San Rafael, California, August 29, 2025
News Summary
Autodesk reported quarterly results that beat analyst expectations, driven by subscription adoption and generative AI integration across its cloud products. Revenue was $1.76 billion, up 17% year-over-year, with non-GAAP EPS of $2.62 and GAAP EPS of $1.46. Billings rose 36% to $1.68 billion and AECO revenue grew 23% to $878 million. Management raised full-year revenue guidance and increased share buybacks, citing strong recurring sales and accelerating billings. Margin gains reflected cost discipline and automation. Analysts note implementation risks for AI, uneven construction demand, and uncertainty around M&A and capital deployment.
Autodesk posts stronger-than-expected Q2 fiscal 2026 results; raises full-year outlook
Autodesk reported second-quarter revenue of $1.76 billion, a 17% rise from a year earlier, and said results beat expectations. The company also raised its full-year revenue guidance to a range of $7.03 billion to $7.08 billion. Billings, a key forward-looking sales metric, surged 36% year over year to $1.68 billion, and the Architecture, Engineering, Construction, and Operations business grew 23% to $878 million. On the profit side, non‑GAAP earnings per share were $2.62, while GAAP EPS came in at $1.46.
Why the jump matters
The results underline a shift in how Autodesk earns money. The company’s move to a subscription, cloud-first model has stabilized recurring revenue and helped retain customers. Strong billings growth signals a bigger backlog of future subscription revenue, which supports the raised guidance and management confidence. Autodesk also flagged increased share buyback targets as evidence of that confidence.
AI and software investments driving growth
Autodesk has been embedding generative AI into its cloud software stack, adding predictive design features and automation to tools such as Revit and AutoCAD. That push is visible in segment growth: the Design business grew about 10% and the Make business, which covers manufacturing and 3D modeling, grew 20%. Strategic investments in software-as-a-service and AI align with a rapidly expanding SaaS market, which is forecast to grow from roughly $317.6 billion in 2024 to about $793.1 billion by 2029. Industry forecasts also point to a fast-growing AI in construction market and an outsized growth rate for generative AI in construction, strengthening the case that Autodesk’s early AI work could capture meaningful share of that demand.
Profitability, cost discipline and margin outlook
Management reported improved ability to convert revenue into profit, supported by restructuring and tighter cost controls. External notes point to factors such as headcount reductions and process automation as drivers of non‑GAAP margin growth. Autodesk highlighted free cash flow generation and margin expansion as buffers against macro uncertainty. Still, analysts and investors are watching capital allocation and M&A plans closely.
Analyst views and market cautions
Before the report, analysts had expected around $1.72 billion in revenue and $1.39 in EPS, so Autodesk’s results topped those estimates. One major broker maintained a cautious rating on the company and set a price target that reflects both potential margin gains and a cautious stance on capital allocation and deal-making. That same view also noted soft industry demand in some construction indicators, which tempers enthusiasm despite the strong billings growth.
Risks and industry headwinds
The company’s AI push comes with implementation risks and uncertainty about how fast customers will adopt new AI-driven workflows. Surveys show a sizeable portion of professionals worry about AI’s impact on their industries, and those concerns could slow or reshape adoption patterns. Autodesk’s guidance raise and billings strength were presented as management’s counterargument: that recurring revenue and cost discipline will sustain growth even as AI adoption creates uncertainty.
Timing and next steps
The financial results were posted after market close on the reported date, with a conference call scheduled as is typical to discuss details and answer investor questions. The company’s fiscal calendar follows its chosen year-end, a reminder that US-listed firms may use different fiscal cutoffs than the calendar year.
Quick facts
- Q2 revenue: $1.76 billion (+17% YoY)
- Non‑GAAP EPS: $2.62; GAAP EPS: $1.46
- AECO: $878 million (+23% YoY)
- Billings: $1.68 billion (+36% YoY)
- Guidance: Fiscal year revenue raised to $7.03–$7.08 billion
- Segment growth: Design +10%; Make +20%
FAQ
What were the headline results for the quarter?
Revenue was $1.76 billion, up 17% year over year. Non‑GAAP EPS was $2.62 and GAAP EPS was $1.46. Billings rose 36% to $1.68 billion.
Why did revenue and billings rise so much?
Growth was driven by the shift to subscription and cloud services, stronger renewals, new customer uptake, and early adoption of AI features that add value to design and construction workflows.
What is the AECO segment and why does it matter?
AECO covers tools and services for architecture, engineering, construction, and operations. It is a high-priority market for Autodesk because recurring subscriptions and AI tools can be embedded into large, multi-year construction projects.
How does AI factor into Autodesk’s strategy?
Autodesk has added generative AI and predictive tools to core products to speed design work, automate routine tasks, and personalize user experiences. The company is also building industry-specific AI models for construction and manufacturing.
Are there risks to this path?
Yes. AI adoption carries implementation risk and there is industry concern about disruption. Soft demand in parts of construction and uncertainty around M&A or capital allocation add caution for some investors.
What did analysts expect before the report?
Analysts had expected about $1.72 billion in revenue and $1.39 in EPS, so the results exceeded those estimates.
Key features at a glance
| Feature | Detail |
|---|---|
| Quarterly revenue | $1.76 billion (+17% YoY) |
| Billings | $1.68 billion (+36% YoY) |
| AECO | $878 million (+23% YoY) |
| Profitability | Non‑GAAP EPS $2.62; GAAP EPS $1.46; margin gains from cost actions |
| Guidance | Raised to $7.03–$7.08 billion for fiscal year |
| AI & SaaS focus | Generative AI added to core tools; industry-specific AI models in development |
| Market context | Large SaaS and AI construction market growth projected through 2029 |
Deeper Dive: News & Info About This Topic
Additional Resources
- Zacks: Autodesk coverage
- Wikipedia: Autodesk
- TradingView / Reuters: Autodesk news
- Google Search: Autodesk earnings Q2 2026
- MSN: Countdown to Autodesk (ADSK) Q2 earnings
- Google Scholar: Autodesk generative AI
- AInvest: Bank of America maintains hold on Autodesk
- Encyclopedia Britannica: Autodesk
- Futunn: Earnings preview — Autodesk
- Google News: Autodesk
Author: Construction NY News
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