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.

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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.

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.

Q1 FY26 Guidance

Autodesk projects first-quarter fiscal 2026 revenues between $1.60 billion and $1.61 billion.
 
Non-GAAP earnings per share are expected between $2.14 and $2.17.

For fiscal 2026, Autodesk expects revenues between $6.895 billion and $6.965 billion. Billings are estimated in the $7.06-$7.21 billion band.

Non-GAAP earnings are anticipated in the range of $9.34-$9.67. ADSK expects a non-GAAP operating margin between 36% and 37% year over year.

Free cash flow is anticipated in the $2.075-$2.175 billion band.

Zacks Rank and Stocks to Consider

Currently, ADSK carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader sector are Marvell Technology MRVL, Stardust Power Inc. SDST and Silvaco Group, Inc. SVCO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Marvell Technology is scheduled to report its fourth-quarter fiscal 2025 results on March 5. Stardust Power is slated to report its fourth-quarter 2024 results on March 5. Silvaco Group is set to report its fourth-quarter 2024 results on March 5.

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