Autodesk Set to Report Q1 Earnings: Here's What You Should Know

Core Viewpoint - Autodesk is set to report its first-quarter fiscal 2026 results on May 22, following a strong fourth-quarter performance where revenues grew 12% to $1.64 billion and non-GAAP operating margin reached 37.1% [1][2]. Financial Performance - The company expects first-quarter fiscal 2026 revenues to be between $1.60 billion and $1.61 billion, with non-GAAP EPS projected in the range of $2.14 to $2.17, indicating modest sequential growth [2]. - The Zacks Consensus Estimate for revenues is $1.61 billion, reflecting a year-over-year growth of 13.39% [2]. - The Zacks Consensus Estimate for EPS is $2.14, unchanged over the past 60 days, indicating a year-over-year increase of 14.44% [3]. Recent Developments - Autodesk's fourth-quarter results exceeded expectations, with an earnings surprise of 7.51%, and the company has beaten the Zacks Consensus Estimate in each of the last four quarters, averaging a surprise of 5.73% [3]. - The company is undergoing a restructuring that involves approximately 9% of its workforce (about 1,350 employees), which may cause short-term disruptions despite potential long-term benefits [2]. Market Factors - Several factors may influence the upcoming fiscal first-quarter results, including the optimization of Autodesk's go-to-market approach, macroeconomic uncertainty affecting customer spending, and a transition in the company's Chief Revenue Officer [5]. - Autodesk is experiencing strong momentum in its Construction business, adding nearly 400 new logos last quarter, and reallocating resources to focus on cloud, platform, and AI initiatives [6]. Margin Outlook - The underlying non-GAAP operating margin is expected to reach 39-40% for fiscal 2026, although this should be weighed against moderating top-line growth [7]. - Management plans to provide more details about future margin expansion during an analyst day scheduled for the third quarter [7]. Investment Considerations - Given the mixed signals, it may be prudent for investors to maintain current positions while awaiting clarity on how effectively Autodesk navigates its organizational changes and executes its optimization strategy [8]. - According to the Zacks model, Autodesk currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating that the odds of an earnings beat are not favorable at this time [9].