Autodesk 2026 Q2 Earnings Beats Expectations, Net Income Rises 11%

Autodesk reported its fiscal 2026 Q2 earnings on Aug 28th, 2025, with revenue and earnings per share exceeding expectations. The company raised full-year guidance citing strong first-half performance and foreign exchange tailwinds, indicating confidence in its strategic initiatives and market momentum.

Revenue
Autodesk's total revenue surged 17.5% year-over-year to $1.67 billion in Q2 2026, driven by robust performance across its Design and Make segments. The Design segment, encompassing AutoCAD, Revit, and other industry-specific tools, contributed $1.472 billion, reflecting a 17% increase. The Make segment, which includes cloud-based solutions like Autodesk Build and Fusion, reported $194 million in revenue, a 20% rise from the prior year. Additional revenue from consulting services and other offerings added $97 million, rounding out the total. Geographically, the Americas led with $786 million in revenue, growing 19%, followed by EMEA at $675 million and APAC at $302 million, each showing double-digit growth. The AECO (Architecture, Engineering, Construction, and Operations) product family was particularly strong, generating $878 million, a 23% increase, while AutoCAD and AutoCAD LT remained a core contributor with $440 million in revenue.

Earnings/Net Income
Autodesk’s EPS grew by 12.2% to $1.47 in Q2 2026, up from $1.31 in the same period the previous year. The company’s net income also improved, rising 11% to $313 million compared to $282 million in Q2 2025. These gains reflect strong profitability and efficient cost management, reinforcing the company’s positive earnings trend. The upward EPS trajectory and increased net income suggest a well-positioned business with a solid earnings foundation.

Price Action
The stock price of Autodesk experienced a slight decline of 0.06% during the latest trading day, but it had a modest gain of 0.85% for the most recent full trading week. However, over the past month, the stock dropped 5.91%, showing mixed short-term performance.

Post-Earnings Price Action Review
The investment strategy of purchasing ADSK shares 30 days after the earnings release following a three-year period of consistent quarterly revenue growth yielded a 60.26% return, outperforming the benchmark by 1.29%. This outperformance, however, came with a trade-off in the form of higher volatility, marked by a maximum drawdown of 30.76%. While the strategy showed potential for strong returns, it also highlighted the inherent risks associated with the stock’s price swings, suggesting that investors should be prepared for significant fluctuations in pursuit of gains.

CEO Commentary
Andrew Anagnost, CEO of Autodesk, emphasized the company’s strong Q2 results, with revenue and non-GAAP earnings per share surpassing expectations. He attributed the success to the momentum in cloud technologies, platform development, and AI advancements, alongside the optimization of go-to-market strategies. Anagnost also outlined key strategic priorities, including capital allocation through tuck-in acquisitions and share repurchases, while reiterating the company’s long-term goals of driving revenue growth and expanding operating margins. He expressed optimism about the business’s resilience in the face of macroeconomic uncertainties, highlighting progress in AI-driven productivity tools and the convergence of design and make in the cloud. The CEO also previewed upcoming major announcements at Autodesk University and the Investor Day on October 7, signaling a forward-looking and confident tone for the company's future.

Guidance
Autodesk has raised its full-year 2026 guidance, reflecting the strong first-half performance and continued operating leverage. The company now expects billings to range between $7.355 billion and $7.445 billion and revenue between $7.025 billion and $7.075 billion for the full year. Non-GAAP operating margin guidance was lifted to approximately 37% to 40%, with an underlying target of ~45% excluding the impact of the new transaction model. Free cash flow guidance was increased to $2.2 billion to $2.275 billion, while share repurchase targets were raised by $100 million to $1.2 billion to $1.3 billion. CFO Janesh Mojani emphasized the company’s disciplined execution, ongoing cost control, and margin expansion driven by sales and marketing optimization.

Additional News
Autodesk announced the closure of an internal investigation into its free cash flow and non-GAAP operating margin practices, which had previously led to voluntary disclosures to the SEC and the U.S. Attorney’s Office for the Northern District of California. Both entities have since closed their respective matters. Additionally, the company raised its full-year revenue and billings guidance, reflecting strong first-half performance and favorable foreign exchange conditions. The company also highlighted its commitment to strategic capital allocation, including an increase in share repurchase targets, underscoring its confidence in long-term value creation for shareholders.