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Autodesk Q4 Earnings and Sales Surpass Estimates, Improve Y/Y

In This Article:

Autodesk ADSK reported fourth-quarter fiscal 2025 non-GAAP earnings of $2.29 per share, which beat the Zacks Consensus Estimate by 7.51% and improved 9.6% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company reported revenues of $1.64 billion, which beat the consensus mark by 0.50% and grew 11.6% year over year. The company generated broad-based growth across products and regions in AEC and manufacturing, along with strong renewal rates. 

Autodesk will be executing a worldwide restructuring plan that will lead to the reduction of the workforce by approximately 9%, which is about 1,350 employees. The plan also includes exit costs and facility reductions.

Autodesk, Inc. Price, Consensus and EPS Surprise

Autodesk, Inc. Price, Consensus and EPS Surprise
Autodesk, Inc. Price, Consensus and EPS Surprise

Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote

Top-Line Details of ADSK

Autodesk’s subscription revenues (92.9% of total revenues) increased 13.7% year over year to $1.52 billion. Maintenance revenues (0.6% of total revenues) declined 28.6% from the year-ago quarter to $10 million. Other revenues (6.5% of total revenues) decreased 7.8% to $107 million in the reported quarter.

Recurring revenues contributed 97% to Autodesk’s fourth-quarter fiscal 2025 revenues.
The net revenue retention rate was within the company’s 100-110% targeted range on a constant currency basis.

Region-wise, revenues from the Americas (44.5% of revenues) increased 11.3% from the year-ago quarter’s levels to $730 million. Revenues from the EMEA, which accounted for 38% of revenues, climbed 14.1% to $623 million. Revenues from the Asia-Pacific (17.4% of revenues) increased 7.1% to $286 million.

Billings of $2.11 billion increased 23% year over year in the reported quarter.

Product Top-Line Details

Autodesk offers primarily four product families: Architecture, Engineering and Construction (AEC), AutoCAD and AutoCAD LT, Manufacturing (MFG) and Media and Entertainment (M&E).

AEC (48.7% of revenues) revenues increased 14.8% year over year to $799 million. 

AutoCAD and AutoCAD LT (25% of revenues) revenues rose 8.5% to $409 million. 

MFG (19.4% of revenues) revenues increased 8.9% to $318 million. 

M&E (5.1% of revenues) revenues increased 9.1% to $84 million.

Operating Results

Autodesk reported a non-GAAP operating income of $608 million, up 16.5% year over year.

The non-GAAP operating margin was 37.1%, up by 160 basis points.

Balance Sheet & Cash Flow

As of Jan. 31, 2025, Autodesk had cash and cash equivalents (including marketable securities) of $1.89 billion compared with $1.71 billion as of Oct. 31, 2024.

Deferred revenues decreased 3% to $4.13 billion. Unbilled deferred revenues were $2.81 billion, representing an increase of $966 million compared with the year-ago quarter. 

Remaining performance obligations (RPO) rose 14% to $6.94 billion. Current RPO increased 12% to $4.46 billion.

Cash flow from operating activities was $692 million, representing an increase of $255 million compared with the year-ago quarter. Free cash flow was $678 million, reflecting an increase of $251 million compared with the fourth quarter of fiscal 2024.

In the reported quarter, ADSK purchased approximately 1.4 million shares for $414 million at an average price of approximately $299 per share.