01—Abstract
Summary
Summary of the 8-K filed November 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Autodesk reported fiscal Q3 2026 (quarter ended October 31, 2025) results that beat expectations and prompted a full-year guidance raise.
Revenue grew 18% to $1.85 billiona (18% in constant currency), billings grew 21% to $1.855 billion, and GAAP diluted EPS rose to $1.60 from $1.27 while non-GAAP EPS reached $2.67, up $0.50 year over year. Growth was led by AECO, which rose 23% to $921 million, and EMEA, up 23%. Management cited outperformance in AECO, better-than-expected up-front revenue, the Autodesk Store, and billings linearity, along with successful execution of the sales and marketing optimization plan.
Cash generation was strong, with operating cash flow of $439 millionb (up 110%) and free cash flow of $430 million (up 116%). For the nine months, operating cash flow was $1.46 billion versus $915 million a year earlier, though this partly reflects the shift to the new transaction model. Unbilled deferred revenue rose 43% to $3.5 billion, lifting total RPO to $7.36 billion (up 20%), while reported deferred revenue grew only 5%.
GAAP operating margin improved to 25% and non-GAAP operating margin to 38%. For fiscal 2026, management raised guidance: revenue of $7.150c-$7.165 billion, billings of $7.465-$7.525 billion, non-GAAP EPS of $10.18-$10.25, and free cash flow of $2.26-$2.29 billion. Q4 revenue is guided to $1.901-$1.917 billion.
Investors should note that free cash flow guidance includes a one-time ~$160 milliond discrete benefit from US deferred tax assets and ~$115 million of restructuring cash outflows, and that the company's debt rose to $2.48 billion long-term after new issuance and repayment of a $300 million note. Management also noted that macro uncertainty remains elevated.
02—Key points
Key Highlights
- Q3 FY26 revenue rose 18% to $1.853 billion, with constant-currency growth also at 18%; AECO led product families at +23% to $921 million.
- Billings grew 21% to $1.855 billion, and unbilled deferred revenue grew 43% to $3.515 billion, pushing total RPO up 20% to $7.361 billion.
- Non-GAAP EPS was $2.67 (up $0.50 YoY) and GAAP diluted EPS was $1.60 (up $0.33 YoY); GAAP operating margin reached 25% and non-GAAP operating margin 38%.
- Free cash flow was $430 million in Q3 (up 116%), and nine-month operating cash flow rose to $1.46 billion from $915 million.
- Full-year FY26 guidance was raised: revenue $7.150-$7.165 billion, billings $7.465-$7.525 billion, non-GAAP EPS $10.18-$10.25, and free cash flow $2.26-$2.29 billion.
- Restructuring charges of $116 million year to date, and the Q4 guide reflects approximately $115 million of restructuring and related cash outflows.
- Balance sheet shifted toward debt: long-term notes payable rose to $2.48 billion from $1.99 billion after $499 million of new debt and repayment of $300 million; the company also repurchased $1.07 billion of stock year to date.
03—Questions
Frequently Asked Questions
Why did Autodesk raise its full-year FY26 guidance?
Management said the raise reflects the current momentum of the business, including AECO outperformance, up-front revenue, Autodesk Store results, and billings linearity that all exceeded expectations. It also noted that the sales and marketing optimization plan has been executed successfully so far.
How much of the growth is driven by the transaction model shift versus underlying demand?
The filing does not isolate the effect of the new transaction model in these numbers. Guidance footnotes point to supplemental investor materials for growth rates excluding currency and the new transaction model, so investors should review those materials to separate these effects.
Is the strong free cash flow sustainable?
Part of the FY26 free cash flow outlook is boosted by a discrete benefit of roughly $160 million from utilizing US deferred tax assets, which is non-recurring. Free cash flow is also reduced by about $115 million of restructuring cash outflows and about $50 million of capex, so underlying cash generation should be assessed excluding these items.
Why do GAAP and non-GAAP results differ so much?
The gap is mainly stock-based compensation, which was about 10% of revenue in Q3 and roughly $0.87 per share, plus amortization of acquired intangibles and restructuring charges. Investors should weigh GAAP EPS of $1.60 alongside non-GAAP EPS of $2.67, because stock-based compensation is a real economic cost.
What does the rise in debt and buybacks mean for shareholders?
Long-term notes payable increased to $2.48 billion after new debt issuance, and the company repurchased $1.07 billion of stock year to date versus $443 million a year earlier. Investors should watch whether leverage stays manageable as the company returns more capital to shareholders.
04—Continue