Autotdesk reported first-quarter fiscal 2026 non-GAAP earnings of $2.29 per share May 22, which beat most estimates and improved 22.5% year over year. Autodesk reports its revenue a year ahead based on its annual subscription sales model. 

The San Rafael, Calif., software giant reported revenues of $1.63 billion, and grew 15.2% year over year. The company saw strength as a vendor of architecture, engineering, construction and operations software and cloud services increased revenues 20% year-over-year to $809 million. Up-front revenues from enterprise business agreements increased as Autodesk continues to implement its new transaction model since last year. Autodesk is in the process of transitioning away from up-front contracts for cloud services and software subscriptions. 

“Against an uncertain geopolitical, macroeconomic, and policy backdrop, our strong performance in the first quarter of fiscal ’26 set us up well for the year,” said Andrew Anagnost, Autodesk president and CEO. “We continue to make the right decisions to drive long-term shareholder value by focusing on our strategic priorities in cloud, platform, and AI; optimizing our sales and marketing to drive higher margins; and allocating more capital to share repurchases as our free cash flow grows.”

In April, Autodesk appointed Jeff Epstein and Christie Simons to its board of directors in connection with a cooperation agreement with Starboard Value LP, an investor that owns roughly 0.48% of Autodesk’s stock worth close to $307 million. Epstein and Simons will serve as non-voting observers on the board until Autodesk’s 2025 annual stockholders meeting on June 18 but naming them to the board suggests a resolution to the proxy fight Starboard had waged since last year to replace Anagnost and demand higher returns for shareholders. 

Autodesk also announced in its filing that it repurchased $353 million in stock, in possibly another olive branch to activist shareholders.

Autodesk said in its statement that with its shift to a new transaction model nearly complete, the company expects its financials to become more predictable and easier to understand in the future.