Autodesk Inc. reported third‑quarter fiscal 2026 revenue of $1.85 billion, up 18% year‑over‑year, and adjusted earnings per share of $2.67, beating consensus estimates of $2.50 by $0.17 per share. The company’s subscription‑based model continued to drive growth, with the Architecture, Engineering, Construction, and Operations (AECO) segment posting a 23% increase to $1.12 billion, the largest contributor to the top‑line rise.
Operating margin expanded to 25% GAAP, a 3‑percentage‑point lift from 22% in the prior year, while non‑GAAP operating margin rose to 38%, up 1 percentage point. The margin improvement reflects a higher mix of high‑margin subscription contracts, disciplined cost management, and the impact of the new transaction model that accelerated billings and reduced the cost of sales. Free cash flow surged 116% to $430 million, driven by stronger recurring revenue and lower working‑capital requirements as the company’s cloud‑enabled platform matures.
Autodesk raised its full‑year revenue guidance to $7.15 billion–$7.17 billion and adjusted earnings per share to $10.18–$10.25, signaling confidence in sustained demand for its design and manufacturing solutions. The company also projected fourth‑quarter revenue of $1.901 billion–$1.917 billion, underscoring continued momentum in its cloud‑enabled Design and Make platform.
Management highlighted the strategic shift toward AI and cloud. President and CEO Andrew Anagnost said the company is “defining the AI revolution for design and make,” citing new task‑automation features that are driving higher subscription uptake. Chief Financial Officer Janesh Moorjani noted that the “new transaction model and annual billing transition” are delivering a stronger recurring revenue base, while also acknowledging that the tailwind from this model will diminish in fiscal 2027, creating a tougher year‑over‑year comparison.
The company completed a $361 million share‑repurchase of 1.2 million shares in Q3 and plans to repurchase approximately $1.3 billion in stock for the full year, a 50% increase from fiscal 2025. Autodesk also announced a 9% workforce reduction to improve operational efficiency, a move that aligns with its focus on high‑return verticals and AI‑driven product development.
Autodesk’s results demonstrate that its subscription‑based, cloud‑centric strategy is translating into robust financial performance, with strong AECO demand, margin expansion, and free‑cash‑flow growth. The raised guidance reflects management’s confidence that the company can sustain this trajectory despite the expected decline in the new‑transaction tailwind and broader macroeconomic uncertainty.
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