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Autodesk Reports Strong Q4 2025 Results, Raises FY 2026 Outlook

Autodesk's latest quarterly results highlight a positive growth trajectory. In Q4 2025, EPS exceeded expectations, revenue met guidance, and free cash flow surged. The company sets an optimistic outlook for FY 2026, showing confidence in continued expansion.

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AI Rating:   7
Earnings Per Share (EPS)
Autodesk reported a non-GAAP EPS of $2.29, beating analyst expectations by $0.15 and marking a 9.6% increase from the previous year. This positive result reflects the company's effective cost management and increased sales through its subscription model.

Revenue Growth
Revenue for Q4 2025 reached $1.639 billion, which was right in line with the consensus estimate of $1.631 billion. This figure also represents an 11.6% increase compared to the same quarter in the previous year, showcasing the company's successful transition to a subscription service.

Profit Margins
The non-GAAP operating margin improved to 37%, up from 36% in Q4 2024. This slight increase indicates a focus on efficiency and profitability, which is a positive sign for investors looking at long-term growth prospects.

Free Cash Flow (FCF)
Free cash flow surged to $678 million, a significant 58.8% rise from $427 million in Q4 2024. A healthy free cash flow position suggests that the company is generating more cash than it is using, which can be reinvested in growth initiatives or distributed to shareholders.

Looking Ahead
For fiscal 2026, Autodesk's management expects revenue between $6.895 billion and $6.965 billion, and non-GAAP EPS projections of $9.34 to $9.67. These forecasts are notably higher than previous year results and reflect confidence in the company’s growth trajectory. However, potential macroeconomic uncertainties and competitive pressures have been mentioned, which could impact performance but do not overshadow the positive outlook.

Overall, Autodesk’s solid quarterly performance and favorable projections for the upcoming fiscal year are likely to attract investor attention, potentially impacting stock prices positively.
Stocks:  ADSK