    Orderbook & backlog

    2
    Total RPO$7.4BQ3 FY26 end

    up 20% YoY

    Current RPO$4.8BQ3 FY26 end

    up 20% YoY

    Deals & partnerships

    1
    Wake Technical Community College, Kimley-HornStrategic partnership to prepare students for careers in design, engineering, and construction.

    Integrates Fusion, Forma, Civil 3D, and Autodesk Construction Cloud into WTCC's coursework with Kimley-Horn's internship program, creating a direct pipeline from classroom to career.

    Risks & headwinds

    4
    Macroeconomic uncertaintyremainder of fiscal '26 and fiscal '27

    elevated

    Mitigation: built some risk into our guidance range; remain mindful of potential disruption; prudent posture on our underlying growth for fiscal '27

    Sales and marketing optimization plan disruptionnext year (FY27)

    some risk of disruption

    Mitigation: not complete with that (implies ongoing management)

    Diminishing tailwinds from business model transitionsFY27

    significantly diminish next year

    Mitigation: expect that reported billings and free cash flow growth will start to normalize

    Incremental headwinds to reported operating margins from new transaction modelfiscal '27

    incremental headwinds

    Mitigation: underlying business has been performing consistently well (focus on underlying performance)

    What to watch in Q4 FY26

    4

    Underlying growth rate for FY27

    next quarter (February earnings call)
    CurrentConsistent growth in FY26, Q3 revenue up 12% cc ex-NTM
    TargetSpecific FY27 guidance for revenue and billings growth

    Why it matters

    Management has maintained a prudent posture for FY27 due to macro and go-to-market risks, despite strong FY26 performance. The specific guidance will clarify the expected trajectory.

    So on fiscal '27, it will make sense to talk about the specifics when we are actually guiding to fiscal '27 in February.

    Q&A highlights

    6

    How does Autodesk plan to monetize AI, balancing seat-based models with consumption, and how does this affect partners and customers?

    Andrew explained that there's a fundamental capacity challenge in AEC and manufacturing. Autodesk aims to decrease human engagement per project but increase the number of projects executed. Monetization will involve capturing incremental consumption value through machine-based execution and outcome-based models, alongside supporting people-based work. Customers will also shift from billable hours to consumptive execution based on their IP.

    “Our goal is to decrease the number of people that are working on a particular project, but increase the number of projects that our customers in our ecosystem are executing.”

    asked by Saket Kalia · answered by Andrew Anagnost

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation & AI Focus

    Autodesk is undergoing significant transformations in its business model, go-to-market, products, and platform, aiming for resilience and new growth avenues. The company is deeply integrating AI foundation models into its products, leveraging decades of digital data to automate tasks, workflows, and systems, and plans to monetize these through subscription, consumption, and outcome-based models. This strategy is expected to drive long-term value creation.

    02

    AECO Segment Momentum

    The Architecture, Engineering, Construction, and Operations (AECO) segment shows strong momentum, driven by sustained investments in data centers, infrastructure, and industrial buildings, offsetting softness in commercial sectors. Autodesk Construction Cloud (ACC) is gaining traction with owners, designers, GCs, and subcontractors, facilitating the convergence of design and construction workflows. Examples include a global food processor migrating 700+ projects to ACC and the South Carolina Department of Transportation adopting Autodesk solutions for infrastructure improvements.

    03

    Manufacturing Segment Innovation

    Manufacturing customers are seeking convergence to enhance cost and resource efficiency by integrating product development workflows in the cloud, utilizing centralized data models, and adopting AI-driven automation. Fusion is a key driver, showing strong growth with increasing extension attach rates and higher average sales prices. AI-powered features like Sketch AutoConstrain in Fusion have delivered over 2.6 million constraints with a 60% acceptance rate, significantly boosting productivity.

    04

    Go-to-Market Optimization & Channel Strategy

    The go-to-market optimization plan is on track, with operational friction from the new transaction model easing. The company aims to incentivize its channel partners more on new business generation rather than renewals, leveraging improved customer intelligence and automation for renewals. This shift is intended to align channel efforts with long-term growth objectives and build capacity for new business.

    05

    Fiscal '27 Outlook & Prudence

    While Q3 performance was strong and consistent, management maintains a prudent posture for the FY27 outlook. Factors influencing this include the remaining sales and marketing optimization plan, potential for disruption, and elevated macroeconomic uncertainty🌐. The tailwinds from the new transaction model and the transition to annual billings for multiyear contracts are expected to diminish, leading to a normalization of reported billings and free cash flow growth rates.

    06

    Education & Consumption Models

    Autodesk is expanding its reach into education through partnerships like the one with Wake Technical College and Kimley-Horn, integrating its software into coursework to prepare students for high-demand careers. The company is also exploring new consumption models, such as Flex consumption, to help multidisciplinary firms rapidly scale and manage projects, accelerating delivery and reducing risk.

    AI-generated summary of the company’s earnings call. Not investment advice.