Autodesk (ADSK) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue grew 15% year-over-year (16% in constant currency) to $1.63 billion, driven by subscription and cloud service growth, with strong performance across product types and geographies.

• Non-GAAP operating margin was 37%, up 3 points year-over-year; GAAP operating margin was 14%, down 7 points due to restructuring and a one-time stock-based compensation charge.

• Free cash flow for Q1 FY26 was $556 million, up 14% year-over-year; $353 million was used to repurchase shares.

• Strategic focus on cloud, platform, and AI, with investments in sales/marketing optimization and increased share repurchases.

• Board refreshed with new members and a new Chief Revenue Officer; business model transitions nearing completion for greater transparency.

Financial highlights

• GAAP EPS was $0.70, including a $105M restructuring charge and a $54M non-cash stock-based compensation adjustment; non-GAAP EPS was $2.29.

• Deferred revenue grew to $3.93B, unbilled deferred revenue to $3.23B, and RPO to $7.16B (up 21%); current RPO at $4.55B (up 16%).

• Subscription revenue grew 15% to $1.53B; recurring revenue accounted for 97% of net revenue.

• Gross profit was $1.47B, with a gross margin of 90%.

• Returned $353M to shareholders via share repurchases.

Outlook and guidance

• FY26 revenue guidance: $6.925B–$6.995B, up 14–15%; billings: $7.16B–$7.31B, up 19–22%; free cash flow: $2.1B–$2.2B.

• FY26 non-GAAP operating margin expected at 36.5–37%; GAAP operating margin at 21–22%.

• FY26 non-GAAP EPS guidance: $9.50–$9.73; GAAP EPS: $4.63–$5.14.

• Guidance reflects FX tailwinds, macroeconomic caution, and updated currency assumptions.

• Q2 FY26 revenue guidance: $1.72–$1.73B; GAAP EPS $1.37–$1.46; non-GAAP EPS $2.44–$2.48.