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Image source: The Motley Fool. Thursday, Aug. 27, 2026 at 5:00 p.m. ET Vice President, Investor Relations - Simon Mays-Smith Chief Executive Officer - Andrew Anagnost Chief Financial Officer - Janesh Moorjani Operator: Thank you for standing by, and welcome to Autodesk's Second Quarter Fiscal Year 2027 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Simon Mays-Smith, Vice President, Investor Relations. Please go ahead. Simon Mays-Smith: Thanks, operator, and good afternoon. Thank you for joining our conference call to discuss Autodesk's fiscal '27 second quarter results. Andrew Anagnost, our CEO; and Janesh Moorjani, our CFO, are on the line with me. During this call, we will make forward-looking statements, including outlook and related assumptions on products, artificial intelligence, sales and marketing optimization, go-to-market strategies and trends. Actual events or results could differ materially. Please refer to our SEC filings, including our most recent Form 10-Q and the Form 8-K filed with today's press release for important risks and other factors that may cause our actual results to differ from those in our forward-looking statements. Forward-looking statements made during the call are being made as of today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Autodesk disclaims any obligation to update or revise any forward-looking statements. We will quote several numeric or growth changes during this call as we discuss our financial performance. Unless otherwise noted, each such reference represents a year-on-year comparison. All non-GAAP numbers referenced in today's call are reconciled in our press release and supplemental materials available on our Investor Relations website. And now I will turn the call over to Andrew. Andrew Anagnost: Thank you, Simon, and welcome, everyone, to the call. We delivered another strong quarter with revenue and earnings per share above the high end of our guidance ranges. We've raised our full year billings and revenue outlook to reflect the second quarter outperformance and stronger expectations for the second half. Our guidance now also includes MaintainX, following completion of the acquisition on August 3. Our strategy, strong execution and the compounding benefits from the business model changes we have made over the years continue to be reflected in the performance of the business. Autodesk's strategy is to build project intelligence across the asset life cycle by converging design, make and operate through a continuous flow of data, context and experience. While owners have long invested in better design, manufacturing and construction, the opportunity lies in extending the value of that information into decades of operations and then bringing real-world performance back to inform the next generation of projects. This project intelligence across the life cycle enables smarter decisions, greater resilience and continuous optimization. An enterprise deal we signed during the second quarter brings that strategy to life. With a vision of every project becoming a complete data-rich digital twin, one of the world's largest retailers selected Autodesk Forma as the common data environment connecting planning, design, construction and operations across its portfolio in North America. Rather than optimizing individual phases, it is creating a connected digital thread that carries trusted project information from concept through construction and into operations. This strategy has led the customer to select Autodesk Tandem as its digital twin platform. While deployment is still in its early stages, the customer is investing in improving the fidelity of its asset data by capturing and validating as-built conditions, ensuring every facility has the trusted digital foundation required to support long-term operational value. Forma helps create the continuous flow of project intelligence between design intent and operational reality. Combining design and construction data in Tandem creates a digital twin that evolves alongside the physical assets it represents. Looking ahead, solutions like MaintainX extend that digital thread from systems of record to systems of action, connecting digital twins with day-to-day operational workflows and real-world performance. This is not an isolated deployment. It's a reflection of a broader shift we're seeing as owners move beyond digitizing projects to generating project intelligence across the entire asset life cycle. As design, manufacturing, construction and operations converge around a shared digital foundation, project intelligence doesn't stop at improving today's assets. It creates a continuous feedback loop that informs how the next generation of assets is designed, built and operated. Before I hand over to Janesh to discuss our quarterly financial performance and guidance, I'd like to say a few words about Amy Bunszel, our EVP of Architecture, Engineering and Construction Solutions, who plans to retire after an extraordinary 23 years with Autodesk. Amy has helped shape Autodesk into the company we are today. Her vision, deep commitment to our customers and leadership through some of our most important transformations have built a world-class AEC business and an enduring legacy. I've spent much of my career working alongside Amy, and I'm going to miss her as a colleague and as a collaborator in solving the built world's capacity challenges. She will remain with us as we search for her successor and through the transition, and she leaves behind an exceptional team and an AEC business in a position of strength. On behalf of all of us, I wish Amy the very best in her well-earned retirement. Janesh, over to you to discuss our quarterly financial performance and guidance. Janesh Moorjani: Thanks, Andrew. Q2 was another strong quarter. Overall, the underlying momentum of the business was consistent with prior quarters with strength coming from similar industry segments in AECO, particularly in construction and emerging markets. Overall, the impact from our sales reorganization was in line with the range of outcomes we had expected. The Americas, APAC, Eastern Europe and the Middle East are normalizing a little earlier than Western Europe. The overall impact to new subscription growth was once again within the range of our expectations, while the linearity of billings during the quarter was better than we expected. Renewal rates remained strong. Total revenue in the second quarter grew 16% as reported and 14% in constant currency. As expected, the new transaction model provided a tailwind of roughly 2 percentage points to revenue growth in the second quarter. Please see the tables in our press release, earnings deck and Excel financials for details by product and region. Billings increased 10% as reported and 12% in constant currency. The impact of the new transaction model on billings growth was not significant in the second quarter. During the second quarter, we sustained our program of reducing multiyear discounts established over the last few years, including winding down multiyear renewals for the Maintenance-to-Subscription program. We continue to expect the reduction of discounting for multiyear contracts to benefit price realization over time, while also temporarily weighing on unbilled deferred revenue and RPO growth. Turning to margins. Second quarter GAAP and non-GAAP operating margins were 29% and 41%, respectively. GAAP operating margin increased approximately 4 percentage points, primarily due to underlying margin improvements and a further reduction in stock-based compensation as a percent of revenue. Non-GAAP operating margin was up approximately 2 percentage points. This primarily reflected operating leverage and the benefits from our sales optimization. Second quarter free cash flow was $561 million, reflecting the timing of billings and collections during the quarter. Moving on to capital allocation. We repurchased approximately 2.1 million shares during the quarter for $453 million. We continue to expect our share buyback in fiscal '27 to be similar to fiscal '26 in total dollars. We expect to maintain a healthy buyback program that continues to apply approximately 50% of free cash flow to further reduce share count over time. Before I turn to guidance, a quick update on a few minor changes we are making to simplify our revenue presentation and reflect the acquisition of MaintainX. There are no changes to our income statement revenue presentation. We are making some minor changes to our product family revenue presentation to reflect the acquisition of MaintainX. And going forward, we will stop disclosing design and make revenue, consistent with our strategy of converging workflows end-to-end and expanding our business into operations. We will continue to provide regular commentary on construction, Fusion and operations and will also disclose MaintainX revenue for 4 quarters to help you track the performance of those businesses. The slide deck on our website summarizes these changes. Let me finish with guidance. Our guidance philosophy is unchanged. Our guidance continues to be based on the range of possible outcomes in our bottom-up sales forecast, which is grounded in the momentum of the business and embeds some prudence against our expectations of sales productivity normalization. We've assumed the macroeconomic environment will remain broadly stable through the year. Our guidance now includes the billings, revenue and operating and net financing costs from MaintainX for approximately 6 months of fiscal '27. We expect MaintainX to contribute approximately $60 million to second half fiscal '27 revenue and approximately $70 million to second half fiscal '27 billings, both weighted slightly towards the fourth quarter given the growth profile of the business. As we have now largely concluded the new transaction model implementation, we will focus our commentary on as-reported numbers in future earnings calls. As a reminder, the tailwind to revenue growth from the new transaction model in the first half of the year translates to approximately a 1.5 percentage point tailwind to revenue growth for the full year. For billings, we've raised our fiscal '27 billings guidance to a range of $8.575 billion to $8.65 billion to reflect the contribution from MaintainX and an underlying improvement in our expectations, partly offset by a mix assumption on the contribution from the new transaction model and foreign exchange. For revenue, we've raised our fiscal '27 revenue guidance to a range of $8.295 billion to $8.345 billion to reflect the contribution from MaintainX, our strong results in the second quarter and an underlying improvement in our expectations. For GAAP operating margin, we've revised our fiscal '27 guidance to a range of 25% to 27%, primarily to reflect the GAAP accounting effects of the MaintainX acquisition. For non-GAAP operating margin, our fiscal '27 guidance is unchanged, reflecting higher underlying margin from operating leverage and benefits from our go-to-market optimization, offset by the margin dilution from the MaintainX acquisition. We expect fiscal '28 non-GAAP margins to improve modestly from 39% in fiscal '27, with underlying improvement partly offset by the annualization of MaintainX operating costs. We remain on track to achieve 41% non-GAAP operating margin in fiscal '29. And for free cash flow, we've narrowed our fiscal '27 expectation to a range of $2.725 billion to $2.75 billion, reflecting stronger underlying expectations, offset by the operating and net financing costs for MaintainX and approximately $45 million of transaction expenses related to the acquisition of MaintainX. We continue to manage our stock-based compensation with discipline. We expect stock-based compensation as a percent of revenue to be about 9% in fiscal '27, which is within our targeted range and down from about 11% in fiscal '26. In summary, we remain disciplined and focused on the controllable factors that drive our revenue, operating margin, earnings per share and capital allocation, which are the key building blocks of free cash flow per share. The slide deck on our website has modeling assumptions for the third quarter and full year fiscal '27. Andrew, back to you. Andrew Anagnost: Thank you, Janesh. Autodesk is focused on creating project intelligence powered by the convergence of our platform, industry clouds and AI. For our customers, convergence increases efficiency and resilience and reduces risk and downtime so they can deploy fewer resources to every project and bid on and win more projects with the resources they have. Let me give you some examples of our progress in the quarter that demonstrate how this differentiated strategy works. An ENR Top 400 U.S. general contractor selected Forma for Construction over a competitive solution for cost management, preconstruction and model coordination, driven by our differentiated platform value. Similarly, Rudolph Libbe Group, another ENR Top 400 general contractor selected the Forma Operations bundle in a competitive new logo win to standardize workflows from preconstruction through project delivery supported by an ERP integration. In Europe, a leading infrastructure and construction company renewed and expanded its enterprise agreement with Autodesk to accelerate digital transformation and low-carbon and energy-efficient delivery, including using Autodesk platform services to build custom applications for a major transit infrastructure program. In India, a large municipal corporation replaced disconnected solutions with Autodesk's AEC water infrastructure and Forma offerings to connect civil design, hydraulic modeling and project delivery for a new water treatment plant. These stories have a common theme, creating project intelligence by converging people, processes and data across the project life cycle to increase efficiency and resilience, decrease risk and prepare for an agentic AI world. It also extends Autodesk's growth potential as the continued strong performance of our construction business demonstrates. We see even greater potential in operations. In manufacturing, customers are demanding convergence as they invest in their digital transformation to leverage granular and unified data and embrace the AI-driven automation capable of industry transformation. By consolidating on our platform, customers have the flexibility and connectivity across workflows to increase agility, innovation and resilience. For example, a leading German manufacturer standardized on the Product Design & Manufacturing Collection and Vault to unify fragmented engineering data and streamline proposal and project delivery. U.S.-based Central State Industrial expanded its use of Autodesk Vault and Fusion to connect critical data and workflows, improving access to project information, streamlining operations and creating a scalable foundation to manage rapidly growing job volumes and support continued growth. Another German manufacturer selected Fusion to replace a legacy CAD/CAM solution with an integrated design and manufacturing environment, including 5-axis machining. And The Williams Company, an American precision machine shop is using nearly the full breadth of Fusion's manufacturing capabilities from cloud tool libraries to simultaneous multi-axis machining and automated probing to modernize and standardize CNC programming across its shop floor. As you can see from these examples, our customers are using more of Fusion's functional breadth with larger installations and design through make convergence to drive strong growth. Let me finish by talking about AI. AI is what increasingly turns this connected data and context into actionable project intelligence. It promises to ease endemic capacity constraints, raise the bar on what's possible in the physical world and help our customers do more with scarce resources. To realize that promise, our customers need AI that becomes an active participant in their workflows. They don't want AI that is merely impressive. They want AI that is accurate, fast enough to stay in the flow of work and affordable enough to use every day. Delivering all 3 at enterprise scale is hard. Accuracy, speed and affordability are often competing constraints. We believe trust is earned by how those trade-offs are managed. The future of AI won't belong to the company with the best single model. It will belong to the platform that combines the richest context with the right models to deliver the best outcomes for customers. That's where Autodesk is uniquely positioned. We bring together decades of industry experience, rich life cycle data spanning design, make and operate and context that connects that information into a shared understanding of our customers' workflows. We combine probabilistic AI with deterministic engineering, grounding intelligence in the realities of the physical world. We complement those advantages with a common AI platform that can leverage the right model for the right task from trusted third-party and frontier models to Autodesk built models like NeuralCAD, purpose-built to reason directly about geometry and design data. And we're building that platform to be open, allowing customers and partners to bring their own intelligence into Autodesk workflows. We complement all of this with commercial innovations that make AI practical and affordable for customers of every size. Those capabilities reinforce one another. Richer context improves accuracy. Intelligent model orchestration improves speed, platform scale and vertical-specific models improve affordability. Together, they earn the trust our customers place in us to deploy AI in their most critical workflows. As more of that intelligence, ours, our customers and our partners connect through the platform, those advantages continue to compound. Every project now leverages historical project data and creates more knowledge. Every asset generates more operational intelligence. Every operational insight improves the next generation of design, engineering and operations. That continuous feedback loop of project intelligence is creating a durable competitive advantage for Autodesk and more importantly, an enduring advantage for our customers. That's why we believe AI is more than a feature or a product cycle. It's a fundamental transformation in how the world's infrastructure, buildings, products and factories will be imagined, built, operated and continuously improved. And because Autodesk sits at the intersection of these workflows with the data, context and experience to bring them together, we believe we're building the platform and ecosystem that will define the next generation of AI for the built world. Autodesk's advantage is that we can create project intelligence across the asset life cycle by converging design, make and operate through a continuous flow of data, context and experience. We're excited to tell you more about our plans at Autodesk University in a few weeks' time. Operator, we would like to open the call up for questions. Operator: [Operator Instructions] Our first question comes from the line of Saket Kalia of Barclays. Saket Kalia: Andrew, I want to pick up on your last line of commentary there at the end, which I thought was interesting. And really through your prepared remarks, you talked about project intelligence a bit. And I want to loop that into some of your product families a bit. And maybe the specific question is, how does the operational data for MaintainX create what kind of seems like a data advantage for Autodesk AI when you combine it with the design, the build data that you have? Sorry, there's a lot there, but does that make sense? Andrew Anagnost: Yes, I think that makes a lot of sense. So first off, let me kind of just elaborate on project intelligence a little bit. There's a lot of decisions that happen in context of a project from design into make and construction or into manufacturing. All of these decisions have reasons. They have intent associated with them. Project intelligence captures all this in a continuous way. And what we're doing with MaintainX is we're actually extending that intelligence into the asset's life cycle, which means we're going to be able to capture information and data about how the asset functions in the real world. That is incredibly valuable data because the assets that we're talking about here, buildings, airports, conveyor belts, machines, they're all built by our customers. So that actually closes the loop on the asset cycle and on the context associated with that. So that's going to allow us to not only train on data about design processes and building processes and manufacturing processes, but also how assets are used and feed that back into the larger cycle. It just increases the value of the cycle overall for our customers. Saket Kalia: Got it. Very helpful. Janesh, maybe for my follow-up for you. You talked a little bit about guidance philosophy in your prepared remarks. I was just wondering if you could talk a little bit about maybe how we should think about the levels of prudence built into the Q3 and full year guide? Janesh Moorjani: Saket, I'm happy to do that. So broadly speaking, our guidance philosophy remains unchanged. And just to recap that briefly, the guidance is grounded in the momentum of the business and what we know today. We reflect the opportunities we see and then we incorporate some level of prudence around the areas where there may still be some variability. So at the start of the year, our guidance had to contemplate a much wider range of outcomes, particularly around the impact of the sales reorganization on new business productivity. And 6 months into the year, the impact from the reorg has largely remained within the range we expected. Renewals have been very strong. The business has performed much better than our initial assumptions in many areas. And so we've reflected all of that in the outlook. We flowed through the first half revenue outperformance, and we've also raised our expectations for the back half in both billings and revenue based on what we've seen so far. There is naturally less uncertainty today compared to the past because we're only forecasting the remaining 6 months of the year. But at the same time, we've also got work ahead of us in the second half. We have our largest EBA renewal cohort, as you know, with a concentration in Q4. And we're also focused on the pace of new business productivity normalization, particularly in Western Europe. So the guide reflects that. It reflects the better visibility we have and the remaining work in the back half. But importantly, we've had a terrific first half. We are very pleased with the progress we've made so far, and we are very confident in our fiscal '27 outlook. Operator: Our next question comes from the line of Joshua Tilton of Wolfe Research. Joshua Tilton: Can you hear me? Janesh Moorjani: Yes, we can. Joshua Tilton: Maybe I'll stick with Janesh since he was on the line prior. First one is just give us a little bit of clarification. I think we're getting some inbounds on how much exactly was the revenue and the billings raised for the full year inorganically versus the organic contribution. I know that you gave us the inorganic contribution dollars in the press release, but can you just help us fully clarify the math on just by how much organically you raised revenue and billings for the full year? Janesh Moorjani: Yes, I'm happy to, Josh. So maybe I'll just start with billings. The underlying billings outlook improved by about 2 percentage points. 1 percentage point of that comes from MaintainX, which is approximately $70 million and roughly 1 percentage point comes from the stronger underlying performance that we had in the business. There's an offset on that, which is we had a little bit of headwind from currency and transactional model mix. And so that offsets about 1 percentage point. So netting those 2 translate to about a 1 percentage point improvement. So said another way, when you think about our prior guidance, excluding the new transaction model and excluding currency, that prior guide was 8% to 9% year-over-year growth. Now that has increased to 9% to 10% year-over-year growth on an organic basis and tack on 1 percentage point for MaintainX, so that's 10% to 11% year-over-year growth. So that's the underlying increase in terms of the billings. And then in terms of the revenue, you saw that we had a pretty healthy outperformance in Q2, which we've then flowed through to the rest of the year. And the specific contribution from MaintainX on [ billings is only $60 million ], and we've raised our organic revenue number by much more than that, as you can see from the direct math there. Joshua Tilton: Super helpful. And then maybe one for Andrew, and I preface the question with -- you can't answer along the lines of we can't pick between our favorite children type answers. But I couldn't help but notice that M&E is getting put into a bucket called other, and all the other segments seem to have a very nice representative name. Is there any reason investors should take that as a signal of maybe less strategic focus on that area of the business than you might have previously had? Andrew Anagnost: No, you shouldn't. Look, the M&E business is definitely going under a lot of changes. It's going through a lot of transformations here. But the structure of the M&E business, the high-end studios, what they need from us, that work is continuing. We've actually extended our product portfolio in very interesting ways for this segment. They are embracing Flow Capture, some of the tools in Flow Studio. So our higher-end business is definitely embracing the new technologies are going. And we're also expanding the business to grab the new creator economy that's kind of building around that. That's where Flow Studio leads. So there's nothing you should read into that other than it's just a smaller business. It's easier to capture it in an Other bucket with the operations solution. That's all you should read. Joshua Tilton: Super helpful. Congrats on great quarter. Andrew Anagnost: Thanks Josh. Operator: Our next question comes from the line of Adam Borg of Stifel. Adam Borg: Maybe the first question, Andrew, just on MaintainX, obviously, the deal now closed. Kind of what's been early customer feedback on your move to go deeper into operations? And maybe talk about the top R&D and sales and marketing priorities now that it's closed? And then I have a follow-up after. Andrew Anagnost: Yes. So let me talk about customer reaction in general. When you look at a lot of our customers, especially in the general contracting space and even in the architecture space and certainly in the manufacturing space, they're all very interested in either improving operations internally for themselves or extending their businesses into operations in some way. Having Autodesk help them do that and having Autodesk do it in such a way that we've closed the loop around design, make and operate is very attractive to a certain segment of our customer base. And they're looking into this and engaging with us on some of these things. We're also seeing lots of synergies with our enterprise accounts. And I think you'll continue to see that just like we did with construction. In terms of where we're at with the integration, it's very early. We just closed the acquisition early in August. Our main focus right now is on integrating the back office and maintaining the momentum in the business. And that's where our goals are right now. As you look forward, we're certainly going to have synergies in the business, like I said, around the enterprise accounts. We're going to be able to bring MaintainX into those accounts very much like we did in construction. And similar to construction, we're going to be able to bring the MaintainX business to Europe. Another thing that's also a significant opportunity here is MaintainX has been primarily focused on the manufacturing sector. We can bring them more robustly into the AEC sector. And all of that is on top of the new virtuous cycle we're going to be building around design, make and operate. That gives you a sense for where we're at and some of the reactions. Adam Borg: That's really helpful. And at the end of your prepared remarks, when you talked about kind of the AI platform, the platform you're building and the AI advantages, you did also talk about you're building your own AI models, which I'm sure we'll hear more about at AU in a couple of weeks. But I think you also talked about there are roles for frontier models as well. So I'd love to hear how you're thinking about and I'm sure this will evolve over time. But today, how do you think about the role of Autodesk built NeuralCAD models versus frontier models and both as you think about design and make? Andrew Anagnost: Yes. So what our customers need, Adam, is they need fast answers that are accurate. By accurate, I mean precise, especially in our world. It's a built world. I've often said that probably right is wrong in our world, but they also need cost-effective solution. So what we're looking to do is we're looking to use the right model for the job. And that's going to include a full breadth of different types of models. We're not locked into any one type of model. We'll use a frontier model where it's appropriate for a particular type of answer the customer may need. We'll use one of our models when a precise kind of data-driven answer associated with direct context into what they're designing and making is appropriate. And we'll use other models where we see appropriate in order to drive the right kind of cost-effective behavior for our customers. And we'll do this in such a way that we're always leveraging the data we have, the context we have about the customer, and we're packaging it in an experience that actually makes sense for design and make. When you bring all of those things together, you get a sense for what we're doing. We're going to bring the right tools to the right problem at the right time to the customer, but it's always, always about using our data, our context and the experience we deliver to our customer to get fast, accurate and cost-effective answers. Operator: Our next question comes from the line of Jay Vleeschhouwer of Griffin Securities. Jay Vleeschhouwer: Andrew, for you first. Your comments about project intelligence were exactly what I had in mind to ask you about based on your recent article on LinkedIn. The question there is actually twofold. One part of that is it's a very AEC bias-oriented comment thus far. How do you see taking that technology or that concept into manufacturing? And does the fact that you have much lower market share in manufacturing than you do in AEC perhaps influence how you're thinking about that? And then the other project intelligence part of that question before I turn it to Janesh is does this whole concept in any way have any implications for product packaging? You've been very bundles and collections oriented to date. I mean, does that necessarily have to change? Andrew Anagnost: So first off, let me address the question around project intelligence and AEC. Projects exist everywhere. Every manufactured product is a project inside of the company. They'll call it a project. They'll have a project code name, right? So project is a generic term for capturing the entire life cycle of information flow from design through either construction or manufacturing all the way into the operations of the asset. So this is not something that is reserved to the AEC space nor is it intended to be reserved to the AEC space in our framing. In fact, frankly, some of the deepest usage we're seeing with some of our AI is in our manufacturing product set, Fusion in particular. Fusion is continuing to enjoy robust growth, partly because we've closed the loop for an entire project from design to manufacturing and now engaging into operations, especially in the factory world. So this is not something targeted at AEC in any way, shape or form, and it certainly is relevant to what's going on in manufacturing. On our product packaging, we've said many times over time that you're going to see us evolving from task-based automations to workflow-based automations all the way up to system level automations for our customers. Ultimately, what you're seeing us move to is the industry clouds, Fusion, Forma and Flow is the main way we deliver capabilities to our customers. Subscriptions are still going to be highly relevant for those customers. But over time, as we move into deeper workflow automations, deeper automations around systems, you're going to see us get involved in more and more consumptive efforts. That obviously changes the way people consume the functionality within Fusion, Forma and Flow in the future. And you should expect as this evolution progresses, customers are more exposed to the functionality and the capabilities from Autodesk, bringing to bear what they need and what they need to accomplish to the table and bringing the right functionality there at the right time. You'll probably hear a little bit more about this AU. Jay Vleeschhouwer: Okay. For Janesh, any meaningful update with regard to usage telemetry that is in terms of geos or verticals, collection versus stand-alone, any sort of metrics around that set of data? Janesh Moorjani: Jay, I'd say, overall, we are seeing pretty healthy engagement across the board. That is very consistent with the strength that we delivered across the business. We see that across geos, verticals as well as the individual products. But I would be a little bit careful not to over-interpret any one signal just because usage can be influenced by things like project timing and seasonality and mix and so forth. But the broad patterns that we are seeing are very consistent and similar to what we've seen earlier. And the uplift dynamics suggest that customers are continuing to deepen their adoption over time. So we're very pleased with that. Operator: Our next question comes from the line of Joe Vruwink of Baird. Joseph Vruwink: Congrats, Amy, on a great career. I think by now, I've lost count of all the [indiscernible] one-shotting and CAD videos I've watched. They're all fun. But I think most often, when I look at the CAD environment, it tends to be Fusion, which is the one actually doing the magic. So I guess my question is whether you've seen evidence of user growth accelerating for applications like Fusion that have MCP connections into an LLM environment? Andrew Anagnost: What I will say is the Fusion business is doing quite well. We're very happy with the results for Fusion. We're seeing not only continued growth in user acquisition, continued growth in ACV and revenue, but we're also seeing continued growth in multi-seat purchases, which is exactly what we want to see. The reasons for this are very clear. We've been very deliberate in leading with some of the new automations, leading with MCP connectors. All of these things you're seeing in the ecosystem, people using various tools with Fusion are quite deliberate and quite intentional on our part in terms of driving the strategy. We've been very AI forward with Fusion and not only with regards to the ecosystem, but also with regards to the functionality we develop. And like I said earlier, our customers on the Fusion side are some of the most deeply engaged with our assistant and the AI features inside the product. This is absolutely a tailwind to Fusion growth, and we expect that tailwind to continue. Joseph Vruwink: Great. And then hoping you can comment on your approach to API pricing and how thinking has evolved. I think there were some tweaks recently here in August where you listened to customer feedback and maybe changed some of the timing. Just curious kind of what the feedback has been and how you're thinking about this going forward? Andrew Anagnost: Yes. I think that's a great question. Customers are very much aware that we're going to be charging for APIs and machine-based usage. We've actually already charged for some of that usage. We do listen to customers. We do adjust some of our time lines and our intent to make sure that we're matching with customer expectations and customer ramp-up times, but continue to look for us to charge for access to machine-driven usage to our capabilities, our IP and our products. That's not going to change. Operator: Our next question comes from the line of Brent Thill of Jefferies. Brent Thill: Many of your software peers are unveiling AI revenue. I don't know if it's important to you, maybe it's found in other ways. But how do you think about the impact? And is this something you expect that you want to talk about going forward? Andrew Anagnost: Yes. I want to go back to the framework for AI monetization that we rolled out last year, right, around task-based automation, workflow automation and systems level automation. Right now, what we're doing is we're enabling lots of task-based automation in the product, lots of AI-driven automation. It's basically built into some of the subscription offerings we have. And like I've said, it's actually a tailwind to Fusion growth right now. People notice what we're doing and they like it, and it's a very active point of conversation in the Fusion community. I think you should look at the task-based automation as not only a lubricant, but an accelerant to some of the subscription-based businesses as we move forward, and we'll treat it as such. But as time goes on and we move deeper into workflow automation, systems level automation, you're going to see us start to express more consumptive revenue. That will show up through Flex business and other things that are also embedded in how we're reporting in our industries. So look for us to evolve these things over time. We're not trying to do one-off presentations on some of these things. We're trying to drive real value in our business with our customers through our work on project intelligence. Janesh, do you want to add anything? Janesh Moorjani: No, I think that's a good summary. Brent Thill: And for Janesh, I know you're calling for gross margins to be flat. Many of the other companies we all follow are seeing some compression because of AI. I guess what you're saying is you can embrace some of these tasks and still keep GMs flat? Janesh Moorjani: We can this year, Brent, and that's what we've factored into the model. Over time, as the AI-based workloads and offerings continue to grow, those will be gross profit dollars accretive but they will put a little bit of compression on gross margin. But that's one of the things that we had also factored into our long-term operating margin target when we rolled that out. So that is embedded in the 41% margin target for FY '29. Operator: Our next question comes from the line of Elizabeth Porter of Morgan Stanley. Elizabeth Elliott: So first, I wanted to continue on the line of some of the pricing dynamics. And I believe in early June, you lowered the Flex in minimum purchase from $300 to $99 to make it more accessible for SMBs. So while it's still early, I'd love to better understand what you're seeing thus far, whether any changes in new logo activation, repeat token purchases or lower checkout abandonment, how the change can be economically accretive? Andrew Anagnost: Yes. So we are actually seeing downmarket changes in adoption based on those Flex changes. The customers really wanted access -- that was a customer-driven change. Customers wanted access to tokens in smaller bundles that matched how they were going to work. We view this as part of the long-term strategy around Flex, integrating Flex deeper into our business, allowing customers to access all the capabilities in the portfolio and also allowing them to mix and match how they drive occasional use of one product versus deep usage of their other products. So yes, we have seen some acceleration in adoption of Flex, and it has been net accretive to the business, which is great. That will be something we continue to do on an ongoing basis. So watch that space over time. Elizabeth Elliott: Great. And then just as a follow-up, on this sales reorganization, what are some of the leading indicators that you're seeing now in terms of rep productivity, pipeline creation or some of the time to ramp that improved in Q2? And maybe what are some of the ones that you're still looking to turn the corner? And how are you looking at signs just to confirm that the disruption has weakened more of that risk is actually behind us now? Andrew Anagnost: Yes. So Elizabeth, I'll kind of echo what Janesh said in his opening commentary. One of the places we've seen actual real productivity increases, and it was one of the places we were targeting is the renewal business. Our renewals are much more productive now, both internally and through the channel partners. And that was a major goal of what we were trying to do is move -- increase productivity of the renewal business, shift more effort into expansion business, new business generation in both the channel and internally inside the company. We've also seen all the green shoots associated with the expansion business internally and with the channel. The one area that Janesh highlighted is, and this is because of consultation periods and all the things associated with mature Europe, it's been a little slower to ramp up on the expansion business. We're seeing the signs. We're seeing continued growth in pipeline associated with kind of forward-looking indicators that tell us we're moving in the right direction. But that's the dynamics right now. We're seeing exactly what we expected with a slower buildup in mature Europe. Janesh Moorjani: And maybe, Elizabeth, the one thing I would add to that is in terms of the specific measures that you look for with respect to new business productivity, it's -- our sellers able to make their plan and how are they ramping against their plan. And we saw that -- we saw strength in that in Q2 in most of the areas around the world where they were much closer to plan, and it's a lot better than it was in Q1. Operator: Our next question comes from the line of Jason Celino of KeyBanc Capital Markets. Jason Celino: I just wanted to ask about your EBA visibility. I think in the prepared remarks, Janesh, you said that this was kind of a factor of maybe varying scenarios of what you could see this year. I'm curious like as we approach the second half, what types of renewal activity or expansion activity you're seeing with some of your cohorts? Janesh Moorjani: Jason, fiscal '27 includes our largest EBA renewal cohort, and there's a big concentration of those EBAs in Q4. And if I think about that in terms of just cohort dynamics, you'll recall that last year, we had the biggest product subscription renewal cohort, and we also had our second largest EBA cohort. So there are some -- it does create a little bit of a tough year-on-year comp in terms of the size of the renewal cohorts in the back half of the year. What I'd say is the prior full year outlook already reflected all of these cohort dynamics, and we've executed really well so far in terms of business that we closed in Q2 and preparation for the back half, and that gave us the confidence to raise the outlook for the year on billings even on an underlying basis. Jason Celino: I see. Okay. And then maybe it's more of an irrelevant point. I know you reiterated your operating margin guide. But now that MaintainX has closed, curious what might be the operating margin impact in the quarter of the year or maybe historically what the margin profile looked like before you acquired it? Janesh Moorjani: MaintainX is a high-growth business when we acquired it and still is. And consistent with many high-growth businesses, as you might imagine, the business was not profitable. And so as we bring MaintainX into Autodesk, our main focus is to ensure that we do everything that we can to continue to preserve the strong growth rate and continue to fuel the engine. So MaintainX does present a drag on operating margin in fiscal '27. And then next year, we'll have the full year annual cost of MaintainX from an operating perspective and also in terms of the net financing costs. But despite that, as I mentioned in my prepared remarks, as I think about next year, we do expect that we will increase the operating margin next year from the 39% that we have this year. Operator: Our next question comes from the line of Taylor McGinnis of UBS. Taylor McGinnis: So you've done a nice job sustaining a consistent level of growth. But as we look beyond FY '27, Autodesk is going to start to lap a few tailwinds related to the model change and the transition to annual billings and a couple of the larger renewal cohorts that you talked about, which have all been beneficial to underlying growth. So as we think about that, is it possible that, that at some point starts to become a headwind to billings growth? And if not, maybe you could just talk about the incremental growth drivers that you're excited about that could help support the growth durability that we've seen? Janesh Moorjani: Taylor, this is Janesh. Maybe I'll take that question. So as we think about fiscal '28, there's a number of different moving parts, as you mentioned, and it's a little bit early to talk about '28, but I'll at least just highlight some of those moving parts for you. First off, as you know, fiscal '27 has some benefit from the new transaction model that will not recur in fiscal '28. So that's one factor to consider. And '28 will also include the full year contribution from MaintainX, as I just mentioned, both in terms of the top line as well as the expenses. We'll also have the continued normalization of new business productivity where -- as we continue to get better in Western Europe and the rest of the world, that will ultimately be a driver of the business for us. But underneath all of those moving pieces, the core drivers of the business remain strong. Renewals are strong, EBAs are strong. We are seeing sustained demand across areas like construction and infrastructure and industrial. We're excited about the opportunities in operations, both in terms of organic as well as continuing to build on the MaintainX acquisition. So all of those factors, the consistent execution that we've had as a company for a while now for the past few years and that we're delivering here in fiscal '27, I think all of those underlying drivers will help us continue to sustain strength into '28 as well. We'll obviously give you a more full picture of all of the moving parts and timing and mix impacts and so forth when we get to that point. But the important piece for now is that fiscal '27 is playing out nicely. We've raised our guidance on both billings and on revenue, and we feel very good about the underlying momentum of the business. Operator: Our next question comes from the line of Ken Wong of Oppenheimer & Company. Hoi-Fung Wong: Andrew, I wanted to circle back to MaintainX. So now that you guys are integrating it into the business, how should we think about some of the go-to-market motions that might need to be tweaked? How much of the direct sales force will be impacted? Is this something that you guys will be able to push through your partner network? Any color there and the possibility of any disruptions from the integration that you guys are baking into the guidance? Andrew Anagnost: Yes. We certainly bake lots of things into the guidance to make sure that we're prudent in terms of what we tell you. At a high level, there's -- we're going to -- short-term goal is maintain the momentum in the business. Very clear, okay? We want to make sure that we maintain the momentum of business. It's a good business. It's adding customers at a nice clip. We want to maintain some of that -- like I said earlier, just like what we did in construction, the enterprise account business is an immediate opportunity for synergies with regards to engaging deeper with some of those customers and getting MaintainX into some of those accounts. Frankly, they're not in those accounts. So I think there's a big opportunity there, and we want MaintainX to be able to exploit that avenue in terms of getting to our customers. They've also built a great product-led machine that's targeting customers and new account acquisition. We want to maintain and leverage that machine for Autodesk, not only for MaintainX but broadly across the Autodesk portfolio and look for us to do that because that expertise is valuable and their product-led growth motion works incredibly well. Partners are absolutely going to be an opportunity here. Partners are going to be interested in this, especially as we start expanding the business into Europe. We'll probably be looking at motions with regards to engaging our partners. Again, very similar to what we did with construction. So look for us to basically copy some of the motions we did in the early days of construction when we bought PlanGrid, when we bought BuildingConnected, but also learn from some of those motions and actually accelerate them faster than we did back in the days of construction. Hoi-Fung Wong: Got it. Super helpful. Janesh, I want to touch on that prior point you made about slight margin improvement in fiscal '28. I recall you guys had embedded not necessarily MaintainX specifically, but the possibility of M&A into the guidance kind of this year and longer term. Should we think something similar for '28 that should you guys kind of bundle on something on top of MaintainX after the fact that, that slight margin improvement has some cushion? Janesh Moorjani: Ken, the way I would think about future acquisitions and the impact of those is just to go back to our overall approach in terms of operations. We are following the same playbook as we did in construction, where we laid down a cornerstone acquisition and then built around that with smaller tuck-in acquisitions. And for us in operations, MaintainX was that cornerstone acquisition and future acquisitions will probably be smaller in size, and we'll just build around that. So I would look at the fiscal '28 guidance on operating margin more specifically when we get to that point. But I would expect at this point that it will be an improvement over the 39% that we've laid out here for you today. Operator: Our next question comes from the line of Matt Martino of Goldman Sachs. Matthew Martino: Andrew, maybe to start with you. As Autodesk moves from task level AI towards broader workflow automation, what in your mind are the key technology and data unlocks still required? And where do you believe the platform is furthest along today? Andrew Anagnost: Yes. The key thing that drives the workflow automation is what we're building into the Assistant. The Assistant is kind of the integration layer that allows us to bring the context we have about what the customer is doing at each spot and also bring the right models to bear. So the more that the users engage with the Assistant, the deeper they engage with Assistant, the more workflow-driven automations we introduce in. You'll see some indications of that at AU, but the front door for these things is the Assistant and its agentic layers that we've built out there. The deeper the usage there, the more you're going to see us extending into the workflow side of the expansion there. And what was the second part of your question? I'm sorry. Could you repeat that, Matt? Matthew Martino: Yes, where the platform is furthest along today? Andrew Anagnost: Okay. Fusion is definitely one of the areas where we've invested quite a bit of effort to get the platform integrating various capabilities. The Assistant, obviously, is part of the core platform that's built across horizontally across Autodesk. But Fusion has definitely moved aggressively to deliver value through the Assistant so that the customers can start to look at workflow type automations and actually engage in workflow type transactions. I think you'll see some of those showing up first in Fusion. Matthew Martino: Great. And if I could just slip in a quick one on the macro, Andrew. The broader construction backdrop has been fairly uneven, but Forma for Construction seems to be showing pretty good momentum here. So maybe just unpack sort of what's driving that resilience and where you're beginning to see maybe even early signs of improvement across some of these pockets of the end market. Andrew Anagnost: So we're super happy with our construction business. It's growing north of 20%. We like what we see. I want to be super clear about a few things here. We're very diversified. We're diversified globally. We're diversified across all the segments of construction. That diversification is an absolute strength. The other thing is construction is kind of reverting back to the mean in terms of backlogs. We're completely fine with that because the real underlying driver of growth is not the oscillations in the various metrics you're seeing. It's the fact that the penetration of technology in construction is so low right now. What's driving our business right now is people like what we're doing. They like what they're getting from design and make integration. They like what we're doing with preconstruction. They're adopting technology at higher rates because technology allows them to deal with their backlog to unlock their capacity and be able to build things more sustainably across the whole spectrum of customer types that we serve. That's the underlying thing here is the technology adoption cycle. It's not the ups and downs of what you see with various metrics in the construction space. Operator: Our next question comes from the line of Tyler Radke of Citi. Tyler Radke: Maybe just at a high level, like with these disclosure changes, Janesh, I guess, why now? Why sort of midway through the year? And I think there's a lot of good momentum in the construction business. You talked about a leading organization choosing Autodesk Construction this quarter. So can you just be a little bit more specific on how you'll be updating us on the progress of that and the metrics that you'll share? Janesh Moorjani: Tyler, I'm happy to. In terms of the why now, it's really got to do with the launch of the operations business, right? With closing of MaintainX, we needed to revisit our product family reporting. So that's the short answer on the why now. But as I think about that design and make, ultimately, our focus is on driving convergence across design, make and operate. And the more successful we are with that strategy, the less sense it makes to have discrete buckets on design and make or anything else. So construction is reported today under the make business, but even that doesn't entirely capture all the construction business. And so it's really important for us to make sure that as we move forward, we are providing you with a view on how the underlying businesses are performing. So we will provide you with regular updates on that business. It will be regular commentary. Just like we have today, we will tell you how the business has been growing. It's growing north of 20% and has done for some time. And then specific to Fusion and operations, we'll also provide you with regular commentary on those. And then as I said, we will provide MaintainX revenue for 4 quarters to give you visibility into how that business is doing. Tyler Radke: Great. And on the MaintainX front, just sort of thinking about your goals from a financial perspective and synergies. I think at the time of the acquisition, you talked about 50% plus growth, $135 million or so of ARR, if I'm not mistaken. Like is your goal to meaningfully reaccelerate that? Obviously, you don't want to disrupt a lot of the momentum they have. But at the same time, you have massive distribution and probably a lot of customers that are -- could get value by deploying MaintainX. So how should we just think about those revenue synergy goals over the next couple of years? Janesh Moorjani: Yes. MaintainX already has very strong stand-alone growth momentum, Tyler. And for us, the strategic value that it gives us is the new operational entry point into teams that are responsible for maintaining and operating assets every day. I think there's multiple vectors in terms of revenue synergy opportunities. The first is extending MaintainX through our global reach across customers of all sizes. So there's significant geographic opportunities in terms of expansion. But there's also opportunity with many of our larger enterprise customers and elevating MaintainX's presence in those accounts. We also see the ability to extend across different industries. A lot of MaintainX's customers today are more manufacturing-centric, but there's a massive opportunity across AEC as well. And then ultimately, connecting operations workflows through the Design and Make Platform into operate and closing that full life cycle, so customers can manage across the entire life cycle. And all of those things help us. In addition to that, we talked about the benefits in terms of how that accelerates our overall AI strategy as well. So there's all of those revenue synergy vectors. But as you mentioned, I think the most important piece for us is to make sure that we first preserve the existing growth rate and that we very thoughtfully and deliberately expand over time across these vectors to continue to deliver greater growth in that business. Operator: Thank you. That is all the time we have for Q&A today. I would now like to turn the conference back to Simon Mays-Smith for closing remarks. Simon Mays-Smith: Thanks, Latif, and thanks, everyone, for joining us. We'll look forward to seeing many of you on the road or at conferences over the coming weeks. If you have any questions in the meantime, please contact me or my team. Thanks very much. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Autodesk. The Motley Fool has a disclosure policy. Autodesk (ADSK) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

Autodesk ADSK reported second-quarter fiscal 2027 non-GAAP earnings of $3.30 per share, up 26% year over year, aided by operating leverage and benefits from sales optimization. The figure surpassed the Zacks Consensus Estimate of $3.12 by 5.77%. Revenues increased 16% year over year to $2.05 billion, beating the Zacks Consensus Estimate of $2.01 billion by 1.84%. Strength in construction and emerging markets supported results, while net revenue retention approximated the top end of the 100%-110% range in constant currency. Design revenues increased 16% year over year to $1.71 billion. Make revenues climbed 26% to $244 million, while Other revenues declined 3% to $94 million.Region-wise, Americas revenues rose 14% to $898 million year over year, EMEA revenues increased 19% to $804 million and APAC revenues advanced 14% to $344 million. Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote Billings grew 10% to $1.854 billion, or 12% in constant currency. The new transaction model contributed roughly 2 percentage points to revenue growth.Management said the sales reorganization remained within its expected range of outcomes. The Americas, APAC, Eastern Europe and the Middle East were normalizing somewhat earlier than Western Europe, while renewal rates remained strong. Autodesk continues to report performance across four core product families: AECO, AutoCAD and AutoCAD LT, Manufacturing (MFG) and Media and Entertainment (M&E).AECO revenues increased 17% year over year to $1.03 billion, with construction among the areas of strength highlighted by management.AutoCAD and AutoCAD LT revenues rose 14% year over year to $500 million.On a year-over-year basis, Manufacturing revenues grew 15% to $385 million, while Media and Entertainment revenues increased 15% to $92 million. Other product-family revenues grew 29% to $40 million.Beginning in the third quarter, Autodesk plans to stop disclosing Design and Make revenues and make minor changes to product-family reporting. The company will continue to provide regular commentary on Construction, Fusion and Operations, and will disclose MaintainX revenues for four quarters. Non-GAAP operating margin expanded 2 percentage points year over year to 41%, reflecting operating leverage and benefits from sales optimization.GAAP operating margin improved 4 percentage points to 29%, also benefiting from a lower stock-based compensation burden as a percentage of revenues.Total operating expenses were $1.27 billion compared with $1.16 billion a year earlier. Marketing and sales expenses were $616 million, research and development costs were $464 million, and general and administrative expenses totaled $179 million. Deferred revenues increased 11% year over year to $4.26 billion, while current remaining performance obligations, or current RPO, rose 12% to $5.25 billion.Unbilled deferred revenues declined 8% to $3.18 billion, and total RPO increased 2% to $7.43 billion.Autodesk said its ongoing reduction of multi-year discounts, including the wind-down of multi-year Maintenance-to-Subscription renewals, should benefit price realization over time while temporarily weighing on unbilled deferred revenue and RPO growth. As of July 31, 2026, Autodesk had cash and cash equivalents (including marketable securities) of $4.16 billion compared with $2.92 billion as of April 30, 2026.Autodesk repurchased roughly 2.1 million shares for $453 million during the quarter. Management expects fiscal 2027 share repurchases to be similar to fiscal 2026 in total dollars and continues to target roughly 50% of free cash flow for buybacks over time.Cash flow from operating activities increased 25% year over year to $575 million. Free cash flow rose 24% to $561 million after $14 million of capital expenditures. For the third quarter of fiscal 2027, Autodesk expects revenues of $2.13-$2.14 billion and non-GAAP EPS of $3.04-$3.09.For fiscal 2027, revenues are projected at $8.30-$8.35 billion, billings at $8.58-$8.65 billion and non-GAAP EPS at $12.52-$12.60.The company continues to expect a non-GAAP operating margin of about 39% and free cash flow of $2.73-$2.75 billion.Guidance includes MaintainX, which is expected to contribute about $60 million of second-half revenues and $70 million of second-half billings, both slightly weighted toward the fourth quarter. Free cash flow includes about $45 million of MaintainX transaction expenses. Currently, Autodesk carries a Zacks Rank #3 (Hold).Dell Technologies DELL, Palo Alto Networks PANW and ServiceTitan Inc. TTAN are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. DELL currently sports a Zacks Rank #1 (Strong Buy), while PANW and TTAN carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Dell Technologies is slated to announce its second-quarter fiscal 2027 results on Sept. 1. Palo Alto Networks is also scheduled to report its fourth-quarter fiscal 2026 results on Sept. 1, while ServiceTitan is set to announce its second-quarter fiscal 2027 results on Sept. 8. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Autodesk, Inc.? Here are five stocks we like better. Autodesk exceeded fiscal Q2 guidance, with revenue up 16% year over year and non-GAAP operating margin reaching 41%. The company raised its fiscal 2027 billings outlook to $8.575 billion–$8.65 billion and revenue outlook to $8.295 billion–$8.345 billion. The MaintainX acquisition, completed Aug. 3, expands Autodesk into asset maintenance and operations and is expected to add about $60 million in second-half revenue. However, MaintainX’s current unprofitability will dilute Autodesk’s fiscal 2027 operating margin. Management highlighted strong renewals, improving sales productivity and construction growth of more than 20%, while advancing an AI-driven “project intelligence” strategy that connects design, construction, manufacturing and operational workflows. Autodesk Stock Rally: Why Momentum May Not Be Done Yet Autodesk (NASDAQ:ADSK) reported fiscal 2027 second-quarter revenue and earnings per share above the high end of its guidance ranges, prompting the company to raise its full-year outlook for billings and revenue. The updated forecast also incorporates the acquisition of MaintainX, which closed on Aug. 3. Chief Executive Officer Andrew Anagnost said Autodesk is pursuing a strategy centered on “project intelligence,” connecting data and workflows across design, construction, manufacturing and asset operations. The company aims to extend information generated during planning and construction into the operational life of assets, then use operating performance data to inform future projects. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch Analysts Love These 3 Companies Reporting Earnings This Week “We delivered another strong quarter,” Anagnost said, citing the company’s execution and the ongoing benefits of prior business-model changes. Chief Financial Officer Janesh Moorjani said second-quarter revenue increased 16% year over year as reported, or 14% in constant currency. The company said its new transaction model added about 2 percentage points to revenue growth during the quarter. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? Autodesk Stock Ready to Rip? Q3 May Be the Turning Point Billings rose 10% as reported and 12% in constant currency. Moorjani said the transaction model did not have a significant impact on billings growth in the second quarter. He also said Autodesk continued reducing multi-year contract discounts, including winding down multi-year renewals under its maintenance-to-subscription program. The company expects that approach to improve price realization over time, though it may temporarily weigh on unbilled deferred revenue and remaining performance obligations growth. GAAP operating margin was 29%, up about 4 percentage points year over year. Non-GAAP operating margin was 41%, up about 2 percentage points. Free cash flow totaled $561 million. Autodesk repurchased about 2.1 million shares for $453 million. Moorjani attributed margin improvement to operating leverage, sales optimization and a lower level of stock-based compensation as a percentage of revenue. Autodesk expects stock-based compensation to represent about 9% of revenue in fiscal 2027, down from about 11% in fiscal 2026. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding For fiscal 2027, Autodesk raised its billings outlook to a range of $8.575 billion to $8.65 billion and increased its revenue outlook to $8.295 billion to $8.345 billion. The forecast includes approximately six months of MaintainX results. Autodesk expects MaintainX to contribute about $60 million in second-half revenue and about $70 million in second-half billings, with both weighted somewhat toward the fourth quarter. The company narrowed its free-cash-flow forecast to $2.725 billion to $2.75 billion. The outlook reflects stronger underlying expectations, offset by MaintainX operating and net financing costs and about $45 million in transaction expenses related to the acquisition. Anagnost described MaintainX as an extension of Autodesk’s digital thread into day-to-day asset maintenance and operations. He said operational data from buildings, factories, machines and other physical assets can help close the feedback loop between how assets are designed, built and used in the real world. Autodesk’s immediate integration priorities are to preserve MaintainX’s growth momentum and integrate back-office functions, according to Anagnost. Over time, Autodesk sees opportunities to introduce MaintainX to its enterprise accounts, expand it in Europe through partners and broaden its use beyond its primarily manufacturing-focused customer base into architecture, engineering and construction markets. Moorjani said MaintainX was unprofitable at the time of acquisition, as is typical of a high-growth business, and will dilute Autodesk’s operating margin in fiscal 2027. Still, Autodesk expects fiscal 2028 non-GAAP operating margin to improve modestly from the 39% forecast for fiscal 2027, despite the annualization of MaintainX costs. The company remains on track for a 41% non-GAAP operating margin target in fiscal 2029. Moorjani said the effects of Autodesk’s sales reorganization remained within the range management had anticipated. The Americas, Asia-Pacific, Eastern Europe and the Middle East are normalizing somewhat earlier than Western Europe, where sales productivity has taken longer to improve. Renewal rates remained strong, and management said billings linearity during the quarter was better than expected. Anagnost said renewal productivity improved both within Autodesk and among channel partners, while the company also saw encouraging signs in expansion business and pipeline creation. He said mature European markets have been slower to build expansion activity because of consultation periods and related factors. Autodesk noted that its largest enterprise business agreement renewal cohort is concentrated in the fiscal fourth quarter. Moorjani said the company’s previous outlook had already reflected those cohort dynamics, and second-quarter execution and preparation for the second half supported the decision to raise billings guidance. Anagnost said Autodesk is using artificial intelligence to turn connected design, manufacturing, construction and operations data into actionable intelligence. He said the company will use a range of models, including third-party frontier models and Autodesk-built models such as Neural CAD, depending on the need for speed, precision and cost effectiveness. Management said task-based AI automation is currently embedded in subscription offerings and is supporting Fusion adoption. Over time, Autodesk expects to expand from task automation into workflow and system-level automation, with more consumption-oriented revenue potentially flowing through Flex and other offerings. Construction continued to grow at more than 20%, according to Anagnost. He said the business benefits from global and segment diversification, but argued that the larger driver is low technology penetration in construction rather than fluctuations in industry backlog metrics. Autodesk also said it will no longer disclose separate design and make revenue, reflecting its strategy of converging workflows and expanding into operations. The company plans to continue providing commentary on construction, Fusion and operations, and will disclose MaintainX revenue for four quarters to help investors track the acquired business. Separately, Anagnost announced that Amy Bunszel, executive vice president of Architecture, Engineering and Construction Solutions, plans to retire after 23 years with Autodesk. Bunszel will remain with the company during the search for a successor and through the transition. Autodesk, Inc (NASDAQ: ADSK) is a software company that develops design and creation tools for the architecture, engineering and construction (AEC), manufacturing, and media and entertainment industries. Headquartered in San Rafael, California, the company was founded in 1982 and is best known for pioneering CAD (computer-aided design) software. Autodesk sells products and services to a global customer base, including architects, engineers, contractors, product designers, and content creators. The company's product portfolio includes industry-standard design and modeling applications such as AutoCAD, Revit, Inventor, Fusion 360, Maya and 3ds Max, as well as cloud-based collaboration and project management platforms like BIM 360 and Autodesk Construction Cloud. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Autodesk Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Autodesk (ADSK) came out with quarterly earnings of $3.3 per share, beating the Zacks Consensus Estimate of $3.12 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.77%. A quarter ago, it was expected that this design software company would post earnings of $2.84 per share when it actually produced earnings of $2.99, delivering a surprise of +5.28%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Autodesk, which belongs to the Zacks Internet - Software industry, posted revenues of $2.05 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 1.84%. This compares to year-ago revenues of $1.76 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Autodesk shares have lost about 13.9% since the beginning of the year versus the S&P 500's gain of 12.1%. While Autodesk has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Autodesk was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.15 on $2.08 billion in revenues for the coming quarter and $12.63 on $8.19 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Guidewire Software (GWRE), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This provider of software to the insurance industry is expected to post quarterly earnings of $0.94 per share in its upcoming report, which represents a year-over-year change of +11.9%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. Guidewire Software's revenues are expected to be $402.23 million, up 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Autodesk (ADSK) reported $2.05 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 16.1%. EPS of $3.30 for the same period compares to $2.62 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.01 billion, representing a surprise of +1.84%. The company delivered an EPS surprise of +5.77%, with the consensus EPS estimate being $3.12. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Autodesk performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Billings: $1.85 billion versus the five-analyst average estimate of $1.77 billion. Net Revenue- Other: $94 million compared to the $102.16 million average estimate based on six analysts. The reported number represents a change of -2.1% year over year. Net Revenue- Subscription: $1.95 billion versus the six-analyst average estimate of $1.9 billion. The reported number represents a year-over-year change of +17.7%. Net Revenue by Product Family- M&E (Media and Entertainment): $92 million compared to the $97.88 million average estimate based on three analysts. The reported number represents a change of +15% year over year. Net Revenue by Product Family- AECO (Architecture, Engineering, Construction and Operations): $1.03 billion versus the two-analyst average estimate of $1.01 billion. The reported number represents a year-over-year change of +17.2%. Net Revenue by Product Family- Other: $40 million versus the two-analyst average estimate of $39.15 million. The reported number represents a year-over-year change of +29%. Net Revenue by Product Family- AutoCAD and AutoCAD LT: $500 million compared to the $482.06 million average estimate based on two analysts. The reported number represents a change of +13.6% year over year. Net Revenue by Product Family- MFG (Manufacturing): $385 million versus $375.32 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15.3% change. View all Key Company Metrics for Autodesk here>>> Shares of Autodesk have returned +3.9% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research