Summary
Autodesk opened fiscal 2027 with an 18% increase in total net revenue. Revenue reached $1.93 billion in the quarter ended April 30, 2026, up 18.4% from $1.63 billion a year earlier. Constant currency growth was 16%, and management said foreign exchange had a positive effect on net revenue. Billings of $1,688 million rose 18%. Recurring revenue was 97% of net revenue, flat with a year earlier, and the net revenue retention rate stayed slightly above the 100% to 110% range on a constant currency basis. The top line held up even as the company reworked its sales organization.
Profitability improved sharply. Gross profit of $1.76 billion rose 19.4%, and the gross margin of 91.0% was up 0.7 percentage points from 90.2%. Operating income of $541 million climbed 132.2% from $233 million, lifting the GAAP operating margin to 28.0% from 14.3%, a gain of 13.7 percentage points. Net income of $491 million rose 223.0% from $152 million, and diluted EPS of $2.32 compared with $0.70 a year earlier. On a non-GAAP basis the operating margin was 39%, up 2 percentage points, and non-GAAP EPS was $2.99. The spread between the GAAP and non-GAAP margins comes from stock-based compensation, restructuring charges and other adjustments. The MD&A points to a much smaller restructuring charge as the prior plan wound down, and the tax provision moved with higher pre-tax income.
Cash generation was the other bright spot. Operating cash flow of $893 million rose 58.3% from $564 million, helped by a seasonal release from accounts receivable. Capital expenditures of $17 million were up 112.5% from $8 million, and free cash flow of $876 million rose 58%, a separate measure that subtracts those expenditures. Deferred revenue, current portion, was $4.21 billion, up 16.3% from $3.62 billion. Remaining performance obligations totaled $7.81 billion. The MD&A warns that sales activity historically peaks in the fourth fiscal quarter, a pattern that swings billings, RPO and collections between the fourth and first quarters. Autodesk ended the period with $3.31 billion in cash, cash equivalents and marketable securities and repurchased 2 million shares for $448 million.
Guidance for the full fiscal year moved up. Autodesk now targets fiscal 2027 billings of $8,505 million to $8,580 million, a non-GAAP operating margin of 39%, non-GAAP EPS of $12.40 to $12.65, and free cash flow of $2,725 million to $2,800 million. For the second quarter of fiscal 2027, which ends July 31, 2026, the company guides non-GAAP EPS of $3.10 to $3.14. Those targets exclude MaintainX, and management said it will fold the acquisition into guidance once the deal closes. The CFO repeated that the plan assumes the business keeps its momentum and still reflects possible disruption from the sales restructuring.
Two items hang over the results. Autodesk agreed on May 28, 2026 to acquire MaintainX for roughly $3.6 billion in cash, funded with debt and available cash, with a close expected later in fiscal 2027. That adds integration and financing risk on top of the sales rebuild. The safe harbor statement lists foreign exchange headwinds, geopolitical tension and armed conflicts, tariffs and trade wars, supply chain disruption, and economic and regulatory uncertainty. Channel concentration is shifting but still matters. TD Synnex produced 9% of total net revenue in the quarter, down from 20% a year earlier, as more business runs through direct channels and the online store. The bet is that the AI platform story, the sales reorganization and a multi-billion dollar acquisition can all move forward at once.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2027 | Q4 FY2026 | QoQ | Q1 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.93B | $1.96B | -1.2% | $1.63B | +18.4% |
| Gross profit | $1.76B | $1.79B | -1.8% | $1.47B | +19.4% |
| Gross margin | 91.0% | 91.5% | -0.6 pp | 90.2% | +0.8 pp |
| Research & development | $421.0M | $420.0M | +0.2% | $394.0M | +6.9% |
| Sales & marketing | $593.0M | $636.0M | -6.8% | $566.0M | +4.8% |
| General & administrative | $162.0M | $191.0M | -15.2% | $162.0M | ±0.0% |
| Total operating expenses | $1.22B | $1.36B | -10.4% | $1.24B | -1.8% |
| Operating income (loss) | $541.0M | $431.0M | +25.5% | $233.0M | +132.2% |
| Operating margin | 28.0% | 22.0% | +5.9 pp | 14.3% | +13.7 pp |
| Net income (loss) | $491.0M | $316.0M | +55.4% | $152.0M | +223.0% |
| Net margin | 25.4% | 16.1% | +9.2 pp | 9.3% | +16.1 pp |
| Diluted EPS | $2.32 | $1.47 | +$0.85 | $0.70 | +$1.62 |
Risks
Autodesk entered a definitive agreement on May 28, 2026 to acquire MaintainX, Inc. for approximately $3.6 billion in cash, subject to regulatory approvals and expected to close later in fiscal 2027. The filing warns that closing may be delayed or not occur and that integration, unexpected costs or liabilities, or failure to achieve expected projections and synergies could materially adversely affect results.
Autodesk is investing in agentic AI and Autodesk AI as core strategic priorities, but the filing states competitors or third parties may incorporate AI into products more quickly or successfully, and AI-driven disruption may reduce customer demand. Costs to develop and maintain AI offerings could exceed benefits.
International net revenue represented 65% of net revenue for the three months ended April 30, 2026, up from 64% in the prior-year period. The filing describes new U.S. tariffs, a 10% temporary import surcharge, retaliatory measures such as digital services taxes, and related uncertainty that may increase costs or disrupt cross-border operations.
Autodesk and certain current and former executives and directors are defendants in ongoing federal securities class action litigation arising from the announcement of an internal investigation regarding Autodesk's free cash flow and non-GAAP operating margin practices. The filing warns that the litigation is time consuming and expensive and could result in significant damages, penalties, and reputational harm.
Risks include evolving AI laws such as the EU Artificial Intelligence Act and proposed U.S. state laws, plus ethical and transparency concerns. Failure to manage AI regulatory and ethical issues could increase research and development costs, limit AI use, and expose Autodesk to investigations, fines, and reputational harm.
The filing states customers are not obligated to renew subscriptions and renewal rates may decline or fluctuate due to pricing, competitive offerings, customer satisfaction, volatility of flexible usage-based models, and reduced customer spending. Because revenue is generally recognized over one to three year contract terms, a decline in new or renewed subscriptions may not be reflected until future quarters.
Autodesk initiated the 2026 Plan in first quarter fiscal 2026 and the January 2026 Plan in fourth quarter fiscal 2026 to optimize go-to-market and reallocate resources to cloud, platform, and AI. The filing says expected cost savings may be lower, costs higher, and the plans could cause attrition beyond planned headcount reductions or lower employee morale.
Indirect channel sales were approximately 28% of revenue for the three months ended April 30, 2026 compared with 45% in the prior-year period, and TD Synnex accounted for 9% versus 20% of total net revenue in those periods. The filing describes risks if distributors or resellers become insolvent, lose confidence, or fail to meet payables.
Combined revenue from AutoCAD and AutoCAD LT family products represented 25% of total net revenue during both the three months ended April 30, 2026 and 2025. Any adverse effect on sales of these subscriptions, including product release cycle, competition, or pricing, would likely harm financial results.
As of April 30, 2026, Autodesk had $2.50 billion aggregate principal amount of notes outstanding and no borrowings under its $1.5 billion 2025 Credit Agreement. The proposed MaintainX acquisition for approximately $3.6 billion in cash is expected to be funded with debt and available cash, increasing debt service and integration risks.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Current RPO
Net Revenue Retention Rate (NR3)
Recurring Revenue as % of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q1 FY2027 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.