Autodesk's Earnings Beat Expectations

Core Insights - Autodesk reported better-than-expected earnings for fiscal Q4 2025, driven by a successful transition to a subscription model and strong global performance [1][2] Financial Performance - Non-GAAP EPS for fiscal Q4 2025 was $2.29, exceeding Wall Street's consensus by $0.15, while revenue reached $1.639 billion, closely aligning with the expected $1.631 billion [2][3] - Year-over-year revenue growth was 11.6%, up from $1.469 billion in fiscal Q4 2024, with subscription sales contributing significantly [3][6] - Free cash flow surged to $678 million, a 58.8% increase from the previous year [3][8] - Operating margin improved to 37%, compared to 36% in the prior year [3][8] Business Model and Strategy - Autodesk has transitioned from selling perpetual software licenses to a software as a service (SaaS) model, emphasizing cloud integration [4] - The subscription model allows for more predictable revenue and enhances competitiveness in the market [4] - The company invested $393 million in R&D during the fiscal quarter, focusing on AI and generative design [5] Market Performance - Subscription revenue grew 13.7% to $1.522 billion, making up 97% of total revenue [6] - Revenue growth was notable in the Americas (11%) and Europe/Middle East/Africa (14%), with the AECO segment increasing by 15% [7] Future Outlook - For fiscal 2026, Autodesk anticipates revenue between $6.895 billion and $6.965 billion, with non-GAAP EPS projected to range from $9.34 to $9.67, indicating confidence in growth [9] - Ongoing investments in R&D, particularly in AI and cloud technologies, are seen as crucial for future success [9]