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Autodesk, Inc. (ADSK)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 delivered solid top-line and profitability: revenue rose 12% YoY to $1.64B, GAAP EPS was $1.40 and non-GAAP EPS $2.29; GAAP and non-GAAP operating margins were 22% and 37% respectively . Billings rose 23% to $2.11B and free cash flow was $678M, both up materially YoY .
  • Autodesk initiated a worldwide restructuring (approx. 9% RIF; 1,350 roles) to optimize sales/marketing and reallocate spend to cloud, platform, and AI; expected pre-tax charges are $135–$150M with most as cash .
  • FY26 guidance: revenue $6.895–$6.965B, non-GAAP op margin 36–37%, non-GAAP EPS $9.34–$9.67, and FCF $2.075–$2.175B; Q1 FY26 revenue $1.60–$1.61B and non-GAAP EPS $2.14–$2.17 .
  • Management tempered the prior 10–15% revenue growth framework (no longer appropriate near-term), but emphasized margin expansion potential and planned $1.1–$1.2B of buybacks in FY26 as catalysts for the stock .

What Went Well and What Went Wrong

What Went Well

  • Broad-based strength: revenue +12% to $1.64B with Design +12% and Make +28%; Americas +11%, EMEA +14% CC, APAC +11% CC; NR3 within 100–110% .
  • Margin and cash execution: non-GAAP op margin rose to 37% in Q4; free cash flow reached $678M in Q4 and $1.57B for FY25 (ahead of guidance midpoint) .
  • Strategic positioning: CEO reiterated focus on “convergence of design and make in the cloud” and accelerating AI/productivity features (e.g., Fusion AutoConstrain ~50% acceptance) to drive competitiveness and growth .

What Went Wrong

  • New business headwinds persisted; management removed the 10–15% growth framework given consistent delivery near the low end and macro uncertainty weighing on new logos/expansion .
  • Transition/optimization creates near-term disruption risk: FY26 outlook explicitly factors potential disruption from restructuring and CRO transition despite mitigation plans .
  • Deferred revenue trends remain noisy from model shifts: deferred revenue down 3% YoY; co-terming and buy/sell dynamics around the new transaction model continue to create billings/RPO volatility .

Financial Results

Headline P&L and Margins

MetricQ2 FY25Q3 FY25Q4 FY25
Revenue ($B)$1.505 $1.570 $1.639
GAAP EPS ($)$1.30 $1.27 $1.40
Non-GAAP EPS ($)$2.15 $2.17 $2.29
GAAP Operating Margin %23% 22% 22%
Non-GAAP Operating Margin %37% 36% 37%

Notes:

  • Q4 FY25 YoY: revenue +12%; GAAP EPS $1.40 vs $1.31; non-GAAP EPS $2.29 vs $2.09 .
  • Vs estimates: S&P Global consensus was unavailable in this session; unable to benchmark beats/misses (see “Estimates Context”).

Segment Breakdown (Q4 FY25 vs Q4 FY24)

Product FamilyQ4 FY25 ($M)Q4 FY24 ($M)YoY %
AECO799 696 15%
AutoCAD & AutoCAD LT409 377 8%
Manufacturing318 292 9%
Media & Entertainment84 77 9%
Other29 27 7%
Total1,639 1,469 12%

KPIs and Cash Flow

KPIQ2 FY25Q3 FY25Q4 FY25
Billings ($B)$1.24 $1.54 $2.11
RPO ($B)5.86 6.11 6.94
Current RPO ($B)3.90 4.01 4.46
Operating Cash Flow ($M)212 209 692
Free Cash Flow ($M)203 199 678
Net Revenue Retention Rate100–110% 100–110% 100–110%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q1 FY26n/a (new)$1,600–$1,610 New
GAAP EPSQ1 FY26n/a (new)$0.76–$0.90 New
Non-GAAP EPSQ1 FY26n/a (new)$2.14–$2.17 New
Revenue ($M)FY26n/a (new)$6,895–$6,965 New
GAAP Op Margin %FY26n/a (new)21–22% New
Non-GAAP Op Margin %FY26n/a (new)36–37% New
GAAP EPSFY26n/a (new)$4.74–$5.37 New
Non-GAAP EPSFY26n/a (new)$9.34–$9.67 New
Free Cash Flow ($M)FY26n/a (new)$2,075–$2,175 New
Tax Rate AssumptionFY26n/a (new)GAAP: 25–28%; non-GAAP: 19% New

Additional modeling notes: FY26 FCF includes $110–$120M restructuring cash outflows and a discrete $130–$150M cash benefit from utilization of U.S. deferred tax assets . Management expects $1.1–$1.2B share repurchases in FY26, subject to conditions .

Earnings Call Themes & Trends

TopicQ2 FY25 (Prev-2)Q3 FY25 (Prev-1)Q4 FY25 (Current)Trend
AI/Technology initiativesEmphasis on platform/AI to drive productivity; momentum in Fusion and Forma AU showcased AI/industry cloud roadmap; Fusion gaining traction Fusion AutoConstrain ~50% acceptance; AI to expand TAM and potential monetization Increasing productization and adoption
Go-to-market optimization & new transaction modelNA roll-out; tailwinds to revenue/FCF; billings noise Western Europe launch; raised FY25 guide; more buybacks authorized Entered optimization phase; 9% RIF; margin expansion path; disruption risk embedded in FY26 guide Transitioning from roll-out to optimization
Macro/tariffs/policyMacro consistent with prior quarters Environment steady; bipartisan infra/manufacturing themes supportive Uncertainty remains the key customer challenge; business resilient Neutral-to-cautious
Product performance (Construction/Make)Make +25% YoY; strong Construction Make +28% YoY; net new Construction logos doubled YoY Make +28% YoY; ~400 new Construction logos; Construction accelerating Accelerating within Construction
Regional trendsAmericas/EMEA/APAC +12%/+13%/+13% CC (Q2) Americas/EMEA/APAC +11%/+13%/+14% CC (Q3) Americas +11%, EMEA +13% CC, APAC +11% CC (Q4) Consistent
R&D executionInvesting in platform/industry clouds Continued investment; EBA-led cross-sell Reallocating to cloud, platform, AI; accelerating roadmaps Increased focus and reallocation
Governance/Board—Announced new CFO; increasing buyback authorization Director not standing for re-election; Board size to be reduced Active governance refresh

Management Commentary

  • “Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI.” — Andrew Anagnost, CEO .
  • “Once our sales and marketing optimization is complete, we expect to deliver GAAP margins among the best in the industry.” — Janesh Moorjani, CFO .
  • “We are reallocating internal resources toward these critical areas and beginning the optimization of our go-to-market functions...” — Andrew Anagnost, CEO .
  • “We expect GAAP operating margin [FY26] 21–22% and non-GAAP operating margin 36–37%... and $2.075–$2.175B of free cash flow.” — Janesh Moorjani, CFO .

Q&A Highlights

  • Margin expansion and restructuring: FY26 underlying non-GAAP margin expansion (ex-transaction model/FX) driven by GTM optimization and spend discipline; FY25 total spend +7% YoY vs FY26 +4% implied, underscoring efficiency focus . Potential disruption from RIF/CRO transition is modeled into guidance .
  • Growth framework recalibration: Management removed the 10–15% revenue growth framework given delivery near the low end; focus shifts to margin expansion and Make/Construction momentum to re-accelerate over time .
  • Macro and demand: Customer sentiment most impacted by uncertainty; Autodesk’s diversified model remains resilient; bipartisan infrastructure/manufacturing priorities supportive longer-term .
  • Self-service & channel evolution: Push to self-service and tighter partner integration should lower cost-to-serve and free up channel capacity for new business over time .
  • Capital returns & M&A: Plan to repurchase $1.1–$1.2B of shares in FY26; M&A approach remains opportunistic and strategy-aligned .

Estimates Context

  • Consensus comparison: S&P Global consensus for Q4 FY25 EPS/Revenue/EBITDA could not be retrieved in this session due to provider limits; therefore, beats/misses vs consensus are not presented. We attempted to pull estimates but were unable to complete due to a daily request limit.
  • Estimate implications: FY26 guidance (non-GAAP op margin 36–37%; EPS $9.34–$9.67; FCF $2.075–$2.175B) suggests upward revisions to profitability/FCF paths, while tempering the growth framework may bias top-line expectations toward high single-digit underlying growth near-term (ex-transaction model), consistent with management commentary .

Key Takeaways for Investors

  • Execution was solid across revenue, margins, and free cash flow; Make/Construction remains the growth standout with accelerating momentum and ~400 new logos in Q4 .
  • The GTM optimization and 9% RIF should structurally lower costs and support multi-year margin expansion; FY26 guidance embeds disruption risk and still implies margin progress .
  • Management reset expectations on top-line trajectory (removal of 10–15% framework) but reinforced confidence in achieving “among the best” GAAP margins in the industry over time .
  • Strong FY26 FCF outlook ($2.075–$2.175B) plus $1.1–$1.2B planned repurchases provide a shareholder return underpin during the optimization phase .
  • Watch AI monetization vectors (feature-level pricing, competitive differentiation) and continued Construction/Make expansion as key drivers of medium-term growth .
  • Near-term trading setup: cost optimization and robust FCF/margin guide are supportive; uncertainty on new business growth and transition disruption are the principal overhangs .

Additional Relevant Press Releases (Context)

  • Board refresh: Mary T. McDowell to step down; company maintaining an independent, engaged Board and reducing size consistent with prior commitments .
  • Results call logistics and IR materials: Q4 call, investor presentation, and reconciliations available on IR site .