Autodesk (ADSK) announced robust fourth-quarter and full-year fiscal 2025 earnings, surpassing expectations despite facing new foreign exchange headwinds. The company unveiled a strategic restructuring plan aimed at optimizing its sales and marketing approach while reallocating internal resources to accelerate key strategic priorities.These priorities include investments in cloud computing, artificial intelligence (AI), and platform convergence to drive future growth and enhance customer value. The announcement was made during the earnings call held on February 27, 2025, where executives detailed the company’s performance and future outlook.

The earnings call, led by CEO Andrew Anagnost and CFO Janesh Moorjani, highlighted the company’s strong financial performance and strategic direction. Simon Mays-Smith,Vice President of Investor Relations,initiated the call,emphasizing the forward-looking nature of the discussion and directing listeners to the company’s SEC filings for risk factors.The call provided a comprehensive overview of autodesk’s current standing and its plans to maintain its competitive edge in the evolving technology landscape.

Andrew Anagnost, President and Chief Executive Officer, emphasized the company’s commitment to long-term growth and shareholder value. Autodesk delivered strong fourth quarter and full year results, Anagnost stated, noting that billings and revenue exceeded expectations. He further elaborated on the restructuring announcement, which includes optimizing the sales and marketing plan and reallocating internal resources. This strategic move is designed to enhance efficiency and better align the company with market demands.

The optimization phase of the sales and marketing plan aims to streamline processes, enhance digital self-service, and strengthen channel partnerships. Anagnost explained, We are now beginning the optimization phase, which positions Autodesk to better meet the evolving needs of its customers and channel partners. This initiative is expected to improve operating profit dollars and non-GAAP margin in fiscal years 2025 and 2027, ultimately leading to industry-leading GAAP margins. The focus on digital self-service reflects a broader trend in the industry towards empowering customers with more control and versatility.

Autodesk is also strategically reallocating internal resources to focus on the convergence of design and make in the cloud, enabled by platform, industry cloud, and AI. Anagnost highlighted the company’s leadership in these areas, stating, Our investments in cloud, platform and AI are ahead of our peers and will drive growth by providing our customers with increasingly valuable and connected solutions. This emphasis on cloud-based solutions and AI integration underscores Autodesk’s commitment to innovation and its vision for the future of design and manufacturing.

Janesh Moorjani, Chief Financial Officer, provided a detailed overview of the financial results.The fourth quarter and full year fiscal ’25 results were strong, Moorjani confirmed. Total revenue in the fourth quarter grew 12% as reported and in constant currency, with broad-based growth across products and regions. Specifically, AutoCAD and AutoCAD LT revenue grew 9%, AECO revenue grew 15%, manufacturing revenue grew 10%, and M&E revenue grew 10% in constant currency. These figures demonstrate the breadth of Autodesk’s portfolio and its ability to generate growth across various sectors.

by region, revenue grew 11% in the Americas, 13% in EMEA, and 11% in APAC, all in constant currency.Direct revenue increased 35% in constant currency, representing 47% of total revenue. Billings increased 24% in the quarter at constant currency, reflecting the shift to annual billings for most multiyear contracts and the transition to the new transaction model. The geographical distribution of revenue growth highlights Autodesk’s global presence and its ability to capitalize on opportunities in diverse markets.

Moorjani also addressed the company’s outlook for fiscal year 2026.Our starting position is strong, he stated, emphasizing the company’s leadership positions and loyal customer base. He projected constant currency billings growth of 17% to 19%, excluding the impact of the new transaction model, and constant currency revenue growth of 8% to 9%, excluding the same impact. The company expects GAAP operating margin to be in the range of 21% to 22% and non-GAAP operating margin to be in the range of 39% to 40%, excluding the impact of the new transaction model and currency movements. these projections reflect confidence in Autodesk’s ability to sustain its growth trajectory and improve profitability.

Autodesk anticipates generating between $2.075 billion and $2.175 billion of free cash flow in fiscal ’26, after absorbing approximately $110 million to $120 million of cash outflows related to the restructuring actions. The company also plans to buy back approximately $1.1 billion to $1.2 billion of shares in fiscal ’26. This robust free cash flow generation underscores Autodesk’s financial strength and its commitment to returning value to shareholders.

Anagnost returned to discuss specific customer successes, highlighting how Autodesk’s solutions are driving convergence and improving efficiency. He cited Mott MacDonald,a global engineering consultancy,as an example of a company expanding its partnership with Autodesk to drive better outcomes through digital delivery.He also mentioned Power Design, a specialty contractor, selecting Autodesk Build to enhance coordination between design and construction. These examples illustrate the tangible benefits that Autodesk’s solutions provide to its customers across various industries.

Cleveland Construction, a national commercial GC, is replacing a competitive solution with Autodesk Construction Cloud to support its growth. Anagnost emphasized the common theme among these stories: Converging people, processes and data across the project life cycle to increase efficiency and sustainability while decreasing risk. This convergence is a key driver of value for Autodesk’s customers, enabling them to streamline their operations and achieve better outcomes.

Conclusion

Autodesk’s Q4 2025 earnings call revealed a company performing strongly while strategically positioning itself for future growth. the restructuring plan,focused on optimizing sales and marketing and reallocating resources to cloud,AI,and platform convergence,signals a commitment to innovation and efficiency. With strong financial results and a clear strategic vision, Autodesk aims to deliver enduring shareholder value and maintain its leadership position in the design and make industries.

Autodesk and MSC Industrial Supply are joining forces to revolutionize manufacturing processes. The collaboration aims to leverage Autodesk’s Fusion platform to enhance MSC’s application optimization programme. This strategic relationship is projected to yield approximately $500 million in savings for MSC’s customers in fiscal year 2024. The partnership combines MSC’s suite of solutions with Autodesk Fusion’s advanced capabilities, promising an unmatched value proposition for manufacturers across North America. This alliance signifies a major step forward in optimizing manufacturing processes and reducing costs for businesses.

MSC Industrial supply, recognized as one of North America’s largest industrial distributors and a leader in metalworking product categories, will integrate Autodesk Fusion’s connected supply chain capabilities. This includes the all-in-one cloud CAD, CAM, CAE, and PCB platform, to bolster its application optimization and AP OP program. By leveraging Autodesk Fusion’s comprehensive platform, MSC aims to provide its customers with enhanced solutions and greater efficiency in their manufacturing operations.

Optimizing Toolpaths and Cutting Parameters

The collaboration will enable MSC’s team of metalworking specialists to optimize toolpaths and validate cutting parameters more efficiently. This will be achieved through enhanced virtual testing capabilities, further strengthening their tooling recommendations for manufacturing clients. The ability to virtually test and optimize these parameters will lead to significant time and cost savings for manufacturers, while also improving the quality and precision of their products.

Autodesk Fusion’s Growing Influence

The convergence of data is creating new opportunities for Autodesk, particularly within its sales teams. As customers increasingly seek efficient innovation, the adoption rates of Fusion extensions are rising, driving up average sales prices. Autodesk is also focusing on delivering meaningful productivity gains to customers through the deployment of artificial intelligence. This strategic focus on AI and data convergence is positioning Autodesk as a leader in the evolving landscape of manufacturing technology.

One example of this is the recently launched AutoConstrain tool in Fusion. This tool leverages AI to simplify the process of defining sketch geometry.By automating this process, autoconstrain saves designers and engineers valuable time and allows them to focus on more complex and creative tasks.

Our recently launched AutoConstrain tool in Fusion, which leverages AI to simplify the process of defining sketch geometry, has a roughly 50% acceptance rate on suggested geometry, saving significant time for higher-value work.

Investing in Education and Security

Autodesk continues to invest heavily in education and security to ensure that its customers have the resources and support they need to succeed.This commitment to education and security is essential for building trust and fostering long-term relationships with customers.

Empowering Education Through Collaboration with IIT bombay

Autodesk is deeply invested in modernizing education to equip future engineers with the skills demanded by today’s industries. A significant step in this direction is the recent agreement with the Indian Institute of Technology (IIT) Bombay. This collaboration aims to integrate Autodesk’s cutting-edge solutions into IIT Bombay’s educational and research programs, providing students with invaluable hands-on experience with industry-standard tools.

The memorandum of understanding, signed in the fourth quarter, signifies a strategic alliance designed to enhance the learning habitat and foster innovation. By embedding Autodesk’s software into the curriculum, IIT Bombay students will gain a competitive edge, ready to tackle real-world engineering challenges upon graduation. This partnership reflects Autodesk’s broader commitment to nurturing the next generation of engineering talent.

Enhancing Software Security and Customer Compliance

Beyond education, Autodesk is prioritizing the security of its software and the compliance of its customers. The company is actively collaborating with clients to ensure they are utilizing the latest and most secure versions of its software, mitigating potential risks and safeguarding their valuable data.

One notable example involves Autodesk’s work with a European railway infrastructure administrator. During the process of adopting Building Data Modeling (BIM) to optimize infrastructure progress and sustainability,Autodesk identified critical gaps in compliance. By addressing these issues and supporting the administrator’s digital transformation, Autodesk demonstrated its dedication to customer success and the integrity of their operations.

Strategic Outlook: Margin Expansion, AI integration, and M&A

Autodesk is strategically focused on margin expansion in fiscal ’26 through optimization, enhanced self-service capabilities, and stronger partner relationships. executives have highlighted these initiatives alongside their approach to integrating generative AI across their product portfolio and their consistent interest in strategic mergers and acquisitions. The company aims to drive enduring growth and improve customer productivity.

Janesh Moorjani, Chief Financial Officer, emphasized the company’s commitment to expanding profitability, stating, that demonstrates our overall commitment to expanding profitability this year, obviously, but it’s part of our longer-term plans. The reinvestment and our organic hiring plans, all of that is an integrated plan.

Moorjani further detailed the company’s spending discipline, noting that fiscal ’26 total spending is projected to grow only 4% year-over-year in constant currency, compared to 7% growth in fiscal ’25, excluding the new transaction model. This demonstrates the extent of both the optimization and the spend discipline that we are driving in the business overall.

Addressing Analyst Questions: Growth Drivers and Customer Sentiment

During a recent Q&A session, analysts probed Autodesk executives about the company’s growth prospects and margin potential. Andrew Anagnost, President and Chief Executive Officer of Autodesk, addressed questions about the factors driving new business growth. He explained that several factors have impacted new business growth in recent years.

one is all the things that Autodesk was changing… The other thing was economic uncertainty, all the things associated with the macro environment. These things impaired some of our customers’ willingness to invest in their business.
Andrew Anagnost, President and Chief Executive Officer, Autodesk

Anagnost emphasized that Autodesk is focusing on enhancing channel productivity and investing in emerging and high-growth businesses to drive future growth.

Adam Borg, an analyst from Stifel, asked about customer sentiment and the potential impact of policy changes. Anagnost responded that customers primarily desire certainty.

The thing I’m hearing from our customers is they want certainty. It’s uncertainty that’s kind of fueling customer angst. It’s not what the output is, what the answer is, it’s just the uncertainty.
Andrew Anagnost, President and Chief Executive Officer, Autodesk

Strategic M&A Remains a Priority

Despite the focus on internal efficiencies, Autodesk’s stance on mergers and acquisitions remains unchanged. Andrew Anagnost, President and Chief Executive Officer, affirmed the company’s acquisitive nature, stating, We’ve always been an acquisitive company. We’re always looking for anything that can accelerate our strategy or take us into adjacencies that we think are relevant to the company. He added, If we see something like that, we will act on it.

Autodesk’s leadership,including CEO Andrew Anagnost and CFO Janesh Moorjani,recently engaged with analysts to discuss the company’s long-term growth strategy,improvements in channel productivity,and the financial implications of recent restructuring efforts. The executives addressed questions regarding the company’s long-term target range, go-to-market changes, and the integration of cost savings into the current operating margin guidance for the fiscal year. The discussion emphasized Autodesk’s commitment to reinvestment and optimizing its channel strategy to drive future growth. This strategic focus aims to ensure Autodesk remains a leader in design and make solutions.

The conversation provided insights into autodesk’s strategic priorities and its approach to navigating market dynamics while maintaining a focus on long-term value creation. Analysts, including Joshua Tilton and Michael Turrin, probed into the details of autodesk’s financial outlook and strategic initiatives. The company’s commitment to innovation and efficiency was a recurring theme throughout the discussion.

Long-Term Growth Targets and Financial Outlook

Janesh Moorjani, Autodesk’s Chief Financial Officer, addressed questions about the company’s long-term target range. He explained that the decision to adjust the range was based on recent performance. moorjani emphasized the importance of aligning the target with achievable results.

The reality is we’ve just not been in the middle to high end of that range.

He further elaborated on the rationale behind the adjustment:

And that’s — as I looked at the ranges,it felt inappropriate to have a range out there if we have not delivered against that in the last couple of years,at least being toward the middle or high end of that. And that was really the core principle behind this.

Moorjani also provided clarity on the net retention rate, stating that the company is thinking about fiscal ’26 with a range of 100% to 110%, consistent with fiscal ’25. He noted that while this is a wide range, the net retention rate essentially hovers around the middle, with potential fluctuations in any given quarter. This consistency is crucial for maintaining a stable financial foundation.

Regarding the impact of recent restructuring and layoff announcements, Moorjani confirmed that any savings from these actions are already factored into the current operating margin guidance for the year. He highlighted that the reinvestment and organic hiring plan for fiscal ’26 are integrated, with overall spending growth slowing from 7% last year to 4% this year in constant currency.This strategic allocation of resources is designed to maximize long-term profitability.

Channel Productivity and Go-to-Market Strategy

Andrew Anagnost, President and Chief Executive Officer, discussed the company’s efforts to improve channel productivity and optimize its go-to-market strategy. He emphasized that the areas needing betterment are crucial for driving the desired long-term behavior.Anagnost highlighted the importance of a productive channel in generating new business and driving revenue growth over time.

It’s all about getting the channel more productive. That’s gonna be a result of some of the changes that we’re doing right now in some of the optimizations.

Anagnost also expressed excitement about the company’s design and make solution, noting that its success in penetrating the end-to-end solution represents real long-term new growth for Autodesk. This integrated approach is expected to drive significant value for customers.

So watch that make bucket because that’s a clear sign that we’re being prosperous penetrating the end-to-end solution. That is real long-term new growth for Autodesk.

Addressing the agency transition across different regions, Anagnost stated that, for the most part, things are progressing as planned.He acknowledged some productivity challenges during the rollout but noted that the company is working to address them and help partners manage the systems effectively. This proactive approach is essential for ensuring a smooth transition and maintaining channel efficiency.

Balancing Efficiency and Business Momentum

Anagnost addressed concerns about balancing efficiency with preserving business momentum during headcount reductions. He emphasized that these decisions are made with a long-term viewpoint, balancing short-term risks with long-term rewards. Autodesk is committed to making strategic decisions that support sustainable growth.

We feel like we’ve taken a really balanced approach here. You can see we’ve reinvested some of the money into future systems and capabilities that will allow us to do additional optimizations in the future.

he expressed confidence that the company has struck the right balance to keep the business moving in the right direction, factoring potential risks into the guidance. Anagnost believes that ongoing optimizations will continue to deliver increasing profits as the company moves forward. This strategic foresight is crucial for navigating the evolving market landscape.

Strategic Initiatives for Fiscal ’26 and Beyond

autodesk’s strategic initiatives in fiscal ’26 and beyond aim to drive margin expansion, enhance customer productivity through AI, and maintain a flexible approach to M&A, positioning the company for sustained growth and industry leadership. These initiatives are designed to capitalize on emerging opportunities and strengthen Autodesk’s competitive advantage.

multi-Year Optimization Journey

the optimization phase is a deliberately planned activity connected to the changes implemented over the past two years, starting with the move to the new transaction model.The main focuses are on optimizing processes, enhancing self-service, and improving efficiency and relationships with partners. The initial phases focused on marketing efficiency, with future efforts concentrating on tighter partner relationships and maximizing returns on self-service. Anagnost described it as “a continuum from starting with the marketing optimization,moving through a continuum to enhancing partner engagement and getting more efficient there all the way through maximizing returns on self-service.”

Generative AI: Enhancing Productivity and Expanding Market Reach

Autodesk is focused on enhancing customer productivity through generative AI tools. As these tools become more productive, the company sees opportunities to charge additional money for high-productivity AI features.Early features help customers build 3D models more quickly and with less labor.Anagnost stated, “We’re very much focused on enhancing customer productivity with these tools.”

Forma, in the AEC sector, is dedicated to providing AI capabilities that allow users to create building information models in a entirely different way. This has the potential to expand the reach of BIM to smaller companies. Anagnost noted,”Forma has an opportunity to really expand the footprint of who can do building information modeling. and that’s one of the things we are targeting with those long term.”

Growth Outlook and Midterm Model

Autodesk plans to provide more color on its midterm model at the Q3 analyst day. The company’s focus is on driving sustainable growth through new business, construction, manufacturing, and its overall platform strategy. Moorjani highlighted the company’s resilience and consistent performance, stating, “So we think that the business is resilient, and we’ve had consistent performance over a period of time, and our focus fundamentally is actually on driving sustainable growth.”