Autodesk (ADSK) Q3 2025 earnings summary

Executive summary

• Revenue grew 11% year-over-year to $1.57B, with broad-based growth across products and regions and over 95% recurring revenue, driven by digital transformation and cloud transition.

• Raised full-year guidance for billings, revenue, margins, EPS, and free cash flow.

• Successfully implemented a new transaction model in Western Europe, enhancing direct customer relationships and sales efficiency.

• Ongoing investment in cloud, platform, and AI, positioning ahead of peers and supporting long-term growth.

• Leadership transition with Janesh Moorjani appointed as CFO; stock repurchase authorization extended.

Financial highlights

• Total revenue: $1.57B, up 11% year-over-year; recurring revenue comprised 97% of total; free cash flow for the quarter was $199M.

• Non-GAAP operating margin for Q3 FY25 was 36%; GAAP margin 22%.

• Net income for the quarter was $275M; GAAP diluted EPS: $1.27; non-GAAP diluted EPS: $2.17.

• Billings rose 28% year-over-year, aided by annual billing shift, early renewals, and the new transaction model.

• Deferred revenue decreased 9% to $3.66B due to billing model changes.

Outlook and guidance

• FY25 revenue guidance: $6.115B–$6.13B (approx. 11% growth); billings: $5.90B–$5.98B (up 14–15%); free cash flow: $1.47B–$1.5B.

• FY25 GAAP operating margin: 21.5–22%; non-GAAP: 35.5–36%; GAAP EPS: $4.95–$5.01; non-GAAP EPS: $8.29–$8.35.

• Q4 FY25 revenue expected between $1.623B and $1.638B; GAAP EPS $1.21–$1.27; non-GAAP EPS $2.10–$2.16.

• New transaction model expected to add 5–5.5 percentage points to billings growth and 1–1.5 points to revenue growth in FY25.

• Fiscal 2026 free cash flow expected to reach around $2.05B at midpoint, driven by large renewal cohorts.