Autodesk (ADSK) Soars 9.09% Driven by Strong Q2 Earnings and AI-Driven Growth

Autodesk (ADSK) surged to its highest level since August 2025 on August 29, 2025, with an intraday gain of 13.16% before closing up 9.09% for the day. The stock has climbed 11.42% over three consecutive sessions, driven by a combination of strong financial results, strategic product moves, and renewed investor confidence in its AI-focused growth trajectory.

The upward momentum follows Autodesk’s Q2 fiscal 2026 report, which exceeded revenue and earnings estimates. The company posted $1.76 billion in revenue, a 17% year-over-year increase, and non-GAAP earnings of $2.62 per share, up 22% from the prior year. AECO segment revenue grew 23% to $878 million, reflecting sustained demand in infrastructure and industrial projects. Billings also surged 36% to $1.68 billion, signaling robust customer retention and upselling.

Autodesk raised its full-year 2026 guidance, projecting revenue of $7.025–$7.075 billion and adjusted EPS of $9.80–$9.98. The revised targets highlight confidence in AI-driven infrastructure and industrial automation trends. CFO Janesh Moorjani noted that AECO growth is “more than offsetting softness in commercial markets,” underscoring a strategic shift toward high-margin sectors.

Strategic product launches further fueled optimism. The freemium model for Autodesk Flow Studio aims to expand access to AI-powered design tools, while a partnership with AI-focused startup Toolpath strengthens its industrial automation ecosystem. These moves align with global demand for smart manufacturing and digital twins, positioning Autodesk to capture market share in emerging technologies.

Analyst upgrades and improved financial metrics bolstered investor sentiment. Baird analyst Joe Vruwink raised the price target to $345, citing Autodesk’s ability to navigate macroeconomic challenges. The company’s 90.3% gross margin and 61.88% ROE highlight operational efficiency, while its ISO 42001 certification for responsible AI governance reinforces trust in ethical development practices. Despite a P/E ratio of 61.23, the stock remains below its five-year high of 152.3, suggesting room for growth without overvaluation concerns.

Autodesk’s resilience in Q2, marked by macroeconomic uncertainty and a new agency model transition, has positioned it for a second-half recovery. Sustained demand for AI data centers and infrastructure investments aligns with its AECO and industrial software strengths. With a clear roadmap for AI integration and collaboration tools, the company continues to attract investors seeking exposure to high-growth technology sectors.