Summary
Autodesk reported fourth-quarter fiscal 2026 revenue of $1.96 billion, up 19.4% from the prior-year quarter. Full-year revenue reached $7.21 billion, up 17.5%. Gross profit was $1.79 billion for the quarter, up 20.6%, and $6.56 billion for the full year, up 18.1%. Operating income was $431 million in the quarter, up 17.8%. Full-year operating income rose 16.5% to $1.58 billion. Net income was $316 million in the quarter, up 4.3%, and $1.12 billion for the year, up 1.1%. Diluted EPS for the full year was $5.23, up 2.1%.
Margins were mixed. Gross margin improved to 91.5% in the quarter from 90.6%, up 0.9 percentage points. Operating margin slipped to 22.0% from 22.3%, down 0.3 percentage points. For the full year, gross margin was 91.0% versus 90.6%, up 0.4 percentage points, while operating margin was 21.9% versus 22.1%, down 0.2 percentage points. Restructuring, other exit costs, and facility reductions tied to the January 2026 plan weighed on the operating result.
Cash generation was strong. Operating cash flow was $989 million in the quarter, up 42.9%, and $2.45 billion for the full year, up 52.6%. Capital expenditures were $17 million in the quarter, up 21.4%, and $43 million for the full year, up 7.5%. Free cash flow, a non-GAAP measure, was $972 million in the quarter, up 43%, and $2.409 billion for the full year, up 54%. Deferred revenue, current portion, was $4.41 billion at January 31, 2026, up 16.3% from a year earlier. Remaining performance obligations were $8.30 billion, up 20%, and current RPO was $5.479 billion, up 23%.
Operationally, billings were $2,804 million in the quarter, up 33%, and $7,771 million for the year, up 30%. Management called out strength in AECO, particularly construction and emerging markets. EBA and product subscription billings, billings linearity, and up-front revenue were areas of focus. Recurring revenue was 97% of net revenue in fiscal 2026 and fiscal 2025, and net revenue retention rate sat above the 100% to 110% range on a constant currency basis at both January 31, 2026 and January 31, 2025. Non-GAAP operating margin was 38% in the quarter and for the full year. Non-GAAP EPS was $2.85 in the quarter and $10.43 for the year.
The full-year fiscal 2027 outlook points to billings of $8.48 billion to $8.58 billion, non-GAAP operating margin of 38.5% to 39%, non-GAAP EPS of $12.29 to $12.56, and free cash flow of $2.70 billion to $2.80 billion. Management said the plan assumes the underlying momentum of the business stays strong, then adds prudence for temporary risk to billings and revenue as the company operationalizes its sales optimization plan. The company also said its new transaction model shifts sales incentives from contra revenue to operating expenses, which should lift calculated revenue growth while being broadly neutral to calculated operating profit and free cash flow dollars, and should weigh on calculated operating margin in fiscal 2027.
Risks include global economic and political conditions, foreign exchange headwinds, tariffs and trade wars, and geopolitical conflicts. Autodesk also flagged the shift to annual billings for multi-year contracts, competition, artificial intelligence, security, and tax rates. For fiscal 2027, the company expects cost of revenue, marketing and sales, and research and development to increase, general and administrative expenses to stay flat, and restructuring charges to fall. The 2026 restructuring plan is substantially complete as of January 31, 2026, and most of the costs of the January 2026 plan were incurred in fiscal 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.96B | $1.85B | +5.6% | $1.64B | +19.4% |
| Gross profit | $1.79B | $1.69B | +6.1% | $1.49B | +20.6% |
| Gross margin | 91.5% | 91.1% | +0.4 pp | 90.6% | +0.9 pp |
| Research & development | $420.0M | $416.0M | +1.0% | $393.0M | +6.9% |
| Sales & marketing | $636.0M | $612.0M | +3.9% | $526.0M | +20.9% |
| General & administrative | $191.0M | $172.0M | +11.0% | $173.0M | +10.4% |
| Total operating expenses | $1.36B | $1.22B | +11.7% | $1.12B | +21.5% |
| Operating income (loss) | $431.0M | $470.0M | -8.3% | $366.0M | +17.8% |
| Operating margin | 22.0% | 25.4% | -3.3 pp | 22.3% | -0.3 pp |
| Net income (loss) | $316.0M | $343.0M | -7.9% | $303.0M | +4.3% |
| Net margin | 16.1% | 18.5% | -2.4 pp | 18.5% | -2.3 pp |
| Diluted EPS | $1.47 | $1.60 | -$0.13 | $1.40 | +$0.07 |
Risks
Autodesk initiated two restructuring plans in fiscal 2026: the 2026 Plan in Q1 and the January 2026 Plan in Q4, the latter marking the final phase of its sales and marketing optimization program. Restructuring, other exit costs, and facility reductions rose to $216 million for fiscal 2026 from $15 million in fiscal 2025, and the company warns the plans could cause personnel attrition beyond planned headcount reductions or reduce morale, harming productivity and its ability to attract highly skilled employees.
The company states competitors or third parties may incorporate AI into their products more quickly or more successfully, which could impair its ability to compete, and flags that AI offerings may expose it to lawsuits, regulatory investigations, and cybersecurity incidents implicating end-user personal data. It also notes the EU AI Act and emerging U.S. state AI laws may raise research, development, and compliance costs.
The filing details significant and shifting U.S. trade policy, including additional Section 232 tariffs since March 2025, fentanyl-related tariffs on China, Canada, and Mexico, and reciprocal IEEPA tariffs that were rescinded on February 24, 2026 after a Supreme Court decision, replaced by a new global 10% temporary import surcharge under Section 122. Autodesk warns escalating protectionist or retaliatory measures could materially and adversely affect its financial condition, operations, and business outlook.
Under the new transaction model, sales incentives to Solution Providers are shifting from contra revenue to operating expenses, and Autodesk expects this to continue to positively impact calculated revenue growth while being broadly neutral to operating profit and free cash flow dollars but resulting in a calculated negative impact to operating margin in fiscal 2027. Indirect channel net revenue declined 26% to $2.65 billion for fiscal 2026 while direct revenue rose 78% to $4.56 billion as more end customers are transacted with directly.
The company derives a substantial portion of net revenue from a limited number of offerings, with combined revenue from the AutoCAD and AutoCAD LT family representing 25% of total net revenue in fiscal 2026 (down from 26% in fiscal 2025). It also relies significantly on major distributors and resellers, with TD Synnex accounting for 14% of total net revenue in fiscal 2026, 33% in fiscal 2025, and 39% in fiscal 2024.
Autodesk incurred significant audit, legal, and consulting expenses from the Audit Committee internal investigation into its free cash flow and non-GAAP operating margin practices, and though the SEC and USAO closed their matters in August 2025, the company and certain officers and directors face pending purported shareholder litigation and cannot guarantee no further regulatory inquiries or claims.
The company notes it generally recognizes subscription revenue over contract terms typically ranging from one to three years, so most quarterly revenue results from subscriptions entered into in prior quarters, meaning a decline in new or renewed subscriptions in any quarter may not be reflected until future periods. It also flags risk that customers transitioning from multi-year subscription contracts billed upfront to annual billing installments may choose annual contracts, which would proportionately reduce the unbilled portion of total RPO and negatively impact total RPO growth rates.
SaaS KPIs
All quarters →Net Revenue Retention Rate (NR3)
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q4 FY2026 (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.