Autodesk (ADSK) Financials

Autodesk’s financial results show a strong multi-year growth and profitability trend, although the balance sheet remains heavily influenced by deferred revenue, debt and accumulated deficits. Revenue increased from $1.13 billion in Q3 fiscal 2022 to $2.05 billion in Q2 fiscal 2027, while operating income rose from $193 million to $599 million. In the latest quarter, gross margin was approximately 91.4%, operating margin was 29.3% and net margin was 24.0%.

Profitability has improved substantially. Net income increased from $137 million in Q3 fiscal 2022 to $492 million in Q2 fiscal 2027, while diluted EPS rose from $0.62 to $2.33. Autodesk has also consistently repurchased shares, helping reduce basic weighted-average shares from approximately 220 million to 210 million over the period. Operating cash flow has generally strengthened, reaching $575 million in Q2 fiscal 2027, although quarterly results have been volatile.

The balance sheet has expanded alongside the business. Cash and equivalents grew from $1.53 billion at the end of fiscal 2022 to $4.10 billion in Q2 fiscal 2027, and total assets increased from $8.61 billion to $12.98 billion. However, Autodesk continues to report negative retained earnings, substantial goodwill and liabilities that include a large deferred-revenue balance. Investors should also note that some cash-flow subtotals in the supplied data do not reconcile cleanly with their individual components, so the cash-flow trend should be interpreted with some caution.

• Sustained revenue growth: Quarterly revenue increased in nearly every comparable period, reaching a record $2.05 billion in Q2 fiscal 2027, up approximately 16% from Q2 fiscal 2026.
• Significant earnings expansion: Q2 fiscal 2027 net income of $492 million was up from $313 million in the year-ago quarter, while diluted EPS improved to $2.33 from $1.46.
• Strong recurring-revenue economics: Gross margins remained above 90% in the latest quarters, supporting considerable operating leverage as revenue grows.
• Improved operating cash generation: Operating cash flow rose from $212 million in Q2 fiscal 2025 to $575 million in Q2 fiscal 2027, providing funding for buybacks and other capital allocation.
• Share count reduction: Regular repurchases have helped lower basic weighted-average shares from about 220 million in Q3 fiscal 2022 to 210 million in Q2 fiscal 2027, supporting per-share earnings growth.
• Growing liquidity position: Cash and equivalents reached $4.10 billion, and cash plus short-term investments totaled approximately $4.16 billion in Q2 fiscal 2027.
• Deferred revenue is a major balance-sheet item: Current and noncurrent deferred revenue totaled approximately $4.46 billion in Q2 fiscal 2027. This reflects future contracted revenue, but it also makes conventional current-ratio analysis less useful.
• Cash flow remains uneven: Operating cash flow ranged from $209 million to $989 million across the provided quarters, with working-capital movements often causing significant swings.
• Debt remains material: Short- and long-term debt totaled approximately $3.48 billion in Q2 fiscal 2027. Although cash exceeded debt by roughly $677 million, refinancing costs and repayment obligations remain relevant risks.
• Negative retained earnings and intangible concentration: Retained earnings were negative $1.23 billion, while goodwill and intangible assets totaled approximately $4.75 billion, or more than one-third of total assets. Any impairment or weaker future performance could pressure reported equity.