Autodesk 2026 Q3 Earnings Beats Expectations as Net Income Rises 24.7%

Autodesk (ADSK) reported Q3 2026 results that exceeded expectations, with revenue and earnings per share surpassing estimates. The company raised full-year guidance, reflecting strong execution and business momentum.

Revenue

Autodesk’s total revenue surged 18.8% to $1.74 billion in Q3 2026, up from $1.47 billion in the prior year. Subscription revenue accounted for $1.73 billion, with maintenance contributing $8 million and other revenue adding $111 million. Total net revenue reached $1.85 billion, driven by robust demand across core product lines.

Earnings/Net Income

Earnings per share (EPS) rose 25.8% to $1.61, compared to $1.28 in Q3 2025. Net income increased 24.7% to $343 million, underscoring improved profitability. The significant EPS growth highlights Autodesk’s effective cost management and operating leverage.

Price Action

ADSK shares edged up 1.43% in the latest trading day, 0.75% in the week, but declined 5.90% month-to-date.

Post-Earnings Price Action Review

The strategy of buying ADSK shares 30 days post-earnings and holding for 30 days yielded a 3.67% CAGR, underperforming the market by 62.56 percentage points. With a maximum drawdown of 0% and a Sharpe ratio of 0.19, the approach offered low risk but conservative returns, suitable for stability-focused investors.

CEO Commentary

CEO Andrew Anagnost emphasized strong Q3 performance, driven by cloud-based platforms and AI integration. He expressed confidence in Autodesk’s resilience and long-term value creation despite macroeconomic challenges.

Guidance

Autodesk raised full-year 2026 revenue guidance to $7.15–$7.165 billion and billings to $7.465–$7.525 billion. Non-GAAP operating margin guidance was lifted to ~37.5% (reported) or ~40.5% (underlying), reflecting ongoing margin expansion.

Additional News

Autodesk’s shares surged 7% after the Q3 report, prompting analysts to raise forward estimates. Morgan Stanley and KeyBanc upgraded full-year revenue and EPS forecasts, citing strong execution and margin potential. Separately, speculation emerged about a potential acquisition of PTC, though no formal announcement was made. Investors remain cautious about macroeconomic risks and execution challenges in FY2027.

Guidance

Autodesk’s CFO, Janesh Moorjani, noted that margin progress will remain nonlinear in 2027 due to new transaction model headwinds, but long-term goals remain intact. Free cash flow guidance was set at $2.26–$2.29 billion, reflecting disciplined capital allocation.