Autodesk Q3 Earnings and Sales Surpass Estimates, Improve Y/Y

Autodesk ADSK reported third-quarter fiscal 2025 non-GAAP earnings of $2.17 per share, which beat the Zacks Consensus Estimate by 2.84% and improved 4.83% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company reported revenues of $1.57 billion, which beat the consensus mark by 0.45% and grew 11% year over year. The company generated broad-based growth across products and regions in AEC and manufacturing, along with strong renewal rates. Autodesk launched the new transaction model in Western Europe during the third quarter of 2025.Autodesk, Inc. Price, Consensus and EPS Surprise Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. QuoteTop-Line Details of ADSKAutodesk’s subscription revenues (92.8% of total revenues) increased 10.88% year over year to $1.45 billion. Maintenance revenues (0.57% of total revenues) declined 25% from the year-ago quarter to $9 million. Other revenues (6.62% of total revenues) increased 18.18% to $104 million in the reported quarter.Recurring revenues contributed 97% to Autodesk’s third-quarter fiscal 2025 revenues.The net revenue retention rate was within the company’s 100-110% targeted range, on a constant currency basis.Region-wise, revenues from the Americas (44.9% of revenues) increased 10.16% from the year-ago quarter’s levels to $705 million. Revenues from the EMEA, which accounted for 36.94% of revenues, climbed 12.4% to $580 million. Revenues from the Asia-Pacific (18.15% of revenues) increased 10.47% to $285 million.Billings of $1.54 billion increased 28% year over year in the reported quarter.Product Top-Line DetailsAutodesk offers primarily four product families: Architecture, Engineering and Construction (AEC), AutoCAD and AutoCAD LT, Manufacturing (MFG) and Media and Entertainment (M&E).AEC (47.83% of revenues) revenues increased 11.26% year over year to $751 million. AutoCAD and AutoCAD LT (25.35% of revenues) revenues rose 6.9% to $398 million. MFG (19.55% of revenues) revenues increased 14.13% to $307 million. M&E (5.29% of revenues) revenues increased 13.7% to $83 million.Operating ResultsAutodesk reported a non-GAAP operating income of $573 million, up 4.7% year over year.The non-GAAP operating margin was 36%, down 3 percentage points.Balance Sheet & Cash FlowAs of Oct. 31, 2024, Autodesk had cash and cash equivalents (including marketable securities) of $1.71 billion compared with $1.87 billion as of July 31, 2024.Deferred revenues decreased 9% to $3.66 billion. Unbilled deferred revenues were $2.45 billion, representing an increase of $1.24 billion compared with the year-ago quarter. Remaining performance obligations (RPO) increased 17% to $6.11 billion. Current RPO increased 14% to $4.01 billion.Cash flow from operating activities was $209 million, representing an increase of $191 million compared with the year-ago quarter. Free cash flow was $199 million, reflecting an increase of $186 million compared with the third quarter of fiscal 2024.Fiscal 2025 GuidanceAutodesk projects fiscal 2025 revenues between $6.11 billion and $6.13 billion, indicating approximately 11% growth. Billings are estimated in the $5.9-$5.98 billion band, suggesting an increase of 14-15% year over year.Non-GAAP earnings per share are expected between $8.29 and $8.35. ADSK expects a non-GAAP operating margin between 35.5% and 36% year over year.Free cash flow is anticipated in the $1.47-$1.5 billion band.For the fourth quarter of fiscal 2025, Autodesk expects revenues between $1.623 billion and $1.638 billion. Non-GAAP earnings are anticipated in the range of $2.1-$2.16 per share.Zacks Rank & Key PicksAutodesk carries a Zacks Rank #3 (Hold) at present. Shares of ADSK have gained 18.7% in the year-to-date period.Some better-ranked stocks from the broader Computer and Technology sector are Fortinet FTNT, Meta Platforms META and Reddit Inc. RDDT. Fortinet sports a Zacks Rank #1 (Strong Buy), while Meta Platforms and Reddit Inc. carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Fortinet shares have returned 64.7% in the year-to-date period.The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $18.3 per share. Meta Platforms shares have returned 62.1% in the year-to-date period.The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $20.1 per share. Reddit Inc. shares have returned 170.6% in the year-to-date period.The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $36 per share.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks