Autodesk, Inc. Reports Fiscal 2026 Third Quarter Earnings Results

Autodesk, Inc. (ADSK) today announced its financial results for the most recent quarter, revealing a mixed performance. The company reported quarterly revenue of $1.853 billion, surpassing analysts’ expectations by approximately $45.8 million, while earnings per share came in at $1.60, falling short of the estimated $2.50. This earnings miss highlights challenges the company faced despite a strong revenue performance.

Key Highlights:

• Third quarter revenue grew 18% year-over-year to $1.85 billion.
• Billings increased by 21% to $1.86 billion.
• GAAP operating margin was 25%, with a non-GAAP operating margin of 38%.
• Net income for the quarter was $343 million, or $1.60 per diluted share.
• Strong performance in the Architecture, Engineering, Construction, and Operations (AECO) sector, with revenue growth of 23%.
• Full-year guidance raised due to current business momentum, projecting revenue between $7.15 billion and $7.17 billion.

Summary: Autodesk, Inc. reported robust financial results for the third quarter of fiscal 2026, with revenue reaching $1.85 billion, an 18% increase compared to the previous year. CEO Andrew Anagnost emphasized the company’s commitment to leading the AI revolution in design and manufacturing, stating, “We’re defining the AI revolution for design and make, empowering customers with new task, workflow and system automations.” The company also noted strong performance in its AECO segment, which contributed significantly to the overall revenue growth.

CFO Janesh Moorjani highlighted that the macroeconomic environment remains stable, although uncertainty persists. He mentioned that the company has successfully executed its sales and marketing optimization plan, leading to an increase in billings and revenue. As a result of this momentum, Autodesk has raised its full-year guidance, projecting billings between $7.465 billion and $7.525 billion, and revenue between $7.15 billion and $7.17 billion for fiscal 2026.

Autodesk, Inc. (ADSK) has experienced a notable decline in its stock price, with a one-year drop of nearly 10%, reflecting broader market challenges and investor sentiment. Over the past month alone, the stock has decreased by 7.36%, indicating a potential loss of confidence among shareholders. Despite these price fluctuations, Autodesk maintains a robust price-to-earnings ratio of approximately 61.64, suggesting that investors are still willing to pay a premium for its future growth potential. The company’s two-year compound annual growth rate (CAGR) for earnings per share stands at 9.38%, while revenue growth is even more impressive at 12.57%. However, the negative CAGR for free cash flow at -9.79% raises concerns about its cash generation capabilities. On a positive note, Autodesk boasts a return on invested capital of 25.09% and a net profit margin of 15.79%, indicating effective management and profitability. As the company navigates these challenges, investors will be keenly watching how it addresses cash flow issues while capitalizing on its growth trajectory.

Autodesk, Inc. provides 3D design, engineering, and entertainment software and services worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BIM 360, a construction management cloud-based software; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Rafael, California.