Core Insights - Autodesk reported quarterly earnings of $2.29 per share, exceeding the Zacks Consensus Estimate of $2.14 per share, and showing an increase from $1.87 per share a year ago, resulting in an earnings surprise of 7.01% [1] - The company achieved revenues of $1.63 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.64% and up from $1.42 billion year-over-year [2] Earnings Performance - Autodesk has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong earnings performance [2] - The stock has experienced a slight decline of about 0.9% since the beginning of the year, compared to a decline of -0.6% for the S&P 500 [3] Future Outlook - The future performance of Autodesk's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $2.34 on revenues of $1.7 billion, and for the current fiscal year, it is $9.48 on revenues of $6.92 billion [7] Industry Context - The Internet - Software industry, to which Autodesk belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue in Q1 grew 15% as reported and 16% in constant currency, with a contribution from the new transaction model of $78 million [12][18] - Billings increased 29% as reported and 30% in constant currency, reflecting the shift to annual billings for most multiyear contracts [12][18] - First quarter free cash flow was $556 million, with GAAP operating margins decreasing by seven percentage points due to restructuring charges [14][15] Business Line Data and Key Metrics Changes - Strength was observed in AECO, upfront revenue from enterprise business agreements (EBAs), and the Autodesk store as friction from the new transaction model eased [11] - The contribution from the new transaction model to billings was $105 million in Q1, with billings growing 22% at constant currency excluding this impact [12][18] - Non-GAAP operating margins increased by three percentage points, reflecting operating leverage from ongoing cost discipline [15] Market Data and Key Metrics Changes - The U.S. dollar has depreciated against major currencies, impacting billings, revenue, and free cash flow guidance ranges [17] - Asia Pacific showed some softness, particularly in Japan, which was the last to adopt the new transaction model, and China and Korea were more exposed to macroeconomic turmoil [115][116] Company Strategy and Development Direction - The company is focusing growth investments on strategic priorities in cloud, platform, and AI, optimizing sales and marketing to drive higher margins [8][19] - The new transaction model aims to integrate more closely with customers, driving additional business while increasing automation [9] - The company is committed to delivering connected solutions and enhancing operational efficiency to capture growth opportunities in the market [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted that customer conversations reflect uncertainty due to geopolitical and macroeconomic factors, but construction backlog ticked up, and monthly active users increased [39][40] - The company is prepared for potential macroeconomic impacts, having factored in greater uncertainty into their guidance while maintaining a positive outlook based on Q1 performance [17][92] Other Important Information - The company is refreshing its board to guide the next decade of growth, with new appointments aimed at enhancing strategic direction [8] - The company is focused on reducing stock-based compensation as a percentage of revenue to below 10% [15] Q&A Session Summary Question: How are customer conversations evolving given the uncertainty? - Management acknowledged that trade policy uncertainty is impacting customers, but noted that construction backlog and active user growth remain positive [39][40] Question: Can you discuss margin momentum and the sales and marketing optimization plan? - Management indicated strong Q1 performance driven by revenue outperformance and ongoing expense discipline, with the sales and marketing optimization plan on track [41][43] Question: What are the benefits and risks of channel consolidation? - Management is encouraging consolidation towards fewer, more solution-focused partners, which has led to increased activity and price realization [51][55] Question: How is the new transaction model progressing? - Management reported no significant disruptions compared to the previous year, with channel productivity expected to increase as partners adapt [60][61] Question: What are the opportunities for AI functionality? - Management emphasized the focus on delivering specific AI enhancements that drive productivity, with plans to roll out more sophisticated tools [78][80] Question: How is the company addressing labor constraints in the industry? - Management noted persistent labor constraints and emphasized the need for digital efficiency, which is driving robust adoption of their solutions [94]

Financial Data and Key Metrics Changes - Total revenue in Q1 grew 15% as reported and 16% in constant currency, with a contribution from the new transaction model to revenue of $78 million [12][13] - Billings increased 29% as reported and 30% in constant currency, reflecting the shift to annual billings for most multiyear contracts [12][13] - First quarter free cash flow was $556 million, with GAAP operating margins decreasing by seven percentage points due to restructuring charges [15][14] Business Line Data and Key Metrics Changes - Strength was observed in AECO, upfront revenue from enterprise business agreements (EBAs), and the Autodesk store as friction from the new transaction model eased [10] - The contribution from the new transaction model to billings was $105 million in Q1, with billings growing 22% at constant currency excluding the impact of the new transaction model [12][13] Market Data and Key Metrics Changes - The U.S. dollar has depreciated against major currencies, impacting billings, revenue, and free cash flow guidance ranges [17] - Asia Pacific showed some softness, particularly in Japan, which was the last to adopt the new transaction model, and China and Korea were more exposed to macroeconomic turmoil [114] Company Strategy and Development Direction - The company is focusing growth investments on strategic priorities in cloud, platform, and AI, optimizing sales and marketing to drive higher margins [7] - The new transaction model aims to integrate more closely with customers, driving additional business while increasing automation and reducing duplicative workflows [8] Management's Comments on Operating Environment and Future Outlook - Management noted that customer conversations reflect uncertainty due to trade policy and macroeconomic factors, but construction backlog increased and monthly active users grew [40] - The company remains optimistic about its underlying business momentum despite macroeconomic uncertainties, with guidance reflecting caution [17][89] Other Important Information - The company is refreshing its board to guide the next decade of growth, with new appointments aimed at enhancing strategic direction [7] - The company is committed to reducing stock-based compensation as a percentage of revenue to below 10% [15] Q&A Session Summary Question: How are customer conversations evolving given the uncertainty? - Management acknowledged that trade policy uncertainty is impacting customers, but noted that construction backlog increased and business inflow remains strong [40] Question: Can you discuss margin momentum and the sales and marketing optimization plan? - Management indicated that Q1 margin strength was driven by revenue outperformance and ongoing expense discipline, with the sales and marketing optimization plan on track [42][43] Question: What are the benefits and risks of channel consolidation? - Management is encouraging consolidation towards fewer, more solution-focused partners, which has led to increased activity and price realization in the store [52][55] Question: How is the new transaction model progressing? - Management reported that disruptions seen last year are not present now, and channel productivity is expected to increase as partners adapt to the new model [61][62] Question: What is the outlook for net revenue retention (NRR)? - Management confirmed that the NRR is above the 100-110% range due to the new transaction model, and it is expected to remain in that range for the year [63] Question: How is the company addressing labor constraints in the industry? - Management noted that labor constraints persist, but the demand for digital efficiency is driving robust adoption of their solutions [91] Question: What are the plans for AI functionality and future use cases? - Management emphasized the focus on delivering AI enhancements that drive productivity, with plans to roll out more sophisticated tools [78][80] Question: What is the current status of the restructuring and its impact? - Management indicated that while there was some disruption from the restructuring, overall business momentum has improved, and risks are being managed effectively [85][86]

First quarter fiscal 2026 earnings May 22, 2025 Safe harbor Non-GAAP Financial Measures These presentations include certain non-GAAP financial measures. Please see the Appendices attached to the presentations for an explanation of management's use of these measures and a reconciliation of the most directly comparable GAAP financial measures. 2 Q1 FY26 financial summary | (In millions, except percentages and per share amounts) | Q1 FY26 | YoY Change | | --- | --- | --- | | Billings | $1,434 | 29% | | Revenue ...

Financial Performance - First quarter revenue increased by 15% year-over-year to $1.6 billion, with a 16% growth on a constant currency basis[1] - Billings for Q1 FY26 reached $1.434 billion, reflecting a 29% year-over-year increase[3] - GAAP EPS for Q1 FY26 was $0.70, down $0.46 compared to the previous year, while non-GAAP EPS was $2.29, up $0.42[3] - Total net revenue by product type showed Design revenue at $1.361 billion (14% increase), Make revenue at $179 million (23% increase), and Other revenue at $93 million (22% increase)[4] - Total net revenue for the three months ended April 30, 2025, was $1,633 million, a decrease from $1,633 million in the same period last year[39] - Subscription revenue reached $1,532 million, while maintenance revenue was $8 million, contributing to a total subscription and maintenance revenue of $1,540 million[39] - Net income for the period was $152 million, with diluted net income per share at $0.70[39] Revenue Guidance - Q2 FY26 revenue guidance is projected between $1.720 billion and $1.730 billion, with GAAP EPS guidance of $1.37 to $1.46[12] - Full-year FY26 revenue guidance is set between $6.925 billion and $6.995 billion, with billings expected between $7.160 billion and $7.310 billion[12] Cash Flow and Capital Allocation - The company plans to allocate more capital to share repurchases as free cash flow grows, which was $556 million in Q1 FY26, a 14% increase[3] - Cash and cash equivalents increased to $1,816 million from $1,599 million at the beginning of the period[41] - Operating cash flow for the three months ended April 30, 2025, was $564 million, compared to $494 million in the same period last year[41] - Net cash provided by operating activities amounted to $564 million, resulting in free cash flow of $556 million[45] - The company repurchased $354 million of common stock during the period[41] Operating Metrics - Remaining performance obligations (RPO) totaled $7.157 billion, a 21% increase year-over-year, with current RPO at $4.552 billion (16% increase)[8] - Total operating expenses amounted to $1,240 million, with research and development expenses at $394 million[39] - GAAP operating margin for the three months ended April 30, 2025, was 14%, while the non-GAAP operating margin was 37%[45] - The GAAP operating margin for FY26 is expected to be between 21% and 22%, with a non-GAAP operating margin forecasted at 36.5% to 37%[48] Stock and Intangible Assets - Autodesk's goodwill increased to $4,275 million from $4,242 million at the end of January 2025[40] - Deferred revenue stood at $3,620 million, a decrease from $3,787 million at the end of January 2025[40] - Total assets decreased to $10,585 million from $10,833 million at the end of January 2025[40] Future Projections - For Q2 FY26, GAAP EPS is projected to be between $1.37 and $1.46, with non-GAAP EPS expected to be between $2.44 and $2.48[48] - The FY26 GAAP EPS is forecasted to be between $4.63 and $5.14, while non-GAAP EPS is anticipated to be between $9.50 and $9.73[49] - Stock-based compensation expense for Q2 FY26 is estimated to be between $0.87 and $0.89[48] - Amortization of purchased intangibles and developed technologies for FY26 is projected at $0.65[49] - Restructuring and other exit costs for FY26 are expected to be between $0.53 and $0.60[49] - Income tax adjustments for FY26 are anticipated to range from $(0.24) to $(0.33)[49] Strategic Focus - The focus remains on strategic priorities in cloud, platform, and AI to drive long-term shareholder value amidst macroeconomic uncertainties[2]

Investors interested in Internet - Software stocks are likely familiar with ZoomInfo (GTM) and Autodesk (ADSK) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings es ...

With technology, funding, and expertise, Autodesk backs community-led efforts to cut rebuilding costs, speed wildfire recovery, and scale climate-resilient housing across Los Angeles. SAN FRANCISCO, May 22, 2025 /PRNewswire/ -- Today, Autodesk, Inc. (NASDAQ: ADSK) announced new funding, technology, and support to accelerate rebuilding efforts in wildfire-affected areas of Los Angeles, following this January's devastating fires across the region. TFCF's initial concept designs, contributed by architects ...

Autodesk (ADSK) is scheduled to report its first-quarter fiscal 2026 results on May 22. The company's fourth-quarter fiscal 2025 performance exceeded expectations with revenues growing 12% to $1.64 billion and non-GAAP operating margin reaching 37.1%. Management expects first-quarter fiscal 2026 revenues to be in the range of $1.60-$1.61 billion with non- GAAP EPS in the band of $2.14-$2.17, reflecting modest sequential growth. However, Autodesk's recently announced restructuring involving approximately 9% ...

Autodesk Software company logo seen displayed on a smartphone. (Photo Illustration by Igor ... More Golovniov/SOPA Images/LightRocket via Getty Images)LightRocket via Getty ImagesAutodesk (NASDAQ:ADSK), a software firm focused on design and digital creation tools, is set to announce its earnings on Thursday, May 22, 2025. A review of the last five years shows a balanced historical trend: the stock recorded a positive one-day return following earnings announcements in 50% of instances (with a median return o ...

The upcoming report from Autodesk (ADSK) is expected to reveal quarterly earnings of $2.14 per share, indicating an increase of 14.4% compared to the year-ago period. Analysts forecast revenues of $1.61 billion, representing an increase of 13.4% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company ...