Joe Vruwink

Andrew said Fusion is doing quite well across user acquisition, ACV, revenue, and multi-seat purchases, driven by deliberate AI-forward automations and MCP connectors, and expects that tailwind to continue. Direct answer.

Andrew affirmed AI tooling is a channel to pull new customers into the ecosystem but did not quantify seat acceleration. Partial.

Andrew said customer API usage is complementary, lifting the rest of Autodesk's stack. Customers replacing rigid behind-the-firewall implementations with elastic cloud solutions built on Autodesk APIs. Both AEC and manufacturing bases moving to Autodesk's platform.

Andrew said API monetization targets 24/7 machine-based compute usage, not regular human usage. Already had Q4 customers pay consumption-based API fees. Still early with few customers but preparing for future agentic machine usage.

Janesh deferred FY27 guidance specifics to February. Shared enthusiasm for Q3 execution and momentum, noted excitement about long-term growth from Fusion, Infrastructure, and AI, but will factor GTM optimization and macro risks when setting guide.

Andrew said Autodesk platform will be foundational everywhere customers execute. Customer-built agents will coordinate with Autodesk agents, each augmenting the other. Platform services core to value creation from customer IP.

Janesh attributed Q4 step-down entirely to prudent guidance assumptions, maintaining same conservative posture that has served them well.

Andrew outlined building custom foundation models accessible to partners, moving from tasks to workflows to systems. Strategic investments in promising startups complement organic development.

Andrew highlighted Andy Elder's enterprise sales expertise and cloud-native knowledge from Microsoft, rounding out skills needed for deeper strategic customer partnerships.

Andrew confirmed investment in disruptive geometry generation tools, citing Flow Studio (formerly Wonder Studio) in M&E as an example of highly disruptive generative workflows.

Janesh clarified the NTM creates a 3-point margin headwind (not 6), with partner commissions factored in. Underlying margin is 39-40% when adjusted.

Andrew attributed AEC strength to construction momentum (400 new logos, payments growth, end-to-end solution demand) and noted manufacturing is also low double-digits ex-upfront revenue.

Andrew declined to comment on specific peer deals but affirmed Autodesk will pursue acquisitions when strategically and financially justified.

Betsy firmly stated no change to FY26 FCF guidance of $2.05B at midpoint despite co-terming dynamics.

Ghazi said software performance is where they want it and is most excited about the joint Ansys solution supporting continued double-digit growth.

Shelagh confirmed the sequential decline was expected and purely driven by renewal timing, describing normal build-and-burn backlog dynamics.

Sassine confirmed sign-off leadership while emphasizing the opportunity to bring multiphysics algorithms earlier into the design phase for convergent 3D-IC and advanced packaging flows.

CEO differentiated two customer tails: AI customers racing to deploy latest tools (upsell opportunity) vs non-AI customers monetized at renewal expiration. Joint ANSYS solutions next opportunity.

CEO clarified active customer engagements ongoing now, not waiting until midyear. Backlog at $11.4B shows bookings strength. Confidence in IP from customer essentialness and trust.

CFO confirmed restructuring (~$225M) and divestiture tax (~$135M) are one-time. Free cash flow improving $700M YoY. Committed to long-term unlevered FCF margin in mid-30s.

CFO said IP decline is the biggest change, partially offset by ANSYS addition. Noted ANSYS strongest month falls in Q1, so Q4 ANSYS contribution is partial.

CEO acknowledged single customer concentration risk being derisked. ANSYS will help diversify both customer and regional concentration, particularly with European exposure.

CEO confirmed auto/industrial stabilization but noted these customers are now building more sophisticated AI-integrated chips, suggesting R&D investment will increase or shift to more complex designs.

CEO acknowledged varied history of advance notice from BIS. Reiterated Synopsys has not received anything and cannot speculate why.

CEO denied any customer behavior change. CFO added nuance about FSA accounting and customer preference on base contract vs FSA split.

CEO acknowledged AI optimization alone won't deliver 200bps but adding generative and agentic AI will. No timeline given but reaffirmed belief in total opportunity.

CEO explained balanced approach citing tale of two markets, China macro uncertainty, and preparation for Ansys acquisition.

CEO highlighted backlog flat YoY at $8.1B showing organic growth without depleting backlog, demonstrating business health.

Peter said interest in Falcon is very high given quick cost savings, compliance and efficiency, and that Veeva itself is the current rate limiter on product readiness.

Peter directly explained Falcon as a new agent-layer business delivering agentic labor, calling it disruptive and net-new for Veeva.

Peter said AI readiness is not a broad driver. More of the theme is modernizing aging systems and getting rid of legacy. Some data cleanup efforts are AI-motivated (garbage in, garbage out). AI is about automation, but workflow systems also drive automation.

Paul confirmed the 20% to 10% CRM revenue trajectory is primarily driven by strong growth in other areas. Add-on products like Campaign Manager and Service Center contribute incrementally. Peter noted puts and takes: some top 20 moving from IQVIA to Veeva, some med tech wins, while Salesforce gets a few.

Peter said customers want proven solutions from Veeva for industry-specific automation, not generic AI. Only pushback is wanting faster delivery. Strong alignment on direction. Integrated business consulting for change management is a key differentiator.

Paul said retained customers are already adding Vault CRM suite products. Peter noted the top 20 focus overlooks 400+ other CRM customers where win rate is very strong. Two of the original 20 were mainly IQVIA customers, so net position is nuanced.

Peter outlined Vault platform evolution from content+data to content+data+agents. Monetization through Veeva AI platform and industry-specific agents. No material revenue expected in FY2026-FY2027 but significant increase in market size.

Peter said Quality Cloud has gotten elevated focus with LIMS, batch release, and validation management. On track with $6B revenue plan. Quality not materially changed from plan but is a big area.

Paul said 80+ customers are now live, on track for ~200 by next year. 28 new in Q1, half migrations and half net new. Vault CRM is winning on AI agents, unified sales/marketing/medical, and continuous innovation.

Peter noted funding issues could affect small biotechs and cause conservatism in large pharma, but Crossix has a shorter business cycle and quick ROI, so it would likely be less affected.

Peter said the all-in clinical deal was about speed to value and alignment, not risk avoidance. Each top 20 takes a different path based on their technology journey.

Peter noted partnerships are strategic-level and cross-product, but more expansive than past deals given a larger suite of mature clinical and quality products.

Jason said nonrecurring softness was expected timing (PowerPlan/Deltek license, iPipeline services) and TTM bookings remain up.

Neil said no impact on budgetary spend. Argued IT spend surveys are misleading because AI targets labor spend, a completely different budget bucket. Aderant and CentralReach performing amazingly in legal and healthcare respectively, the two biggest vertical AI adoption markets.

Jason confirmed Q1 bookings above double digits with easier comp. Pricing held up well and is earned through product value. Neil added pricing is actually underutilized as a growth lever, expects 50-100bps of portfolio pricing improvement over next 2-3 years.

Neil said they won't AI-wash revenue but aspire to report AI SKU revenue. Challenge is monetization occurs through multiple channels (cloud uplift, packaging, SKUs). 2025 was the learning chapter; 2026 is commercialization chapter. Will see initial impact in bookings then recurring base.

Neil reiterated long-term entitled growth conviction north of 8% but declined to size the upside for FY2026 specifically. Said initial guide definitely tilts more conservative than 2025 with no improvement at Deltek, no DAT recovery, and underwriting modest Neptune decline.

Jason confirmed broad strength ex-Deltek and Frontline. Aderant record bookings with largest ground-to-cloud conversion ever. Healthcare solid. Supports second half guide.

Neil cited 30% R&D productivity gains at one larger software business. Direct AI ARR in tens of millions today with compounding effect expected. 25 products in market or development.

Jason said no slowdown in cloud transitions. Aderant had very strong Q1 cloud activity. PowerPlan's tax for fixed asset product drove double-digit recurring revenue growth.

Jason explained perpetual license and services margins roughly offset SaaS subscription margins, so mix shift wouldn't meaningfully impact margins.

Jason acknowledged potential for upside if momentum continues, noting Procare rolling organic in Q2 and possible GovCon enterprise perpetual license upside.

Neil argued Roper is well positioned as incumbent with deep customer intimacy, proprietary data, and scale advantage in small niches to make GenAI investments.

Devgan addressed the open-source model threat directly, arguing differentiation across all three layers; Wall framed agents as demand accretive.

John Wall said guidance reflects prudent view. Hardware pipeline strong for H1, prudent in H2 as usual. China expected 12-13% of revenue. 67% of 2026 revenue from beginning backlog. Recurring base back to low-teen growth.

Anirudh said all 5 business lines growing double digits with strength across all geographies. Will give 2026 update in January/February. John Wall said framework will remain disciplined with double-digit top line ambition.

Anirudh said physical AI creates new opportunities while reinforcing data center importance. Customer environment better than six months ago.

John Wall said recurring revenue beat in Q1 flows through rest of year. Still resilient on tariffs, felt right to raise guidance.

Barua answered squarely on new AI entrants, locating PTC's moat at the data and process layer and citing 40 years of governed workflows.

Barua gave detailed ServiceMax AI example: large industrial company went from small POC to workforce-validated high-ROI deployment to 7-figure AI SKU expansion in North America with global conversation underway. DiRico said some AI monetization in FY2027 but not material. Currently seat-based but developing hybrid models for bring-your-own-agent scenarios.

Barua acknowledged AI is currently immaterial to P&L but said as releases move from POCs to scale deployments over next few years, it should become a real economic driver. Emphasized AI is encouraging broader PTC adoption as customers need product data foundations.

Barua explained new Windchill packaging serves three purposes: easier PLM expansion and adoption, simplified SaaS migration path, and easier consumption of embedded AI capabilities. Timing driven by PLM-as-epicenter vision since Barua became CEO.

Barua confirmed vertical transformation is underway and PTC would be positioned to capitalize on any macro improvement without lag.