8-K: Autodesk Q2 FY26 Revenue Up 17%, Raises Full-Year Outlook

Autodesk, Inc. announced strong second-quarter fiscal 2026 financial results, with revenue growing 17% to $1.76 billion, and raised its full-year guidance.

Summary

• Autodesk reported second-quarter fiscal 2026 revenue of $1.763 billion, an increase of 17% year-over-year (18% on a constant currency basis).
• Billings for Q2 FY26 reached $1.678 billion, marking a 36% year-over-year increase.
• GAAP diluted EPS for Q2 FY26 was $1.46, while non-GAAP diluted EPS was $2.62.
• Cash flow from operating activities for Q2 FY26 was $460 million, and free cash flow was $451 million, representing a 117% and 122% year-over-year increase, respectively.
• The Architecture, Engineering, Construction, and Operations (AECO) product family revenue grew 23% (24% constant currency) to $878 million, driven by investments in data centers, infrastructure, and industrial buildings.
• Autodesk raised its full-year fiscal 2026 guidance, now expecting revenue between $7.025 billion and $7.075 billion, and non-GAAP diluted EPS between $9.80 and $9.98.
• Government investigations by the U.S. Securities and Exchange Commission (SEC) and the United States Attorney's Office for the Northern District of California (USAO) regarding free cash flow and non-GAAP operating margin practices have been closed as of August 19, 2025, and August 21, 2025, respectively.

Sentiment

Score: 8

Explanation: The company reported strong Q2 results, significantly increased billings and free cash flow, and raised its full-year guidance. The closure of government investigations removes a significant overhang. While there's softness in commercial AECO, overall performance and outlook are very positive.

Positives

• Strong Q2 FY26 revenue growth of 17% (18% constant currency) to $1.763 billion.
• Significant increase in Q2 FY26 billings by 36% to $1.678 billion.
• Robust free cash flow of $451 million, a 122% increase year-over-year.
• Raised full-year fiscal 2026 guidance for revenue, billings, and non-GAAP EPS, reflecting underlying business strength and additional foreign exchange tailwinds.
• Strength observed in the AECO segment, growing 23% (24% constant currency), driven by sustained investment in data centers, infrastructure, and industrial buildings.
• The Autodesk Store, billings linearity during the quarter, and up-front revenue were stronger than expected.
• Government investigations by the SEC and USAO regarding financial practices have been closed, removing a significant regulatory uncertainty.

Negatives

• Softness noted in the commercial sector within AECO, although it was more than offset by strength in other areas.
• The Media and Entertainment (M&E) product family showed modest growth of 4% (4% constant currency) compared to other segments.
• GAAP diluted net income per share for the six months ended July 31, 2025, decreased to $2.15 from $2.46 in the prior year period.

Risks

• Strategy to develop and introduce new products and services and to move to platforms and capabilities, exposing to risks such as limited customer acceptance, costs related to product defects, and large expenditures.
• Global economic and political conditions, including changes in monetary and fiscal policy, foreign exchange headwinds, recessionary fears, supply chain disruptions, resulting inflationary pressures, and hiring conditions.
• Geopolitical tension and armed conflicts, economic and regulatory uncertainty including tariffs and trade wars, and extreme weather events.
• Costs and challenges associated with strategic acquisitions and investments.
• Ability to successfully implement and expand the transaction model and sales and marketing optimization.
• Dependency on international revenue and operations, exposing to significant international regulatory, economic, intellectual property, collections, currency exchange rate, taxation, political, and other risks.
• Inability to predict subscription renewal rates and their impact on future revenue and operating results.
• Existing and increased competition and rapidly evolving technological changes.
• Fluctuation of financial results, key metrics, and other operating metrics.
• Transition from up-front to annual billings for multi-year contracts.
• Deriving a substantial portion of net revenue from a small number of solutions, including AutoCAD-based software products and collections.
• Any failure to successfully execute and manage initiatives to realign or introduce new business and sales initiatives, including the new transaction model for Flex.
• Net revenue, billings, earnings, cash flow, or new or existing subscriptions shortfalls.
• Social and ethical issues relating to the use of artificial intelligence in offerings.
• Ability to maintain security levels and service performance meeting customer expectations, and the resources and costs required to avoid unanticipated downtime and prevent, detect, and remediate performance degradation and security breaches.
• Security incidents or other incidents compromising the integrity of offerings, services, data, or intellectual property.
• Reliance on third parties to provide a number of operational and technical services as well as software.
• Highly complex software, which may contain undetected errors, defects, or vulnerabilities.
• Increasing regulatory focus on privacy issues and expanding laws.
• Governmental export and import controls that could impair ability to compete in international markets or subject to liability.
• Protection of intellectual property rights and intellectual property infringement claims from others.
• The government procurement process.
• Fluctuations in currency exchange rates.
• Debt service obligations.
• Investment portfolio consisting of a variety of investment vehicles that are subject to interest rate trends, market volatility, and other economic factors.
• Estimates as to tax rate are based on current expectations and interpretations of existing tax law and could be affected by a variety of factors.

Future Outlook

Autodesk raised its full-year fiscal 2026 guidance, now expecting revenue between $7.025 billion and $7.075 billion, and non-GAAP diluted EPS between $9.80 and $9.98. For the third quarter of fiscal 2026, revenue is projected to be between $1.800 billion and $1.810 billion, with non-GAAP EPS between $2.48 and $2.51. The company anticipates full-year free cash flow of $2.200 billion to $2.275 billion, which includes $105 million to $115 million in restructuring and other related cash outflows, and an anticipated discrete cash benefit of $130 million to $150 million from the utilization of US deferred tax assets.

Management Comments

• "For more than a decade, Autodesk has been at the forefront of innovation in BIM, SaaS, generative design, and now in generative AI. We have been building industry-specific foundation models and products capable of understanding and reasoning about 2D and 3D geometry, design and make data, complex structures, and even physical behavior." Andrew Anagnost, President and CEO.
• "We're excited about the road ahead not only because of the industry-leading AI tools and foundation models we are creating, but also because of the go-to-market, industry cloud, and platform ecosystem we've built over the last decade to scale AI successfully." Andrew Anagnost, President and CEO.
• "Q2 was another strong quarter. We saw strength in AECO, where our customers are benefiting from sustained investment in data centers, infrastructure, and industrial buildings, which is more than offsetting softness in commercial." Janesh Moorjani, CFO.
• "The Autodesk Store, billings linearity during the quarter, and up-front revenue were stronger than expected." Janesh Moorjani, CFO.
• "While our full year macroeconomic assumptions are unchanged, 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." Janesh Moorjani, CFO.

Industry Context

Autodesk's strong performance in AECO, particularly in data centers, infrastructure, and industrial buildings, aligns with broader industry trends of increased investment in digital transformation and infrastructure development. The company's focus on generative AI and industry-specific foundation models positions it at the forefront of technological innovation in design and make industries, leveraging AI to enhance product capabilities and scale. This strategic direction is crucial as industries increasingly adopt advanced technologies for efficiency and innovation.

Legal Proceedings

• In early March 2024, the Audit Committee of Autodesk's Board of Directors commenced an internal investigation with the assistance of outside counsel and advisors regarding the company's free cash flow and non-GAAP operating margin practices.
• On March 8, 2024, Autodesk voluntarily contacted the U.S. Securities and Exchange Commission (SEC) to inform it of the internal investigation.
• On April 3, 2024, the United States Attorney's Office for the Northern District of California (USAO) contacted Autodesk regarding the internal investigation.
• Autodesk cooperated with both the SEC and USAO, providing certain documents and information.
• On August 19, 2025, the SEC notified Autodesk that it was closing its matter.
• On August 21, 2025, the USAO notified Autodesk that it was closing its matter as well.

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance, raised guidance, and the resolution of government investigations, potentially leading to increased share value and reduced investment risk.
• Employees: Continued focus on innovation (AI tools) and business growth suggests stability and potential for growth opportunities within the company.
• Customers: Benefit from continued innovation in BIM, SaaS, generative design, and AI tools, enhancing design and make capabilities and improving workflow efficiency.
• Creditors: Improved financial health, robust cash flow, and strong revenue growth strengthen the company's ability to meet its debt obligations and maintain financial stability.

Next Steps

• Autodesk will host its second quarter conference call on August 28, 2025, at 5 p.m. ET.
• Investors should monitor Autodesk's investor relations website (investors.autodesk.com) for material non-public information, upcoming investor conferences, and compliance with disclosure obligations under Regulation FD.

Key Dates

Recommendation

The company delivered robust Q2 results, significantly exceeding expectations in billings and free cash flow, and demonstrating strong revenue growth across key segments like AECO. The decision to raise full-year guidance, despite unchanged macroeconomic assumptions, signals management's confidence in the underlying business strength and future prospects. Furthermore, the closure of the SEC and USAO investigations removes a significant regulatory overhang, reducing uncertainty and improving investor sentiment. The company's leadership in AI and industry cloud platforms positions it well for sustained long-term growth. These factors collectively present a compelling investment case.

Keywords

Autodesk, ADSK, Financial Results, Q2 Fiscal 2026, Earnings, Revenue, Billings, Free Cash Flow, Guidance, AECO, Software, Design, Engineering, Construction, Manufacturing, Media & Entertainment, BIM, SaaS, Generative AI, SEC Investigation, USAO Investigation