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Autodesk, Inc. (ADSK)·Q2 2026 Earnings Summary

Executive Summary

  • Autodesk delivered a clean beat: revenue $1.763B (+17% YoY) and non-GAAP EPS $2.62 both topped consensus; GAAP EPS $1.46, GAAP operating margin 25% and non-GAAP operating margin 39% . Against S&P Global consensus, revenue beat by ~$39M and non-GAAP EPS by ~$0.17 per share, driven by AECO strength, Autodesk Store, stronger billings linearity, and up-front revenue in EBAs .*
  • Full-year FY26 guidance was raised: revenue to $7.025–$7.075B (from $6.925–$6.995B), billings to $7.355–$7.445B, non-GAAP op margin ~37% (from 36.5–37%), non-GAAP EPS $9.80–$9.98 (from $9.50–$9.73), and FCF $2.200–$2.275B (from $2.100–$2.200B) .
  • Near-term catalysts: Q3 FY26 guidance implies continued top-line growth ($1.800–$1.810B revenue; non-GAAP EPS $2.48–$2.51) and Autodesk University plus Investor Day on Oct 7 with AI, platform and margin framework updates .
  • Risk cleared: SEC and USAO investigations into FCF and non-GAAP margin practices were closed in August, removing an overhang . The company maintained macro conservatism for H2 with tougher comps and back-half weighted FCF, but execution remains disciplined .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and profitability: revenue $1.763B (+17% YoY), non-GAAP EPS $2.62 (+$0.47 YoY), GAAP op margin 25% (+200 bps YoY), non-GAAP op margin 39% (+100 bps YoY) . CFO: “Q2 was another strong quarter… Store, billings linearity… and up-front revenue were stronger than expected” .
  • Segment strength: AECO revenue $878M (+23% YoY) with tailwinds from data centers, infrastructure, and industrial buildings; “momentum in our construction business is unchanged… performing quite well” .
  • Balance sheet and cash: Operating cash flow $460M (+117% YoY) and FCF $451M (+122% YoY); RPO $7.297B (+24% YoY); current RPO $4.677B (+20% YoY) . Management raised FY26 buyback target by ~$100M to $1.2–$1.3B and reiterated long-term margin expansion targets (41% reported non-GAAP by FY29) .

What Went Wrong

  • Commercial softness and APAC drag: AECO strength offset “softness in commercial”; APAC grew 11% YoY but is more exposed to macro and transaction model ramp (Japan last to transition) .
  • New transaction model headwind: Mechanical margin drag persists as the model scales, with CFO noting headwinds through FY27; guidance embeds prudence for H2 and tougher comps, particularly in Q4 .
  • Macro/tariffs uncertainty: Management continues to bake conservatism at the low end of guidance; customers cite pricing pressures from tariffs, though impact is not materially visible yet .

Financial Results

Key P&L and margins

MetricQ1 FY26Q2 FY26
Revenue ($USD Millions)$1,633 $1,763
GAAP Operating Margin (%)14% 25%
Non-GAAP Operating Margin (%)37% 39%
GAAP Diluted EPS ($)$0.70 $1.46
Non-GAAP Diluted EPS ($)$2.29 $2.62
Cash flow from operating activities ($USD Millions)$564 $460
Free Cash Flow ($USD Millions)$556 $451

Actual vs S&P Global consensus

MetricQ2 FY26 ConsensusQ2 FY26 ActualSurprise
Revenue ($USD Millions)$1,724.1*$1,763 +$38.9
Non-GAAP EPS ($)$2.45*$2.62 +$0.17

Values retrieved from S&P Global.*

Segment breakdown by product type

MetricQ1 FY26Q2 FY26
Design Revenue ($USD Millions)$1,361 $1,472
Make Revenue ($USD Millions)$179 $194
Other Revenue ($USD Millions)$93 $97
Total Net Revenue ($USD Millions)$1,633 $1,763

Segment breakdown by product family

MetricQ1 FY26Q2 FY26
AECO Revenue ($USD Millions)$809 $878
AutoCAD + LT Revenue ($USD Millions)$411 $440
MFG Revenue ($USD Millions)$309 $334
M&E Revenue ($USD Millions)$76 $80
Other Revenue ($USD Millions)$28 $31
Total Net Revenue ($USD Millions)$1,633 $1,763

Geographic breakdown

MetricQ1 FY26Q2 FY26
Americas Revenue ($USD Millions)$725 $786
EMEA Revenue ($USD Millions)$627 $675
APAC Revenue ($USD Millions)$281 $302
Total Net Revenue ($USD Millions)$1,633 $1,763

KPIs

MetricQ1 FY26Q2 FY26
Billings ($USD Millions)$1,434 $1,678
Deferred Revenue ($USD Millions)$3,929 $3,844
Unbilled Deferred Revenue ($USD Millions)$3,228 $3,453
RPO ($USD Millions)$7,157 $7,297
Current RPO ($USD Millions)$4,552 $4,677

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q3 FY26N/A$1,800–$1,810 —
GAAP EPS ($)Q3 FY26N/A$1.34–$1.42 —
Non-GAAP EPS ($)Q3 FY26N/A$2.48–$2.51 —
Billings ($USD Millions)FY26$7,160–$7,310 $7,355–$7,445 Raised
Revenue ($USD Millions)FY26$6,925–$6,995 $7,025–$7,075 Raised
GAAP Operating Margin (%)FY2621–22% 21–22% Maintained
Non-GAAP Operating Margin (%)FY2636.5–37% ~37% Raised (midpoint)
GAAP EPS ($)FY26$4.63–$5.14 $4.68–$5.09 Narrowed
Non-GAAP EPS ($)FY26$9.50–$9.73 $9.80–$9.98 Raised
Free Cash Flow ($USD Millions)FY26$2,100–$2,200 $2,200–$2,275 Raised
GAAP Tax Rate (%)FY2627–30% 31–33% Raised
GAAP Tax Rate (%)Q3 FY2626–28% (Q2 outlook) 30–32% Raised

Earnings Call Themes & Trends

TopicQ4 FY25 (Q-2)Q1 FY26 (Q-1)Q2 FY26 (Current)Trend
AI initiativesFusion AutoConstrain ~50% acceptance; strategy to monetize productivity; Forma AI to expand BIM reach AutoConstrain >50% acceptance; continued AI feature rollouts; foundation models strategy Fusion AI auto-constraint >60% acceptance; 90% sketches fully constrained; broader AI foundation models ambition Accelerating
Sales & marketing optimizationLaunched optimization phase; 9% RIF; unit cost to serve to fall over time Early benefits; spend growth slowed to ~4% in FY26; building self-serve capabilities On track; non-GAAP op margin path to ~41% FY29 (reported), ~45% underlying Improving
Tariffs/macroCustomers want certainty; resilient diversification Guidance prudence due to uncertainty, not observed impact Conservatism maintained at low end; customers coping with tariff-price pressures Stable cautious
Product performance (AECO/Construction)Construction accelerated; +~400 net new logos Strong AECO; Store strength; upfront EBA revenue AECO standout on secular data centers/infrastructure; construction momentum “unchanged” Strong/steady
Regional trendsAmericas/EMEA solid; APAC 11% CC growth APAC softer (Japan last to roll; China/Korea macro) Middle East/India stood out; APAC +11% YoY Mixed
Regulatory/legalAnnounced restructuring —SEC and USAO matters closed (Aug) Positive

Management Commentary

  • CEO: “We have been building industry-specific foundation models… capable of understanding and reasoning about 2D and 3D geometry, design and make data… We’re excited about the road ahead… and the platform ecosystem we’ve built… to scale AI successfully” .
  • CFO: “We have raised our full year guidance to reflect the underlying strength of the business in the first half of the year and additional foreign exchange tailwinds” .
  • On construction: “Momentum in our construction business is unchanged… performing well across… U.S. and internationally; payments performing well; modern, end-to-end platform” .
  • Long-term margins: “Assuming no material change… we expect reported non-GAAP operating margin to be 41% in fiscal 2029 or about 45% on an underlying basis… the largest contribution… from sales and marketing” .

Q&A Highlights

  • Margin trajectory and drivers: Largest lift from sales & marketing optimization, with inherent operating leverage; path to 41% reported non-GAAP margin by FY29; not linear due to transaction model headwinds in FY27 .
  • Construction and AECO runway: Continued traction with ACC, preconstruction planning, payments; comprehensive, modern stack; wins across pyramid and mid-market; international growth .
  • Channel productivity and Store/PLG: First renewals on new model in Americas (June) and EMEA (September) went as expected; steady increase in partner new business; investment in PLG driving Store capture and self-serve build-out .
  • Macro/tariffs: Conservatism at guidance low end; customers coping with pricing pressures; management embeds prudence despite stable observed momentum .
  • H2 setup and comps: Large EBA and product subscription renewals in back half; tougher comps (transaction model and acquisitions weighted to H2 last year); FCF more weighted to Q4 .

Estimates Context

  • Q2 FY26 vs consensus: Revenue $1.763B vs $1.724B*, non-GAAP EPS $2.62 vs $2.45*; broad-based demand (AECO, Store, upfront revenue) and FX tailwinds drove the beat .*
  • Q1 FY26 vs consensus: Revenue $1.633B vs $1.607B*, non-GAAP EPS $2.29 vs $2.15*; steady underlying momentum and easing transaction model friction supported outperformance .*
  • FY26 guidance raised on revenue, EPS, FCF; Street estimates likely to move higher for H2, with back-half prudence intact given tougher comps and transaction model dynamics .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Strong print and raise: Q2 beat on both revenue and EPS; FY26 guide raised on revenue, non-GAAP EPS, and FCF—supports near-term positive estimate revisions .
  • Mix and seculars drive resilience: AECO/Construction momentum (data centers, infrastructure) offsets commercial softness; Store and EBA upfront revenue buttress quarterly results .
  • Margin expansion credible: Execution on sales/marketing optimization and self-serve build-out underpins multi-year operating leverage; long-term non-GAAP margin target increased (FY29) .
  • Watch H2 cadence: Expect tougher comps in Q4 and mechanical margin drag from transaction model; FCF more Q4-weighted; large renewal cohorts to close in back half .
  • AI/platform narrative: Autodesk’s proprietary industry foundation models and product-level AI (Fusion, Forma, Flow Studio freemium) are differentiating and potential monetization levers .
  • Legal overhang removed: SEC and USAO matters closed; governance optics improved .
  • Near-term catalysts: Autodesk University and Oct 7 Investor Day (AI, platform, margin framework); Q3 guide implies continued growth; monitor updates on channel renewals and Store PLG efficacy .