Autodesk Surges 9% Following Strong Q2 Earnings

Autodesk reported strong Q2 earnings, beating revenue and EPS estimates by a wide margin, resulting in a 9% increase in share price. The company has been underperforming the market, but its recent results suggest a turnaround. Autodesk's strong earnings were driven by growth in its cloud-based offerings and a rebound in its manufacturing segment. The company's shares are approaching all-time highs.

Autodesk, Inc. (NASDAQ: ADSK) reported robust financial results for the second quarter of fiscal 2026, ending July 31, 2025, with revenue growing 17% to $1.76 billion, and 18% on a constant currency basis. This performance exceeded market expectations and contributed to a 9% increase in the company's share price [1].

The company's strong earnings were driven by significant growth in its cloud-based offerings and a rebound in its manufacturing segment. Revenue from cloud service offerings increased 18% on a constant currency basis, while the manufacturing segment saw a 20% increase. These gains were offset by a slight softness in commercial revenue, but the overall performance was positive [1].

Autodesk's president and CEO, Andrew Anagnost, highlighted the company's innovation in areas such as generative AI, BIM, and SaaS. He expressed excitement about the future, noting the company's industry-specific foundation models and products capable of understanding and reasoning about 2D and 3D geometry [1].

The company's CFO, Janesh Moorjani, commented on the quarter's performance, stating that billings, the Autodesk Store, and up-front revenue were stronger than expected. He also raised the full-year guidance to reflect the underlying strength of the business in the first half of the year and additional foreign exchange tailwinds [1].

Key financial metrics for the quarter included a GAAP operating margin of 25%, a non-GAAP operating margin of 39%, GAAP EPS of $1.46, and non-GAAP EPS of $2.62. Free cash flow from operating activities increased by 117% to $460 million, while net revenue by product type showed strong growth across all segments [1].

Looking ahead, Autodesk's business outlook for the third quarter and full-year fiscal 2026 considers the current economic environment and foreign exchange currency rate environment. The company expects revenue in the range of $1,800 to $1,810 million for the third quarter and $7,025 to $7,075 million for the full year, with GAAP operating margins ranging from 21% to 22% and non-GAAP operating margins expected to be around 37% [1].

The company's shares are approaching all-time highs, reflecting investor confidence in Autodesk's ability to turn around its underperformance and capitalize on its innovative technologies. The recent earnings report suggests that the company is well-positioned to continue its growth trajectory, driven by its strong cloud-based offerings and rebound in the manufacturing segment.

References:
[1] https://investors.autodesk.com/news-releases/news-release-details/autodesk-inc-announces-fiscal-2026-second-quarter-results