Autodesk 2026 Q1 Earnings Misses Targets as Net Income Plummets 39.7%

Autodesk reported its fiscal 2026 Q1 earnings on May 22nd, 2025. The company experienced a decline in its net income, which fell by 39.7% to $152 million from $252 million in the previous year. The earnings per share (EPS) also dropped significantly by 39.3% to $0.71, compared to $1.17 in the prior year. The results missed analyst expectations, but Autodesk raised its revenue and EPS guidance for the fiscal year 2026, reflecting optimism in its strategic investments and restructuring efforts.

Revenue
Autodesk's total revenue for the first quarter of fiscal 2026 increased by 14.8% to $1.54 billion, up from $1.34 billion in the previous year's first quarter. The subscription and maintenance segment contributed entirely to this figure, with subscription revenue alone accounting for $1.53 billion. Maintenance revenue added $8 million, while other revenues brought in $93 million, culminating in a total net revenue of $1.63 billion.

Earnings/Net Income
Autodesk's earnings per share (EPS) decreased by 39.3%, falling to $0.71 in Q1 2026 from $1.17 in Q1 2025. The company's net income also declined significantly by 39.7% to $152 million from $252 million. This decline in EPS suggests a challenging financial period for the company.

Post-Earnings Price Action Review
The post-earnings strategy of investing in Autodesk when revenues fall short of expectations and holding for 30 days yielded a return of 34.41%, which underperformed the benchmark return of 87.97%. This strategy demonstrated considerable risk due to its Sharpe ratio of 0.17 and a maximum drawdown of -51.53%, indicating significant volatility. These metrics highlight the need for caution, suggesting shorter holding periods or enhanced risk management strategies might be necessary to mitigate potential losses in such volatile market conditions.

CEO Commentary
Andrew Anagnost, CEO, stated that Autodesk delivered strong first-quarter results, with revenue and non-GAAP earnings per share exceeding expectations. He highlighted robust business momentum amid geopolitical and macroeconomic uncertainties, emphasizing strategic investments in cloud, platform, and AI. Anagnost noted the new transaction model as a proactive approach to enhance customer integration and drive growth while increasing automation. He expressed optimism about shareholder value through restructuring efforts and free cash flow recovery. The CEO also conveyed confidence in the company's adaptability to market challenges, indicating that Autodesk is well-positioned for sustainable growth.

Guidance
Autodesk expects billings to range between $7.16 billion and $7.31 billion for fiscal 2026, with revenue projected between $6.925 billion and $6.995 billion. The company anticipates free cash flow guidance to increase to between $2.1 billion and $2.2 billion. Non-GAAP earnings per share guidance has been raised, reflecting improved operational margins. Despite macroeconomic uncertainties, Autodesk maintains its revenue growth guidance, indicating a cautious but stable outlook for the remainder of the year.

Additional News
In recent weeks, Autodesk announced significant organizational changes, including the appointment of Andy Elder as the new Chief Revenue Officer, effective May 12, 2025. This strategic hire aims to drive the company's global sales strategy and accelerate its momentum. Additionally, Autodesk is focusing on sustainability, committing a percentage of its operating profit to impact programs, aligning with environmental, social, and governance trends. This move is expected to attract socially conscious investors and customers. Furthermore, Autodesk continues to support technological innovation by backing community-led efforts to accelerate rebuilding in Los Angeles after wildfires, showcasing its commitment to leveraging technology for social impact.