Autodesk Inc (NASDAQ:ADSK) shares surged almost 8% before Wednesday's opening bell as the design software firm reported third quarter earnings that exceeded Wall Street expectations.
Adjusted earnings per share were $2.67, surpassing analyst expectations of $2.50.
Revenue was up 18% year-over-year at $1.85 billion, beating the consensus estimate of $1.81 billion.
Revenue growth was broad-based across Autodesk’s product lines and regions. Architecture, Engineering, Construction, and Operations (AECO) led the gains, generating $921 million, up 23% year-over-year.
AutoCAD and AutoCAD LT contributed $458 million, a 15% increase, while Manufacturing revenue rose 16% to $355 million. Media and Entertainment also grew, reaching $86 million, up 4% from the prior year.
Geographically, growth was strong across all regions, with the Americas up 16%, EMEA up 23%, and APAC up 12%.
Operating margin rose to 25%, while adjusted margin reached 38%. Free cash flow increased 116% to $430 million, and remaining performance obligations grew 20% to $7.36 billion.
"The macroeconomic environment has been broadly stable, though uncertainty remains elevated, and we have so far successfully executed our sales and marketing optimization plan,” Autodesk CFO Janesh Moorjani said in a statement. “We are raising our full-year guidance to reflect the current momentum of the business."
Following the quarter’s results, Autodesk raised its full-year fiscal 2026 guidance to $7.15 to $7.17 billion in revenue and adjusted EPS of $10.18 to $10.25.
Fourth quarter revenue is projected at $1.90 to $1.92 billion, with adjusted EPS expected to be in the range of $2.59 to $2.67.