AUTODESK, INC. ANNOUNCES FISCAL 2026 SECOND QUARTER RESULTS
- Second quarter revenue grew 17 percent, and 18 percent on a constant currency basis, to $1.76 billion
SAN FRANCISCO, Aug. 28, 2025 /PRNewswire/ -- Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the second quarter of fiscal 2026, ended July 31, 2025.
"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," said Andrew Anagnost, Autodesk 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."
"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. The Autodesk Store, billings linearity during the quarter, and up-front revenue were stronger than expected," said Janesh Moorjani, Autodesk 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."
Second Quarter Fiscal 2026
(In millions, except percentages and per share amounts)
Q2 FY26
YoY Change
Billings
$ 1,678
36 %
Revenue
$ 1,763
17 %
GAAP Operating Margin
25 %
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Non-GAAP Operating Margin
39 %
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GAAP EPS
$ 1.46
$ 0.16
Non-GAAP EPS
$ 2.62
$ 0.47
Cash flow from operating activities
$ 460
117 %
Free cash flow
$ 451
122 %
Net Revenue by Product Type
Q2 FY26
YoY Change
YoY Change in Constant Currency
(In millions, except percentages)
%
%
Design
$ 1,472
17 %
18 %
Make
194
20 %
20 %
Other
97
13 %
11 %
Total Net Revenue
$ 1,763
17 %
18 %
Net Revenue by Geographic Area
Q2 FY26
YoY Change
YoY Change in Constant Currency
(In millions, except percentages)
%
%
Americas
$ 786
19 %
19 %
EMEA
675
18 %
19 %
APAC
302
11 %
14 %
Total Net Revenue
$ 1,763
17 %
18 %
Net Revenue by Product Family
Our product offerings are focused in four primary product families: Architecture, Engineering, Construction, and Operations ("AECO"), AutoCAD and AutoCAD LT, Manufacturing ("MFG"), and Media and Entertainment ("M&E").
Q2 FY26
YoY Change
YoY Change in Constant Currency
(In millions, except percentages)
%
%
AECO
$ 878
23 %
24 %
AutoCAD and AutoCAD LT
440
13 %
14 %
MFG
334
13 %
14 %
M&E
80
4 %
4 %
Other
31
3 %
4 %
Total Net Revenue
$ 1,763
17 %
18 %
Remaining Performance Obligations
(In millions, except percentages)
Q2 FY26
YoY Change
Deferred Revenue
$ 3,844
4 %
Unbilled deferred revenue
3,453
59 %
Remaining performance obligations ("RPO")
7,297
24 %
Current RPO
4,677
20 %
Business Outlook
The following are forward-looking statements based on current expectations and assumptions, and involve risks and uncertainties, some of which are set forth below under "Safe Harbor Statement." Autodesk's business outlook for the third quarter and full-year fiscal 2026 considers the current economic environment and foreign exchange currency rate environment. A reconciliation between the third quarter and full-year fiscal 2026 GAAP and non-GAAP estimates is provided below or in the tables later in this document.
Third Quarter Fiscal 2026
Q3 FY26 Guidance Metrics
Q3 FY26(ending October 31, 2025)
Revenue (in millions)
$1,800 - $1,810
EPS GAAP
$1.34 - $1.42
EPS non-GAAP (1)
$2.48 - $2.51
____________________
(1) See GAAP to Non-GAAP reconciliation at the end of this document.
Full Year Fiscal 2026
FY26 Guidance Metrics
FY26(ending January 31, 2026)
Billings (in millions) (1)
$7,355 - $7,445
Revenue (in millions) (1)
$7,025 - $7,075
GAAP operating margin
21% - 22%
Non-GAAP operating margin (2)
~37%
EPS GAAP
$4.68 - $5.09
EPS non-GAAP (2)
$9.80 - $9.98
Free cash flow (in millions) (3)
$2,200 - $2,275
____________________
(1) See supplemental materials available on our investor relations website for growth rates excluding currency movements and the new transaction model.
(2) See GAAP to Non-GAAP reconciliation at the end of this document.
(3) Free cash flow is cash flow from operating activities less approximately $50 million of capital expenditures, and includes restructuring and other related cash outflows of $105 to $115 million, and an anticipated discrete cash benefit of $130 to $150 million from the utilization of US deferred tax assets.
The outlook assumes a GAAP tax rate of 31 to 33 percent for the full-year fiscal 2026 and 30 to 32 percent for the third quarter fiscal 2026, and a non-GAAP tax rate of 19% for both periods. The GAAP tax rates include the effects of the utilization of US deferred tax assets and the One Big Beautiful Bill Act.
Government Investigations Closed
As previously disclosed, 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 (the "Internal Investigation"). On March 8, 2024, the Company 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 the Company regarding the Internal Investigation. The Company cooperated with the SEC and USAO, including by providing certain documents and information. On August 19, 2025, the SEC notified the Company that it was closing its matter. On August 21, 2025, the USAO notified the Company that it was closing its matter as well.
Earnings Conference Call and Webcast
Autodesk will host its second quarter conference call today at 5 p.m. ET. The live broadcast can be accessed at autodesk.com/investor. A transcript of the opening commentary will also be available following the conference call.
A replay of the broadcast will be available at 7 p.m. ET at autodesk.com/investor. This replay will be maintained on Autodesk's website for at least 12 months.
Investor Presentation Details
An investor presentation, Excel financials and other supplemental materials providing additional information can be found at autodesk.com/investor.
Key Performance Metrics
To help better understand our financial performance, we use several key performance metrics including billings, recurring revenue and net revenue retention rate. These metrics are key performance metrics and should be viewed independently of revenue and deferred revenue. These metrics are not intended to be combined with those items. We use these metrics to monitor the strength of our recurring business. We believe these metrics are useful to investors because they can help in monitoring the long-term health of our business. Our determination and presentation of these metrics may differ from that of other companies. The presentation of these metrics is meant to be considered in addition to, not as a substitute for or in isolation from, our financial measures prepared in accordance with GAAP.
Glossary of Terms
Billings: Total revenue plus the net change in deferred revenue from the beginning to the end of the period.
Cloud Service Offerings: Represents individual term-based offerings deployed through web browser technologies or in a hybrid software and cloud configuration. Cloud service offerings that are bundled with other product offerings are not captured as a separate cloud service offering.
Constant Currency (CC) Growth Rates: We attempt to represent the changes in the underlying business operations by eliminating fluctuations caused by changes in foreign currency exchange rates as well as eliminating hedge gains or losses recorded within the current and comparative periods. We calculate constant currency growth rates by (i) applying the applicable prior period exchange rates to current period results and (ii) excluding any gains or losses from foreign currency hedge contracts that are reported in the current and comparative periods.
Design Business: Represents the combination of maintenance, product subscriptions and all EBAs. Main products include, but are not limited to, AutoCAD, AutoCAD LT, Industry Collections, Revit, Inventor, Maya and 3ds Max. Certain products, such as our computer aided manufacturing solutions, incorporate both Design and Make functionality and are classified as Design.
Enterprise Business Agreements (EBAs): Represents programs providing enterprise customers with token-based access to a broad pool of Autodesk products over a defined contract term.
Flex: A pay-as-you-go consumption option to pre-purchase tokens to access any product available with Flex for a daily rate.
Free Cash Flow: Cash flow from operating activities minus capital expenditures.
Industry Collections: Autodesk Industry Collections are a combination of products and services that target a specific user objective and support a set of workflows for that objective. Our Industry Collections consist of: Autodesk Architecture, Engineering and Construction Collection, Autodesk Product Design and Manufacturing Collection, and Autodesk Media and Entertainment Collection.
Maintenance Plan: Our maintenance plans provide our customers with a cost effective and predictable budgetary option to obtain the productivity benefits of our new releases and enhancements when and if released during the term of their contracts. Under our maintenance plans, customers are eligible to receive unspecified upgrades when and if available, and technical support. We recognize maintenance revenue over the term of the agreements, generally one year.
Make Business: Represents certain cloud-based product subscriptions. Main products include, but are not limited to, Autodesk Build, BIM Collaborate Pro, BuildingConnected, Fusion, and Flow Production Tracking. Certain products, such as Fusion, incorporate both Design and Make functionality and are classified as Make.
Net Revenue Retention Rate (NR3): Measures the year-over-year change in Recurring Revenue for the population of customers that existed one year ago ("base customers"). Net revenue retention rate is calculated by dividing the current quarter Recurring Revenue related to base customers by the total corresponding quarter Recurring Revenue from one year ago. Recurring Revenue is based on USD reported revenue, and fluctuations caused by changes in foreign currency exchange rates and hedge gains or losses have not been eliminated. Recurring Revenue related to acquired companies, one year after acquisition, has been captured as existing customers until such data conforms to the calculation methodology. This may cause variability in the comparison.
Other Revenue: Consists of revenue from consulting, and other products and services, and is recognized as the products are delivered and services are performed.
Product Family: A grouping of related products or solutions that address specific industry or market needs, customer types, or use cases, or share core underlying technology or deployment models. Where a customer has a right to use different products over time, Autodesk may classify amounts to a single product family based on the customer's primary industry or use case, or to product family other, or allocate the amounts across product families using estimates.
Product Subscription: Provides customers a flexible, cost-effective way to access and manage 3D design, engineering, and entertainment software tools. Our product subscriptions currently represent a hybrid of desktop and cloud functionality, which provides a device-independent, collaborative design workflow for ...
