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Core Insights - Autodesk reported $1.85 billion in revenue for the quarter ended October 2025, marking an 18% year-over-year increase and an EPS of $2.67 compared to $2.17 a year ago, exceeding both revenue and EPS estimates [1] - The revenue surprise was +2.67% over the Zacks Consensus Estimate of $1.8 billion, while the EPS surprise was +7.23% over the consensus estimate of $2.49 [1] Financial Performance Metrics - Billings reached $1.86 billion, surpassing the average estimate of $1.84 billion [4] - Net Revenue from Maintenance was $8 million, below the average estimate of $8.95 million, reflecting an 11.1% year-over-year decline [4] - Net Revenue from Other sources was $111 million, exceeding the estimated $103.57 million, with a 6.7% year-over-year increase [4] - Net Revenue from Subscription services was $1.73 billion, above the estimated $1.69 billion, showing a 19% year-over-year growth [4] - Total Subscription and Maintenance Revenue was $1.74 billion, exceeding the average estimate of $1.7 billion, representing an 18.8% year-over-year increase [4] Product Family Performance - Net Revenue from Media and Entertainment (M&E) was $86 million, below the average estimate of $102.45 million, with a 3.6% year-over-year increase [4] - Net Revenue from Other product families was $33 million, below the average estimate of $40.6 million, reflecting a 6.5% year-over-year increase [4] - Net Revenue from Architecture, Engineering, Construction and Operations (AECO) was $921 million, exceeding the average estimate of $877.99 million, with a 22.6% year-over-year increase [4] - Net Revenue from Manufacturing (MFG) was $355 million, slightly above the average estimate of $348.82 million, showing a 15.6% year-over-year increase [4] - Net Revenue from AutoCAD and AutoCAD LT was $458 million, surpassing the average estimate of $425.22 million, with a 15.1% year-over-year increase [4]

Core Viewpoint - Autodesk reported quarterly earnings of $2.67 per share, exceeding the Zacks Consensus Estimate of $2.49 per share, and showing an increase from $2.17 per share a year ago, indicating a positive earnings surprise of +7.23% [1][2] Financial Performance - The company achieved revenues of $1.85 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.67%, and up from $1.57 billion in the same quarter last year [2] - Over the last four quarters, Autodesk has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Autodesk shares have declined approximately 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 14% [3] - The future performance of Autodesk's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.52, with expected revenues of $1.85 billion, and for the current fiscal year, the EPS estimate is $9.92 on revenues of $7.06 billion [7] Industry Context - The Internet - Software industry, to which Autodesk belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [8][9] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9][10] - Third quarter GAAP and non-GAAP operating margins were 25% and 38% respectively, reflecting year-over-year increases of approximately 330 basis points and 120 basis points [10][14] - Free cash flow for Q3 was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10][14] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers, infrastructure, and industrial buildings [8][9] - The Autodesk Store and billing linearity during the quarter were stronger than expected, contributing to overall revenue growth [8][9] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) of $7.4 billion and current RPO of $4.8 billion both grew 20%, benefiting from the new transaction model [9][10] - The macroeconomic environment appears broadly stable, but uncertainty remains elevated [12][14] Company Strategy and Development Direction - The company is focused on enhancing products with cloud-based platforms and capabilities, redefining its business model and go-to-market strategies [5][6] - Autodesk aims to capture shared value through subscription, consumption, and outcome-based business models that blend human and machine capabilities [6][22] - The strategy includes building a vibrant third-party ecosystem to enhance solution value and efficiency [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value being created for customers and shareholders, despite geopolitical and macroeconomic uncertainties [5][6] - The company raised its full-year guidance for billings and revenue, reflecting current business momentum [13][14] - Management acknowledged potential disruptions in the sales and marketing optimization plan but remains focused on controllable factors driving revenue and margins [12][14] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [14] - The transition to annual billing for most multi-year contracts is expected to significantly diminish tailwinds next year [10][12] Q&A Session Summary Question: Discussion on seats versus consumption AI monetization - Management highlighted the capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][28] Question: Insights on fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [30][31] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of the Autodesk Construction Cloud [35][37] Question: PLM market opportunities - Management stated that many mid-market customers lack strong data management solutions and that Autodesk aims to provide them with modern, SaaS-based platforms [39][40] Question: Customer migration and packaging strategies - Management discussed efforts to ensure customers are not left behind during transitions and the importance of seamless integration between existing and new products [44][46] Question: Trends in usage telemetry - Management confirmed that momentum in Q3 was consistent with previous quarters, with no new emerging trends to highlight [48] Question: Billings growth mechanics - Management clarified that there was no unusual M&A activity affecting growth rates and attributed outperformance to strong execution and favorable macro conditions [51][62] Question: Customer spending plans for 2026 - Management reported that customers are maintaining their spending patterns and investing in digital infrastructure [58][59] Question: Fiscal 2027 growth expectations - Management emphasized the importance of considering macro risks and the performance of the underlying business when guiding for fiscal 2027 [84]

Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [9][10] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [10] - 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 [11][12] - Free cash flow for Q3 was $430 million, benefiting from earlier timing of billings and lower cash tax payments [11] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers, infrastructure, and industrial buildings [9] - The Autodesk Store and billing linearity during the quarter were stronger than expected, contributing to overall revenue growth [9] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) of $7.4 billion and current RPO of $4.8 billion both grew 20%, benefiting from the new transaction model [10] - The macroeconomic environment appears broadly stable, but uncertainty remains elevated [13] Company Strategy and Development Direction - The company is focused on the convergence of design and make in the cloud, leveraging AI and platform capabilities to enhance customer value [17][18] - Autodesk is building a vibrant third-party ecosystem to enhance its solutions and create new monetization opportunities [7][19] - The strategy includes redefining business models and go-to-market approaches to capture shared value through subscription and consumption-based models [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value being created for customers and shareholders, despite geopolitical and macroeconomic uncertainties [5][6] - The company raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [14][15] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [15] - The transition to annual billing for most multi-year contracts is expected to significantly diminish tailwinds next year [11][14] Q&A Session Summary Question: Insights on seats versus consumption AI monetization - Management highlighted a capacity challenge in industries served and the balance between human engagement and machine execution in future projects [28][30] Question: Fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [32] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of the Autodesk Construction Cloud [36][39] Question: PLM market opportunities - Management stated that many mid-market customers lack strong data management solutions and Autodesk aims to provide them with modern, cloud-based platforms [41][42] Question: Customer migration and packaging - Management discussed efforts to ensure customers are not left behind during transitions and emphasized the importance of seamless integration between existing and new products [47][48] Question: AI capabilities and retention - Management confirmed that AI-driven capabilities like auto-constraints are enhancing customer retention and creating opportunities for incremental monetization [68][70] Question: Margin expansion drivers - Management identified go-to-market optimization and operating leverage as key levers for achieving margin targets [72][73]

Financial Data and Key Metrics Changes - Total revenue in Q3 grew 18% as reported and in constant currency, with a contribution from the new transaction model of approximately $124 million [8] - Billings increased 21% as reported and 20% in constant currency, with a contribution from the new transaction model of approximately $135 million [9] - 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 [10] - Third quarter free cash flow was $430 million, benefiting from earlier timing of billings and lower cash tax payments [10] Business Line Data and Key Metrics Changes - Strength was observed in AECO (architecture, engineering, construction, and operations), driven by sustained investment in data centers and infrastructure, offsetting softness in commercial [7] - The Autodesk Construction Cloud is gaining momentum, with significant migrations from competitors, indicating strong demand for integrated solutions [17][18] Market Data and Key Metrics Changes - The macroeconomic environment appears broadly stable, but uncertainty remains elevated, impacting guidance for fiscal 2027 [12] - The company is seeing strong engagement from customers, particularly in the AECO sector, with continued investment in digital infrastructure [59] Company Strategy and Development Direction - Autodesk is focused on the convergence of design and make in the cloud, leveraging AI and industry clouds to enhance product offerings and customer value [15][16] - The company aims to redefine its business model and go-to-market strategies, positioning itself for long-term growth and margin expansion [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical and macroeconomic uncertainties while executing on strategic initiatives [4] - The company has raised its full-year guidance for billings and revenue, reflecting strong underlying business momentum [12][13] Other Important Information - The company plans to buy back approximately $1.3 billion of stock, a 50% increase compared to fiscal 2025 [13] - Autodesk is integrating AI capabilities deeply into its products, enhancing customer workflows and driving productivity [16][20] Q&A Session Summary Question: Insights on seats versus consumption AI monetization - Management highlighted a capacity challenge in industries served and the balance between human engagement and machine execution in future projects [26][27] Question: Fiscal 2027 outlook - Management indicated that while the business is performing well, there are risks of disruption and macroeconomic uncertainty that will be considered in future guidance [31] Question: Autodesk Construction Cloud penetration - Management noted that there is still room for increased penetration within existing accounts and emphasized the unique value proposition of their platform [35][37] Question: AI capabilities and their impact on retention and pricing power - Management confirmed that AI-driven capabilities are enhancing customer satisfaction and retention, with potential for incremental monetization opportunities [67][69] Question: Channel productivity and operational elements - Management stated that operational friction from the new transaction model is being addressed, and partners are beginning to see improved productivity [89][90]

Core Viewpoint - Autodesk forecasts fourth-quarter revenue and profit exceeding Wall Street estimates, driven by consistent subscription renewals and increasing demand for cloud-based design solutions [1] Group 1: Financial Performance - The company anticipates strong financial results for the fourth quarter, with revenue and profit projections above market expectations [1] - Steady subscription renewals are a key factor contributing to the positive outlook [1] Group 2: Market Demand - There is a growing demand for Autodesk's cloud-based design software, which supports the company's revenue growth [1]

This presentation contains forward looking statements about revenue, billings, free cash flow, operating margin, EPS, products, future performance, financial and otherwise, and strategy, including statements regarding our progress on our key priorities, business models, guidance for the fourth fiscal quarter and full fiscal year 2026, our business momentum, the macroeconomic environment, and our long-term financial objectives. There are a significant number of factors that could cause actual results to diff ...

Core Insights - The company, known for AutoCAD and other digital design software, has successfully leveraged the surge in investment within the data center sector [1] Company Summary - The company has capitalized on increased funding in data centers, indicating a strategic alignment with industry trends [1]