Autodesk, Inc.ADSK
Autodesk, Inc. Income Taxes Disclosure
Income Taxes
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The provision for income taxes consists of the following:
| Fiscal year ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Federal: | |||||||||||||||||
| Current | $ | (65) | $ | 138 | $ | 86 | |||||||||||
| Deferred | 257 | (87) | (97) | ||||||||||||||
| Total federal | 192 | 51 | (11) | ||||||||||||||
| State: | |||||||||||||||||
| Current | (1) | 19 | 21 | ||||||||||||||
| Deferred | 14 | (5) | 3 | ||||||||||||||
| Total state | 13 | 14 | 24 | ||||||||||||||
| Foreign: | |||||||||||||||||
| Current | 244 | 229 | 206 | ||||||||||||||
| Deferred | 30 | (22) | 11 | ||||||||||||||
| Total foreign | 274 | 207 | 217 | ||||||||||||||
| Income tax provision | $ | 479 | $ | 272 | $ | 230 | |||||||||||
Domestic and foreign pretax income from continuing operations is as follows:
| Fiscal Year Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Domestic | $ | 637 | $ | 392 | $ | 406 | |||||||||||
| Foreign | 966 | 992 | 730 | ||||||||||||||
| Total pretax income | $ | 1,603 | $ | 1,384 | $ | 1,136 | |||||||||||
For the year ended January 31, 2026, the differences between the U.S. statutory rate and the aggregate income tax provision, presented in accordance with the guidance in ASU 2023-09, are as follows:
| Fiscal year ended January 31, 2026 | ||||||||||||||
| U.S. federal statutory tax rate | $ | 337 | 21 | % | ||||||||||
| State and local income taxes, net of federal income tax effect | 13 | 1 | % | |||||||||||
| Foreign tax effects | ||||||||||||||
| Australia | ||||||||||||||
| Changes in valuation allowances | 19 | 1 | % | |||||||||||
| Other | (3) | — | % | |||||||||||
| Brazil | ||||||||||||||
| Withholding taxes | 20 | 1 | % | |||||||||||
| Ireland | ||||||||||||||
| Statutory income tax rate differential | (74) | (5) | % | |||||||||||
| Other | 20 | 1 | % | |||||||||||
| Other withholding taxes | 54 | 3 | % | |||||||||||
| Other foreign jurisdictions | (8) | — | % | |||||||||||
| Effect of cross-border tax laws | ||||||||||||||
| Net controlled foreign corporation tested income | 164 | 10 | % | |||||||||||
| Other effects on cross-border tax laws | (12) | (1) | % | |||||||||||
| Tax credits | ||||||||||||||
| Foreign tax credits | (73) | (5) | % | |||||||||||
| Research and development tax credits | (30) | (2) | % | |||||||||||
| Nontaxable or non-deductible items | ||||||||||||||
| Tax effect of non-deductible stock-based compensation | 65 | 4 | % | |||||||||||
| Other nontaxable or non-deductible items | 13 | 1 | % | |||||||||||
| Changes in unrecognized tax benefits | (30) | (2) | % | |||||||||||
| Other adjustments | ||||||||||||||
| Stock compensation excess benefits | (29) | (2) | % | |||||||||||
| Other adjustments | 33 | 2 | % | |||||||||||
| Income tax provision (1) | $ | 479 | 30 | % | ||||||||||
(1)Totals may not sum due to rounding.
For fiscal 2026, state taxes in Illinois, New Jersey, New York, and Pennsylvania comprised greater than 50% of the taxes presented in the State income tax category.
For fiscal 2025 and fiscal 2024, the differences between the U.S. statutory rate and the aggregate income tax provision are presented in accordance with the guidance prior to the adoption of ASU 2023-09.
| Fiscal year ended January 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Income tax provision(benefit) at U.S. Federal statutory rate | $ | 291 | $ | 239 | |||||||
| State income tax benefit, net of the U.S. federal benefit | 10 | 24 | |||||||||
| Foreign income taxed at rate different from the U.S. statutory rate | (34) | (12) | |||||||||
| Valuation allowance adjustment | (15) | 1 | |||||||||
| Tax effect of nondeductible stock-based compensation | 25 | 38 | |||||||||
| Stock compensation windfall/shortfall | (28) | 2 | |||||||||
| Research and development tax credit benefit | (18) | (17) | |||||||||
| Closure of income tax audits and changes in uncertain tax positions | 52 | 13 | |||||||||
| Tax effect of officer compensation in excess of $1M | 9 | 8 | |||||||||
| Nondeductible expenses | 5 | 2 | |||||||||
| Global intangible low-taxed income, foreign derived intangible income | (30) | (39) | |||||||||
| Acquisition-related integration | 1 | (29) | |||||||||
| Other | 4 | — | |||||||||
| Income tax provision | $ | 272 | $ | 230 | |||||||
Significant components of Autodesk’s deferred tax assets and liabilities are as follows:
| January 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Stock-based compensation | $ | 55 | $ | 55 | |||||||
| Research and development tax credit carryforwards | 139 | 109 | |||||||||
| Foreign tax credit carryforwards | 44 | 20 | |||||||||
| Accrued compensation and benefits | 52 | 19 | |||||||||
| Other accruals not currently deductible for tax | 18 | 15 | |||||||||
| Capitalized research and development | 392 | 696 | |||||||||
| Fixed assets | 12 | 18 | |||||||||
| Lease liability | 54 | 61 | |||||||||
| Tax loss carryforwards | 304 | 14 | |||||||||
| Deferred revenue | — | 427 | |||||||||
| Purchased technology | 55 | 38 | |||||||||
| Other | 65 | 40 | |||||||||
| Total deferred tax assets | 1,190 | 1,512 | |||||||||
| Less: valuation allowance | (156) | (131) | |||||||||
| Net deferred tax assets | 1,034 | 1,381 | |||||||||
| Indefinite lived intangibles | (166) | (143) | |||||||||
| Right-of-use assets | (34) | (37) | |||||||||
| Deferred taxes on foreign earnings | (24) | (28) | |||||||||
| Other | (8) | — | |||||||||
| Total deferred tax liabilities | (232) | (208) | |||||||||
| Net deferred tax assets | $ | 802 | $ | 1,173 | |||||||
Deferred tax assets arise primarily from tax credits, net operating losses, and timing differences for reserves, accrued liabilities, stock options, deferred revenue, purchased technologies, and capitalized intangibles, partially offset by U.S. deferred tax liabilities primarily on acquired intangibles and valuation allowances on deferred tax assets. Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk evaluates whether it is more likely than not that some or all of the deferred tax assets will not be realized based on all available positive and negative evidence.
Autodesk believes it will generate sufficient future taxable income in appropriate tax jurisdictions to realize its deferred tax assets for which a valuation allowance has not been recorded. Deferred tax assets are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse.
The Company continues to retain a valuation allowance against New Zealand, California, Massachusetts and Michigan deferred tax assets and deferred tax assets relating to capital losses or assets that will convert into a capital loss upon reversal in Australia and U.S., as the Company does not have sufficient income of the appropriate character to benefit these deferred tax assets. In fiscal 2026, a valuation allowance was established in Australia on deferred tax assets that will convert to capital loss upon reversal. The Company also released its valuation allowance in Portugal based on positive evidence supporting the realization of its deferred tax assets in fiscal 2026.
The Company has elected to recognize any potential NCTI obligations as an expense in the period it is incurred.
As of January 31, 2026, Autodesk had $1.33 billion of cumulative U.S. federal tax loss carryforwards and $812 million of cumulative U.S. state tax loss carryforwards, which may be available to reduce future income tax liabilities in federal and state jurisdictions. The U.S. federal losses generated beginning in fiscal 2019 are carried forward indefinitely. The U.S. state tax loss carryforward will expire beginning fiscal 2025 through fiscal 2046. In addition to U.S. federal and state tax loss carryforwards, Norway, New Zealand and other foreign jurisdictions incurred tax losses totaling $22 million, which may be available to reduce future income tax liabilities. Our Norway and New Zealand losses of $13 million and $7 million, respectively, have an indefinite expiration period. New Zealand losses have a full valuation allowance against them on our balance sheet as the Company has determined it is more likely than not that these losses will not be utilized.
As of January 31, 2026, Autodesk had $38 million of cumulative U.S. federal research tax credit carryforwards, $143 million of cumulative California state research tax credit carryforwards, $18 million of cumulative Massachusetts state research tax credit carryforwards, and $38 million of cumulative Canadian federal research tax credit carryforwards, which may be available to reduce future income tax liabilities in the respective jurisdictions. The federal research tax credit carryforward will expire beginning of fiscal 2046, the state research tax credit carryforwards in California and Massachusetts may reduce future California and Massachusetts income tax liabilities indefinitely in those respective states, and the Canadian research tax credit carryforwards will expire beginning fiscal 2033 through fiscal 2046. Autodesk also has $52 million of cumulative U.S. federal foreign tax credit carryforwards, which may be available to reduce future U.S. tax liabilities. These foreign tax credits will expire beginning fiscal 2032 through fiscal 2036. As discussed above, the California and Massachusetts cumulative assets have full valuation allowance against them on our balance sheet as the Company has determined it is more likely than not that these losses and credits will not be utilized.
Utilization of net operating losses and tax credits may be subject to an annual limitation due to ownership change limitations provided in the IRS and similar state provisions. This annual limitation may result in the expiration of net operating losses and credits before utilization. No ownership change has occurred through the balance sheet date that would result in permanent losses of the U.S. federal and state tax attributes.
As of January 31, 2026, the Company had $307 million of gross unrecognized tax benefits, of which $50 million would reduce our valuation allowance, if recognized. The remaining $257 million would impact the effective tax rate. The amount of unrecognized tax benefits that will decrease in the next twelve months due to statute lapses is $162 million.
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows:
| Fiscal Year Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Gross unrecognized tax benefits at the beginning of the fiscal year | $ | 312 | $ | 261 | $ | 238 | |||||||||||
| Increases for tax positions of prior years | 20 | 31 | 23 | ||||||||||||||
| Decreases for tax positions of prior years | (7) | — | (11) | ||||||||||||||
| Increases for tax positions related to the current year | 21 | 29 | 13 | ||||||||||||||
| Decreases relating to settlements with taxing authorities | — | (9) | — | ||||||||||||||
| Reductions as a result of lapse of the statute of limitations | (39) | — | (2) | ||||||||||||||
| Gross unrecognized tax benefits at the end of the fiscal year | $ | 307 | $ | 312 | $ | 261 | |||||||||||
It is the Company’s continuing practice to recognize interest and/or penalties related to income tax matters in income tax expense. Autodesk had $20 million, $15 million, and $7 million, net of tax benefit, accrued for interest and penalties related to unrecognized tax benefits as of January 31, 2026, 2025, and 2024, respectively. There was $4 million, $9 million, and $2 million of net expense for interest and penalties related to tax matters recorded through the Consolidated Statements of Operations for fiscal 2026, fiscal 2025, and fiscal 2024, respectively.
The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of fiscal 2026, tax years 2023 through 2026 remain subject to examination by the relevant tax authorities. Although tax years prior to 2023 are generally closed, tax authorities may review and adjust net operating loss carryforwards, tax credit carryforwards, and other tax attributes generated in closed years to the extent such attributes are utilized in an open tax year.
Autodesk files tax returns in multiple foreign taxing jurisdictions with open tax years ranging from fiscal 2005 to 2026.
Cash taxes paid is as follows:
| Fiscal year ended January 31, | |||||
| 2026 | |||||
| Federal | $ | — | |||
| State | (1) | ||||
| Foreign | — | ||||
| Brazil | 19 | ||||
| Ireland | 119 | ||||
| Singapore | 15 | ||||
| Other foreign jurisdictions | 106 | ||||
| Total cash taxes paid | $ | 258 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 3, 2026 | Showing above |
| 2025 | Mar 6, 2025 | |
| 2024 | Jun 10, 2024 | |
| 2023 | Mar 14, 2023 | |
| 2022 | Mar 14, 2022 | |
| 2021 | Mar 19, 2021 | |
| 2020 | Mar 19, 2020 | |
| 2019 | Mar 25, 2019 | |
| 2018 | Mar 22, 2018 | |
| 2017 | Mar 21, 2017 | |
| 2016 | Mar 23, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.