Earnings call transcript: Autodesk Q4 2025 beats earnings expectations

Autodesk Inc (NASDAQ:ADSK). reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.29 against a forecast of $2.14. The company also exceeded revenue predictions, reporting $1.64 billion versus the anticipated $1.63 billion. Following the announcement, Autodesk’s stock rose 1.58% in after-hours trading, reflecting investor optimism despite broader market uncertainties. According to InvestingPro data, the company maintains impressive gross profit margins of 92%, demonstrating strong operational efficiency. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with analysts setting price targets ranging from $275 to $430.

Key Takeaways

• Autodesk’s Q4 revenue grew by 12%, driven by strong performance in construction and manufacturing segments.
• The company’s stock increased by 1.58% in aftermarket trading, following better-than-expected earnings.
• Autodesk plans to repurchase $1.1-$1.2 billion in shares during fiscal 2026.
• The company is focusing on AI-driven innovations and cloud platform enhancements.
• Fiscal 2026 guidance projects 8-9% revenue growth in constant currency.

Company Performance

Autodesk demonstrated robust performance in Q4 2025, with revenue increasing by 12% year-over-year, aligning with its consistent five-year revenue CAGR of 16%. The company’s focus on integrating design and make processes in the cloud and launching AI-driven features has bolstered its competitive position in the market. Despite macroeconomic uncertainties affecting customer investment decisions, Autodesk’s strategic initiatives in construction and manufacturing have yielded positive results. InvestingPro subscribers can access 13 additional key insights about Autodesk’s financial health, which currently rates as GOOD with a score of 2.74 out of 5.

Financial Highlights

• Revenue: $1.64 billion, up 12% year-over-year
• Earnings per share: $2.29, exceeding the forecast of $2.14
• Free cash flow for the full year: $1.57 billion
• Billings increased by 24% in Q4

Earnings vs. Forecast

Autodesk’s actual EPS of $2.29 surpassed the forecast of $2.14, marking a positive surprise of approximately 7%. The revenue also came in slightly above expectations at $1.64 billion, compared to the forecasted $1.63 billion. This performance aligns with Autodesk’s historical trend of consistent earnings beats, further solidifying investor confidence.

Market Reaction

Following the earnings release, Autodesk’s stock saw a 1.58% rise in after-hours trading, closing at $286.80. This positive movement contrasts with a 1.16% decline during regular trading hours. The stock remains within its 52-week range, with a high of $326.62 and a low of $195.32, indicating potential for further growth amid favorable earnings results. With a market capitalization of $60.77 billion and relatively low price volatility (Beta: 1.43), Autodesk maintains a strong market position. For detailed valuation analysis and comprehensive financial metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.

Outlook & Guidance

Looking ahead, Autodesk projects 8-9% revenue growth in fiscal 2026, with billings expected to grow by 17-19% in constant currency. The company aims for a non-GAAP operating margin of 39-40% and free cash flow between $2.075 billion and $2.175 billion. Autodesk plans to continue its share repurchase program, targeting $1.1-$1.2 billion in buybacks.

Executive Commentary

CEO Andrew Anagnost emphasized the importance of self-service capabilities, stating, "Self-service can touch just about every aspect of our business from a transactional point of view." CFO Janesh Mohjani highlighted Autodesk’s leadership in cloud and AI, noting, "We are leading in cloud platform and AI as we help our customers realize the benefits of converged workloads and data in the cloud."

Risks and Challenges

• Slower new business growth due to macroeconomic uncertainties.
• Potential impact of policy changes on customer investments.
• Need for continuous innovation to maintain competitive edge.
• Balancing resource allocation amid restructuring efforts.
• Dependence on successful execution of AI and cloud strategies.

Q&A

During the earnings call, analysts questioned Autodesk’s strategy to overcome challenges in new business growth. The company reiterated its focus on channel productivity and partner optimization, expressing confidence in its long-term growth potential. Executives also addressed concerns about macro policy changes and their potential impact on customer decisions.

Full transcript - Autodesk Inc (ADSK) Q4 2025:

Operator: Thank you for standing by, and welcome to Autodesk Fourth Quarter and Full Year Fiscal twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. I would now like to hand the call over to Simon May Smith, Vice President, Investor Relations. Please go ahead.

Simon May Smith, Vice President, Investor Relations, Autodesk: Thanks, operator, and good afternoon. Thank you for joining our conference call to discuss Autodesk’s fiscal twenty twenty five fourth quarter and full year results. Andrew Anagnost, our CEO and Janesh Mohjani, our CFO, are on the line with me. During this call, we will make forward looking statements, including outlook and related assumptions and on products, go to market and strategies. Actual events or results could differ materially.

Please refer to our SEC filings, including our most recent Form 10 Q and the Form eight K filed with today’s press release for important risks and other factors that may cause our actual results to differ from those in our forward looking statements. Forward looking statements made during the call are being made as of today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Autodesk disclaims any obligation to update or revise any forward looking statements. We will quote several numerical growth changes during this call as we discuss our financial performance.

Unless otherwise noted, each such reference represents a year on year comparison. All non GAAP numbers referenced in today’s call are reconciled in our press release or Excel and other supplemental materials available on our Investor Relations website. And now, I will turn the call over to Andrew.

Andrew Anagnost, CEO, Autodesk: Thank you, Simon, and welcome everyone to the call. Autodesk delivered strong fourth quarter and full year results. Billings and revenue topped the higher end of our expected range despite new foreign exchange headwinds, while margins and free cash flow exceeded our expectations. You will all have seen our restructuring announcement this afternoon, which has two parts. First, we have initiated the optimization phase of our sales and marketing plan.

And second, we are reallocating internal resources to accelerate our strategic priorities and strengthen our resilience. Let me talk about them in turn. Our go to market GTM model has evolved significantly and purposely from the transition to subscription and multi year contracts billed annually through self-service enablement, the adoption of direct billing and more. We are now beginning the optimization phase, which positions Autodesk to better meet the evolving needs of its customers and channel partners. This comes from faster and less complex processes and more digital self-service and automation that enable tighter channel partnerships and less duplication of effort.

Autodesk will continue to evolve its GTM to increase customer satisfaction and Autodesk productivity. Our current focus is on marketing, customer success and operations with an emphasis on consolidating teams into centers of excellence and investing in systems and processes that increase sales and marketing, S and M, efficiency at scale. Our future focus will be on tighter channel partner integration, which will drive sales productivity and a greater emphasis on value creation for customers and the broad deployment of self-service capabilities to further increase sales and marketing efficiency. Through this ongoing optimization, we expect operating profit dollars and pre new transaction model non GAAP margin improvement in both fiscal twenty twenty five and fiscal twenty twenty seven. And once the optimization phase is complete, we expect to deliver GAAP margins among the best in the industry.

Turning to where we are reallocating internal resources to focus on the long term. Autodesk is focused on the convergence of design and make in the cloud, enabled by platform, industry clouds and AI. Our investments in cloud, platform and AI are ahead of our peers and will drive growth by providing our customers with increasingly valuable and connected solutions and supporting a much broader customer and developer ecosystem. To maintain and extend this leadership, we’re shifting resources across the company to accelerate investments in these high potential strategic priorities. We are also building the capabilities we will need to enable future optimization and ensuring that we distribute critical expertise globally to remain competitive, resilient and flexible.

As I said last quarter, we are generating strong and sustained momentum in absolute terms and relative to peers. There are three main reasons: attractive long term secular growth markets, a focused strategy delivering ever more valuable and connected solutions to our customers and a resilient business. Disciplined execution is driving greater operational velocity and efficiency. We are deploying capital to grow the business, further reduce our share count and enhance value creation over time. We believe these factors will deliver sustainable shareholder value over many years.

Janesh is with me here at our annual sales conference today. We’re excited to have him at Autodesk and he’s already making an impact. I’d like to welcome him and turn the call over to him, so he can take you through our results and guidance for the year ahead. I’ll then come back to provide an update on our strategic growth initiatives.

Janesh Mohjani, CFO, Autodesk: Thanks, Anurub. I am delighted to be here with all of you. Before I get into our results, I’ll touch on two areas of potential that I saw that attracted me to Autodesk. First, we are well positioned to deliver growth at scale as we drive the convergence of design and make in the cloud enabled by platform, industry clouds and AI. And second, we have significant potential to drive expanded profitability as we further optimize the level and effectiveness of investments in the business.

Having spent the last few months dealing a deeper understanding of the business, I am confident in our ability to do both. Let’s turn to the results. The fourth quarter and full year fiscal twenty twenty five results were strong. Overall, the broader economic environment and the underlying momentum of the business in the fourth quarter were consistent with the last few quarters with continuing strong renewal rates and headwinds to new business growth. Total (EPA:TTEF) revenue in the fourth quarter grew 12% as reported and in constant currency.

We generated broad based growth across products and regions. By product in constant currency, AutoCAD and AutoCAD LC revenue grew 9%, AECO revenue grew 15%, manufacturing revenue grew 10% and in the low teens excluding upfront revenue and M and E revenue grew 10%. Our make products continue to enhance growth driven by ongoing strength in construction and fusion. By region in constant currency, revenue grew 11% in The Americas, 13 Percent in EMEA and 11% in APAC. The contribution from the new transaction model to revenue was $46,000,000 in the fourth quarter and $71,000,000 for the year.

Direct revenue increased 35% in constant currency and represented 47% total revenue, up eight percentage points from last year benefiting from strong growth in the Autodesk store and also from the tailwind to revenue from the new transaction model. Billings increased 24% in the quarter at constant currency, reflecting the shift to annual billings for most multi year contracts and the transition to the new transaction model. The contribution from the new transaction model to billings was $155,000,000 in the fourth quarter and $262,000,000 for the full year. RPO of $6,900,000,000 and current RPO of $4,500,000,000 grew 1412% respectively. As expected, current RPO growth was affected by tailwinds from the new transaction model and headwinds from the declining contribution of build and unbilled deferred revenue from larger multiyear and EBITDA cohorts ahead of renewal in fiscal twenty twenty six.

Turning to margins. Fourth quarter GAAP and non GAAP operating margins were 2237% respectively reflecting year over year increases of 9,160 basis points. We were pleased that we exceeded our non GAAP margin expectations demonstrating strong fiscal discipline. For fiscal twenty twenty five, GAAP and non GAAP margins increased approximately two twenty basis points and 140 basis points year over year respectively excluding the impact of the new transaction model and currency movements. Free cash flow for fiscal twenty twenty five was $1,570,000,000 which was ahead of the high end of our guidance.

In the fourth quarter, we purchased approximately 1,400,000.0 shares for $414,000,000 at an average price of approximately $299 per share. For the full year, we purchased approximately 3,100,000.0 shares for $858,000,000 at an average price of approximately $279 per share. Turning to guidance. To give you a clearer view on the underlying dynamics of the business, I will speak to the numbers excluding the impact of the new transaction model and in constant currency. You’ll also see in today’s earnings deck that we split out the impact of the new transaction model and currency movements for our fiscal twenty twenty six guidance.

For a further review of how the new transaction model works, please see the opening commentary and earnings deck from our Q2 fiscal twenty twenty five earnings call. Let me start by framing how we are thinking about fiscal twenty twenty six. Our starting position is strong. We hold leadership positions in many of our markets and have a loyal customer base with a high degree of recurring revenue. We are leading in cloud platform and AI as we help our customers realize the benefits of converged workloads and data in the cloud.

In building our guidance, we have not seen fundamental changes in the broader geopolitical and macroeconomic environment or in the momentum of our markets. Our business model is resilient and we are seeing strong momentum in our growth businesses like construction and fusion. Our focus through fiscal twenty twenty six will be on driving growth from new and existing customers, while maintaining strong renewal rates. Our approach to building the guidance for fiscal twenty twenty six was similar to that for fiscal twenty twenty five. Our guidance is based on the range of possible outcomes in our bottom up sales forecast, which is grounded in the momentum of the business.

Given our restructuring plans and CRO transition, we believe some disruption is possible. While we have mitigation plans and actions in place for these changes, we believe it is prudent to consider these in our outlook and our guidance reflects this. This streams how we are thinking about fiscal twenty twenty six. There are more financial details in our earnings press release and earnings deck, but let me give you some color. We expect constant currency billings growth of 17% to 19% excluding the impact of the new transaction model.

Billings growth remains elevated this year due to our transition to annual billing for most multi year contracts. We expect constant currency revenue growth of between 89% excluding the impact of the new transaction model. This range reflects the assumptions that I mentioned earlier. We expect GAAP operating margin to be in the range of 21% to 22. Excluding the impact of the new transaction model and currency movements, we expect non GAAP operating margin to be in the range of 39% to 40%, which is at the higher end of the guidance range we gave three years ago.

We expect to generate between $2,075,000,000 and $2,175,000,000 of free cash flow in fiscal ’twenty six. This is after absorbing approximately $110,000,000 to $120,000,000 of cash outflows related to the actions we announced earlier today and includes an anticipated discrete cash benefit of $130,000,000 to $150,000,000 from the utilization of U. S. Deferred tax assets. We’ve provided more information on this in the slide deck.

We expect to buyback between approximately 1,100,000,000 and $1,200,000,000 of shares in fiscal ’twenty six, which is a 30% to 40% increase compared to fiscal ’twenty five and the timing of which will depend on market conditions and other factors like debt refinancing. The slide deck on our website has more details on modeling assumptions for the first quarter and full year fiscal ’twenty six. Finally, I’ll share how we are currently thinking about our longer term future. Since joining Autodesk last December, my conviction and our market opportunity, our ability to meaningfully expand our operating margin and our capacity to deliver sustainable shareholder value over many years has been reaffirmed. That said, our underlying growth has been hovering around the bottom end of the 10% to 15% revenue growth framework we previously provided as you’ve seen over the past couple of years and in our fiscal twenty twenty six guidance.

While we believe our resilient base, the successful execution of our product strategy and the benefits of the new transaction model will catalyze sustainable growth in the future, our 10% to 15% growth framework is no longer appropriate given the consistent momentum of the business today. On the other hand, it’s clear to me that margins can be higher. We’ve announced today the first phase of our go to market optimization, which is primarily in marketing, customer success and operations and reflects the continued execution of our overall go to market evolution of the past few years. We are focused on executing this plan while minimizing potential disruption. Through this phase, we intend to deliver underlying operating margin expansion in fiscal twenty twenty six as reflected in our guidance, while also building capabilities we need for future optimization beyond fiscal twenty twenty six.

These capabilities include tighter channel partnerships with less duplication of effort and more digital self-service and automation, which increases customer satisfaction and workforce productivity. Once our overall go to market optimization is complete, we expect Autodesk will be able to better serve its customers and deliver GAAP margins among the best in the industry. We will share more on our path to further margin expansion at an Investor Day in the third quarter of this year. It’s been invigorating getting to work, finalizing our fiscal twenty twenty six plans and preparing for execution. I can already see there’s tremendous potential ahead.

I look forward to meeting our investors and analysts over the coming weeks. Andrew, back to you.

Andrew Anagnost, CEO, Autodesk: Thank you, Janesh. Autodesk is focused on the convergence of design and make in the cloud enabled by platform, industry clouds and AI. Autodesk is at the forefront of convergence because we’ve been evolving and investing in the business models, products and platforms and go to market to capitalize on it. With Convergence, simulation done in the conceptual design phase can significantly reduce rework and cost during construction. With Convergence, the components of a building can be manufactured off-site and assembled on-site at lower cost and higher safety.

With Convergence, universal AI models can make better and more valuable inferences that power a better world designed for all. Let me give you a few examples from the quarter. Mott MacDonald, a global engineering development and management consultancy known for its work on major projects such as Heathrow Airport Terminal 5 and the Bay Area Rapid Transit, BART, Silicon Valley Phase two extension renewed its sixth EBA in the quarter. This renewal expands our long standing partnerships to drive better outcomes through digital delivery. In addition to expanding usage of Revit, Civil three d, Artis Build and Artis Water, Mott MacDonald plans to leverage additional capabilities to increase project productivity and workflows for optimized design.

Power Design, the number 28 E and R 600 specialty contractor, selected Artis Build as an essential link in their construction technology. This strategic choice enhances coordination between design and construction ensuring seamless collaboration across teams and systems. By unifying project data from concept to completion, Autodesk helps Power Design protect design integrity, optimize workflows and drive efficiency at scale. Cleveland Construction, a national commercial GC, is replacing a competitive solution with Autodesk Construction Cloud to support the next phase of its growth and leveraging our end to end solution from pre construction to cost management and payments with GC Pay. I talked earlier about closer integrations with our channel partners and this deal demonstrates that potential.

Using its proprietary technology for migrating project data from display solutions, an Autonomous Platinum partner produced a comprehensive implementation plan that gave Cleveland Construction the confidence to make this transition. These stories have a common theme, converging people, processes and data across the project lifecycle to increase efficiency and sustainability, while decreasing risk. Our comprehensive end to end industry cloud and platform drive convergence and extend our footprint further into larger growth segments like infrastructure and construction. As a sign of our progress, construction revenue growth accelerated in the fourth quarter and we added almost 400 net new logos. Moving on to manufacturing, we made excellent progress on our strategic initiatives.

Customers continue to invest in their digital transformations and consolidate on our Design and Make platform to drive growth and increase resilience. For example, a global leader in toys is expanding its usage of Autodesk to all three of our industry clouds, Fusion, Form a and Flow to meet its profitability goals in manufacturing, while launching new revenue models into digital entertainment. Autodesk’s unique industry expertise across AECO, manufacturing and media bridges data across physical and digital product development and between design and make. Mueller, a family owned Swiss multinational plant equipment manufacturer renewed and expanded its EBA in the quarter. ARGUS will be one of Buela’s key strategic partners in the development and execution of their digital strategy and that moves to optimize for outcomes by connecting data and workflows from product and plant design to project delivery, including installation.

MSC Industrial (NYSE:MSM) Supply, one of the largest industrial distributors in North America with the leading position across metalworking product categories, will begin leveraging Artis Fusion’s connected supply chain capabilities and unique all in one cloud, CAD, CAM, CAE (NYSE:CAE) and PCB platform to enhance its industry leading application optimization, APOOP program. Through this strategic relationship, MSC’s team of metalworking specialists will be able to optimize toolpaths and validate cutting parameters more efficiently through enhanced virtual testing capabilities that further strengthen their best in class tooling recommendations for manufacturing customers. By combining MSC’s suite of solutions and services with Autodesk Fusion’s advanced capabilities, this partnership creates an unmatched value proposition for manufacturers in North America, resulting in approximately $500,000,000 in savings for M and C’s customers in fiscal year twenty twenty four. Converged data opens new opportunities for Autodesk. In this case with the sales team, as customers seek to drive efficient innovation, Fusion extension attach rates are increasing and driving average sales prices up, And we’re delivering meaningful productivity gains to customers where we deploy AI.

For example, our recently launched auto constraints tool in Fusion, which leverages AI to simplify the process of defining sketch geometry, has a roughly 50% acceptance rate on suggested geometry, saving significant time for higher value work. In education, universities continue to modernize their courses and curriculum to attract and prepare future engineers. For example, in Q4, Art assigned a memorandum of understanding with the Indian Institute of Technology, Bombay, to integrate our industry leading solutions into IIT Bombay’s innovative education and research programs to equip the next generation of engineers and designers with industry ready skills. And lastly, we continue to work with our customers to ensure that they are using the latest and most secure versions of our software. For example, while working with an administrator of European railway infrastructure in the process of adopting BIM to optimize its infrastructure development and sustainability practices, we identified gaps in compliance.

Working together, we address compliance while supporting their digital transformation. Attractive long term secular growth markets, a focused strategy delivering ever more valuable and connected solutions to our customers and a resilient business are generating strong and sustained momentum in absolute terms and relative to peers. Disciplined execution is driving greater operational velocity and efficiency. We are deploying capital to grow the business, further reduce our share count and enhance value creation over time. In combination, we believe these factors will deliver sustainable shareholder value over many years.

Throughout all of this history, we have taken decisive actions to drive our business forward, even when they are difficult. This commitment has been paramount to our success over the last forty years and remains true today. To our team members who depart as a result of our restructuring, I extend my sincere appreciation for your contribution to Autotiv. You will always be a part of Autodesk story and I am grateful for everything you have done. Operator, we would now like to open the call up for questions.

Operator: Thank Our first question comes from the line of Saket Kalia of Barclays (LON:BARC). Please go ahead Saket.

Saket Kalia, Analyst, Barclays: Okay, great. Hey guys, thanks for taking my questions here and welcome Jinesh.

Janesh Mohjani, CFO, Autodesk: Thank you, Jackie.

Saket Kalia, Analyst, Barclays: Absolutely. Andrew, maybe to start with you.

Janesh Mohjani, CFO, Autodesk: I want to zoom into the

Saket Kalia, Analyst, Barclays: 10% to 15% medium growth rate a little bit. And if I’m understanding your comments correctly, the rate of new business growth is the key reason why that medium term growth rate maybe is no longer appropriate. And you’ve been talking about slow new business for a while now. Maybe the question is, what drives that new business growth higher over time?

Andrew Anagnost, CEO, Autodesk: Yes, Saket. Good evening, Saket. Good to talk to you, thanks for this question. Look, first off, I think you’ve got the thinking right upfront. Let me just comment a little bit on what’s happened in the past and then I’ll answer the substance of your question.

So first off, if we look back in the past, there’s a couple of things that were really impacting new business growth as we were moving through the last couple of years. One is all the things that Autodesk was changing. So we changed a lot of things that has a measurable impact on partner productivity with regards to balancing renewals and new business. The other thing was economic uncertainty, all the things associated with the macro environment. These things impair some of our customers’ willingness to invest in their business.

So those things happen lately in the past. Moving forward, there’s some things that we have control of and that we don’t have control of that are going to drive us back on to our growth path. The first thing, if we look at the things we don’t have control, we don’t have control of the macro uncertainty. That’s going to continue and that will definitely impact some of our customers’ thinking. But what we do have control of is in two key areas, one related to new product subs and one related to our new businesses that primarily show up in the make category, the emerging and high growth businesses.

With regards to the former, we are on a journey of go to market optimization right now and that is going to enhance the productivity of our channel. We’ve been impacting their productivity with all the change. We’re on a cycle now where over a period of time we’ll be increasing their productivity. That’s going to allow them to focus more on new business growth. That’s in our control.

The other thing that’s in our control is during this current, risk cycle, we actually invested in driving the growth of our emerging and high growth business on the make side. And that includes investing in the industry clouds, the core cloud platform and in AI. So these things are going to not only continue the current momentum, but our goal is to enhance the current momentum and these are high growth businesses having long term impacts on our business. So those are the things that are in our control that get us back to a place where we can feel confident in reinforcing the floor of our long term business growth.

Saket Kalia, Analyst, Barclays: Got it. And maybe that’s a natural segue for you Janesh. I mean, as you know, margin potential has been one of the key investor debates on Autodesk. And so I mean, I think maybe to start it’s important to flag that margins here for 2025 were ahead and the guide for 2026 is higher than expected as well. But maybe you could just give us a little bit more color on the margin potential here and how today’s restructuring announcement to Andrew’s point maybe fits into that debate?

Janesh Mohjani, CFO, Autodesk: Thanks, Arkit. I appreciate this is one of the foremost issues on investors’ minds. As I step back and look at fiscal twenty twenty five first, we’re actually really pleased that we delivered strong outperformance here. Thanks to our strong fiscal discipline in the fourth quarter. And I want to thank Betsy for setting us up for a strong Q4 on that front.

Today’s announcement does reflect the continuation of our multi year journey as Andrew was talking about to evolve our go to market and it fits in very nicely with our overall margin expansion goals. It’s something that the team had been planning for thoughtfully since the introduction of the new transaction model. It’s also allowing us to expand our underlying non GAAP operating margin quite meaningfully this year when you hold aside the effects of the new transaction model. So when I look at it serving customers better through tighter integration and more self-service eventually expands our market opportunity and also ultimately lowers the unit cost of serving those customers which will help drive an even more efficient go to market motion in the future. So, we have conviction and our potential to drive higher margins over time as we execute this plan and as we focus on future opportunities that I touched on in the opening commentary.

Saket Kalia, Analyst, Barclays: Very helpful guys. Thank you.

Janesh Mohjani, CFO, Autodesk: Thank you.

Operator: Thank you. Our next question comes from Adam Borg of Stifel. Please go ahead, Adam.

Adam Borg, Analyst, Stifel: Awesome. Thanks so much for taking the question. I’d like to extend the welcome to Janesh as well. Maybe for Andrew, just piggyback on a comment you just made to Saket’s question around this macro uncertainty and obviously things that are outside of your control. I’d love to hear a little bit more about kind of what you’re hearing with your customer conversations around overall sentiment, how that’s playing out overall, then maybe talk a little bit about the new administration and some potential puts and takes there either shortening regulation being a tailwind or some questions around tariffs and immigration policy and how that will ultimately impact customers and their decision making over the next six to twelve months?

Thanks so much.

Andrew Anagnost, CEO, Autodesk: Yes. Okay, Adam. Thanks for asking my question. So first off, our business is resilient enough, it’s diversified enough that it can absorb and react to any kind of policy changes in a sustainable way. The thing I’m hearing from our customers is they want certainty.

It’s uncertainty that’s kind of fueling customer angst. It’s not what the output is, what the answer is, it’s just the uncertainty. And that’s the thing that we want to move fast and past. We want to move to certainty policy. Once policy is in place, I have faith in Autodesk business to navigate whatever the policy is.

But uncertainty is not something that our customers want to work through.

Adam Borg, Analyst, Stifel: Great. Thank you so much.

Operator: Thank you. Our next question comes from the line of Jay Blishauer of Griffin Securities. Please go ahead, Jay.

Jay Blishauer, Analyst, Griffin Securities: Thank you. Good evening. Andrew, with respect to the 10% to 15% growth range you’ve previously spoken of, the company at its last analyst meeting gave us multiple elements of that. In other words, a variety of price and volume components for that, most of which had to do with your core business, as you call it, renewal and expansion within the core business, less so with newer adjacent businesses. So maybe break down that thinking about the growth range in those terms, perhaps with regard to how you’re thinking about pricing leverage from here and the multiple elements of Q or volume that you had previously spoken of?

Then I have a product question.

Andrew Anagnost, CEO, Autodesk: Yes. Jay, I’m going to go back to what I said previously and focus on these two key elements. Enhancing channel productivity as we move through all these changes, that is a critical thing for us. It’s part of our ongoing optimization cycle. It’s going to be something that delivers over multiple years.

That will create a tailwind within our channel business for some of these core subs issues. And I think that’s the more important thing to focus on. And the emerging businesses have always been a part of our plan. And I think you see very clearly that the make businesses are growing robustly and we are investing to make sure that those continue to grow at that rate or accelerate beyond that rate. So that’s where you want to focus right now in terms of getting the business back to where we want it to be over time.

Jay Blishauer, Analyst, Griffin Securities: Okay. Outside of the various go to market changes and optimization and so forth, what would you say for this year and beyond are the critical product or technology executables that you are reallocating to or investing in? Maybe talk about how you’re thinking about the business impact of platform services, the new data models and so on and so forth, things that we’ve talked about consistently and most recently at AU?

Andrew Anagnost, CEO, Autodesk: Yes. So what we’re doing is we’re accelerating some of the roadmaps associated with our industry cloud. So you’re going to see more and more activity associated with the form a side of the AEC industry cloud. And you’re going to see more energy and activity associated with the Fusion cloud and some of the things associated to driving that. So there’s investments made in that within the core platform.

It’s all about expanding the granular data that’s available to our customers, expanding the footprint of APIs that are available to our customers and investing in that, so

Janesh Mohjani, CFO, Autodesk: that we can accelerate not only what

Andrew Anagnost, CEO, Autodesk: our customers are accessing, but the common services that the industry clouds are accessing. So that’s part of the investment. And of course, we’re going to continue to turn the crank on some of the AR features. As you know, Jay, we just introduced our first commercial AI generative AI feature into Fusion. It’s the auto constraint feature.

It’s out there getting used by our users. It’s got approximately a 50% acceptance rate, which is a really high rate for a generative technology and it just gets smarter as it goes. That’s a real productivity tool for our customers that really makes a difference. There’s going to be more of those, right. And that’s where the investment is going.

Jay Blishauer, Analyst, Griffin Securities: Thank you, Andrew.

Operator: Thank you. Our next question comes from Jason Celino of KeyBanc Capital Markets. Your question please, Jason.

Jason Celino, Analyst, KeyBanc Capital Markets: Great. Thanks for taking my question. One question on the guide and then the reduction in force. Now I’m cognizant that you’ve got some business momentum and I understand why you’re making the changes. But does the revenue guide assume any extra conservatism just on potential of disruption?

It’s just the change is quite a large reduction. So I guess what have you built in to

Andrew Anagnost, CEO, Autodesk: the guide relative to that?

Janesh Mohjani, CFO, Autodesk: Hey, this is Janesh. Maybe I’ll take that. So as I mentioned in the opening commentary, our approach to building the guidance for fiscal twenty twenty six did consider a range of possible outcomes from our overall bottoms up sales forecast and then we did factor in some level of risk potential associated with the restructuring plans and the CRO transition. We’ve put in place good medication plans and actions that we have to manage those, But we thought it’s prudent to consider these in our outlook, so our guidance does reflect that.

Jason Celino, Analyst, KeyBanc Capital Markets: Okay. Appreciate that. And then on prior calls, there were some mentions of a bigger EBA cohort, multiyear customers coming up for renewals. That wasn’t really brought up on this call. Is that still an opportunity for you for this year?

And any details on how big of a cohort this might be or what’s built in? Thank you.

Janesh Mohjani, CFO, Autodesk: It’s still an opportunity. We didn’t reference it discreetly because we have mentioned it before. Nothing has really changed on that front. We’ve got both the EBA cohort as well as the product subscription multiyear cohorts that will come up for renewal later this year. Okay.

Jason Celino, Analyst, KeyBanc Capital Markets: Thank you, Janesh.

Andrew Anagnost, CEO, Autodesk: Thank you.

Operator: Thank you. Our next question comes from Taylor McGinnis of UBS. Please go ahead, Taylor.

Taylor McGinnis, Analyst, UBS: Yes. Hi. Thanks so much for taking my question. Just on

Analyst, UBS: the margin guide, so the underlying 300 basis points of margin improvement is really strong. So can you just break down and quantify the drivers of that expansion? So how much is from cost savings like scaling back on some of the duplicative costs and streamlining the sales force?

Taylor McGinnis, Analyst, UBS: How much might be from cost savings associated with the risk?

Analyst, UBS: And then maybe just secondly, when we think about the margin potential beyond 2026, I guess any initial thoughts you can provide there? Thanks.

Janesh Mohjani, CFO, Autodesk: Yes, I’m happy to take that. So as we think about the overall impact in fiscal twenty twenty six and the underlying operating margin increase that we’re guiding to, That demonstrates our overall commitment to expanding profitability this year obviously, but it’s part of our longer term plans. The reinvestment and our organic hiring plans, all of that is an integrated plan. You mentioned the actions that we’ve taken in the field organization and the RIF and that’s all part of the same plan. We also had our organic hiring plans that we had for fiscal twenty twenty six.

So, it’s hard to break all of that apart. But that said, to just give you a sense of how we are thinking about it, if you look at our fiscal twenty twenty five total spending, that grew 7% year over year excluding the new transaction model. And our fiscal twenty twenty six total spending, that implies growth of only 4% year over year on a similar basis in constant currency. So that gives you a sense of the extent of both the optimization and the spend discipline that we are driving in the business overall. And then, as I think a little bit ahead on fiscal twenty seven, we are committed to further margin expansion beyond fiscal twenty six on an underlying basis, as we’ve talked about.

And that will continue and ultimately when that overall go to market optimization is complete, we expect that we’ll have GAAP margins among the best in the industry and we’ll share a little bit more details in terms of what that means when we get to our Investor Day in the third quarter.

Taylor McGinnis, Analyst, UBS: Great. Thank you so much.

Operator: Thank you. Our next question comes from Bhavan Shah of Deutsche Bank (ETR:DBKGn). Please go ahead Bhavan.

Simon May Smith, Vice President, Investor Relations, Autodesk0: Great. Thanks for taking my question. Janesh, just kind of following up on that. What’s the timeline you guys are thinking about in terms of kind of seeing some of the benefits from a lot of the adjustments you’re making to sales and marketing and when

Janesh Mohjani, CFO, Autodesk: do you kind of

Simon May Smith, Vice President, Investor Relations, Autodesk0: see that sales and marketing efficiency show up from a revenue perspective?

Janesh Mohjani, CFO, Autodesk: Yes, Pavan, clearly we are seeing a significant benefit here in fiscal twenty twenty six itself. As I mentioned, that’s a big part of the underlying margin expansion that we are delivering. With respect to what that translates to for fiscal twenty twenty seven and beyond, as I mentioned, we’ve got more work to do in terms of the next set of activities that we need to plan for as we think about what it means to drive cytos channel partner integrations and build the capabilities that we need for self-service. We’re investing this year to build those capabilities so that we can be set up to lower our overall cost to serve our customers in future years. And again, we will spell some of the details out around that in the Investor Day in the third quarter.

That’s super helpful. And just one quick follow-up.

Simon May Smith, Vice President, Investor Relations, Autodesk0: And it sounds like you guys are going to be pretty aggressive from a shareholders return perspective in fiscal twenty twenty six. And kind of given some of the changes you’re talking about from a top line perspective and focused on efficiencies, How are you now thinking about M and A and do these actions change your view at all?

Andrew Anagnost, CEO, Autodesk: Yes, our view on M and A doesn’t change. We’ve always been an acquisitive company. We’re always looking for anything that can accelerate our strategy or take us into adjacencies that we think are relevant to the company. But that’s consistent with previous stances on this. If we see something like that, we will act on it.

Operator: Thank you. Our next question comes from Joe Your line is open. Please go ahead.

Simon May Smith, Vice President, Investor Relations, Autodesk1: Great. Sorry, I was on mute. I’ll get this right one of these times. I wanted to go back a few questions just on the year over year margin assumptions. It looks like if I’m reading Slide 10 correctly, you’re assuming that agency change is about a six point impact on growth in the upcoming year.

So So I think that means a six points headwinds on margins. You’re kind of guiding the margins flat to slightly up. So can you bridge the six points you’re able to layer back on to get to where you’re guiding the year?

Janesh Mohjani, CFO, Autodesk: Joe, I’m happy to take that. The six point revenue headwind is the right way to think about the top line, but that doesn’t translate to a six point margin headwind. You’ll see on that same slide that we’ve actually just spelled out for you exactly what the margin headwind is as well. It’s three percentage points. So, on an as reported basis, we would expect to ultimately have 36% to 37% and that’s the same in constant currency.

But once you adjust for the new transaction model as well as currency that rises to 39% to 40%.

Simon May Smith, Vice President, Investor Relations, Autodesk1: Okay. And that’s the underlying you’re talking about? Okay.

Andrew Anagnost, CEO, Autodesk: And then That’s right. Because keep

Janesh Mohjani, CFO, Autodesk: in mind, you’ve got partner commissions that we pay as well in that model.

Simon May Smith, Vice President, Investor Relations, Autodesk1: Yes. Okay. Understood. And then going to just it makes sense that as you see slower new subscriber addition that builds over time and kind of compresses the revenue growth rate. I guess the one thing that’s a bit surprising is the growth rates in the AEC product segment are still really good.

And I think this quarter was 14 and that seems just as difficult an environment as what manufacturing customers in a lot of way are going through. Do you think you’re kind of outperforming there in that segment and maybe there’s challenges elsewhere because it would seem like the AEC performance is ultimately standing out in this environment?

Andrew Anagnost, CEO, Autodesk: Yes. So what you’re seeing in AEC is you’re seeing our construction performance, all right. Construction is doing quite well. You saw that we added 400 new logos. We’ve got a building momentum there.

We’ve got a great product. Looking forward, we’re very bullish about where we’re taking the construction business. The payment business is doing well. We’re seeing wonderful growth associated with that. Customers like the product.

They have plans to implement it. They’re really attracted to the broad end to end solution. That’s what people are buying for their future, not for their present needs. They’re trying to get in front of where they need to be. That’s what you’re seeing in AEC.

I also want to make sure that I just address something you said. Remember, with regards to manufacturing growth, you just have to take into account that we had some upfront revenue compared to last year. Those upfront revenue blips kind of have a disproportionate impact on how the manufacturing looks when you account for that. That growth is actually in low double digits. So we’re actually performing well there as well relative to peers, especially on a full year basis.

So what you’re seeing in AEC, that’s why you want to see us drive those make businesses even more because they’re really having an impact. Revit’s doing great, there’s no doubt, but construction is doing fantastic.

Simon May Smith, Vice President, Investor Relations, Autodesk1: Okay. Thank you very much.

Operator: Thank you. Our next question comes from Elizabeth Porter of Morgan Stanley (NYSE:MS). Please go ahead Elizabeth.

Taylor McGinnis, Analyst, UBS: Great. Thank you very much for the question. Self-service sounds like a pretty big opportunity to drive the underlying efficiency. And just given Autodesk can be a complex piece of software that does require some higher touch from sales or partners. Just how should we think about the base of business that could be applicable to self-service?

Any sort of comments to help us understand where it is today and where it could go over time would be very helpful. Thank you.

Andrew Anagnost, CEO, Autodesk: Yes. Self-service can touch just about every aspect of our business from a transactional point of view. So for instance, as a matter of fact, in some of our reinvest, we’re going into improving some of these self-service capabilities right out of the gate. So on a transaction basis, the easier you make it for customers to see what they own, manage what they own, add new seats and all the things and be aware of what their users are using and where they might need more capacity, that drives upselling cross sell immediately. The other aspects of self-service on the support level, look there’s a bunch of things that our customers come in and do that are very low value transactions that we’re getting significantly better at building systems that can automatically address those needs with with the customers, so that we can focus our human resources on the high value returns.

So every aspect of the business can benefit from an improved and enhanced self-service. And there’s lots of low hanging fruit as we move forward in terms of making the self-service capabilities easier to access, easier to use and more complete in terms of how they work with our customers.

Taylor McGinnis, Analyst, UBS: Great. And then just given we’re just now entering this optimization phase for sales and marketing and it is going to be a multi year journey it sounds like. At a high level, could you just help us understand a bit more what are some of the near term versus longer term key milestones we should look towards as we’re going through this optimization phase?

Andrew Anagnost, CEO, Autodesk: Yes. So first off, let me just remind everybody, this optimization phase is a deliberately planned activity connected to the last two years of changes. When we began the move to the new transaction model is when we began the planning of this optimization phase. So this is a purposeful deliberate, planned out effort. The high level main focuses for this are on optimizing certain processes, enhancing self-service like I talked about earlier and also improving efficiency and tightening the relationships with our partners, so that we just generally reduce duplication and get more efficiency from the whole system overall.

The initial phases were focused primarily on some of our marketing efficiency and some of the marketing related go to market aspects of our efficiency. As we move forward, you’re going to see us drill a little bit more into making sure that we’re creating tighter relationships with our partners and ensuring that there’s more optimization in terms of productivity associated with partner relationships and you’re going to see self-service have a bigger impact on the business moving forward. So consider that continuum from starting with the marketing optimizations, moving through a continuum to enhancing partner engagement and getting more efficient there all the way through maximizing returns on self-service.

Taylor McGinnis, Analyst, UBS: Great. Thank you.

Janesh Mohjani, CFO, Autodesk: All of

Andrew Anagnost, CEO, Autodesk: that is going to deliver long term margin improvement for the operating income improvement for the company.

Taylor McGinnis, Analyst, UBS: Thank you very much.

Operator: Thank you. Our next question comes from Matt Hedberg of RBC. Matt, your line is open.

Simon May Smith, Vice President, Investor Relations, Autodesk2: Great. Thanks for taking my questions. And congrats again, Jinesh. Really look forward to working with you again here at Autodesk. And starting out the year with a really strong free cash flow guide is really great to

Andrew Anagnost, CEO, Autodesk: see as

Simon May Smith, Vice President, Investor Relations, Autodesk2: well. Maybe, Andrew, you talked a little bit earlier about Fusion, GenAI, the product launch there. I guess I’m just wondering more philosophically, could you talk about sort of how we should think about additional generative AI rollouts across the product portfolio? How we should think about pricing? And just kind of the sensitivity around some of these data models given obviously a lot of it’s customer specific?

Andrew Anagnost, CEO, Autodesk: Yes. Look, we’re very much focused on enhancing customer productivity with these tools. As the tools get more and more productive, obviously there is opportunity to charge additional money for a really high productivity AI features, so that we capture some of the productivity we bring to the customers. We share some of the productivity with them and we capture some of the value back to us. What you’re seeing with some of these early features is essentially things that help the customer build three d models more quickly, more rapidly with a lot less labor.

So that’s really hitting them right in their productivity and it also makes our product much more competitive in situations, especially in Fusionland, where we’re dealing with a very large ecosystem of products that we compete with and this essentially sets up Fusion to be much more competitive as we move forward. If you look forward at some of the things we’re doing in AEC, Form a is really dedicated to servicing AI capabilities that allow people to be much more productive creating building information models in a completely different way. We’ve already rolled out early conceptual features around analysis, around tools that help people make initial sizing, set up kind of doors and windows and initial frameworks. This has a huge possibility to bring BIM to the masses, meaning bring Building Information Modeling down to smaller and smaller companies that have found Revit out of reach for both their capabilities and their budgets. Form a has an opportunity to really expand the footprint of who can do building information modeling and that’s one of the things we’re targeting with those long term.

So look for AI to provide not only new productivity, better competitive value and long term potentially higher monetization for some of these highly productive features, but also look for it to expand our market footprint.

Janesh Mohjani, CFO, Autodesk: Got it. That’s super helpful.

Simon May Smith, Vice President, Investor Relations, Autodesk2: And then Janesh, one for you. It sounds

Saket Kalia, Analyst, Barclays: like we’re going to get maybe

Simon May Smith, Vice President, Investor Relations, Autodesk2: a bit more color on kind of a midterm model perhaps on the Q3 Analyst Day. And so maybe just as a follow-up question to the kind of thinking about the lower end of that 10% to 15% guidance range. I guess, how should we think about like maybe a floor of growth? We’re getting that from a couple of investors today. Is there kind of a way to think about like is it kind of like high single digits?

Is it 10%? Just any way to kind of think about how you think about kind of the lower end of kind of a growth outcome?

Janesh Mohjani, CFO, Autodesk: Matt, great to be reconnected and looking forward to working with you actually. So, in terms of that growth range of the bottom end of that framework of around 10%. If you look back over the last couple of years, that’s where we fundamentally been. And in fiscal twenty twenty six, we are guiding to the 8% to 9% in constant currency, excluding the new transaction model effects. And actually that’s consistent with the underlying growth we delivered in fiscal twenty twenty five.

So overall, we think that the business is resilient and we’ve had consistent performance over a period of time and our focus fundamentally is actually on driving sustainable growth as we continue to focus on new business growth and driving our make business especially through construction and manufacturing and the overall platform strategy like Andrew was saying.

Andrew Anagnost, CEO, Autodesk: Thanks guys. Congrats. Thank you.

Operator: Thank you. Our next question comes from Joshua Tilton of Wolfe Research. Please go ahead, Joshua.

Simon May Smith, Vice President, Investor Relations, Autodesk3: Hey guys, can you hear me?

Janesh Mohjani, CFO, Autodesk: Yes, we can.

Simon May Smith, Vice President, Investor Relations, Autodesk3: Great. Thanks for sneaking me in. I have two quick ones. The first question is, is there any sense you can give you can just help us understand maybe where the NRR finished for the year relative to what you’re guiding to for revenue for next year. So for example, you’re guiding to about 8.5% core growth ex transition for next year, like where relative to that are existing customers growing finishing this year?

And then my second question is just a little more simple. How much of the recent restructuring or risk announcement benefit is factored into the current operating margin guidance for this year?

Janesh Mohjani, CFO, Autodesk: Yes, maybe I’ll just address both of those. So, in terms of the net retention rate, you’ll see that we’ve in the modeling guidelines, we’ve provided a view on how we’re thinking about fiscal twenty twenty six, which is basically the same as it was for fiscal twenty twenty five. The range of 100% to 110. And I realize that’s a wide range and we are essentially guiding to 8% to 9% growth on the underlying. But the way I think about that is that the net retention rate essentially is hover around the middle of the range, it can bounce around by a few points in any particular quarter.

That’s why we put a reasonably wide range to it. And so that’s how we’re thinking about that piece. And I’m sorry, would you mind repeating the second question please?

Simon May Smith, Vice President, Investor Relations, Autodesk3: Yes, just how much of the recent RIF announcement or layoff announcement benefit is baked into the current operating margin guidance for this year?

Janesh Mohjani, CFO, Autodesk: Yes, so as we build the operating margin guidance for the year, obviously, any savings from the action of those baked into the guidance already. But as I talked about earlier, the reinvestment and our organic hiring plan that we had built for fiscal twenty twenty six is really an integrated plan. And so, if I think about the overall spending growth that we’ve baked into the model, which might be a different way to look at it, that spending growth overall for fiscal twenty twenty six, again holding aside the effects of the new transaction model is slowing from 7% last year to 4% this year in constant currency.

Simon May Smith, Vice President, Investor Relations, Autodesk3: Thank you. Very helpful.

Operator: Thank you. Our next question comes from Michael Turrin of Wells Fargo (NYSE:WFC) Securities. Your question please, Michael.

Simon May Smith, Vice President, Investor Relations, Autodesk4: Hey, great. Thanks. Appreciate you taking the question. I know there have been a few different angles on this, but Janesh, just on the commentary around the long term targets, just any perspective you can add given it’s early in your tenure. So decision process that went into this and maybe help us parse how much is using a different set of assumptions there or just any more context you can add because that’s where we’re getting the most questions initially?

Janesh Mohjani, CFO, Autodesk: Yes, I’m happy to talk about that. And look, fundamentally, my view on the business is very similar to what we’ve experienced in the past. And coming into the business, recognizing that for the past couple of years, we’ve been hovering around the low end of that range. And Cisco (NASDAQ:CSCO) twenty six on an apples to apples basis is very similar. The reality is we’ve just not been in the middle to high end of that range and that’s as I looked at the ranges, it’s inappropriate to have a range out there.

We’ve not delivered against that in the last couple of years, at least being towards the middle or high end of that. And that was really the core principle behind this. But fundamentally, when I look at the business, as I said, we’ve delivered consistently and it’s a resilient business. You’ve seen us deliver over the last couple of years when there’s been a lot of external factors that have been outside of our control. You’ve seen us do that through the business model transitions we’ve been driving.

We’ve got a strong and loyal customer base. Our products are in market leading positions. We feel very good about our position overall.

Simon May Smith, Vice President, Investor Relations, Autodesk4: Yes, that’s helpful color. And then, Andrew, just on the headcount reduction, I know these are tough decisions. Maybe just speak to how you ensure you’re making the right level of change there, balancing efficiency with preserving the continuity and business momentum you’re seeing? Thanks.

Andrew Anagnost, CEO, Autodesk: Yes. So we look at these things definitely over a long timeframe and we’re definitely trying to balance the risk short term with the reward long term in terms of what we did and we feel like we’ve taken a really balanced approach here. You can see we’ve reinvested some of the money into future systems and capabilities that will allow us to do additional optimizations in the future. We’re trying to make sure that we cut the right kind of balance here, so that we keep the business moving in the right direction. And we factored a lot of that risk into the way we’re guiding.

So I think we’ve done it right. And I think the ongoing optimizations continue to deliver increasing profits as we move forward into next year.

Simon May Smith, Vice President, Investor Relations, Autodesk4: Thanks very much.

Operator: Thank you. Our next question comes from Ken Wong of Oppenheimer and Company. Please go ahead, Ken.

Simon May Smith, Vice President, Investor Relations, Autodesk5: Great. Maybe the last one on just that 10% to 15% range. I realize inappropriate to kind of keep that out there given the conditions and the performance. But with all the improvements that you guys are putting through with the go to market changes, the work with the channel, I mean, should we think about the other side of this, when macro is fine, when you guys have delivered on the go to market changes that 10% to 15% is back in play? Is it arguably maybe even a better number?

Like help us think through kind of what the end goal with some of these changes would be in respect to what were the prior 10% to 15 goals?

Andrew Anagnost, CEO, Autodesk: So Ken, where we’re at right now is just a task of acknowledgment of where the business is right now. What you’re not hearing is a reduction in phase of the long term growth potential for the company, all right. The areas we’re talking about are the areas that really need to improve to drive the kind of behavior we want long term. It’s all about getting the channel more productive. That’s going to be a result of some of the changes that we’re doing right now and some of the optimizations.

The more productive the channel is, the more energy it has to spend on new business, the more the new business starts to build up over time and actually show up as revenue growth over time. The other thing is, we’re really excited about moving to design and make solution in a lot of our customers. So watch that make bucket because that’s a clear sign that we’re being successful penetrating the end to end solution. That is real long term new growth for Autodesk. And by investing in that, we’re essentially front loading the capability to keep building up that book of business, which then shows up in the top line over time.

So that’s the way to look at it. It’s not a retreat from confidence in the long term growth trajectory of the business, quite the contrary, but it is an acknowledgment of where we are at today.

Simon May Smith, Vice President, Investor Relations, Autodesk5: Got it. Okay, perfect. And then just a quick follow-up on, like look, you guys have rolled out across all three regions now as far as the agency transition. Any update on how kind of those three areas are tracking? Obviously, we have The Americas, which were kind of a little further along, but you just rolled out APAC.

Would just love a sense of kind of how those are mapping relative to internal plans?

Andrew Anagnost, CEO, Autodesk: Yes. So for the most part, things are going as we plan. There’s an initial kind of pull forward in the business and there’s some production in new business as people go through getting their systems set up and renewing. We did see a few more productivity problems as we were hitting the end of all these rollouts than was originally expected, but we’re now working through all of that. But for the most part, this is perceived as we expected with a little bit more kind of, okay, we have some work to do to help the partners manage these systems effectively moving forward.

Simon May Smith, Vice President, Investor Relations, Autodesk5: Okay, perfect. Thank you so much, Andrew.

Andrew Anagnost, CEO, Autodesk: You’re very welcome.

Operator: Thank you. And ladies and gentlemen, that is all the time we have for Q and A today. I would now like to turn the conference back to Simon May Smith for closing remarks.

Simon May Smith, Vice President, Investor Relations, Autodesk: Thank you everyone for joining us today. We’ll look forward to seeing many of you over the coming weeks. If you have any questions, please just email me simonautodesk dot com. We’ll look forward to catching up on our Q1 earnings call. Thanks very much, Fatih, and goodbye, everyone.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.