Autodesk Inc. Stock

Autodesk (ADSK) - FY2026 Annual Report

Autodesk closed fiscal 2026 with revenue of roughly $7.2 billion, representing accelerating top-line growth of around 17.5% year over year, yet net income of $1.12 billion barely moved from the prior year's $1.11 billion. This divergence between strong revenue expansion and essentially flat earnings appears to be the defining feature of the year, and it seems to stem primarily from elevated one-off charges rather than operational deterioration.

On the profitability front, gross margins remain characteristically high at just above 92%, consistent with the company's subscription-driven software model. What stands out, however, is the compression in net margin, which slipped to roughly 15.6% from around 18% the year prior. A sizable jump in restructuring and facility-reduction costs — climbing to $216 million from just $15 million — together with a markedly higher tax provision of $479 million (up from $272 million) appear to explain much of the gap. Operating income actually grew in line with revenue, which may suggest the underlying business continued to scale efficiently even as reported net income stalled. Return on equity, while still robust at roughly 37%, has been drifting lower over several years, a trend that could partly reflect the company's growing equity base.