Autodesk Stock Reaction, DOT Pulls Offshore Wind Funding, $1B Powerball Jackpot

Autodesk's (ADSK) stock reacted negatively after its earnings report. The Department of Transportation has pulled funding for offshore wind projects. The Powerball jackpot has reached $1 billion.

Autodesk Inc. (ADSK) reported its financial results for the second quarter of fiscal year 2026, surpassing Wall Street expectations with an earnings per share (EPS) of $2.62 against a forecast of $2.45. Revenue also exceeded predictions, reaching $1.76 billion compared to the anticipated $1.72 billion. The company maintains impressive gross profit margins of 92%, according to InvestingPro data [1]. Following the announcement, Autodesk’s stock price rose by 0.89% in after-hours trading, reflecting investor optimism. However, the stock slipped after the earnings report, with the Department of Transportation pulling funding for offshore wind projects and the Powerball jackpot reaching $1 billion.

Key Takeaways
Autodesk’s Q2 earnings and revenue both surpassed analyst forecasts. The company’s stock increased by 0.89% in after-hours trading. Autodesk raised its full-year revenue and billings guidance. Continued focus on AI and cloud innovations was highlighted. Strength observed in the AEC sector, particularly in data centers and industrial buildings. Company Performance Autodesk demonstrated robust performance in Q2 2025, with revenue growth of 17% year-over-year. The company reported a significant increase in billings by 36%, showcasing strong demand across its product lines. Autodesk’s strategic investments in AI and cloud technologies are beginning to yield results, positioning the company as a leader in the design and make sectors.

Financial Highlights
Revenue: $1.76 billion, up 17% YoY Earnings per share: $2.62, up from $2.45 forecast Free cash flow: $451 million Non-GAAP operating margins: 25-39% Earnings vs. Forecast Autodesk’s Q2 EPS of $2.62 exceeded the forecast of $2.45, resulting in a positive surprise of 6.94%. Revenue also outperformed expectations by 2.33%, indicating strong operational execution. This marks a continuation of the company’s trend of exceeding market expectations, aligning with its historical performance.

Market Reaction
Following the earnings release, Autodesk’s stock price increased by 0.89% in after-hours trading, closing at $288.2. However, the stock slipped after the Department of Transportation pulled funding for offshore wind projects and the Powerball jackpot reached $1 billion. The stock traded closer to its 52-week high of $326.62. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate, with analyst targets ranging from $271 to $430 [1].

Outlook & Guidance
Autodesk raised its full-year revenue guidance to between $7.025 billion and $7.075 billion. The company also increased its billings guidance to $7.355 billion to $7.445 billion, reflecting its confidence in sustained demand and operational efficiency. The focus remains on AI development and expanding cloud capabilities.

Executive Commentary
CEO Andrew Anagnost emphasized the company’s commitment to AI integration, stating, "AI may eat software, but it’s not gonna eat Autodesk." He highlighted the importance of delivering tangible productivity gains to customers, reinforcing Autodesk’s strategic focus on innovation and customer value.

Risks and Challenges
Macroeconomic uncertainties could impact growth. Competitive pressures in the AI and cloud sectors. Potential supply chain disruptions affecting product delivery. Regulatory changes in key markets. Dependency on the construction and manufacturing sectors for growth.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-autodesk-q2-2025-beats-expectations-stock-rises-93CH-4215724