01—Abstract
Summary
Summary of the 10-Q filed September 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. reported strong financial results for the three and six months ended July 31, 2025.
Total net revenue increased by 17%a and 16% respectively, driven primarily by subscription revenue growth. The company continues its successful transition to a subscription-based model, with recurring revenue making up 98% and 97% of total net revenue for the respective periods. Profitability also saw improvement, with income from operations increasing significantly year-over-year, reflecting effective cost management and increased revenue.
Key financial highlights include robust revenue growth across product families, particularly in Architecture, Engineering, Construction and Operations (AECO). The company also reported a healthy net revenue retention rate above 110%b on a constant currency basis. Autodesk strengthened its financial position with a substantial increase in cash provided by operating activities and maintained a strong liquidity position.
The company also announced the successful closure of SEC and USAO investigations, providing regulatory clarity. Shareholder returns were supported by ongoing stock repurchase programs.
02—Key points
Key Highlights
- Total net revenue increased by 17% to $1.76 billion for the three months ended July 31, 2025, and by 16% to $3.40 billion for the six months ended July 31, 2025, compared to the prior year periods.
- Subscription revenue was the primary driver of growth, increasing 18% and 17% for the three and six months ended July 31, 2025, respectively.
- Recurring revenue represented 98% and 97% of total net revenue for the three and six months ended July 31, 2025, respectively, indicating a strong subscription-based business model.
- Income from operations increased significantly by 29% to $444 million for the three months and 20% to $677 million for the six months ended July 31, 2025, compared to the prior year periods.
- Net cash provided by operating activities was strong at $1.02 billion for the six months ended July 31, 2025, up from $706 million in the prior year.
- Net revenue retention rate (NR3) was above 110% on a constant currency basis as of July 31, 2025, indicating strong customer retention and expansion.
- Autodesk announced the closure of SEC and USAO investigations regarding free cash flow and non-GAAP operating margin practices, providing positive regulatory clarity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Autodesk kept $0.18.
- Revenue$1.76B100.0%
- Cost of revenue−$159.0M9.0%
- Gross profit$1.60B91.0%
- Operating costs−$1.16B65.8%
- Operating income$444.0M25.2%
- Interest, other & tax−$131.0M7.4%
- Net income$313.0M17.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed September 2, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.76B$1.50B | +17.1% |
| Cost of Revenue | $159.00M$140.00M | +13.6% |
| Gross Profit | $1.60B$1.36B | +17.5% |
| R&D Expenses | $413.00M$368.00M | +12.2% |
| Operating Expenses | $1.16B$1.02B | +13.5% |
| Operating Income | $444.00M$343.00M | +29.4% |
| Interest Expense | $19.00M$18.00M | +5.6% |
| Net Income | $313.00M$282.00M | +11.0% |
| EPS (Basic) | $1.47$1.31 | +12.2% |
| EPS (Diluted) | $1.46$1.30 | +12.3% |
| Shares Outstanding (Basic) | 213.00M216.00M | −1.4% |
| Shares Outstanding (Diluted) | 215.00M217.00M | −0.9% |
05—Questions
Frequently Asked Questions
What was the primary driver of Autodesk's revenue growth in this quarter?
Autodesk's revenue growth was primarily driven by an increase in subscription revenue, which rose 18% and 17% for the three and six months ended July 31, 2025, respectively. This reflects the company's successful transition to a subscription-based business model and strong customer retention and expansion within its recurring revenue streams.
How did Autodesk's profitability fare in this reporting period?
Profitability showed significant improvement. Income from operations increased by 29% year-over-year to $444 million for the three-month period and by 20% to $677 million for the six-month period. This was supported by revenue growth and effective management of operating expenses.
What is the company's cash flow generation like, and how is it being utilized?
Autodesk demonstrated strong cash flow generation, with net cash provided by operating activities reaching $1.02 billion for the first six months of fiscal 2025, a substantial increase from the prior year. The company is actively returning capital to shareholders through stock repurchases, spending $709 million on share repurchases in the first six months of fiscal 2025.
Are there any significant legal or regulatory matters that investors should be aware of?
Autodesk announced that the SEC and the USAO have closed their investigations into the company's free cash flow and non-GAAP operating margin practices. While a securities class action lawsuit remains ongoing, the company stated it cannot reasonably estimate potential financial loss at this stage. The company previously indicated that the resolution of pending legal matters was not expected to have a material adverse impact.
06—Continue