Autodesk (ADSK) Morgan Stanley Technology, Media & Telecom Conference summary

Business performance and growth drivers

• Achieved 12% revenue growth and strong free cash flow, with momentum in the Make business segment, now at nearly $650 million in revenue, a significant increase over five years.

• Productivity in the sales channel was temporarily impacted by a large renewal base and new transaction models, with mitigation actions largely completed in Q1 and Q2.

• Focus remains on maintaining and accelerating growth, especially in high-growth areas like the Make bucket and Construction Cloud, which added 400 new logos recently.

• Investments in AI, platform, and industry clouds are central to driving product innovation and customer value.

• The business expects to maintain consistent momentum into Fiscal 26 and 27, with incremental improvements tied to execution of strategic initiatives.

Margin expansion and cost optimization

• Undergoing a multi-year go-to-market optimization, including a 9% headcount reduction and cost savings in marketing, to expand margins by about 300 basis points by Fiscal 26.

• Efforts focus on reducing duplicative sales and marketing expenses from past transitions and increasing self-service and partner efficiency.

• Margin expansion is expected to continue beyond Fiscal 26, with ongoing optimization of partner relationships and internal processes.

• GAAP margin targets are set to be among the best in the industry, with a focus on managing stock-based compensation.

Demand environment and revenue outlook

• Operating at the lower end of the prior 10%-15% revenue growth target due to macro uncertainty, but no fundamental change in long-term growth outlook.

• Fiscal 26 guidance reflects 8%-9% underlying revenue growth, excluding transaction model and FX impacts, with risk factors incorporated.

• Free cash flow guidance for Fiscal 26 was raised by $50 million, reflecting organic business growth.