San Rafael, California, August 29, 2025
News Summary
Autodesk reported quarterly results that beat analyst expectations, driven by subscription adoption and generative AI integration across its cloud products. Revenue was $1.76 billion, up 17% year-over-year, with non-GAAP EPS of $2.62 and GAAP EPS of $1.46. Billings rose 36% to $1.68 billion and AECO revenue grew 23% to $878 million. Management raised full-year revenue guidance and increased share buybacks, citing strong recurring sales and accelerating billings. Margin gains reflected cost discipline and automation. Analysts note implementation risks for AI, uneven construction demand, and uncertainty around M&A and capital deployment.
Autodesk Q2 FY2026 Earnings Highlight Strong Growth as Subscription and AI Drive Momentum
In its second quarter of fiscal 2026, Autodesk reported robust revenue growth and rising profits as it continues a strategic shift toward a subscription‑based model and expands AI capabilities across its cloud software stack. The company posted revenue of $1.76 billion, a 17% year‑over‑year increase, along with non‑GAAP earnings per share of $2.62 and GAAP earnings per share of $1.46. These results exceeded market expectations and set the stage for a higher full‑year outlook.
Strong AECO demand and higher billings
The Architecture, Engineering, Construction, and Operations group, AECO, grew 23% year over year to $878 million, signaling healthy demand for Autodesk’s cloud‑based products. Total billings climbed 36% year over year to $1.68 billion, underscoring durable demand across the company’s software platform. In response to the momentum, Autodesk raised full‑year revenue guidance to a range of $7.03–$7.08 billion.
Strategic drivers: subscription model and AI integration
The quarterly results reflect the company’s ongoing transition to a subscription‑based model, which has helped stabilize recurring revenue, improve customer retention, and convert usage into reliable profitability. Autodesk also embedded generative AI into its cloud software stack, enabling tools like Revit and AutoCAD to offer predictive design capabilities and automation that streamline design and drafting workflows. The overall strategy emphasizes a cloud‑first approach with AI‑driven automation and personalized user experiences across its portfolio.
Segment growth and market context
The Design segment saw roughly 10% growth, while the Make segment, focused on manufacturing and 3D modeling, grew about 20%. These gains align with broader market momentum toward AI‑assisted design and digital manufacturing, supported by a rapidly expanding software as a service ecosystem. Contextually, the global SaaS market is forecast to grow from around $317.6 billion in 2024 to nearly $793.1 billion by 2029, illustrating a long horizon of software adoption across industries.
AI and construction market outlook
Industry analysis places AI in construction on a strong growth path, with projections showing the market expanding from about $3.99 billion in 2024 to around $11.85 billion by 2029 (a 24.31% CAGR). Generative AI in construction is expected to propel growth at a robust pace, with estimates near 48.3% CAGR. Autodesk’s early adoption of AI within its product suite positions the company to capture a meaningful share of this expanding market as customers adopt AI‑driven design and automated workflows.
Operational discipline and shareholder returns
Alongside growth, Autodesk highlighted disciplined cost management and margin expansion as it converts revenue into profitability. Non‑GAAP margins have trended higher due to restructuring efforts and improved efficiency, while cash flow generation supports a continued emphasis on capital returns, including increased share repurchase activity as part of its capital allocation strategy.
Outlook and AI adoption risks
Management framed the raised guidance within a cautious macro environment for AI adoption, noting that while AI offers productivity gains, there are concerns that AI could destabilize certain industries. The results and billings growth are presented as evidence of resilience and confidence in sustaining revenue and margin expansion even as AI adoption challenges persist. Autodesk’s quarterly results were slated for discussion in a post‑market briefing on August 28 Eastern Time, with pre‑release analyst estimates pointing to revenue around $1.72 billion and EPS near $1.39.
Implications for Autodesk and the broader market
By combining a cloud‑first, AI‑enabled product strategy with disciplined cost management and a focus on recurring revenue, Autodesk aims to sustain top‑line growth and margin expansion while navigating potential macro headwinds. The mix of higher billings, stronger AECO results, and continued emphasis on subscriptions positions the company to benefit from the ongoing shift toward AI‑assisted design and digital manufacturing in the years ahead.
Frequently Asked Questions
What were Autodesk’s Q2 FY2026 revenue and profitability figures?
Revenue was $1.76 billion, up 17% year over year. Non‑GAAP earnings per share were $2.62 and GAAP earnings per share were $1.46.
How did the AECO segment perform?
AECO revenue rose 23% year over year to $878 million in the quarter.
What is the updated full‑year revenue guidance?
The company raised its guidance to a revenue range of $7.03 to $7.08 billion for the full year.
What contributed to the margin expansion?
Margin improvement was driven by cost discipline, restructuring actions, and stronger recurring revenue from a subscription‑based model.
How is Autodesk integrating AI into its products?
Generative AI has been embedded into Autodesk’s cloud software stack, enabling predictive design and automation in tools like Revit and AutoCAD.
What is the market outlook for AI in construction and SaaS?
AI in construction is projected to reach about $11.85 billion by 2029; generative AI in construction is forecast to grow about 48.3% CAGR; the global SaaS market is expected to grow from around $317.55 billion in 2024 to $793.10 billion by 2029.
What risks are associated with AI adoption?
While AI offers productivity gains, there are concerns that AI could destabilize certain industries, which influences a cautious approach despite strong quarterly results.
Key features at a glance
| Feature | Details |
|---|---|
| Q2 Revenue | $1.76 billion; +17% YoY |
| Non-GAAP EPS | $2.62 |
| GAAP EPS | $1.46 |
| AECO Revenue | $878 million; +23% YoY |
| Billings | $1.68 billion; +36% YoY |
| Full-Year Revenue Guidance | $7.03–$7.08 billion |
| AI Integration | Generative AI embedded in cloud stack; predictive design in Revit and AutoCAD |
| Growth by Segments | Design +10%; Make +20% |
| Market Context | AI in construction market growth; SaaS market growth; Generative AI in construction CAGR ~48.3% |
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Additional Resources
- Zacks: Autodesk coverage
- Wikipedia: Autodesk
- TradingView / Reuters: Autodesk news
- Google Search: Autodesk earnings Q2 2026
- MSN: Countdown to Autodesk (ADSK) Q2 earnings
- Google Scholar: Autodesk generative AI
- AInvest: Bank of America maintains hold on Autodesk
- Encyclopedia Britannica: Autodesk
- Futunn: Earnings preview — Autodesk
- Google News: Autodesk
