Autodesk Posts 18% Revenue Growth and Raises Outlook—Strong Performance Driven by Subscription and AECO Segments
Revenue Surges 18% as Subscription and Design Lines Lead the Way
Autodesk delivered another standout quarter, reporting an 18% increase in third quarter revenue to $1.85 billion as of October 31, 2025. Fueled by growing adoption of subscription models and momentum in core segments such as Architecture, Engineering, Construction, and Operations (AECO), the company outperformed on several key fronts. Management highlighted robust results in up-front revenue, billings linearity, and Autodesk Store performance—indicators of ongoing business optimization.
Exceptional Free Cash Flow and Operating Margin Highlight Profitability
The company translated top-line growth into stronger bottom-line performance. Operating cash flow surged 110% year-over-year to $439 million, with free cash flow growing an impressive 116% to $430 million. GAAP operating margin expanded by 3 percentage points to 25%, while non-GAAP margin reached 38%. Autodesk's profitability continues to benefit from scale and efficiency, providing confidence as management raised full-year guidance.
| Metric | Q3 FY26 | YoY Change |
|---|---|---|
| Revenue ($M) | 1,853 | +18% |
| Billings ($M) | 1,855 | +21% |
| GAAP Operating Margin | 25% | +3 ppt |
| Non-GAAP Operating Margin | 38% | +1 ppt |
| GAAP EPS | 1.60 | +0.33 |
| Non-GAAP EPS | 2.67 | +0.50 |
| Operating Cash Flow ($M) | 439 | +110% |
| Free Cash Flow ($M) | 430 | +116% |
AECO and EMEA Fuel Segment and Geographic Strength
Breaking down the revenue, AECO was the growth leader among product families with a 23% increase, while "Make" solutions saw 20% year-over-year expansion. The EMEA region stood out geographically, up 23%—well above the Americas and APAC.
| Product/Region | Q3 FY26 Revenue ($M) | YoY Change (%) |
|---|---|---|
| AECO | 921 | +23 |
| AutoCAD/AutoCAD LT | 458 | +15 |
| MFG | 355 | +16 |
| EMEA | 715 | +23 |
| Americas | 820 | +16 |
| APAC | 318 | +12 |
Business Outlook: Raised Guidance Reflects Continued Momentum
Given these results, Autodesk is increasing its full-year fiscal 2026 outlook. The company now projects:
- Full-year revenue between $7.15 billion and $7.165 billion
- Non-GAAP EPS of $10.18–$10.25
- Free cash flow between $2.26 billion and $2.29 billion
For the coming quarter, management guides for revenue of $1.901–$1.917 billion and non-GAAP EPS of $2.59–$2.67, suggesting confidence in execution despite macroeconomic uncertainty. High recurring revenue, growing remaining performance obligations, and strong net revenue retention are positioning Autodesk for further stability.
Key Takeaways: Strong Execution and Recurring Revenue Provide Long-Term Visibility
Autodesk’s solid results underscore effective management of the transition to subscription and outcomes-based models. Standout growth in both free cash flow and AECO business lines point to sustained competitive advantage and industry demand for digital design and make platforms. While global economic conditions remain uncertain, Autodesk's robust cash generation, expanding margins, and raised outlook make the stock worth tracking for investors interested in recurring revenue models and technology adoption in the built world.
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