How did Autodesk's revenue and expenses trend in Q4 2025?

Autodesk's revenue and expenses in Q4 2025 showed positive trends with revenue surpassing expectations and expenses managing to stay in check despite a slight increase.

1. Revenue Trend: Autodesk's revenue for Q4 2025 was $1.64 billion, reflecting a 12% year-over-year increase. This growth was driven by strong performance in the construction and manufacturing segments. The company's subscription plan revenue increased by 10% as reported and 13% on a constant currency basis. Additionally, Autodesk's revenue growth was bolstered by the adoption of cloud-based solutions and AI-driven features.
2. Expense Trend: There was a notable shift in operating expenses due to an accounting change related to the new transaction model implemented by Autodesk. This change resulted in higher operating expenses and a lower operating margin percent in Q4 2025 compared to previous quarters. However, the company's non-GAAP operating margin was reported at 37%, indicating robust operational efficiency. The increase in operating expenses was partly offset by higher free cash flow, which grew by 58.8% to $678 million.
3. Profitability: Autodesk's GAAP diluted EPS for Q4 2025 was $1.40, and non-GAAP diluted EPS was $2.29. The company's strong profitability was supported by its gross profit margin of 92%, demonstrating effective cost management. Autodesk's focus on AI-driven innovations and cloud platform enhancements is expected to further enhance its competitive position and drive future revenue growth.

In conclusion, Autodesk's Q4 2025 financial performance was marked by robust revenue growth and strategic expense management, despite the challenges posed by macroeconomic uncertainties. The company's emphasis on innovation and operational efficiency is likely to support its continued success in the design software industry.