<PAGE>   1

--------------------------------------------------------------------------------

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 ---------------

                                    FORM 10-Q

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                       OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

         For the transition period from ____________ to _____________.


                                 ---------------


                         COMMISSION FILE NUMBER 0-19538

                          HYPERION SOFTWARE CORPORATION
             (Exact name of registrant as specified in its charter)


          DELAWARE                                               06-1326879
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)



                900 LONG RIDGE ROAD, STAMFORD, CONNECTICUT 06902
          (Address of principal executive offices, including zip code)

                                 (203) 703-3000
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [X]  NO [ ]

As of November 6, 1997, there were 18,781,083 shares of the Registrant's common
stock, $.01 par value, outstanding.

--------------------------------------------------------------------------------


<PAGE>   2

                         Hyperion Software Corporation

                                    Form 10-Q



                                    CONTENTS

PART I.  FINANCIAL INFORMATION                                             PAGE

Item 1. Financial Statements (Unaudited)

   Condensed Consolidated Balance Sheet --
     September 30, 1997 and June 30, 1997 .................................   2
                                                                               
   Condensed Consolidated Statement of Income --                               
     Three Months Ended September 30, 1997 and 1996 .......................   3
                                                                               
   Condensed Consolidated Statement of Cash Flows --                           
     Three Months Ended September 30, 1997 and 1996 .......................   4
                                                                               
   Notes to Condensed Consolidated Financial Statements --                     
     September 30, 1997 ...................................................   5
                                                                               
Item 2.  Management's Discussion and Analysis of Financial Condition           
         and Results of Operations ........................................   6
                                                                               
                                                                               
PART II.  OTHER INFORMATION                                                    
                                                                               
Item 4. Submission of Matters to a Vote of Security Holders ...............  10
                                                                               
Item 6. Exhibits and Reports on Form 8-K ..................................  10
                                                                               
                                                                               
SIGNATURES ................................................................  11
                                                                             

(C) 1997 Hyperion Software Operations Inc. All rights reserved. Hyperion,
Hyperion Software, the Hyperion Software Logo, Hyperion Admin, Hyperion Analyst,
Hyperion Assets, Hyperion Financials, Hyperion Forms, Hyperion Ledger, Hyperion
OLAP, Hyperion OnTrack, Hyperion Payables, Hyperion Pillar, Hyperion
Receivables, Hyperion Reporting, Hyperion Retrieve, Hyperion Tools, Business
Intelligence, Financial Intelligence, IMRS, LedgerLink, Micro Control and Pillar
are registered trademarks and Hyperion Analytical Ledger, Hyperion Enterprise,
Hyperion Purchasing and Build&Link are trademarks of Hyperion Software
Operations Inc., a wholly-owned subsidiary of Hyperion Software Corporation.
MARVEL COMICS, SPIDER-MAN: TM & (C) 1997 Marvel Characters, Inc. All rights
reserved. All other trademarks and company names mentioned are the property of
their respective owners.

     For further information, refer to the Hyperion Software Corporation annual
report on Form 10-K for the year ended June 30, 1997.



<PAGE>   3

                          Hyperion Software Corporation
                      Condensed Consolidated Balance Sheet
                      (in thousands, except for share data)

<TABLE>
<CAPTION>
                                                          SEPTEMBER 30,      JUNE 30, 
                                                              1997            1997
                                                            -----------------------
ASSETS                                                     (Unaudited)        (Note)
<S>                                                         <C>            <C>
Current assets:
  Cash and cash equivalents                                 $ 71,624       $ 67,059
  Accounts receivable--net of allowances
     of $5,800 and $5,300                                     61,960         64,831
  Prepaid expenses and other current assets                    3,533          3,243
  Deferred income taxes                                        4,069          3,811
                                                            -----------------------
TOTAL CURRENT ASSETS                                         141,186        138,944

Property and equipment--at cost, less accumulated
  depreciation and amortization of $34,632 and $31,029        56,245         57,853
Product development costs--at cost, less
  accumulated amortization of $7,614 and $6,796                8,383          8,526
Product distribution rights, goodwill and other
  intangible assets--at cost, less accumulated
  amortization of $8,595 and $7,631                           10,145         11,103
Deposits and other assets                                      2,683          2,213
                                                            -----------------------
Total assets                                                $218,642       $218,639
                                                            =======================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses                     $ 23,765       $ 22,746
  Accrued employee compensation and benefits                  11,397         19,882
  Income taxes payable                                         8,269          8,898
  Deferred revenue                                            45,232         44,619
  Notes payable                                                  514            563
                                                            -----------------------
TOTAL CURRENT LIABILITIES                                     89,177         96,708

Mortgage payable                                               7,733          7,823
Deferred income taxes                                            256          1,071

Stockholders' equity:
  Preferred stock--$.01 par value;
    authorized--1,000,000 shares; none issued
  Common stock--$.01 par value; authorized--50,000,000
    shares; issued--22,920,502 and 22,577,437 shares             229            226
  Additional paid-in capital                                  90,863         85,706
  Retained earnings                                           45,507         41,994
  Currency translation adjustments                            (1,610)        (1,376)
  Treasury stock, at cost--4,344,599 shares                  (13,513)       (13,513)
                                                            -----------------------
TOTAL STOCKHOLDERS' EQUITY                                   121,476        113,037
                                                            -----------------------
Total liabilities and stockholders' equity                  $218,642       $218,639
                                                            =======================

</TABLE>


Note: the balance sheet at June 30, 1997 has been derived from the audited
financial statements at that date.

See accompanying notes.


                                      -2-
<PAGE>   4

                          Hyperion Software Corporation
             Condensed Consolidated Statement of Income (Unaudited)
                      (in thousands, except per share data)


<TABLE>
<CAPTION>
                                            THREE MONTHS ENDED                   
                                              SEPTEMBER 30,
                                           1997          1996
                                          ---------------------
<S>                                       <C>           <C>    

REVENUES
   Software licenses                      $29,266       $20,906
   License renewals and services           31,638        25,081
                                          ---------------------
Total revenues                             60,904        45,987

COSTS AND EXPENSES
Cost of revenues:
   Software licenses                        2,003         1,680
   License renewals and services           19,053        14,535
Sales and marketing                        19,450        14,619
Product development                         8,350         7,872
General and administrative                  7,087         4,281
                                          ---------------------
                                           55,943        42,987
                                          ---------------------
OPERATING INCOME                            4,961         3,000

Interest income                               637           374
Interest expense                              (86)          (83)
                                          ---------------------
INCOME BEFORE INCOME TAXES                  5,512         3,291

Provision for income taxes                  2,000         1,250
                                          ---------------------
NET INCOME                                $ 3,512       $ 2,041
                                          =====================
EARNINGS PER SHARE
   Primary                                $   .18       $   .11
   Fully diluted                          $   .18       $   .11

AVERAGE NUMBER OF SHARES OUTSTANDING
   Primary                                 19,357        17,813
   Fully diluted                           19,467        18,013

</TABLE>


See accompanying notes.




                                      -3-
<PAGE>   5


                          Hyperion Software Corporation
           Condensed Consolidated Statement of Cash Flows (Unaudited)
                                 (in thousands)


<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED 
                                                              SEPTEMBER 30,
                                                           1997         1996
                                                         -------      --------
<S>                                                      <C>          <C>     

CASH PROVIDED BY OPERATING ACTIVITIES                    $ 5,581       $10,861

INVESTING ACTIVITIES
   Office improvements and purchases of
     furniture, equipment and software                    (2,310)       (3,760)
   Product development costs                                (675)       (1,133)
   Deposits and intangible assets                           (560)         (147)
   Business acquisitions                                                (7,104)
                                                         ---------------------
Cash used by investing activities                         (3,545)      (12,144)

FINANCING ACTIVITIES
   Principal payments on notes payable                      (139)         (155)
   Exercise of stock options by employees                  2,902           419
                                                         ---------------------
Cash provided by financing activities                      2,763           264

Effect of exchange rate changes                             (234)           59
                                                         ---------------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS           4,565          (960)
Cash and cash equivalents at beginning of period          67,059        42,361
                                                         ---------------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD               $71,624       $41,401
                                                         =====================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
   Cash paid (received), net during the period for:
      Income taxes                                       $ 1,444       $  (151)
      Interest                                                82            75

</TABLE>



See accompanying notes.



                                      -4-


<PAGE>   6

                          Hyperion Software Corporation
        Notes to Condensed Consolidated Financial Statements (Unaudited)
                               September 30, 1997


A. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments, consisting
only of normal recurring accruals, considered necessary for a fair presentation
have been included in the accompanying unaudited financial statements. Operating
results for the three-month period ended September 30, 1997 are not necessarily
indicative of the results that may be expected for the full year ending June 30,
1998. For further information, refer to the consolidated financial statements
and footnotes thereto included in the company's annual report on Form 10-K for
the year ended June 30, 1997.

Earnings per share ("EPS") are calculated by dividing net income by the weighted
average number of common and common equivalent shares outstanding during the
period. For primary EPS, common equivalent shares are shares which would be
issuable upon the exercise of outstanding stock options, reduced by the number
of shares assumed to be purchased by the company with the proceeds obtained
therefrom at the average market price during the period. For the fully diluted
EPS calculation, shares are assumed to be purchased by the company at the higher
of the average or period-end market price and, therefore, this calculation may
include additional equivalent shares.

In February 1997, the Financial Accounting Standards Board issued SFAS No. 128,
"Earnings Per Share," which changes the methodology of calculating earnings per
share. The company will adopt SFAS No. 128 in December 1997. The company does
not expect the adoption of SFAS No. 128 to have a material effect on the
earnings per share information presented.

B. CONTINGENCIES

From time to time, in the normal course of business, various claims are made
against the company. At this time, in the opinion of management, there are no
pending claims the outcome of which is expected to result in a material adverse
effect on the financial position of the company.




                                      -5-
<PAGE>   7
                          Hyperion Software Corporation
                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations


OVERVIEW
--------------------------------------------------------------------------------
Founded in 1981, Hyperion Software Corporation provides software solutions for
better business understanding and improved financial performance. The company's
Internet-enabled applications support and enhance enterprise-wide processes,
including planning, budgeting, forecasting, accounting, consolidation and
business analysis. Hyperion solutions are used by large organizations worldwide.

The company derives revenues from licensing its software products and providing
related product installation, support and training services. Customers are
billed an initial fee for the software upon delivery. A license renewal fee
entitling customers to routine support and product updates is billed annually.
Hyperion licenses its products throughout the world primarily through a direct
sales force. Products also are licensed through independent distributors and
sales agents, including major accounting firms. The company includes in revenues
its net share of revenues generated by distributors. When an agent has
facilitated the sale and Hyperion is the licensor, the license revenue is
reported gross and a commission charge is reflected. 

The company operates with a minimal software licensing backlog. Therefore,
quarterly revenues and operating results are quite dependent on the volume and
timing of the signing of licensing agreements and product deliveries during the
quarter, which are difficult to forecast. The company's future operating results
may fluctuate due to these and other factors, such as customer buying patterns,
the deferral and/or realization of deferred software license revenues according
to contract terms, the timing of new product introductions and product upgrade
releases, the company's hiring plans, the scheduling of sales and marketing
programs, new product development by the company or its competitors and currency
exchange rate movements. A significant portion of the company's quarterly
software licensing agreements is concluded in the last month of the fiscal
quarter, generally with a concentration of such revenues earned in the final ten
business days of that month. The company generally has realized lower revenues
in its first (September) and third (March) fiscal quarters than in the
immediately preceding quarters. Total revenues and net income were $60.9 million
and $3.5 million, respectively, for the first quarter of fiscal 1998, and $73.6
million and $5.9 million, respectively, for the fourth quarter of fiscal 1997.
The company believes that these revenue fluctuations are caused by customer
buying patterns, including traditionally slow purchase activity in the summer
months and low purchase activity in the corporate financial applications market
during the March quarter, as many potential customers are busy with their
year-end closing and financial reporting. In any case, due to the relatively
fixed nature of certain costs, including personnel and facilities expenses, a
decline or shortfall in quarterly and/or annual revenues typically results in
lower profitability or may result in losses.

Except for the historical information contained in this report on Form 10-Q, the
matters discussed herein are forward-looking statements that involve risks and
uncertainties. Actual events and the company's future results may vary
significantly based on a number of factors, including those discussed in the
preceding paragraph; whether the accounting products contemplated to be jointly
developed by Baan and Hyperion are developed in a timely fashion and are
accepted by the market (for further details of the strategic alliance with The
Baan Company, see the Hyperion annual report on Form 10-K for the year ended
June 30, 1997, Note B of the financial statements); whether the proposed
coordination of sales prospects between the companies works in practice and
results in increased revenues for the company; whether the strategic advantages
and synergies contemplated to be gained by the parties are actually able to be
realized; and the impact of competitive products and pricing. Any
forward-looking statements should be considered in light of these factors as
well as other risks as detailed in the company's annual report on Form 10-K for
the year ended June 30, 1997. Further, readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof.



                                      -6-
<PAGE>   8
                          Hyperion Software Corporation
                     Management's Discussion and Analysis of
            Financial Condition and Results of Operations (continued)


RESULTS OF OPERATIONS
--------------------------------------------------------------------------------


REVENUES

<TABLE>
<CAPTION>
                                              First Quarter Ended           
September 30,                                1997    CHANGE    1996        
----------------------------------------------------------------------    
                                            (dollars in thousands)    
<S>                                        <C>       <C>      <C>     
Software licenses                          $29,266   40.0%    $20,906 
Percentage of total revenues                  48.1%              45.5%
----------------------------------------------------------------------    
License renewals and services              $31,638   26.1%    $25,081 
Percentage of total revenues                  51.9%              54.5%
----------------------------------------------------------------------    
</TABLE>
                                                  

Software license revenues rose primarily as a result of an increase in the
number of licenses sold (unit volume) versus, for example, price increases. In
particular, revenue growth was led by demand for the company's enterprise
financial management and budgeting products.

The increase in license renewal and service revenue is mainly attributable to
the year-to-year growth of the company's installed customer base.

Revenues generated from markets outside the United States for the quarters ended
September 30, 1997 and 1996 were $22.4 million and $15 million, or 36.8% and
32.7% of total revenues, respectively. Revenue growth was particularly strong in
Canada, Germany, Southeast Asia and the United Kingdom.

In October 1997, the American Institute of Certified Public Accountants issued
Statement of Position 97-2, "Software Revenue Recognition" ("SOP"), which
provides guidance on applying generally accepted accounting principles in
recognizing revenue on software transactions. The company believes that the
requirements of this SOP, which supersede the revenue recognition guidance of
SOP 91-1, do not differ significantly from its revenue recognition practices and
policy requirements. Accordingly, adoption of the SOP is not expected to
materially impact the company's results of operations.

COST OF REVENUES

<TABLE>
<CAPTION>
                                             First Quarter Ended         
September 30,                              1997    CHANGE     1996        
---------------------------------------------------------------------    
                                            (dollars in thousands)
<S>                                      <C>        <C>      <C>    
Software licenses                        $ 2,003    19.2%    $ 1,680
Gross profit percentage                     93.2%               92.0%
---------------------------------------------------------------------    
License renewals and services            $19,053    31.1%    $14,535
Gross profit percentage                     39.8%               42.0%
---------------------------------------------------------------------    
</TABLE>


Cost of software license revenues consists primarily of the cost of product
packaging and documentation materials, amortization of capitalized software
costs, amortization of certain intangible assets related to business
acquisitions, and royalty expenses. The amortization of capitalized software
costs begins upon the general release of the software to customers. The increase
in the cost of software license revenues principally reflects an increase in
royalty fees related to the increase in the number of software licenses sold.

The increase in the cost of license renewal and service revenues was due
primarily to additional staffing expense for both installation and ongoing
support services.



                                      -7-
<PAGE>   9

  
                          Hyperion Software Corporation
                     Management's Discussion and Analysis of
            Financial Condition and Results of Operations (continued)


OPERATING EXPENSES

<TABLE>
<CAPTION>
                                             First Quarter Ended          
September 30,                              1997    CHANGE     1996        
---------------------------------------------------------------------    
                                            (dollars in thousands)
<S>                                      <C>        <C>     <C>    
Sales and marketing                      $19,450    33.0%   $14,619
Percentage of total revenues                31.9%              31.8%
---------------------------------------------------------------------    
Product development                      $ 8,350     6.1%   $ 7,872
Percentage of total revenues                13.7%              17.1%
---------------------------------------------------------------------    
General and administrative               $ 7,087    65.5%   $ 4,281
Percentage of total revenues                11.6%               9.3%
---------------------------------------------------------------------    
</TABLE>


The increase in sales and marketing expenses is primarily due to a net increase
in sales-marketing personnel and, to a lesser extent, an increase in commission
costs directly associated with the significant increase in software license
revenues.

The increase in product development expenses reflects additional third-party
development costs associated with research and development activities. In the
quarters ended September 30, 1997 and 1996, the company capitalized $.7 million
and $1.1 million of software development costs, respectively, in accordance with
Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of
Computer Software to be Sold, Leased or Otherwise Marketed." The amounts
capitalized primarily relate to the company's development of enterprise-wide
financial reporting and analysis solutions for client/server environments and
represented 7.5% and 12.6% of total product development expenditures.
Capitalized software costs are amortized over the estimated economic life of the
product, but generally not more than four years.

The increase in general and administrative expenses resulted, for the most part,
from increases in personnel and professional services costs incurred to support
the growth of the company's overall operations, as well as estimated costs
associated with additional support required by certain accounting product
customers.

INTEREST INCOME

Interest income increased from $.4 million to $.6 million due to the increase
from operations in cash available for investment.


PROVISION FOR INCOME TAXES

The company's effective income tax rate decreased from 38% to 36.3%. The tax
rate for the current period reflects the company's expectations for the full
year ending June 30, 1998. The rate reduction is mainly attributable to the
recent tax law change that will yield the company additional benefits with
respect to export sales.

NET INCOME

As a result of the above factors, net income for the three-month period ended
September 30, 1997 increased to $3.5 million, or by 72.1%, from $2 million for
the corresponding period of 1996.

To date, the overall impact of inflation on the company has not been material.



                                      -8-
<PAGE>   10

                          Hyperion Software Corporation
                     Management's Discussion and Analysis of
            Financial Condition and Results of Operations (continued)


LIQUIDITY AND CAPITAL RESOURCES
--------------------------------------------------------------------------------

To date, the company has financed its business principally through positive cash
flow from operations and sales of its common stock. For fiscal years 1995, 1996
and 1997, and for the three months ended September 30, 1997, the company
generated positive cash flow from operations of $28.9 million, $34.1 million,
$47.1 million and $5.6 million, respectively.

Cash used by investing activities amounted to $3.5 million for the three months
ended September 30, 1997, including $2.3 million primarily for purchases of
computer equipment and software and $1.2 million for deposit and intangible
asset costs.

Financing activities in the quarter ended September 30, 1997, including stock
options exercised by employees and payments of indebtedness, generated cash of
$2.8 million. In connection with the stock options exercised by certain of its
employees (for a total of 343,065 common shares), the company recognized (as a
credit to additional paid-in capital) an income tax benefit of $2.3 million for
the three months ended September 30, 1997.

As of September 30, 1997, the company had cash and cash equivalents of $71.6
million and working capital of $52 million, no long-term debt other than the
mortgage loan (currently at an interest rate of 3.9%) for the Stamford,
Connecticut office and research facility, and its ratio of current assets to
current liabilities was 1.6 to 1. Cash equivalents are comprised primarily of
investment-grade U.S. state and political subdivision obligations with varying
terms of three months or less. The company has long-term credit availability of
$25 million under a revolving credit facility. The company anticipates capital
expenditures of approximately $35 million for its 1998 fiscal year. The company
intends to continue to review potential acquisitions and business alliances that
it believes would enhance its growth and profitability.

From time to time, in the normal course of business, various claims are made
against the company. At this time, in the opinion of management, there are no
pending claims the outcome of which is expected to result in a material adverse
effect on the financial position of the company.

The company believes that funds generated from operations, existing cash
balances and its available credit facility will be sufficient to finance the
company's operations for at least the next two years.



                                      -9-
<PAGE>   11

                          Hyperion Software Corporation
                           Part II. Other Information



ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

At the company's Annual Meeting of Stockholders held on November 12, 1997, the
following proposals were adopted by the margins indicated:

1.   To elect two members to the board of directors to serve for a three-year
     term as Class I Directors.

<TABLE>
<CAPTION>
                                                    Number of Shares
                                                  For           Withheld
                                               -------------------------
                    <S>                        <C>               <C>    

                    James A. Perakis           15,539,081        284,265
                    Gary G. Greenfield         15,538,981        284,365
</TABLE>
     Marco Arese Lucini, Harry S. Gruner, Aldo Papone and Robert W. Thomson
     continue to serve as directors of the company.

2.   To consider and act upon amendments to the company's 1991 Stock Plan such
     that (i) the number of shares of Common Stock authorized for issuance under
     the plan are increased from 4 million to 7 million shares, (ii) awards of
     stock purchase and option rights resulting from the increase in available
     shares will be made at exercise prices equal to at least 85 percent of the
     fair market value of the company's Common Stock at the time of grant, and
     (iii) awards of stock are no longer permitted.

                    For                       10,390,397
                    Against                    2,623,224
                    Abstain                       14,924
                    Non-votes                  2,794,801

3.   To ratify the selection of the firm of Ernst & Young LLP as independent
     auditors for the fiscal year ending June 30, 1998.

                    For                       15,812,341
                    Against                        3,795
                    Abstain                        7,210



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

The following exhibit is included herein: (11) Statement Re: Computation of
Earnings Per Share.

The company did not file any reports on Form 8-K during the three months ended
September 30, 1997.



                                      -10-

<PAGE>   12


                          Hyperion Software Corporation
                                    Form 10-Q
               for the three-month period ended September 30, 1997


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                              Hyperion Software Corporation



                              /s/ Michael A. Manto                    11/13/97
                              -------------------------------------------------
                              Michael A. Manto                          Date
                              Vice President and Corporate Controller



                              /s/ Lucy Rae Ricciardi                  11/13/97
                              -------------------------------------------------
                              Lucy Rae Ricciardi                        Date
                              Senior Vice President and Chief Financial Officer





                                      -11-