Costs Associated with Exit or Disposal Activities.

On January 22, 2026, Autodesk, Inc. ("Autodesk" or the "Company") announced a world-wide restructuring plan (the "Plan") that marks the final phase of its sales and marketing optimization.

Over the past few years, Autodesk has evolved its go-to-market strategy, streamlined customer engagement, and enhanced its sales channels to drive sustainable growth, while improving efficiency and driving operating margin growth. The implementation of this Plan will mark the culmination of Autodesk's sales and marketing optimization program. Separately, the Plan also reallocates resources in certain other functions to accelerate Autodesk's strategic priorities.

The Company expects this Plan to result in the termination of approximately 7% of its workforce, or approximately 1,000 employees, with a significant portion of the reductions occurring within customer-facing sales functions. A portion of the resulting savings will be reinvested in key strategic priorities across the Company throughout its fiscal year ending January 31, 2027.

The Company expects to incur total pre-tax restructuring charges of approximately $135 million to $160 million, which is primarily attributable to employee termination benefits, in connection with the Plan. Substantially all of the pre-tax restructuring charges will result in cash expenditures during fiscal year 2027 (ending January 31, 2027).

The Company expects to record pre-tax restructuring charges of approximately $90 million to $110 million in the fourth quarter of fiscal year 2026 (ending January 31, 2026), and the remainder during fiscal year 2027. The Company expects to complete the Plan by the end of its fourth quarter of fiscal year 2027, subject to local law and consultation requirements.

Item 7.01. Regulation FD Disclosures.

The Company continued to execute its strategic plans effectively during the fourth quarter of fiscal year 2026, driving strong and consistent business performance. As a result, the Company now expects its fourth quarter of fiscal year 2026 and full-year billings, revenue, non-GAAP operating margin, non-GAAP earnings per share, and free cash flow to all be above the top end of its guidance as provided on its third quarter of fiscal year 2026 earnings call on November 25, 2025. The Company intends to exclude the charges associated with the Plan from its non-GAAP financial measures.