Group 1 - The core focus of Autodesk's recent performance is its strong fiscal fourth quarter, showcasing resilience amid macroeconomic uncertainty, with better-than-expected results in billings, revenue, margins, and free cash flow [3] - Autodesk is expanding its Construction Cloud and Fusion platforms to encompass the entire lifecycle of physical assets, while also enhancing its cloud and AI capabilities, driven by trends in construction digitization, manufacturing modernization, and global infrastructure investment [4] - The company is implementing a restructuring plan that includes a 7% workforce reduction, aiming to utilize the savings to boost investments in artificial intelligence and research and development, with expectations of achieving an additional 75 basis-point margin expansion following a previous 200 basis-point improvement in fiscal 2026 [5]

Core Viewpoint - Autodesk is experiencing durable growth driven by diversification across various sectors and geographic markets, despite macroeconomic volatility [1][3][5] Group 1: Business Performance - Autodesk has shown consistent growth over the past several years, supported by expansion activities and new business opportunities [2][5] - The company has a construction backlog of approximately eight to ten months, which sustains demand even amid external uncertainties [2] - The fourth quarter performance was strong across all verticals and geographies, with particular strength noted in data centers and industrial buildings [2][3] Group 2: Strategic Initiatives - Autodesk's investment in cloud technology, artificial intelligence, and go-to-market changes is yielding benefits, positioning the company for further margin expansion [3][5] - The company is targeting margin expansion despite facing a ~100 basis-point accounting headwind from its new transaction model [5][7] - A workforce reduction of about 7% was completed as part of a broader go-to-market optimization strategy, with savings reinvested into selling, marketing, and core R&D [5][8] Group 3: AI and Automation Strategy - Autodesk's AI strategy focuses on internal productivity gains and three monetization layers: task automation, workflow automation, and system automation [4][10][16] - The company has been investing in AI for nearly a decade, aiming to help customers improve capacity, productivity, and risk management [11][12] - Autodesk's generative AI initiatives, such as Project Bernini, are expected to enhance product offerings and deliver cost-effective results [18] Group 4: Market Position and Future Outlook - Autodesk is expanding its role in the construction phase and aims to extend into the operational phase, potentially increasing project involvement from months to decades [6][19] - The company remains cautious in the near term due to restructuring impacts but maintains confidence in long-term growth drivers supported by secular trends and product investments [19]

Core Insights - Autodesk reported strong fiscal 2026 results, exceeding guidance across key metrics including billings, revenue, non-GAAP operating margin, non-GAAP earnings per share, and free cash flow [3][6][4] - The company anticipates a cautious outlook for fiscal 2027, incorporating potential disruptions from sales restructuring and go-to-market changes [4][10] Financial Performance - Total fourth-quarter revenue grew 19% year-over-year, with a contribution of approximately $137 million from a new transaction model; excluding this, revenue growth was 14% in constant currency [2][6] - Billings increased by 33% as reported and 30% in constant currency, with about $185 million from the new transaction model; excluding this impact, billings grew 32% in constant currency [2][6] - Non-GAAP operating margin rose by 120 basis points to 38%, while GAAP operating margin remained flat due to a $100 million restructuring charge [5][7] Cash Flow and Capital Allocation - Autodesk generated fourth-quarter free cash flow of $972 million, with total share repurchases for fiscal 2026 amounting to $1.4 billion, representing over 50% of free cash flow [8][5] - The company plans to allocate approximately 50% of free cash flow to buybacks over time, subject to acquisitions [13] Fiscal 2027 Guidance - Autodesk's fiscal 2027 guidance includes billings of $8.48 billion to $8.58 billion, revenue of $8.10 billion to $8.17 billion, and non-GAAP operating margin of 38.5% to 39% [4][17] - The guidance reflects prudence regarding potential sales disruptions and assumes a broadly stable macroeconomic environment [10][4] Strategic Focus - The company emphasizes the convergence of design and make in the cloud, driven by platform capabilities, industry clouds, and AI [14] - Autodesk is focusing on AI-driven productivity features, with significant improvements noted in its Fusion product [18] - The company is also targeting monetization of its intellectual property through Autodesk Platform Services (APS) and API usage [22]

Fourth quarter Fiscal 2026 earnings February 26, 2026 Safe harbor 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 first fiscal quarter and full fiscal year 2027, statements about our utilization and strategy regarding artificial intelligence, statements about our new tran ...

Core Viewpoint - Autodesk, Inc. is involved in a legal dispute with Google over trademark infringement related to the "Flow" software, which both companies are marketing for the same customer base in the film, TV, and gaming production sectors [1][2]. Group 1: Legal Dispute - Autodesk filed a complaint in the San Francisco federal court, claiming it began using the "Flow" trademark in 2022 for visual effects, and was surprised by Google's launch of similar software in 2025 targeting the same customers [2]. - The complaint alleges that Google made false representations regarding its use of the "Flow" trademark, suggesting it would always use a combination of its own brand and "Flow" to gain time to dominate the market [2]. Group 2: Market Sentiment - Wall Street analysts are optimistic about Autodesk's stock, with Goldman Sachs upgrading it from Hold to Buy on February 2, and J.P. Morgan also upgrading it to Buy while maintaining a price target of $319 [4]. - Autodesk specializes in 3D design, engineering, and entertainment software, serving industries such as architecture, construction, manufacturing, and media, with key products including AutoCAD, Revit, Inventor, Maya, and 3ds Max [4].

Core Viewpoint - Autodesk is implementing a restructuring plan to eliminate approximately 1,000 roles, or about 7% of its workforce, to reallocate spending towards cloud platforms and artificial intelligence [1] Group 1: Restructuring and Workforce Impact - The workforce reductions will primarily affect customer-facing sales teams, aligning with Autodesk's evolving operating model [2] - The company estimates total pre-tax restructuring charges of $135 million to $160 million, mainly related to employee termination benefits, and plans to complete the restructuring by the end of fiscal Q4 2027 [4] Group 2: Financial Performance and Market Reaction - Investors reacted positively to the restructuring news, with shares increasing by 4.8% on January 22, following a stagnant performance last year and a 9.5% decline year-to-date [2] - Autodesk's transition from a traditional sales approach to a subscription- and usage-based model aims to enhance customer relationships and create more predictable sales streams, leading management to expect billings, revenue, adjusted operating margin, adjusted EPS, and free cash flow for fiscal Q4 2026 and the full year to exceed prior forecasts [3] Group 3: Stock Valuation and Market Performance - Autodesk's stock has underperformed, declining 11% over the past 52 weeks, with a 14% drop in the last three months and an additional 10% in the last month [6] - Currently, Autodesk stock is trading at 25.15 times forward adjusted earnings and 7.6 times sales, which is a premium to peers but sits at a discount relative to its own five-year averages, suggesting potential undervaluation of Autodesk's durable franchise [7]

Core Insights - Autodesk reported a third quarter revenue growth of 18% year-over-year, reaching $1.85 billion, with a constant currency growth also at 18% [1][3] - The company is focusing on defining the AI revolution in design and manufacturing, enhancing customer workflows through automation, and optimizing its sales and marketing strategies [2][3] - Autodesk raised its full-year guidance due to strong business momentum, particularly in the AECO (Architecture, Engineering, Construction, and Operations) sector [2] Financial Performance - Billings for Q3 FY26 were $1.855 billion, reflecting a 21% year-over-year increase [3] - GAAP operating margin improved to 25%, up 3 percentage points from the previous year, while non-GAAP operating margin was 38%, up 1 percentage point [3] - GAAP EPS was reported at $1.60, an increase of $0.33 year-over-year, and non-GAAP EPS was $2.67, up by $0.50 [3] Revenue Breakdown - Total net revenue was $1.853 billion, with the design segment contributing $1.537 billion (19% growth), the make segment at $205 million (20% growth), and other revenues at $111 million (7% growth) [4] - Geographic revenue distribution showed the Americas at $820 million (16% growth), EMEA at $715 million (23% growth), and APAC at $318 million (12% growth) [6] Product Family Performance - The AECO product family generated $921 million in revenue, marking a 23% increase year-over-year [8] - AutoCAD and AutoCAD LT contributed $458 million, with a 15% growth, while the manufacturing segment generated $355 million, reflecting a 16% increase [8] Future Outlook - For Q4 FY26, Autodesk projects revenue between $1.901 billion and $1.917 billion, with GAAP EPS expected to be between $1.40 and $1.57 [11] - Full-year FY26 guidance estimates billings between $7.465 billion and $7.525 billion, with total revenue projected between $7.150 billion and $7.165 billion [12][14]

Financial Performance - Q2 FY26 - Billings reached $1,678 million, a 36% year-over-year increase[5] - Revenue totaled $1,763 million, up 17% year-over-year[5] - GAAP operating margin was 25%, a 2 percentage point increase[5] - Non-GAAP operating margin was 39%, a 1 percentage point increase[5] - Free cash flow was $451 million, a 122% increase[5] Revenue Breakdown - Q2 FY26 - Design revenue was $1,472 million, up 17% year-over-year (18% in constant currency)[7] - Make revenue was $194 million, up 20% year-over-year (20% in constant currency)[7] - Americas revenue was $786 million, up 19% year-over-year (19% in constant currency)[7] - AECO revenue was $878 million, up 23% year-over-year (24% in constant currency)[7] FY26 Outlook - Billings are projected to be between $7,355 million and $7,445 million[9] - Revenue is projected to be between $7,025 million and $7,075 million[9] - Free cash flow is projected to be between $2,200 million and $2,275 million[9]

This presentation contains forward-looking statements that involve risks and uncertainties, including quotations from management, statements in the paragraphs under "Business Outlook" above, statements regarding reallocating internal resources, our new transaction model and sales and marketing optimization, statements about our short-term and long-term goals, statements regarding our strategies, market and product positions, performance and results, statements regarding our share repurchase programs, and al ...