Autodesk 2026 Q1 Earnings Revenue Rises, Net Income Declines
Daily EarningsFriday, May 30, 2025 2:01 am ET
57min readAutodesk (ADSK) reported its fiscal 2026 Q1 earnings on May 29th, 2025. missed expectations with its Q1 2026 earnings, as the company's EPS declined significantly. However, the company maintained its full-year guidance, projecting revenue between $6,895 million and $6,965 million. Despite the earnings shortfall, Autodesk's strategic focus on AI and cloud platforms is expected to drive future growth. The company's ongoing investments in these areas are aimed at enhancing sales and marketing productivity, ultimately contributing to sustainable shareholder value.
Revenue
Autodesk's total revenue surged by 14.8% to reach $1.54 billion in Q1 2026, up from $1.34 billion in Q1 2025. The subscription and maintenance segment generated $1.54 billion, with subscription revenue at $1.53 billion and maintenance revenue at $8 million. Additionally, the "Other" segment contributed $93 million, while total net revenue amounted to $1.63 billion.
Earnings/Net Income
Autodesk experienced a decline in EPS, dropping 39.3% to $0.71 in Q1 2026 from $1.17 in Q1 2025. Net income also decreased to $152 million, down 39.7% from $252 million in the previous year. The EPS performance reflects a challenging quarter for Autodesk, indicating a need for improvement in profitability.
Price Action
Post-Earnings Price Action Review
The strategy of purchasing Autodesk shares when revenues miss expectations and holding for 30 days yielded an 11.41% return, which significantly underperformed the benchmark return of 83.88%. This approach demonstrated a Sharpe ratio of 0.06 and encountered a maximum drawdown of -50.33%, indicating high risk and volatility. These results underscore the necessity of careful strategic planning and potentially longer investment horizons to mitigate risks associated with this strategy.
CEO Commentary
"Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI," said Andrew Anagnost, Autodesk President and CEO. He highlighted strong fourth quarter performance, with a 12% revenue increase to $1.64 billion, driven by robust growth in the AEC segment, particularly in construction. He acknowledged challenges in achieving higher growth rates, adjusting their revenue growth framework to 8% to 9% for fiscal 2026. Anagnost expressed optimism about ongoing investments in AI and cloud platforms, emphasizing their commitment to optimizing sales and marketing functions to enhance productivity and drive sustainable shareholder value.
Guidance
For the first quarter of fiscal 2026, Autodesk expects revenue between $1,600 million and $1,610 million, with GAAP EPS guidance of $0.76 to $0.90 and non-GAAP EPS of $2.14 to $2.17. For the full year, Autodesk projects billings of $7,060 million to $7,210 million, revenue between $6,895 million and $6,965 million, and a GAAP operating margin of 21% to 22%. The company anticipates non-GAAP operating margin in the range of 36% to 37% and free cash flow between $2,075 million and $2,175 million.
Additional News
In recent weeks, Autodesk has been active in strategic initiatives, including the announcement of a restructuring plan expected to optimize its go-to-market strategy. This plan involves a significant workforce reduction of approximately 9%, impacting around 1,350 employees globally. The restructuring is aimed at reallocating resources to accelerate strategic priorities in cloud and AI. Additionally, Autodesk has been enhancing its financial outlook, with Citi raising its price target for the company from $374 to $376, maintaining a "Buy" rating. These developments signal Autodesk's commitment to strengthening its market position and long-term growth potential.
Revenue
Autodesk's total revenue surged by 14.8% to reach $1.54 billion in Q1 2026, up from $1.34 billion in Q1 2025. The subscription and maintenance segment generated $1.54 billion, with subscription revenue at $1.53 billion and maintenance revenue at $8 million. Additionally, the "Other" segment contributed $93 million, while total net revenue amounted to $1.63 billion.
Earnings/Net Income
Autodesk experienced a decline in EPS, dropping 39.3% to $0.71 in Q1 2026 from $1.17 in Q1 2025. Net income also decreased to $152 million, down 39.7% from $252 million in the previous year. The EPS performance reflects a challenging quarter for Autodesk, indicating a need for improvement in profitability.
Price Action
Post-Earnings Price Action Review
The strategy of purchasing Autodesk shares when revenues miss expectations and holding for 30 days yielded an 11.41% return, which significantly underperformed the benchmark return of 83.88%. This approach demonstrated a Sharpe ratio of 0.06 and encountered a maximum drawdown of -50.33%, indicating high risk and volatility. These results underscore the necessity of careful strategic planning and potentially longer investment horizons to mitigate risks associated with this strategy.
CEO Commentary
"Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI," said Andrew Anagnost, Autodesk President and CEO. He highlighted strong fourth quarter performance, with a 12% revenue increase to $1.64 billion, driven by robust growth in the AEC segment, particularly in construction. He acknowledged challenges in achieving higher growth rates, adjusting their revenue growth framework to 8% to 9% for fiscal 2026. Anagnost expressed optimism about ongoing investments in AI and cloud platforms, emphasizing their commitment to optimizing sales and marketing functions to enhance productivity and drive sustainable shareholder value.
Guidance
For the first quarter of fiscal 2026, Autodesk expects revenue between $1,600 million and $1,610 million, with GAAP EPS guidance of $0.76 to $0.90 and non-GAAP EPS of $2.14 to $2.17. For the full year, Autodesk projects billings of $7,060 million to $7,210 million, revenue between $6,895 million and $6,965 million, and a GAAP operating margin of 21% to 22%. The company anticipates non-GAAP operating margin in the range of 36% to 37% and free cash flow between $2,075 million and $2,175 million.
Additional News
In recent weeks, Autodesk has been active in strategic initiatives, including the announcement of a restructuring plan expected to optimize its go-to-market strategy. This plan involves a significant workforce reduction of approximately 9%, impacting around 1,350 employees globally. The restructuring is aimed at reallocating resources to accelerate strategic priorities in cloud and AI. Additionally, Autodesk has been enhancing its financial outlook, with Citi raising its price target for the company from $374 to $376, maintaining a "Buy" rating. These developments signal Autodesk's commitment to strengthening its market position and long-term growth potential.
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