Q4 2025 Earnings Summary
- Strong performance in the AEC segment, particularly in construction, where Autodesk added 400 new logos in the quarter, indicates robust growth momentum and customer adoption of its end-to-end solutions. The company is "very bullish" about the construction business, and the payment business is also performing well.
- Investments in AI and cloud platforms like Fusion and Forma are expected to enhance customer productivity, increase competitiveness, and potentially drive higher monetization and market expansion. The integration of AI features helps customers build 3D models more quickly, making Autodesk's products more competitive and expanding its market footprint.
- Ongoing go-to-market optimizations and investments in channel productivity are expected to drive long-term growth. By enhancing the productivity of its channel partners, Autodesk aims to increase focus on new business growth. Additionally, investments in the Design and Make solutions, including emerging high-growth businesses in the "Make" category, are expected to have long-term positive impacts on the business.
- Autodesk has acknowledged that its previous 10% to 15% revenue growth framework is no longer appropriate, and is now guiding for 8% to 9% revenue growth in fiscal '26. This reduction in growth expectations may indicate challenges in achieving higher growth rates. , ,
- The company is experiencing slower new business growth due to macroeconomic uncertainties and internal changes impacting partner productivity. Autodesk admits it cannot control macro uncertainties, which could continue to impact customer investment decisions and hinder growth. ,
- During the rollout of their agency transition across regions, Autodesk encountered more productivity problems than expected, indicating potential operational challenges. These issues may affect partner systems and effectiveness, which could negatively impact sales and growth.
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | +11.6% (from $1,469M to $1,639M) | Broad-based revenue growth across all segments drove total revenue higher. This increase reflects strong performance in key product families (such as AEC, AutoCAD, MFG, and especially Make), coupled with geographic improvements in the Americas, EMEA, and APAC. The growth builds on earlier period gains from initiatives like subscription renewals and strategic transaction model shifts. |
AEC | +14.8% (from $696M to $799M) | AEC revenue increased as product enhancements (Autodesk Build, Revit) and expanded EBAs drove demand further. The strong performance this period builds on prior momentum seen in previous quarters, reflecting ongoing adoption of cloud-based and integrated AEC solutions. |
AutoCAD | +8.5% (from $377M to $409M) | Steady growth in AutoCAD revenue was driven by ongoing subscription renewals and product updates. This incremental increase builds on the consistent performance in the prior period, signaling continued market acceptance of both AutoCAD and AutoCAD LT. |
MFG | +8.9% (from $292M to $318M) | Manufacturing growth was facilitated by increased adoption of Fusion 360 along with EBA expansions. This reflects a continued improvement over the previous period that builds on Autodesk’s efforts in digital transformation and integrated manufacturing solutions. |
Make | +27.5% (from $138M to $176M) | Make revenue jumped dramatically due to strong growth in construction solutions via Autodesk’s Construction Cloud, along with inorganic contributions from acquisitions such as Payapps and PIX. New customer additions and the strategic focus on end-to-end design-to-build solutions accelerated growth compared to the prior period. |
Other (Type) | -7.8% (from $116M to $107M) | "Other" category experienced a decline which may be related to reclassification or lower performance in non-core areas compared to the previous period, although specific management commentary was not provided. |
Americas Region | +11.3% (from $656M to ~$730M) | Regional growth in the Americas was driven by strong subscription revenue, expansion of EBAs (with large deals, e.g., over 50% expansion by a key automotive client), and improved direct revenue. These factors built on prior period performance where a robust U.S. market underpinned growth. |
EMEA Region | +14.1% (from $546M to $623M) | EMEA’s revenue increased due to robust performance in product segments like AEC, supported by constant-currency benefits and strong customer deals. This improvement builds on previous periodic gains while partly offset by currency effects. |
APAC Region | +7.1% (from $267M to $286M) | Moderate APAC growth reflects positive underlying market dynamics even though the region lags somewhat behind Americas and EMEA. This uptick compared to the prior period signals recovery and further adoption amidst regional competitive challenges. |
Operating Income | +16.2% (from $315M to $366M) | Operating income improved driven by revenue expansion and operational leverage. Although operating expenses increased, efficiencies, along with better cost discipline and economies of scale compared to the previous period, helped boost the operating profit margin. |
Net Income | +7.4% (from $282M to $303M) | Net income grew modestly as revenue gains translated into higher earnings despite rising operating expenses. The increase is partly attributable to improved operating income and a favorable tax provision impact, echoing trends from the previous period but with pressure from cost increases. |
EPS – Basic | +8.4% (from $1.31 to $1.42) | EPS improvement reflects revenue growth, operating income constraints, and benefits from share repurchases that reduced the total outstanding share count relative to the previous period. This led to better earnings per share performance than in Q4 2024. |
EPS – Diluted | +7.7% (from $1.30 to $1.40) | Diluted EPS increased, mirroring the basic EPS improvement. Revenue growth and operational performance, along with non-GAAP adjustments that exclude certain charges, contributed to the increment over the prior period. |
Cost of Goods Sold | Massive surge (from $13M to $154M) | COGS increased dramatically by over 10x, which may be due to changes in accounting reclassifications, higher cloud hosting and related employee costs, and the amortization impact of acquired developed technologies. This marked reversal from Q4 2024 levels warrants close review, as it significantly compresses margins despite revenue gains. |
Interest Expense | Swing from -$22M to +$6M | Interest expense changed significantly due to a reversal—moving from a negative expense (net interest income) in Q4 2024 to a positive expense in Q4 2025. This swing reflects changes in the composition of interest components including improved gains on investments, lower impairments, and altered debt management practices compared to the prior period. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Free Cash Flow | FY 2026 | $2.05 billion (midpoint) | $2.075 billion to $2.175 billion | raised |
Revenue Growth | FY 2026 | no prior guidance | 8% to 9% | no prior guidance |
Billings Growth | FY 2026 | no prior guidance | 17% to 19% | no prior guidance |
GAAP Operating Margin | FY 2026 | no prior guidance | 21% to 22% | no prior guidance |
Non-GAAP Operating Margin | FY 2026 | no prior guidance | 39% to 40% | no prior guidance |
Share Buyback | FY 2026 | no prior guidance | $1.1 billion to $1.2 billion | no prior guidance |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Revenue | FY 2025 | $6.12B – $6.13B | $6.131B (sum of Q1:$1,417, Q2:$1,505, Q3:$1,570, Q4:$1,639) | Beat |
GAAP Operating Margin | FY 2025 | 21.5% – 22% | ~22.1% (sum of Q1 EBIT: $299, Q2 EBIT: $343, Q3 EBIT: $346, Q4 EBIT: $366Over total revenue) | Beat |
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Medium-term Growth Rate
Q: What drives new business growth higher over time?
A: Andrew explained that to boost new business growth and return to desired medium-term growth rates, Autodesk is enhancing channel productivity through go-to-market optimization and investing in high-growth areas like the Make category, which includes the industry cloud, core cloud platform, and AI. These efforts are within their control and will help drive growth despite macro uncertainties. -
Margin Potential and Restructuring Impact
Q: Can you elaborate on margin potential and restructuring impact?
A: Janesh stated that the restructuring aligns with their multiyear journey to evolve their go-to-market approach and fits into their margin expansion goals. By serving customers better through tighter integration and more self-service, they can expand market opportunity and lower unit costs. They expect to expand underlying non-GAAP operating margin meaningfully this year and have conviction in their ability to drive higher margins over time. -
Adjusting Growth Guidance
Q: Why adjust the 10%-15% growth rate range?
A: Janesh noted that Autodesk has been at the low end of that range, around 8%-9% growth, and it's inappropriate to maintain a higher range if not consistently delivering towards the middle or high end. Fiscal '26 guidance reflects this pattern. They have confidence in the business's resilience and consistent performance. -
Investments in AI and Technology
Q: What critical product investments are you making?
A: Andrew highlighted accelerating roadmaps for their industry cloud, with more activity in the Construction and Forma sides of the AEC cloud, and the Fusion Cloud. They are investing in their core platform by expanding data availability and APIs, and developing AI features. They introduced their first commercial generative AI feature into Fusion, with an approximately 50% acceptance rate, and plan to release more, aiming to enhance productivity and competitiveness. -
Sales and Marketing Optimization Timeline
Q: When will benefits from sales and marketing adjustments show up?
A: Janesh explained they are seeing significant benefits in fiscal '26 from go-to-market optimization. They are investing this year to build capabilities for tighter channel partner integrations and enhanced self-service, which will lower the overall cost to serve customers in future years. -
Macro Uncertainty Impact
Q: How does macro uncertainty affect customer sentiment?
A: Andrew stated that while Autodesk can navigate policy changes, customers seek certainty, and uncertainty fuels angst and impacts willingness to invest. Moving past uncertainty to policy certainty would benefit customers. The company aims to absorb and react to changes effectively. -
Performance in AEC vs. Manufacturing
Q: Are you outperforming in AEC compared to Manufacturing?
A: Andrew noted that AEC is performing exceptionally well, with 14% growth this quarter, driven by strong construction performance and adding 400 new logos. The construction and payment businesses are growing robustly. In Manufacturing, adjusting for upfront revenue last year, growth is in the low double digits, and they are performing well there too. Success in AEC underscores the importance of driving their Make businesses further. -
M&A Strategy
Q: How are you thinking about M&A given recent changes?
A: Andrew affirmed their M&A strategy remains unchanged. Autodesk continues to look for opportunities that can accelerate their strategy or enter relevant adjacencies. They are always open to acquisitions that fit their goals and will act when appropriate. -
Net Retention Rate Expectations
Q: How does net retention rate relate to revenue guidance?
A: Janesh indicated they expect the net retention rate to hover around the middle of the 100%-110% range, similar to fiscal '25. While guiding to 8%-9% core growth next year, NRR can vary by a few points each quarter. -
Self-Service Strategy
Q: How will self-service impact your business?
A: Andrew explained that self-service can enhance every aspect of their business. By making it easier for customers to manage subscriptions and access support, they drive immediate upsell and cross-sell opportunities. Improving self-service capabilities will increase efficiency, reduce duplication, and there's significant potential in this area. -
Agency Transition Progress
Q: How is the agency transition tracking across regions?
A: Andrew stated that the transition is proceeding as planned across all regions. There was an initial pull-forward of business, and some productivity issues during rollout, but they are working through them. Overall, the transition is going as expected.