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Autodesk, Inc. (ADSK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY25 delivered solid top-line growth and raised full-year outlook: revenue rose 11% YoY to $1.57B with non-GAAP EPS of $2.17; Autodesk raised the midpoints for FY25 billings, revenue, margins, EPS, and free cash flow, citing sustained momentum and a smooth launch of its new transaction model in Western Europe .
  • Non-GAAP operating margin dipped 3 pts YoY to 36% (GAAP 22%, down 2 pts) primarily due to timing (Autodesk University shifted into Q3) and transaction-model/FX effects; management emphasized underlying margin improvement on an apples-to-apples basis and reiterated efficiency gains ahead .
  • Business mix and KPIs were healthy: Design +9% YoY, Make +28% YoY; RPO +17% and cRPO +14%; billings +28% with transaction model and early renewals providing tailwinds; net revenue retention remained 100–110% (cc) .
  • Stock-relevant catalysts: upward FY25 guidance revision, reiterated FY26 free cash flow target (~$2.05B midpoint), strengthening Construction Cloud momentum, and a new CFO (Janesh Moorjani) to drive optimization and profitability at scale .

What Went Well and What Went Wrong

  • What Went Well

    • Broad-based growth across products and regions; Make revenue +28% YoY; Design +9% YoY; management noted strong renewals and steady underlying momentum despite macro headwinds .
    • Construction Cloud strength and accelerating net-new customers (doubling YoY) helped Make revenue; distribution scale and international expansion also contributed; management highlighted wins at Power Construction, Bouygues, and Surbana Jurong .
    • Guidance raised across key metrics; management reiterated FY26 FCF (~$2.05B midpoint), underscoring cash generation visibility; direct revenue rose 23% and reached 42% of revenue, aided by EBAs, Autodesk Store, and the new transaction model .

  • What Went Wrong

    • Operating margins contracted YoY (GAAP -2 pts; non-GAAP -3 pts), driven by Autodesk University timing and headwinds from the transaction model and FX; management expects improvement as optimization plays through .
    • New business growth remains slower amid macro/policy/geopolitical challenges; management called out ongoing headwinds and the need for time to rebuild toward the long-term 10–15% growth framework .
    • CRPO headline growth was tempered by declining contribution from large multiyear EBA cohorts ahead of FY26 renewal (a headwind to cRPO but a tailwind to FY26 FCF), adding “noise” into near-term metrics .

Financial Results

Revenue, EPS, and Margins vs prior year/quarter and guidance

MetricQ3 FY24Q1 FY25Q2 FY25Q3 FY25
Revenue ($B)$1.414 $1.417 $1.505 $1.570
GAAP Operating Margin24% 21% 23% 22%
Non-GAAP Operating Margin39% 35% 37% 36%
GAAP Diluted EPS ($)$1.12 $1.16 $1.30 $1.27
Non-GAAP Diluted EPS ($)$2.07 $1.87 $2.15 $2.17

Note on estimates: S&P Global consensus estimates could not be retrieved at this time due to API limits; comparisons vs consensus are unavailable. Values would be sourced from S&P Global when accessible.

Segment and Geography (Q3 FY25)

  • Product Families
Product Family Revenue ($M)Q3 FY24Q3 FY25YoY
AEC675 751 +11%
AutoCAD & AutoCAD LT372 398 +7%
Manufacturing (MFG)269 307 +14%
Media & Entertainment (M&E)73 83 +14%
Other25 31 +24%
Total1,414 1,570 +11%
  • Geography
Geography Revenue ($M)Q3 FY24Q3 FY25YoYCC YoY
Americas640 705 +10% +11%
EMEA516 580 +12% +13%
APAC258 285 +10% +14%
Total1,414 1,570 +11% +12%

KPIs and Cash Flow

KPIQ3 FY24Q2 FY25Q3 FY25Notes
Billings ($B)—1.24 1.54 +28% YoY in Q3
Subscription Plan Rev ($B)1.314 1.41 1.46 +11% YoY in Q3
Recurring Revenue %97% 97% 97%
Net Revenue Retention100–110% (cc) 100–110% (cc) 100–110% (cc)
RPO ($B)—5.86 6.11 +17% YoY
Current RPO ($B)—3.90 4.01 +14% YoY
Deferred Revenue ($B)—3.69 3.66 -9% YoY
Unbilled Deferred Rev ($B)—2.17 2.45 +$1.24B YoY
CFO/OCF ($M)18 OCF 212 OCF 209 OCF Q3 FCF $199M

Transaction model mechanical contributions and mix (from call):

  • New transaction model tailwind: +$17M to revenue in Q3; +$25M YTD; +$72M to billings in Q3; +$108M YTD .
  • Direct revenue +23% YoY; 42% of total revenue (up 4 pts) .

Guidance Changes

MetricPeriodPrevious Guidance (Q2)Current Guidance (Q3)Change
Billings ($B)FY25$5.88 – $5.98 $5.90 – $5.98 Raised (midpoint +$0.01B)
Revenue ($B)FY25$6.08 – $6.13 $6.115 – $6.130 Raised (midpoint +$0.018B)
GAAP Op MarginFY2521% – 22% 21.5% – 22% Raised bottom end
Non-GAAP Op MarginFY2535% – 36% 35.5% – 36% Raised bottom end
GAAP EPS ($)FY25$4.88 – $5.01 $4.95 – $5.01 Raised bottom end
Non-GAAP EPS ($)FY25$8.18 – $8.31 $8.29 – $8.35 Raised range
Free Cash Flow ($B)FY25$1.45 – $1.50 $1.47 – $1.50 Raised bottom end, tightened
Revenue ($B)Q4 FY25N/A$1.623 – $1.638 New Q4 guide
GAAP EPS ($)Q4 FY25N/A$1.21 – $1.27 New Q4 guide
Non-GAAP EPS ($)Q4 FY25N/A$2.10 – $2.16 New Q4 guide

Non-GAAP exclusions (FY25/Q4 guide): stock-based comp, amortization of intangibles/technologies, acquisition-related costs, and GAAP-only tax items as detailed in footnotes .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1/Q2 FY25)Current Period (Q3 FY25)Trend
AI initiatives (Bernini, foundation models)Q1: “Autodesk is ahead of its peers in 3D AI” .Bernini engaged with targeted customers; new foundation models for automated drawings and sketches; monetization pathways TBD .Expanding AI roadmap; still early commercialization .
Go-to-market modernization / transaction modelQ2: Smooth launch in North America; raising guides .Smooth Western Europe launch; mechanical tailwinds to revenue/billings; direct revenue mix up; longer-term efficiency/margin upside .Execution progressing; efficiency benefits building .
Construction Cloud momentumQ1/Q2: Make growth double-digit .Net-new Construction customers doubled YoY; Make +28% YoY; inorg. Payapps execution aiding growth .Strengthening; broader enterprise wins .
Macro toneQ1/Q2: Macro/policy/geopolitical challenges persist .“Consistent” with recent quarters; headwinds to new business growth continue .Stable but not improving materially .
Cash flow outlookQ1/Q2: FY25 FCF guided $1.43–$1.50B .FY25 FCF raised to $1.47–$1.50B; FY26 ~ $2.05B midpoint reiterated .Improving near-term; strong FY26 visibility .
Capital allocationQ2: Continued buybacks .Repurchase authorization increased by $5B to ~$9B total; 1.2M shares repurchased in Q3 for $319M .More capacity; dilution offset strategy .
LeadershipQ2: Interim CFO in place.Janesh Moorjani appointed CFO (effective Dec 16, 2024) to drive optimization at scale .Strengthened finance leadership .

Management Commentary

  • “We finished the third quarter … delivering 12% revenue growth in constant currency and have again raised full year guidance … smooth implementation of the new transaction model in Western Europe.” — Andrew Anagnost, CEO .
  • “We generated broad-based underlying growth across products and regions … continued strong renewal rates and headwinds to new business growth.” — Betsy Rafael, Interim CFO .
  • “We estimate the new transaction model will provide around 1 to 1.5 percentage point tailwind to revenue growth in fiscal ’25 … raised the midpoint of our fiscal ’25 revenue guidance.” — Betsy Rafael .
  • “Direct revenue increased 23% and represented 42% of total revenue … benefiting from strong growth in both EBAs and the Autodesk Store and also the natural tailwind … from the new transaction model.” — Betsy Rafael .
  • “We have significantly increased our share repurchase authorization … to approximately $9 billion.” — Betsy Rafael .
  • “We’re excited to welcome Janesh … to sustain Autodesk’s growth and enhanced profitability momentum.” — Andrew Anagnost ; CFO appointment release .

Q&A Highlights

  • CFO transition and optimization: CEO outlined CFO criteria (optimization at scale, long tenure as CFO/COO at Elastic, relevant background at VMware/Cisco/PTC) and intent to drive efficiency across go-to-market and operations .
  • Transaction model mechanics: Tailwinds quantified (+$17M rev in Q3; +$72M billings in Q3); earlier buy-sell activity ahead of EU launch reduced the tailwind percentage, but underlying billings strength improved .
  • Macro and new business: Macro described as “consistent”; new business growth remains slower; partners spending more time onboarding customers in the new model but guidance already incorporates these dynamics .
  • Construction Cloud durability: Strong organic growth and inorganic contributions (e.g., Payapps) underpin Make growth; net-new customers doubled YoY; strengthening position among ENR 400 contractors .
  • FY26 FCF and margin outlook: FY26 FCF reiterated around $2.05B at midpoint; next-phase efficiencies expected from self-service, deeper customer data, and redefined partner roles; specifics to come with new CFO .

Estimates Context

  • S&P Global consensus estimates (EPS and revenue) for Q3 FY25, Q4 FY25, and FY25 were unavailable due to API request limits at retrieval time; therefore, we cannot present actual vs consensus comparisons in this report. When accessible, we will update results vs S&P Global consensus.

Key Takeaways for Investors

  • Mix-led and execution-driven strength: Make revenue +28% and Construction Cloud momentum (net-new customers doubled YoY) provide a durable growth vector alongside steady Design growth .
  • Guide raised across the board: Higher FY25 midpoints for billings, revenue, margins, EPS, and FCF signal continued execution and improved near-term visibility despite macro headwinds .
  • Transaction model and efficiency unlock: Measurable mechanical tailwinds (revenue/billings) now, with structural benefits to direct mix, sales/marketing efficiency, and long-term GAAP margins expected as optimization continues .
  • Cash generation compounding: FY25 FCF tightened/raised to $1.47–$1.50B and FY26 FCF reiterated ~ $2.05B midpoint, underpinned by large renewal cohorts and mechanical stacking of multiyear contracts .
  • Capital returns and share count discipline: Repurchase authorization increased to ~$9B, with continued buybacks to offset/buy forward dilution, reducing share count over the past three years .
  • Leadership to drive operational rigor: New CFO Janesh Moorjani brings proven optimization-at-scale experience to accelerate margin and efficiency initiatives in FY26 and beyond .
  • Watch list: Q4 execution on the transaction model rollout, cadence of new business formation, Make momentum durability, and any updated long-term margin targets with the incoming CFO .

Appendix: Additional Quantitative Details

  • Additional Q3 detail:
    • Design revenue $1.30B (+9% as reported; +10% cc); sequential +3% .
    • Make revenue $171M (+28% as reported and cc); sequential +6% .
    • Subscription plan revenue $1.46B (+11% as reported; +12% cc); sequential +3% .
    • RPO $6.11B (+17%); cRPO $4.01B (+14%) .
    • OCF $209M; FCF $199M .
  • Non-GAAP reconciliation/adjustments include stock-based comp, amortization of developed technologies and purchased intangibles, acquisition-related costs, and other items; detailed per-share impacts disclosed .