A maker of 3D design, engineering, and entertainment software, Autodesk's tools like AutoCAD, Revit, Fusion, Maya, and 3ds Max are used by architects, engineers, manufacturers, and film studios to design everything from buildings to movie effects. Founded in 1982 by programmer John Walker and a small group of colleagues, the company's name was a placeholder chosen under pressure to file incorporation papers — the founders planned to change it later, but it stuck once their flagship product AutoCAD took off.
Q1 FY2027 net income rose 223% to $491M as operating expenses fell 2% on lower restructuring costs
Operating expenses fell for the first time in a year as restructuring costs dropped. rose 18.4% to $1.934B, climbed to $2.32 from $0.70 a year earlier, and rose 223% to $491M as a $75M decline in offset higher commissions and R&D. The company posted its widest in the reported series at 28% while legal overhang narrowed to a single appealed case.
Key takeaways
Operating expenses decreased 2% to $1.22B, as a $75M drop in restructuring costs from the prior-year quarter offset higher sales commissions and R&D investment in cloud, platform, and AI.
rose 223.0% to $491.0M and rose 231.4% to $2.32, with reaching 28.0% — the highest in the reported quarterly series — up 13.7 points .
rose 18.4% to $1,934.0M, driven by subscription revenue growth of 19% to $1.84B across all product families and geographies, with at 97% of net revenue.
Section summaries
Management's Discussion and Analysis
Total net revenue rose 18% to $1.93B, driven by subscription growth across all product families and geographies.
⌄
Subscription grew 19% to $1.84B, fueled by existing customer base expansion and growth in , , , MFG Collections, and .
rose 58.3% to $893.0M from $564.0M a year earlier, driven by and changes; the company repurchased 2M shares for $448M.
declined 6% sequentially to $7.81B, reflecting typical Q4-to-Q1 seasonality in billings and renewals after reaching $8.30B at FY2026 year-end.
The federal securities class action was dismissed with prejudice but plaintiffs have appealed, while the SEC and USAO investigations closed in August 2025 and stockholder derivative suits include one voluntarily dismissed.
What changed
Net retention: FY2026 exceeded 110% in Q3 then the 10-K said it held above 110% for the year; this quarter it is 'slightly above 100-110%' on — a reversion toward the prior range flagged to watch.
Legal overhang: the SEC and USAO investigations closed in August 2025 and the class action was dismissed with prejudice in January 2026; this filing notes only the plaintiffs' appeal and a voluntarily dismissed derivative suit, narrowing the prior multi-front exposure.
: after reaching $8.30B (up 20%) at FY2026 end, it declined 6% sequentially to $7.81B this quarter on seasonality — the movement after the annual figure that was flagged to watch.
Operating expenses: after rising every quarter through FY2026 on restructuring and new transaction model commissions, they fell 2% this quarter as restructuring costs dropped $75M — a reversal of the cost trajectory flagged for FY2027.
: after the Q1 FY2026 drop to 14.3% on $105M , margin widened to 28.0% this quarter, the highest in the series, settling the margin-pressure watch item from the restructuring period.
What to watch
Whether net retention holds above 110% or settles into the 100-110% range next quarter after this filing's 'slightly above 100-110%' wording.
Q2 FY2027 and expense lines as management expects cost of , marketing and sales, and R&D to increase while restructuring costs stay flat.
Outcome of the federal securities class action appeal and any loss estimate if the dismissal is overturned.
movement next quarter after the 6% sequential decline to $7.81B.
reached $1.88B (97% of net ), with slightly above 100-110% on a basis.
Operating expenses decreased 2% to $1.22B, as a $75M drop in restructuring costs offset higher sales commissions and R&D investments in cloud, platform, and AI.
surged to $893M from $564M, driven by and changes; $448M was used to 2M shares.
RPO declined 6% sequentially to $7.81B, reflecting typical Q4-to-Q1 seasonality in billings and renewals.
The company expects cost of , marketing and sales, and R&D expenses to increase in Q2 FY2027, while restructuring costs remain flat.
Quantitative and Qualitative Disclosures About Market Risk
The company uses foreign currency forwards and options to hedge FX exposure, with a 10% USD move changing contract fair value by up to $159M; interest rate risk on $2.41B in securities is not material.
⌄
Foreign currency risk arises from , earnings, cash flows, , and , managed via cash flow and balance sheet hedges with maturities generally within 1–12 months.
As of April 30, 2026, open forward and option contracts had notional amounts of $1.6B–$2.0B for both purchased and sold positions, with fair values ranging from -$13M to +$15M.
A hypothetical 10% USD appreciation would increase the of foreign currency contracts by $157M (April 2026) and $159M (January 2026); a 10% would decrease fair value by $94M and $158M, respectively.
Interest rate risk on $2.41B in cash equivalents and marketable securities is not material: a 50 or 100 rate move over 12 months would not significantly impact results.
Investments in privately held companies carry inherent risk of total loss, as these early-stage firms are not subject to public-company disclosure rules.
Autodesk states pending matters are not expected to materially impact results, but notes an ongoing securities class action appeal.
⌄
Autodesk is involved in routine claims and proceedings, and believes resolution will not materially affect its consolidated results, cash flows, or financial position.
An internal investigation into and practices began in March 2024.
A federal securities class action alleging false statements was dismissed , but plaintiffs have appealed; the company cannot estimate potential loss.
Stockholder derivative suits alleging fiduciary breaches and other claims were filed, consolidated, and one was voluntarily dismissed.