Autodesk, Inc. (NASDAQ: ADSK), a frontrunner in design and engineering software, has announced its financial results for the third quarter of fiscal 2026, ended October 31, 2025. The report reflects a robust performance, primarily driven by advancements in automation and subscription models, as well as a strong demand in the Architecture, Engineering, Construction, and Operations (AECO) sectors.

1. Key Highlights from Q3 FY26

Financial Performance

Autodesk's financial metrics for the third quarter showed impressive growth compared to the same period last year:

Billings reached $1,855 million, a 21% increase year-over-year.

Revenue stood at $1,853 million, reflecting an 18% growth.

GAAP Operating Margin improved to 25%, up by 3 percentage points from the previous year.

Non-GAAP Operating Margin was reported at 38%, marking a 1 percentage point increase.

GAAP EPS registered at $1.60, an increase of $0.33 year-over-year.

Non-GAAP EPS was $2.67, an increase of $0.50 from the prior year.

The company generated $439 million in cash flow from operating activities, a substantial 110% increase, while free cash flow reached $430 million, up by 116%.

Revenue Breakdown

By Product Type

Design Revenue: $1,537 million (up 19% YoY)

Make Revenue: $205 million (up 20% YoY)

Other Revenue: $111 million (up 7% YoY)

By Geographic Region

Americas: $820 million (up 16% YoY)

EMEA (Europe, Middle East, and Africa): $715 million (up 23% YoY)

APAC (Asia-Pacific): $318 million (up 12% YoY)

By Product Family

AECO: $921 million (up 23% YoY)

AutoCAD and AutoCAD LT: $458 million (up 15% YoY)

Manufacturing (MFG): $355 million (up 16% YoY)

Media and Entertainment (M&E): $86 million (up 4% YoY)

Remaining Performance Obligations

The company also reported significant remaining performance obligations, which reflect future revenue expectations:

Deferred Revenue: $3,846 million (up 5% YoY)

Unbilled Deferred Revenue: $3,515 million (up 43% YoY)

Total Remaining Performance Obligations: $7,361 million (up 20% YoY)

2. Executive Insights

Andrew Anagnost, Autodesk's President and CEO, commented on the results: "We're defining the AI revolution for design and make, empowering customers with new task, workflow and system automations, and capturing shared value through subscription, consumption, and outcomes-based business models that blend human and machine capabilities." He emphasized Autodesk’s commitment to building the future and creating long-term value for customers and shareholders alike.

CFO Janesh Moorjani added, "We delivered another strong quarter, highlighted by outperformance in AECO. Up-front revenue, the Autodesk Store, and billings linearity all exceeded expectations. The macroeconomic environment has been broadly stable though uncertainty remains elevated, and we have so far successfully executed our sales and marketing optimization plan."

3. Outlook for Q4 and Fiscal Year 2026

Autodesk has raised its full-year guidance, reflecting the current momentum of the business. The company estimates the following for the upcoming quarter and the full fiscal year:

Q4 FY26 Guidance

Revenue: $1,901 - $1,917 million

GAAP EPS: $1.40 - $1.57

Non-GAAP EPS: $2.59 - $2.67

Full Year FY26 Guidance

Billings: $7,465 - $7,525 million

Revenue: $7,150 - $7,165 million

GAAP Operating Margin: ~23%

Non-GAAP Operating Margin: ~37.5%

GAAP EPS: $5.16 - $5.33

Non-GAAP EPS: $10.18 - $10.25

Free Cash Flow: $2,260 - $2,290 million

4. Conclusion

Autodesk's third-quarter results for fiscal 2026 demonstrate strong growth across various metrics, driven by successful product offerings and a robust subscription model. The company's strategic focus on automation and customer empowerment through AI continues to set the stage for future growth, positioning Autodesk as a leader in the design and engineering software industry. The upcoming fourth quarter and fiscal year guidance reflect continued optimism in navigating the current economic landscape.

Original press release