Autodesk posts stronger-than-expected quarter as AI and subscriptions drive growth

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

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%

Deeper Dive: News & Info About This Topic

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