Autodesk’s third quarter saw notable outperformance, with results surpassing Wall Street’s expectations and a positive market reaction. Management attributed this performance to robust customer adoption across architecture, engineering, construction, and manufacturing, especially amid ongoing investment in data centers and infrastructure projects. CEO Andrew Anagnost credited the company’s ongoing transition to cloud-based platforms and the growing integration of artificial intelligence as key contributors, stating that Autodesk is “building a platform with a vibrant third-party ecosystem that will make our solutions more valuable, enable new monetization opportunities, and make Autodesk more efficient.” Strong execution in the Autodesk store and improved billings linearity also supported the quarterly results.
Is now the time to buy ADSK? Find out in our full research report (it’s free for active Edge members).
Autodesk (ADSK) Q3 CY2025 Highlights:
- Revenue: $1.85 billion vs analyst estimates of $1.81 billion (18% year-on-year growth, 2.4% beat)
- Adjusted EPS: $2.67 vs analyst estimates of $2.50 (6.9% beat)
- Adjusted Operating Income: $698 million vs analyst estimates of $660.1 million (37.7% margin, 5.7% beat)
- Revenue Guidance for Q4 CY2025 is $1.91 billion at the midpoint, above analyst estimates of $1.86 billion
- Management raised its full-year Adjusted EPS guidance to $10.22 at the midpoint, a 3.3% increase
- Operating Margin: 25.4%, up from 22% in the same quarter last year
- Annual Recurring Revenue: $6.86 billion vs analyst estimates of $6.71 billion (17% year-on-year growth, 2.3% beat)
- Billings: $1.86 billion at quarter end, up 20.8% year on year
- Market Capitalization: $64.56 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Autodesk’s Q3 Earnings Call
- Saket Kalia (Barclays) asked about the balance between seat-based and consumption-based AI monetization. CEO Andrew Anagnost explained Autodesk aims to monetize both human and machine-driven workflows, capturing value from increased project throughput rather than just user count.
- Adam Borg (Stifel) questioned the penetration and expansion opportunity within Autodesk Construction Cloud accounts. Anagnost responded that many accounts are still early in their adoption, with further expansion possible as new projects migrate to the platform.
- Jay Vleeschhouwer (Griffin Securities) inquired about practical steps in customer migration and minimizing disruption. Anagnost outlined ongoing efforts to package new and legacy products together, enabling seamless transitions and gradual adoption of new cloud and AI features.
- Elizabeth Porter (Morgan Stanley) asked how AI capabilities are impacting multiproduct adoption and pricing power. Anagnost stated that task automation features are highly retentive and will support incremental monetization as more advanced workflow automations roll out.
- Josh Tilton (Wolfe Research) sought clarity on near-term billings growth and the impact of new channel incentives. Moorjani explained that strong execution and risk-adjusted guidance contributed to Q3 results, while Anagnost described efforts to shift channel incentives toward new business generation.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will be tracking (1) the pace of adoption for AI-driven features and workflow automations across Autodesk’s customer base, (2) the ability of direct sales and digital channels to sustain momentum in both mature and emerging markets, and (3) continued execution of the business model transition and go-to-market optimization. Progress in expanding product penetration within existing enterprise accounts and uptake of premium AI capabilities will also be important markers of future performance.
Autodesk currently trades at $304.95, up from $294.50 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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