Summary
Autodesk reported third quarter fiscal 2025 revenue of $1.57 billion, up 11 percent from $1.41 billion in the prior-year quarter. Constant currency growth was 12 percent, so currency was a headwind rather than a help. Recurring revenue was 97 percent of total revenue, and billings rose 28 percent to $1.54 billion. GAAP operating income was $346 million, up 3.6 percent from $334 million a year earlier. GAAP operating margin was 22.0 percent, down from 23.6 percent. GAAP diluted EPS was $1.27, up 13.4 percent from $1.12.
Gross profit was $1.42 billion, up 10.6 percent, and gross margin was 90.6 percent against 91.0 percent in the prior-year quarter. Net income was $275 million, up 14.1 percent. On a non-GAAP basis, income from operations was $573 million compared with $547 million, non-GAAP operating margin was 36 percent, down 3 percentage points, and non-GAAP diluted EPS was $2.17 versus $2.07.
The first nine months of fiscal 2025 move in the same direction. Revenue was $4.49 billion, up 11.5 percent. Operating income was $988 million, up from the prior-year period. Net income was $809 million, up 29.6 percent. Diluted EPS was $3.73 against $2.89.
Remaining performance obligations rose 17 percent to $6.11 billion, and current remaining performance obligations rose 14 percent to $4.01 billion. Current deferred revenue was $3.28 billion, up 5.0 percent from $3.12 billion. Net revenue retention stayed within the 100 to 110 percent range on a constant currency basis. Cash flow from operating activities was $209 million, up $191 million from $18 million in the prior-year quarter, and free cash flow was $199 million. For the nine months, operating cash flow was $915 million versus $876 million, and capital expenditures were $26 million versus $21 million. Quarterly capital expenditures were $10 million against $5 million. Autodesk noted that enterprise business agreement activity typically builds in its fourth fiscal quarter, which affects billings, remaining performance obligations, and collections.
Autodesk repurchased 1.7 million shares for $443 million during the nine months, and in November the board authorized another $5 billion of buybacks on top of $4.30 billion remaining under earlier programs. For the fourth quarter of fiscal 2025, guidance is revenue of $1.623 billion to $1.638 billion, GAAP EPS of $1.21 to $1.27, and non-GAAP EPS of $2.10 to $2.16. For the full fiscal year, the company guided revenue of $6.115 billion to $6.130 billion, up approximately 11 percent, billings of $5.90 billion to $5.98 billion, up 14 to 15 percent, GAAP EPS of $4.95 to $5.01, non-GAAP EPS of $8.29 to $8.35, and free cash flow of $1.47 billion to $1.50 billion. Management said it raised the midpoints of its billings, revenue, margins, earnings per share, and free cash flow ranges.
Janesh Moorjani becomes chief financial officer on December 16, 2024, succeeding interim CFO Betsy Rafael, who stays on as an advisor and board member through fiscal 2025. Management described macroeconomic, policy, and geopolitical conditions as consistent with recent quarters, with strong renewal rates and continued headwinds to new business growth. TD Synnex accounted for 33 percent of total net revenue in the quarter, a concentration worth watching. The plan is to move the indirect business in remaining major markets to the new transaction model by the end of fiscal 2025. Management expects that shift to lift calculated revenue growth while being broadly neutral to operating profit and free cash flow dollars and negative for calculated operating margin. Named risks include product development and customer acceptance, global economic and political conditions, inflation and supply chain disruption, the wars involving Ukraine and Israel and Hamas, acquisition integration, and tax rate assumptions.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.57B | $1.50B | +4.3% | $1.41B | +11.0% |
| Gross profit | $1.42B | $1.36B | +4.2% | $1.29B | +10.6% |
| Gross margin | 90.6% | 90.7% | -0.1 pp | 91.0% | -0.4 pp |
| Research & development | $378.0M | $368.0M | +2.7% | $339.0M | +11.5% |
| Sales & marketing | $525.0M | $480.0M | +9.4% | $439.0M | +19.6% |
| General & administrative | $161.0M | $161.0M | ±0.0% | $165.0M | -2.4% |
| Total operating expenses | $1.08B | $1.02B | +5.4% | $953.0M | +13.0% |
| Operating income (loss) | $346.0M | $343.0M | +0.9% | $334.0M | +3.6% |
| Operating margin | 22.0% | 22.8% | -0.8 pp | 23.6% | -1.6 pp |
| Net income (loss) | $275.0M | $282.0M | -2.5% | $241.0M | +14.1% |
| Net margin | 17.5% | 18.7% | -1.2 pp | 17.0% | +0.5 pp |
| Diluted EPS | $1.27 | $1.30 | -$0.03 | $1.12 | +$0.15 |
Risks
The Audit Committee completed an internal investigation into Autodesk's free cash flow and non-GAAP operating margin practices, and Autodesk voluntarily contacted the SEC and was contacted by the U.S. Attorney's Office for the Northern District of California. The investigation has been time-consuming and expensive, has resulted in shareholder litigation, and may lead to additional penalties, injunctions, or defense costs.
Autodesk is increasingly building AI into many offerings and expects AI to drive future growth, but competitors or third parties may incorporate AI more quickly or more successfully. AI offerings may also expose Autodesk to lawsuits, regulatory investigations, deficient or biased output, cybersecurity incidents, and brand or reputational harm.
Global economic and political conditions, including recession risk, inflation, higher interest rates, material scarcity, supply chain disruption, labor shortages, and the ongoing wars between Ukraine and Russia and between Israel and Hamas, may reduce customer spending and delay technology purchases. Autodesk specifically notes a recent deceleration in growth in certain geographies including China.
Autodesk is transitioning indirect business to a new transaction model, including North America in the second fiscal quarter of fiscal 2025 and Western Europe in the third fiscal quarter of 2025, with remaining major markets by the end of fiscal 2025. Sales incentives paid to Solution Providers move from contra revenue to operating expenses, which is expected to positively impact calculated revenue growth but result in a calculated negative impact to operating margin.
The shift to annual billings for multi-year contracts is expected to affect the timing of billings and cash collections, and some customers may choose annual contracts instead. Autodesk says this could proportionately reduce the unbilled portion of total RPO and negatively impact total RPO growth rates, while leaving deferred revenue, billings, current RPO, revenue, non-GAAP operating margin, and free cash flow broadly unchanged.
International net revenue represented 64% of net revenue during both the nine months ended October 31, 2024 and 2023. Autodesk faces tariffs, quotas, trade barriers, sanctions, retaliatory measures, and foreign regulatory risks, and new or increased U.S. tariffs or sanctions could materially affect operations and business outlook.
The software industry has limited barriers to entry and vigorous competition, and disruptive technologies such as machine learning and other AI technologies may significantly alter the market for Autodesk products and reduce customer demand. Increased competition could result in price reductions, reduced net revenue and profit margins, and loss of market share.
Autodesk depends on attracting new customers and renewing and expanding existing subscriptions, but customers are not obligated to renew and may elect not to renew, upgrade, or expand. Renewal rates may decline due to pricing, competitive offerings, customer satisfaction, or reduced spending, and if customers do not renew or renew on less favorable terms, revenues may decline.
Autodesk derives a substantial portion of net revenue from a small number of solutions, including AutoCAD-based software and collections. During the nine months ended October 31, 2024 and 2023, combined revenue from AutoCAD and AutoCAD LT family products, excluding collections, represented 26% and 27% of total net revenue, respectively.
Total revenue from TD Synnex accounted for 33% and 35% of total net revenue for the three and nine months ended October 31, 2024, respectively. Autodesk believes it is not substantially dependent on TD Synnex and entered a new distribution agreement with TD Synnex for government business in certain jurisdictions.
As of October 31, 2024, Autodesk had $2.30 billion aggregate principal amount of notes outstanding, with $300 million due in fiscal 2026, and a $1.5 billion revolving credit facility. Debt service obligations could limit flexibility, increase vulnerability to adverse conditions, and restrict future financing.
Autodesk regularly acquires or invests in businesses and made several acquisitions in fiscal 2024 and the nine months ended October 31, 2024, including Payapps. Integration risks include failing to realize revenue and cost synergies, inheriting liabilities, diverting management attention, and higher transaction or integration costs.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Deferred Revenue
Current Remaining Performance Obligations (cRPO)
Unbilled Deferred Revenue
Net Revenue Retention Rate (NR3)
Recurring Revenue as a Percentage of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q3 FY2025 (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.