TLDR
- Autodesk stock trades at $293.46, down 0.52% after earnings.
- Q1 2026 revenue rose 15% YoY; billings grew 29%.
- Non-GAAP operating margin increased to 37% due to cost discipline.
- Company guides for FY26 revenue of up to $6.995 billion.
- GAAP margin dipped from restructuring costs and stock-based compensation.
Shares of Autodesk Inc. (NASDAQ: ADSK) is trading at 0.52% to $293.46 as of early afternoon on May 23, 2025, following the release of its first-quarter fiscal 2026 results.
Despite the muted market reaction, the company reported strong underlying performance, with total revenue rising 15% year-over-year and 16% in constant currency.
Autodesk’s transition to a new transaction model contributed $78 million in revenue during the quarter, helping to push billings up by 29% as reported and 30% in constant currency. Current annualized recurring revenue reached $4.6 billion, a 16% increase, while remaining performance obligations stood at $7.2 billion, up 21%.
Autodesk, $ADSK, Q1-FY26. Results:
🟢 +4.8% Post-Market📊 Adj. EPS: $2.29 🟢
💰 Revenue: $1.63B 🟢
📈 Net Income: $152M
🔎 Strong performance across product lines and geographies, with continued focus on cloud, platform, and AI driving long-term value. pic.twitter.com/Q5vIjyXIms— EarningsTime (@Earnings_Time) May 22, 2025
Margin Performance and Strategic Priorities
While GAAP operating margin declined by 7 percentage points to 14% due to restructuring costs and a one-time non-cash stock-based compensation charge, non-GAAP margins improved. The company delivered a 37% non-GAAP operating margin—up 3 percentage points—benefiting from disciplined cost management and restructuring timing.
Autodesk continues to prioritize strategic investments in cloud services, its core platform, and AI initiatives. Management believes these areas will fuel long-term shareholder value and improve the customer experience across its product suite.
Shareholder Returns and Fiscal Guidance
In Q1, the company repurchased approximately 1.3 million shares for $353 million at an average price of $269 per share, reflecting ongoing confidence in long-term growth.
Looking ahead, Autodesk issued full fiscal year 2026 guidance, projecting revenue between $6.925 billion and $6.995 billion. Billings are expected to reach between $7.16 billion and $7.31 billion. Free cash flow guidance was also strong, ranging from $2.1 billion to $2.2 billion, indicating healthy operational efficiency.
Challenges in Transition and Global Markets
Despite the solid numbers, Autodesk acknowledged near-term headwinds. The transition to the new transaction model remains in progress, with some channel partners still onboarding clients. The company also highlighted softness in the Asia Pacific region—particularly Japan, China, and Korea—due to macroeconomic pressures and trade uncertainties.
Leadership changes are also underway. Autodesk is navigating a sales and marketing restructuring while onboarding a new Chief Revenue Officer, which presents potential execution risks in the short term.
Conclusion
Autodesk’s Q1 2026 performance showed strong momentum in revenue, billings, and recurring revenue. The company’s strategic investments in cloud and AI, along with a clear revenue model shift, suggest long-term upside. However, near-term margin pressure, regional weakness, and structural changes could temper gains as the company adjusts to its evolving business model.
