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Autodesk: Autodesk's Strong Fiscal '26 Results Driven by AI-Powered Growth

Autodesk reported strong fiscal '26 results, with revenue growing 19% as reported and in constant currency, to a level above the high end of guidance ranges. The non-GAAP operating margin was 38%, up 120 basis points year-over-year, driven by operating leverage from revenue outperformance and cost discipline. Non-GAAP earnings per share came in at $2.85, beating estimates of $2.65. The company generated $972 million in free cash flow and repurchased approximately 1.1 million shares for $333 million.

ADSK

USD 245.87

5.32%

A-Score: 5.0/10

Publication date: February 26, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Fiscal '26 Outperformance: Revenue grew 19% (19% in constant currency), billings rose 33% (30% in constant currency), with $185M from the new transaction model.
  • Non-GAAP Margin Expansion: Operating margin hit 38% (+120 bps YoY), free cash flow reached $972M, and $333M spent on share repurchases.
  • Fiscal '27 Guidance: Billings of $8.48B–$8.58B, revenue of $8.1B–$8.17B, and non-GAAP margin of 38.5%–39%, reflecting disciplined growth targets.
  • AI and Platform Momentum: 3.8M constraints generated by AI-powered Sketch AutoConstrain, with APS enabling agentic AI scalability and data-driven innovation.
  • Consumption-Based Shift: 17% consumption-based revenue mix in fiscal '26, with a strategy to expand total addressable market via task- and project-based monetization.

Segment Performance

The manufacturing segment saw growth above 20%, driven by strength in construction and Fusion, with 23% growth in the "make" business. Autodesk's AECO segment also saw progress, with customers demanding convergence to reduce risk, increase quality, and optimize cost and resource use. The company's focus on AI-powered solutions is driving growth, with AI-powered Sketch AutoConstrain in Fusion delivering over 3.8 million constraints since its launch.

Guidance and Outlook

For fiscal '27, Autodesk expects billings growth of $8.48 billion to $8.58 billion, revenue growth of $8.1 billion to $8.17 billion, and non-GAAP operating margin of 38.5% to 39%. The guidance reflects prudence due to temporary risks related to the sales optimization plan. Analysts estimate next year's revenue growth at 13.0%, indicating a continued strong growth trajectory.

Valuation Metrics

Autodesk's current valuation metrics indicate a premium valuation, with a P/E Ratio of 46.37, P/B Ratio of 17.12, and P/S Ratio of 7.73. The EV/EBITDA ratio is 30.27, indicating a high valuation relative to earnings. The company's ROIC is 20.27%, and ROE is 39.89%, indicating strong profitability. The Free Cash Flow Yield is 4.59%, providing a relatively attractive return for investors.

AI Strategy and Partnerships

Autodesk's AI strategy involves building agentic AI capabilities, which require data, context, and expertise, and scaling and monetizing it through a platform and next-generation business models. The company is working closely with customers to wrangle data and bring it together in intelligent ways. Autodesk has also partnered with World Labs, a significant investment that will continue to drive growth in the operations space.

Operational Efficiency

The company is optimizing its sales organization and partner compensation plans to focus on new business and reduce incentives on renewals. Autodesk aims to maintain healthy renewal activity despite these changes. The company's focus on task-based automation is enabling customers to execute more projects with fewer people, expanding Autodesk's total addressable market (TAM).

Autodesk's A-Score