Autodesk 2026 Q3 Earnings Beats Expectations, Net Income Surges 24.7%

Autodesk (ADSK) delivered a strong third-quarter performance, surpassing revenue and EPS estimates while raising full-year guidance. The design software giant’s stock edged higher post-earnings, though its post-earnings trading strategy underperformed the market. Management emphasized AI-driven innovation and margin expansion as key growth drivers.

Revenue

Autodesk’s total revenue surged 18.8% year-over-year to $1.74 billion, reflecting robust demand across its subscription-based offerings. Subscription revenue alone accounted for $1.73 billion, while maintenance and other revenue segments contributed $8 million and $111 million respectively. The company’s total net revenue reached $1.85 billion, underscoring its shift toward recurring revenue streams and cloud-based solutions.

Earnings/Net Income

Earnings per share (EPS) rose 25.8% to $1.61, outpacing the prior-year period’s $1.28. Net income climbed 24.7% to $343 million, a testament to improved operational efficiency and cost management. The EPS growth and profitability gains signal sustained momentum in Autodesk’s core markets.

Post-Earnings Price Action Review

The strategy of buying Autodesk shares 30 days after the earnings report and holding for another 30 days yielded a 10.40% return over three years, lagging the 66.23% benchmark. With a CAGR of 3.67% and a Sharpe ratio of 0.19, the approach showed minimal risk-adjusted returns.

CEO Commentary

CEO Andrew Anagnost highlighted record billings and margin expansion, crediting AI integration and industry cloud adoption. He emphasized the company’s focus on transforming business models to unlock long-term value, despite macroeconomic uncertainties.

Guidance

Autodesk raised full-year 2026 revenue guidance to $7.15–$7.165 billion and non-GAAP operating margin to 37.5%–40.5%. The company also announced a 50% increase in stock buybacks for 2026, signaling confidence in its financial strategy.

Additional News

Autodesk’s decision to forgo a potential acquisition of PTC in November shifted strategic focus toward organic growth and AI-driven platforms. The company also announced a $1.3 billion stock buyback program for 2026, reflecting its commitment to shareholder returns. CFO Janesh Moorjani noted macroeconomic prudence in Q4 planning, with risk baked into the lower end of guidance.