Autodesk reported solid QQ1 2026 performance with revenue of $1.625 billion, up 10.6% year over year, and a gross margin of 82.5%. Despite a modest sequential decline in revenue and a softer quarterly operating trajectory, the company delivered meaningful free cash flow and a strong balance sheet. Net income declined to $152 million and GAAP EPS came in at $0.71, reflecting elevated operating expenses and substantial stock-based compensation, which the company often uses to attract and retain talent in a competitive software landscape.
From a capital allocation perspective, Autodesk generated $564 million of operating cash flow and $549 million of free cash flow in the quarter, while returning $354 million to shareholders via share repurchases. The balance sheet remained robust with cash and cash equivalents of $1.816 billion and a net debt position of approximately $728 million, supported by a total debt load of $2.544 billion. Looking ahead, the company’s long-term growth prospects hinge on cloud adoption, continued ARR expansion, and the successful monetization of Fusion 360 and related workflow solutions, against a backdrop of ongoing macro uncertainty and competitive intensity in the software design space.