Autodesk, Inc. quarterly report, Q1 FY2027

Autodesk, Inc. (ADSK) - Q1 2026 10-Q Summary

Business Context and Reporting Period

This report covers the quarterly period ended April 30, 2026. Autodesk, Inc. is a large accelerated filer providing design and make software solutions across architecture, engineering, construction, manufacturing, and media/entertainment sectors. The company operates as a single reportable segment.

Key Financial Metrics

Metric Q1 2026 Q1 2025 Change
Total Net Revenue $1,934 million $1,633 million +18%
Subscription Revenue $1,836 million $1,540 million +19%
Gross Profit $1,759 million $1,473 million +19%
Income from Operations $541 million $233 million +132%
Net Income $491 million $152 million +223%
Diluted EPS $2.32 $0.70 +231%
Operating Cash Flow $893 million $564 million +58%
Cash & Equivalents $2,671 million $1,816 million N/A
Long-Term Debt $2,484 million N/A N/A

Liquidity: Total cash, cash equivalents, and marketable securities stood at $3.31 billion. The company maintains a $1.5 billion revolving credit facility with no outstanding borrowings as of April 30, 2026.

Material Changes vs. Prior Period

  • Revenue Growth: Total net revenue increased 18% year-over-year, driven primarily by a 19% increase in subscription revenue. Growth was broad-based across product families, with Architecture, Engineering, Construction and Operations (AECO) up 20% and Manufacturing up 19%.
  • Profitability Surge: Operating income more than doubled to $541 million. This was significantly aided by a reduction in restructuring costs, which dropped from $105 million in Q1 2025 to $30 million in Q1 2026.
  • Non-Operating Income: Interest and other income, net, surged to $58 million from $1 million, primarily due to a $56 million gain on strategic investments.
  • Stock Repurchases: The company repurchased 2 million shares for $448 million, compared to 1 million shares for $353 million in the prior year.
  • Accounting Reclassification: Maintenance revenue was reclassified into "Subscription revenue" for the current period; prior periods were adjusted to conform.

Guidance, Outlook, and Risks

  • Strategic Priorities: Management continues to focus on building the "Design and Make" platform, accelerating adoption of Fusion, Forma, and Flow, and investing in agentic AI.
  • Remaining Performance Obligations (RPO): RPO decreased 6% to $7.81 billion compared to the prior fiscal year-end. Current RPO (expected to be recognized in the next 12 months) is $5.38 billion.
  • Major Acquisition: On May 28, 2026, Autodesk announced a definitive agreement to acquire MaintainX, Inc. for approximately $3.6 billion in cash. The deal is expected to close in fiscal 2027 and will be funded by debt and available cash.
  • Legal Proceedings: A federal securities class action lawsuit regarding free cash flow and non-GAAP operating margin practices was dismissed with prejudice in January 2026. Plaintiffs filed a notice of appeal in March 2026; the company cannot estimate potential financial loss at this stage.
  • Risks: Key risks include global economic conditions, geopolitical conflicts, foreign currency fluctuations, and the integration challenges associated with the MaintainX acquisition.

Investor Verification Checklist

  • Verify the sustainability of the 18% revenue growth rate, particularly the contribution from the AECO and Manufacturing segments.
  • Assess the impact of the $3.6 billion MaintainX acquisition on future leverage ratios and cash flow, given the company's intent to use debt to fund the deal.
  • Monitor the status of the appealed securities class action lawsuit and any potential financial exposure.
  • Review the trajectory of restructuring costs to ensure the $30 million expense in Q1 2026 is not indicative of future ongoing costs.
  • Confirm the effectiveness of the company's hedging strategies given the 65% reliance on international revenue and recent volatility in global trade policies.