Autodesk, Inc.ADSK delivered a strong first-quarter fiscal 2027 performance, with non-GAAP earnings of $2.99 per share, up 30.6% year over year. The figure surpassed the Zacks Consensus Estimate of $2.84 by 5.3%.
Revenues rose 18% year over year to $1.93 billion, beating the Zacks Consensus Estimate by 2.1%, reflecting steady execution across core design and manufacturing workflows, and continued strength in construction and emerging markets.
Autodesk delivered a strong first-quarter fiscal 2027 performance, driven by sustained momentum across Architecture, Engineering, Construction and Operations (“AECO”), particularly in construction and emerging markets. Strength in industry segments tied to infrastructure, industrial buildings and data centers more than offset softness in commercial real estate.
The company also benefited from stronger-than-expected upfront revenues, solid renewal rates and healthy billings growth during the quarter. Management remains confident in Autodesk’s long-term growth trajectory, supported by its platform strategy centered on cloud, data and AI, expanding agentic AI capabilities. The company’s connected ecosystem is designed to enable more integrated and data-driven workflows across the design, make and operate lifecycle.
Autodesk, Inc. Price, Consensus and EPS Surprise
Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote
Net revenue retention remained above 110% on a constant-currency basis, supported in part by the company’s new transaction model and sustained expansion within its subscription base.
ADSK’s Q1 Top-Line Details
Autodesk’s restructured revenue reporting continues to present results across Design, Make and Other categories.
Design revenues (82.9% of total revenues) increased 18% year over year to $1.61 billion, remaining the dominant contributor to total revenues.
Make Revenues (11.6% of total revenues) rose 25% year over year to $224 million, reflecting ongoing strength in manufacturing and industrial workflows.
Other revenues (5.1% of total revenues) increased 5% year over year to $98 million.
Billings increased 18% year over year to $1.69 billion. Management noted that the new transaction model contributed approximately 1.5 percentage points to billings growth during the quarter. The shift toward annual billing for most multi-year contracts is expected to reduce billing volatility going forward.
Region-wise, revenues from the Americas (43.6% of revenues) increased 16% year over year to $844 million. Revenues from EMEA (39.3% of revenues) climbed 21% to $761 million. Revenues from Asia-Pacific (17% of revenues) increased 17% to $329 million.
Billings of $1.7 billion increased 18% year over year in the reported quarter.
ADSK’s Product Line in Detail
Autodesk continues to report performance across four core product families: AECO, AutoCAD and AutoCAD LT, Manufacturing (MFG), and Media and Entertainment (“M&E”).
AECO (Architecture, Engineering, Construction and Operations) revenues increased 20% year over year to $970 million, supported by continued resilience in construction and infrastructure activity.
AutoCAD and AutoCAD LT revenues rose 15% year over year to $474 million.
Manufacturing revenues increased 19% year over year to $367 million, reflecting sustained demand in industrial design and production workflows.
M&E revenues grew 13% year over year to $86 million.
“Other” product family revenues increased 32% year over year to $37 million, indicating continued expansion beyond core suites.
ADSK’s Operating Results
Non-GAAP operating margin expanded to 39%, reflecting operating leverage and benefits from sales optimization initiatives.
GAAP operating margin was 28%, with the year-over-year improvement primarily driven by the absence of one-time charges recorded in prior periods.
ADSK’s Balance Sheet & Cash Flow
As of April 30, 2026, Autodesk had cash and cash equivalents (including marketable securities) of $2.92 billion compared with $2.59 billion as of Jan. 31, 2026.
As of the quarter, deferred revenues increased 13% year over year to $4.46 billion, while unbilled deferred revenues rose 4% to $3.35 billion.
Remaining performance obligations (RPO) increased 9% year over year to $7.81 billion, while current RPO rose 18% to $5.38 billion, reflecting strong visibility into future revenue conversion.
Cash flow from operating activities was $893 million, up 58% year over year. Free cash flow was $876 million, representing a 58% increase, supported by seasonal strength and partially offset by restructuring-related cash costs.
Autodesk returned capital to shareholders by repurchasing approximately 1.9 million shares for $448 million during the quarter and reiterated its long-term plan to return around 50% of free cash flow via buybacks.
ADSK Offers Q2 and FY27 Guidance
For second-quarter fiscal 2027, Autodesk expects revenues between $2.005 billion and $2.015 billion, with non-GAAP EPS projected in the range of $3.10 to $3.14.
For full-year fiscal 2027, revenues are expected to be between $8.155 billion and $8.215 billion.
Billings are projected in the range of $8.505 billion to $8.58 billion.
Non-GAAP EPS is expected between $12.40 and $12.65, with the company continuing to model a non-GAAP operating margin of approximately 39% and free cash flow of $2.725 billion to $2.8 billion.
Management noted that benefits from the new transaction model are expected to moderate through the year, declining from roughly 3.5 percentage points in the first quarter to about 2 percentage points in the second quarter. The benefits are expected to average around 1.5 points for fiscal 2027, resulting in reduced quarter-to-quarter growth volatility.
ADSK’s Zacks Rank & Stocks to Consider
Currently, Autodesk carries a Zacks Rank #3 (Hold).
Micron Technology MU, Ciena CIEN and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and CIEN each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 225% in the year-to-date period. This Zacks Rank #1 company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 143.9% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4. CIEN currently carries a Zacks Rank #1.
Amphenol shares have gained 9.3% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29. APH currently carries a Zacks Rank #2.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ciena Corporation (CIEN): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).