Autodesk Q3 2025: A Deep Dive into their 10-Q Filing

Autodesk, a titan in the software world for architects, engineers, and designers, recently released its financial report for the third quarter. To understand the company's current health and future direction, let's dive into the key details from its latest Form 10-Q filing with the SEC.

For the quarter ending October 31, 2025, Autodesk reported a strong performance, showcasing robust growth in its core business and improving profitability.

Strong Revenue Growth Driven by Subscriptions

Autodesk’s total net revenue for the quarter reached $1.85 billion, an impressive 18% increase from the $1.57 billion reported in the same quarter last year. This growth is overwhelmingly powered by the company's successful subscription-based model.

• Subscription Revenue: Climbed 19% to $1.73 billion, now accounting for over 93% of total revenue.
• Recurring Revenue: This key metric, which includes both subscription and maintenance revenue, now represents 97% of Autodesk's total net revenue, highlighting a stable and predictable income stream.

The following flow diagram provides a visual breakdown of how Autodesk's revenue for the quarter is allocated across various costs and expenses, ultimately leading to its net income.

A Deeper Look at Performance by Segment

The growth wasn't just uniform; some areas significantly outpaced others. The company breaks down its revenue into several "product families," giving us a clearer picture of what's driving the business forward.

• Architecture, Engineering, Construction and Operations (AECO): This remains the largest and fastest-growing segment, surging 23% to $921 million. This powerhouse division, which includes products like Revit and Autodesk Construction Cloud, now makes up nearly half of the company's total revenue.
• AutoCAD and AutoCAD LT: The company's foundational products continue to show remarkable strength, with revenue growing 15% to $458 million.
• Manufacturing (MFG): This segment also posted healthy results, with revenue increasing by 16% to $355 million.

This data underscores Autodesk's successful expansion beyond its traditional design tools into the broader construction and manufacturing lifecycle.

Profitability and a Key Shift in Sales Strategy

Autodesk didn't just grow its top line; it also improved its profitability. Income from operations jumped to $470 million from $346 million a year ago, boosting the company's operating margin from 22% to 25%. This indicates strong operational efficiency, as profits are growing faster than revenue. Net income for the quarter was a solid $343 million, or $1.60 per diluted share.

One of the most significant changes revealed in the filing is a shift in how Autodesk accounts for its sales channels. Direct revenue appeared to skyrocket by 85% to $1.23 billion, while indirect revenue fell 31%. This isn't due to a collapse in their reseller channel but rather a "new transaction model." Under this model, sales commissions to partners, previously deducted from revenue, are now being recorded as a marketing and sales expense. This accounting change inflates both direct revenue and operating expenses, a crucial detail for anyone comparing year-over-year figures.

The Road Ahead

Autodesk's latest quarterly report paints a picture of a company in a strong financial position. The successful pivot to a subscription model provides a reliable revenue foundation, while the AECO segment continues to be a powerful engine for growth.

However, the company isn't without its challenges. The filing notes risks related to global economic conditions and the complexities of integrating Artificial Intelligence into its offerings. Furthermore, a securities class-action lawsuit was filed against the company in August 2025, adding a layer of legal uncertainty. As Autodesk continues to innovate and expand its platform, its ability to navigate these external pressures will be key to sustaining its impressive momentum.