Autodesk Q3 Earnings Beat, Raises Guidance

Autodesk (ADSK) reported Q3 earnings on Nov. 25, 2025, with revenue of $1.85 billion, up 18% year over year, and non-GAAP EPS of $2.67, surpassing estimates. The company raised full-year revenue and free-cash-flow guidance, citing stronger demand for cloud subscriptions and AI-powered design tools.

Billings Growth, Margins, and Cash Flow

Billings increased 21% year over year to $1.85 billion, reflecting stronger demand for Autodesk’s cloud offerings and AI design tools, management said on the earnings call. The faster billings growth compared with revenue indicates customers are committing earlier and more frequently to subscription contracts.

Non-GAAP operating margin expanded 120 basis points to 38%, while free cash flow more than doubled to $430 million, up 116% year over year. Management attributed these gains to higher-value, cloud-enabled sales converting more efficiently into cash.

Remaining performance obligations, a measure of contracted future revenue, rose 20% to $7.4 billion, with current RPO also up 20% to $4.8 billion.

Raised Guidance and Shareholder Returns

Autodesk raised its full-year fiscal 2026 guidance, setting revenue between $7.15 billion and $7.165 billion and billings between $7.465 billion and $7.525 billion. It lifted non-GAAP operating margin guidance to about 37.5% (or about 40.5% excluding a new transaction-model impact) and increased free-cash-flow guidance to $2.26 billion–$2.29 billion. The outlook assumes continued momentum while accounting for macroeconomic risks and tough fourth-quarter comparisons.

The company also raised its stock buyback guidance to roughly $1.3 billion. Year to date, Autodesk repurchased 3.7 million shares for about $1.07 billion.

CEO Andrew Anagnost said, “We are successfully executing on the most far-reaching transformations in enterprise software.” Following the results and guidance update, Autodesk shares rose roughly 8% in premarket trading on Nov. 26, 2025.