Autodesk delivered a solid fiscal 2025 fourth quarter, underscored by broad-based product momentum, resilient renewals, and improvements in profitability. Revenue for Q4 2025 was $1.639 billion, up 12% year over year, with a robust gross margin of 90.6% and GAAP operating margin of 22% (non-GAAP 37%). Billings rose 24% in constant currency, aided by the shift to annual billings for multi-year contracts and the incremental contribution from the new transaction model ($46 million in Q4; $71 million for the year). Direct revenue rose 35% in constant currency to 47% of total revenue, reflecting strength in the Autodesk Store and the new model tailwind. RPO hit $6.9 billion with current RPO of $4.5 billion, both up double digits (14% and 12%, respectively).
Management framed the quarter as part of a broader, multi-year strategic shift toward GTM optimization, tighter channel integration, and accelerated investments in cloud, platform, and AI. Autodesk maintains a disciplined approach to margin expansion and free cash flow generation, with fiscal 2026 guidance calling for 17-19% constant-currency billings growth (excluding the new transaction model), 8-9% revenue growth, GAAP margins of 21-22%, and non-GAAP margins of 39-40% (excluding new model effects and currency movements). Free cash flow guidance for 2026 is $2.075–$2.175 billion, with targeted share repurchases of $1.1–$1.2 billion and modest near-term cash outflows related to announced actions. The company also signaled a longer-term view that margins can rise meaningfully as GTM optimization and automation progress, while the growth framework may be re-set to reflect the stronger margin trajectory and higher-quality revenue streams from AI-enabled offerings and industry clouds.
Bottom line: ADSK demonstrated durable recurring revenue, improved profitability, and strategic positioning to monetize AI/cloud-enabled workflows through the Make, Construction, and AECO/M&E segments. The key questions for investors will be the pace and sustainability of the GTM optimization, the rate at which AI-driven features convert into higher monetization, and the execution risk around near-term disruptions from restructuring.