Autodesk(US:ADSK)2025-11-25 21:03Financial Performance - Third quarter revenue increased by 18% year-over-year to $1.85 billion, with billings reaching $1.855 billion, a 21% increase[1][3] - Total net revenue for the three months ended October 31, 2025, was $1,853 million, a 18% increase from $1,570 million in the same period of 2024[38] - Subscription revenue reached $1,734 million, up 19% from $1,457 million year-over-year[38] - Net income for the nine months ended October 31, 2025, was $808 million, compared to $809 million for the same period in 2024[40] - Operating cash flow for the nine months ended October 31, 2025, was $1,463 million, significantly higher than $915 million in the prior year[40] - The company reported a gross profit of $1,688 million for the three months ended October 31, 2025, representing a gross margin of approximately 91%[38] Guidance and Projections - Autodesk raised its full-year guidance, projecting total revenue between $7.150 billion and $7.165 billion for fiscal 2026[10] - Fourth quarter revenue guidance is set between $1.901 billion and $1.917 billion, with GAAP EPS expected to be between $1.40 and $1.57[10] - For Q4 FY26, the GAAP EPS is projected to be between $1.40 and $1.57, with a non-GAAP EPS forecasted between $2.59 and $2.67[46] - The GAAP operating margin for FY26 is expected to be 23%, while the non-GAAP operating margin is projected at 37.5%[46] - For FY26, the GAAP EPS is estimated to be between $5.16 and $5.33, with a non-GAAP EPS forecasted between $10.18 and $10.25[47] Cash Flow and Assets - Free cash flow for the third quarter was $430 million, representing a 116% increase year-over-year[3] - The company had cash and cash equivalents of $1,989 million at the end of the period, up from $1,599 million at the beginning of the year[39] - Total current assets increased to $3,895 million as of October 31, 2025, compared to $3,482 million at the beginning of the year[39] - Total assets grew to $11,198 million from $10,833 million since January 31, 2025[39] - Net cash provided by operating activities was $439 million, resulting in free cash flow of $430 million[44] Revenue Breakdown - Revenue from the AECO product family grew by 23% year-over-year, totaling $921 million[7] - The Americas region generated $820 million in revenue, a 16% increase, while EMEA saw a 23% increase to $715 million[5] - Remaining performance obligations (RPO) increased by 20% year-over-year to $7.361 billion, with current RPO at $4.830 billion[7] - Unbilled deferred revenue rose by 43% year-over-year, totaling $3.515 billion[7] - Deferred revenue stood at $3,577 million as of October 31, 2025, down from $3,787 million at the beginning of the year[39] Operating Margins - GAAP operating margin improved to 25%, up 3 percentage points year-over-year, while non-GAAP operating margin was 38%, up 1 percentage point[3] - Autodesk's GAAP operating margin for the three months ended October 31, 2025, was 25%, while the non-GAAP operating margin was 38%[44] Research and Development - Research and development expenses for the three months ended October 31, 2025, were $416 million, an increase from $378 million in the same period of 2024[38] Non-GAAP Measures - The company emphasizes the importance of reviewing the reconciliation of non-GAAP financial measures to GAAP measures in its public disclosures[42] - Autodesk's financial results include inherent limitations due to the exclusion of certain items in non-GAAP measures, which may impact reported financial results[42]