Autodesk Stock Earnings Reports

Autodesk reported a strong Q3 fiscal ’25 with 12% revenue growth in constant currency and raised full-year guidance across billings, revenue, margins and free cash flow. Management highlighted successful execution of the new transaction model (launched in Western Europe) and continued momentum in cloud, platform and AI investments. Key financials: billings grew 28% (new transaction model contributed an estimated 5–5.5 percentage points tailwind to billings growth for FY25), total revenue grew 11% (12% constant currency) with the new transaction model providing ~1–1.5 percentage points of revenue tailwind, deferred revenue fell 9% to $3.7B, and current RPO grew ~14% year over year. Direct revenue accelerated (up 23%) to 42% of total, reflecting stronger direct relationships and EBA/store growth. Product strength was broad-based: Manufacturing (including Fusion) and M&E grew fastest, AEC showed continued traction in infrastructure and construction (net new construction customers doubled YoY).

Margins and cash flow: Management reiterated that, excluding FX and transaction-model effects, Autodesk is on track to be near the midpoint of its FY26 non-GAAP operating margin target (38–40%) already in FY25 — effectively running ahead of plan. GAAP and non-GAAP margin guidance midpoints were nudged up (non-GAAP range now 35.5%–36%). Free cash flow guidance midpoint for FY25 was increased to $1.485B (range $1.47B–$1.50B) and management reiterated an FY26 FCF midpoint of ~$2.05B. Capital allocation: Autodesk increased its share-repurchase authorization by $5B to ~$9B and accelerated buybacks in the quarter (1.2M shares, ~$319M purchased).

Operational and strategic priorities: Management emphasized go-to-market modernization (subscription → consumption → direct billing and self-service), tighter channel partnerships with less transactional duplication, and ongoing investment in AI and industry-cloud capabilities (Project Bernini and foundation models for design automation). They expect the transaction-model rollout to create short-term noise in billings and P&L (co-terming, timing shifts) but to improve long-term sales & marketing efficiency and margins. Leadership: Janesh (incoming CFO) was introduced as a hire focused on driving optimization and scale; Betsy Rafael will transition off the interim CFO role at year end but remains involved for a smooth handover. Overall tone: cautious optimism — durable secular demand, near-term billings/revenue noise from the model shift, but improving margins, strong FCF trajectory and aggressive capital returns aimed at sustainable shareholder value.