Executive Summary
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.
Key Performance Indicators
QoQ: -38.80% | YoY:-25.08%
QoQ: -49.83% | YoY:-39.68%
QoQ: -49.62% | YoY:-39.32%
Key Insights
Revenue: USD 1.625B; YoY +14.68%; QoQ -0.85%
Trailing four-quarter revenue (approx.): USD ~6.13B (Q1 2025 through Q4 2025)
Gross Profit: USD 1.341B; Gross Margin 82.5%; YoY +4.77%; QoQ -9.70%
Operating Income: USD 0.224B; Operating Margin 13.78%; YoY -25.08%; QoQ -38.80%
Net Income: USD 0.152B; Net Margin 9.35%; YoY -39.68%; QoQ -49.83%
EPS: USD 0.71; Diluted USD 0.70; YoY -39.32%; QoQ -49.62%
EBITDA: USD 0.284B; EBITDA Margin ~17.48%
Interest & Other Items: Interest expense USD 2.0M; Other ...
Financial Highlights
Revenue: USD 1.625B; YoY +14.68%; QoQ -0.85%
Trailing four-quarter revenue (approx.): USD ~6.13B (Q1 2025 through Q4 2025)
Gross Profit: USD 1.341B; Gross Margin 82.5%; YoY +4.77%; QoQ -9.70%
Operating Income: USD 0.224B; Operating Margin 13.78%; YoY -25.08%; QoQ -38.80%
Net Income: USD 0.152B; Net Margin 9.35%; YoY -39.68%; QoQ -49.83%
EPS: USD 0.71; Diluted USD 0.70; YoY -39.32%; QoQ -49.62%
EBITDA: USD 0.284B; EBITDA Margin ~17.48%
Interest & Other Items: Interest expense USD 2.0M; Other income/expense Net USD 1.0M
Taxes: Income tax USD 82.0M; Effective tax rate ~35%
Cash Flow: Operating cash flow USD 0.564B; Capex USD (0.015)B; Free cash flow USD 0.549B
Balance Sheet: Cash and cash equivalents USD 1.816B; Short-term investments USD 0.224B; Total cash/short-term investments USD 2.040B; Total assets USD 10.585B; Total liabilities USD 7.968B; Total stockholders’ equity USD 2.617B
Liquidity & Leverage: Current ratio 0.654; Quick ratio 0.654; Debt / Total capitalization ~0.493; Net debt USD 0.728B; Debt outstanding USD 2.548B
Capital Allocation: Common stock issued USD 75M; Common stock repurchased USD (354)M; Net financing outflow USD (415)M; Net change in cash USD 0.217B
Def. Revenue: Current portion USD 3.62B; Non-current def. revenue USD 0.0309B
Valuation Context: P/E ~96.5x; P/B ~22.4x; P/S ~36.1x; Enterprise value multiple ~209.22x; These metrics imply a premium valuation reflecting growth trajectory, sticky software model and strong cash generation rather than an imminent valuation discount.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.63B |
14.68% |
-0.85% |
| Gross Profit |
1.34B |
4.77% |
-9.70% |
| Operating Income |
224.00M |
-25.08% |
-38.80% |
| Net Income |
152.00M |
-39.68% |
-49.83% |
| EPS |
0.71 |
-39.32% |
-49.62% |
Key Financial Ratios
operatingProfitMargin
13.8%
operatingCashFlowPerShare
$2.64
freeCashFlowPerShare
$2.57
Management Commentary
Note: The provided data set did not include an earnings call transcript. As a result, management quotes and thematic highlights from an actual call are not available in this report. Investors should supplement this with the official earnings call transcript to capture management’s tone, guidance nuances, and any forward-looking color.
No transcript provided; quotes unavailable in the supplied data.
— N/A
No transcript provided; quotes unavailable in the supplied data.
— N/A
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given Autodesk’s ongoing cloud transition and AI-enabled design initiatives, a conservative view would anticipate continued investment in R&D and go-to-market activities to expand ARR and cross-sell within Industry Collections and Autodesk Construction Cloud. Key factors for monitoring include: (1) ARR growth and renewal rates, (2) gross margin stability as cloud mix increases, (3) ramp of AI-assisted design features and their monetization, and (4) operating expense discipline relative to revenue growth. In a macro environment with variable tech spending, execution in cloud adoption and customer retention will be pivotal to sustaining margins and free cash flow.