Autodesk to Report Q3 Earnings: What's in the Cards for the Stock?

Autodesk ADSK is scheduled to release third-quarter fiscal 2026 results on Nov. 25.

ADSK expects third-quarter fiscal 2026 revenues to range from $1.80 billion to $1.81 billion.

The Zacks Consensus Estimate for third-quarter fiscal 2026 revenues is pegged at $1.8 billion, indicating 14.95% year-over-year growth.

ADSK’s third-quarter fiscal 2026 diluted non-GAAP earnings per share are expected to be between $2.48 and $2.51.

Autodesk, Inc. Price and EPS Surprise

Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote

The consensus mark for earnings is pegged at $2.49 per share, unchanged over the past 30 days. The estimate indicates year-over-year growth of 14.75%.

ADSK beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, with an average surprise of 6.19%.

Let’s see how things have shaped up before this announcement.

Key Factors to Note for ADSK’s Q3 Results

The Architecture, Engineering, Construction and Operations (AECO) segment remains Autodesk’s strongest growth engine, consistently driving both product adoption and overall revenue momentum. This business continues to benefit from sustained demand for advanced design, construction and operations software across major infrastructure and industrial projects, positioning Autodesk to capitalize further in the third quarter of fiscal 2026. The momentum is supported by robust data, as AECO revenues grew 23.1% year over year in the previous quarter, indicating healthy customer activity and strong execution across construction and manufacturing end markets. This momentum is expected to have carried into and positively influenced the to-be-reported quarter.

Autodesk’s expanding base of subscription and recurring revenues, supported by strong billings momentum, is expected to have benefited the company in the third quarter of fiscal 2026. Billings, a leading indicator of future revenues, grew solidly in the previous quarter, underscoring healthy demand trends and strengthening Autodesk’s visibility into upcoming bookings and revenue conversion. Management also noted that higher billings materially boosted cash flow in the second quarter. This combination of recurring revenue stability and robust billing performance is likely to have contributed to improved top-line execution in the quarter under review.

Autodesk’s robust cash generation and effective cost management appear to have set a solid foundation for performance in the third quarter of fiscal 2026. The company delivered a substantial increase in free cash flow in the previous quarter and reported stronger margin leverage, underscoring efficient cost control and solid execution. This enhanced financial position is likely to have enabled continued investment in strategic initiatives, particularly cloud, AI and product innovation, helping support another quarter of steady growth.

Autodesk’s significant exposure to international markets (EMEA/APAC) is expected to have created headwinds in the third quarter of fiscal 2026, as a large share of its revenues is generated outside the United States. Currency volatility remains a persistent challenge for the company, with unfavorable foreign-exchange movements likely to have negatively impacted reported results. These FX pressures may have tempered Autodesk’s top-line performance during the quarter.

Autodesk’s shift to its new transaction model is expected to have pressured margins in the third quarter of fiscal 2026. The transition brings added costs and temporary inefficiencies, which management has previously noted could weigh on operating margins. These factors likely contributed to margin headwinds in the to-be-reported quarter.

Earnings Whispers for ADSK Stock

Our proven model does not conclusively predict an earnings beat for ADSK this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though ADSK carries a Zacks Rank #3 at present, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

MongoDB MDB has an Earnings ESP of +6.33% and a Zacks Rank #2 at present. MDB shares have risen 41.3% year to date. MDB is set to report its third-quarter fiscal 2026 results on Dec. 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marvell Technology MRVL currently has an Earnings ESP of +11.04% and carries a Zacks Rank #3. MRVL shares have declined 30.6% in the year-to-date period. MRVL is set to report its third-quarter fiscal 2026 results on Dec. 2.

Five Below FIVE presently has an Earnings ESP of +74.71% and a Zacks Rank #2. FIVE shares have rallied 42.1% year to date. FIVE is set to report its third-quarter fiscal 2025 results on Dec. 3.

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This article originally published on Zacks Investment Research (zacks.com).

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