Autodesk reported Q1 2026 results with solid top-line growth and robust cash generation, underscoring the company's ongoing transition to cloud-based, subscription-led models. Revenue of USD 1.625 billion rose approximately 14.7% year over year, supported by strength in core design, engineering and entertainment software ecosystems. Gross margin remained elevated at ~82.5%, reflecting high-value software offerings, while operating income and net income showed pressure from continued investment in R&D and sales/marketing to scale cloud and AI-enabled capabilities.
Cash flow generation remained a meaningful strength, with operating cash flow of USD 564 million and free cash flow of USD 549 million. Autodesk ended the period with USD 1.816 billion in cash and equivalents and net debt of USD 0.728 billion, financing a sizable share repurchase program (~USD 354 million) alongside selective equity issuance. Deferred revenue stood at USD 3.62 billion on the current portion, signaling durable near-term revenue recognition and a strong revenue backlog as the company expands its Autodesk Construction Cloud, Industry Collections, and AI-driven design offerings. While near-term profitability showed headwinds from ongoing investments, the long-run trajectory remains supported by a large installed base, high gross margins, and a diversified mix across Architecture, Engineering & Construction (AEC), manufacturing, and media & entertainment.