Autodesk 2026 Q3 Earnings Beats Expectations with 24.7% Net Income Growth

Autodesk (ADSK) delivered strong Q3 2026 results, surpassing revenue and EPS estimates while raising full-year guidance. The company reported 18.8% revenue growth and 25.8% EPS increase, driven by robust performance across key segments. CEO Andrew Anagnost highlighted strategic AI and cloud advancements, with CFO Janesh Moorjani noting improved operating margins and billings.

Revenue

Autodesk’s total revenue surged 18.8% year-over-year to $1.74 billion in Q3 2026. Subscription revenue led growth at $1.73 billion, reflecting strong demand for its cloud-based platforms. Maintenance revenue, though modest at $8 million, remained stable, while other revenue streams contributed $111 million. The AECO segment, a core driver, saw 23% growth to $921 million, underscoring the company’s market leadership in design and construction software.

Earnings/Net Income

Earnings per share (EPS) rose 25.8% to $1.61, outpacing the $1.28 reported in Q3 2025. Net income climbed 24.7% to $343 million, reflecting disciplined cost management and margin expansion. The EPS growth aligns with the company’s strategic focus on AI-driven productivity and cloud adoption, reinforcing investor confidence in its long-term value creation.

Post-Earnings Price Action Review

The strategy of buying Autodesk shares 30 days post-earnings and holding for 30 days yielded a 10.40% return, lagging the 66.23% benchmark. While the approach exhibited minimal risk (0.00% maximum drawdown) and a Sharpe ratio of 0.19, its modest 3.67% CAGR highlights limited excess returns potential. This underperformance underscores the broader market’s outpacing of individual stock strategies in the post-earnings period.

CEO Commentary

Andrew Anagnost emphasized Autodesk’s outperformance in AECO and its strategic pivot toward AI and cloud platforms. He highlighted the integration of automation into workflows and partnerships to expand market reach. CFO Janesh Moorjani noted full-year guidance raises to $7.15–$7.165 billion in revenue and ~37.5–40.5% non-GAAP operating margin, citing progress in margin expansion and capital allocation.

Guidance

For FY2026, Autodesk raised revenue guidance to $7.15–$7.165 billion and non-GAAP operating margin to ~37.5–40.5%. Free cash flow guidance was lifted to $2.26–$2.29 billion, reflecting stronger billings of $7.465–$7.525 billion. The company remains cautious on macroeconomic risks but confident in its ability to sustain growth through disciplined execution and AI-driven innovation.

Additional News

Autodesk recently shifted focus from large-scale acquisitions, opting for smaller, targeted deals to bolster its cloud and AI initiatives. The company also announced a 9% workforce reduction in February 2025, aligning with cost optimization goals. Additionally, CEO Anagnost underscored AI’s role in automating design workflows, positioning Autodesk to capture value through subscription and outcomes-based models.

The stock’s post-earnings rally, though modest, reflects optimism in its AI and cloud strategies. Analysts remain cautiously bullish, with price targets ranging from $355 to $388, highlighting confidence in Autodesk’s long-term trajectory despite near-term market volatility.