Autodesk, Inc. — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance

• Second quarter revenue grew 16% year-over-year to $2.046 billion, or 14% on a constant currency basis.
• Billings reached $1.854 billion, representing a 10% year-over-year increase.
• GAAP operating margin was 29%, an improvement of 4 percentage points year-over-year; Non-GAAP operating margin was 41%, up 2 percentage points year-over-year.
• GAAP earnings per share (EPS) were $2.33, an increase of $0.87 year-over-year; Non-GAAP EPS were $3.30, an increase of $0.68 year-over-year.
• Cash flow from operating activities was $575 million, up 25% year-over-year.
• Free cash flow was $561 million, up 24% year-over-year.
• Deferred revenue stood at $4.258 billion, an 11% year-over-year increase.
• Unbilled deferred revenue was $3.175 billion, a decrease of 8% year-over-year.
• Remaining performance obligations (RPO) were $7.433 billion, up 2% year-over-year, with current RPO at $5.245 billion, up 12% year-over-year.
• Net cash provided by operating activities for the six months ended July 31, 2026, was $1.468 billion.
• Repurchases of common stock totaled $901 million for the six months ended July 31, 2026.

Guidance and Future Outlook

• Fiscal 2027 billings guidance was increased to $8.575 billion – $8.650 billion.
• Fiscal 2027 revenue guidance was increased to $8.295 billion – $8.345 billion.
• Fiscal 2027 Non-GAAP operating margin guidance remains unchanged at approximately 39%.
• Fiscal 2027 free cash flow expectations were narrowed to $2.725 billion – $2.750 billion, reflecting stronger underlying expectations offset by operating and net financing costs for MaintainX and approximately $45 million of transaction expenses.
• Third quarter fiscal 2027 revenue guidance is $2.125 billion – $2.140 billion.
• Third quarter fiscal 2027 Non-GAAP EPS guidance is $3.04 – $3.09.
• Full year fiscal 2027 Non-GAAP EPS guidance is $12.52 – $12.60.

Business Segments and Product Lines

• Design segment revenue was $1.708 billion, up 16% year-over-year (14% constant currency).
• Make segment revenue was $244 million, up 26% year-over-year (24% constant currency).
• Other segment revenue was $94 million, down 3% year-over-year (4% constant currency).
• AECO product family revenue was $1.029 billion, up 17% year-over-year (15% constant currency).
• AutoCAD and AutoCAD LT product family revenue was $500 million, up 14% year-over-year (11% constant currency).
• Manufacturing (MFG) product family revenue was $385 million, up 15% year-over-year (12% constant currency).
• Media and Entertainment (M&E) product family revenue was $92 million, up 15% year-over-year (14% constant currency).
• Other product family revenue was $40 million, up 29% year-over-year (23% constant currency).
• The company is proceeding with a sales reorganization as expected.
• The company is winding down multi-year Maintenance-to-Subscription renewals, which temporarily weighs on unbilled deferred revenue and RPO growth while benefiting price realization over time.

Market and Competitive Landscape

• Americas revenue was $898 million, up 14% year-over-year (14% constant currency).
• EMEA revenue was $804 million, up 19% year-over-year (13% constant currency).
• APAC revenue was $344 million, up 14% year-over-year (14% constant currency).
• Management states that AI turns connected data and context into actionable project intelligence to ease capacity constraints and help customers do more with scarce resources.
• The company positions itself as uniquely positioned to build project intelligence across the asset lifecycle by converging design, make, and operate.

Risks and Challenges

• Risks include challenges associated with the integration of MaintainX into the business.
• Risks include costs related to product defects and large expenditures associated with new products and services.
• Global economic and political conditions, including recessionary fears, inflationary pressures, and foreign exchange headwinds, pose risks.
• Geopolitical tensions, armed conflicts, and extreme weather events could impact results.
• Dependency on international revenue exposes the company to regulatory, economic, and currency exchange risks.
• Risks include the inability to predict subscription renewal rates and their impact on future revenue.
• Rapidly evolving technological changes and increased competition are potential risks.
• Security incidents or breaches compromising the integrity of offerings or customer data are a risk.

Management Commentary and Tone

• CEO Andrew Anagnost emphasized that the future of AI for the built world belongs to the trusted platform combining the richest context with the right models.
• CFO Janesh Moorjani stated the company delivered strong second quarter results with consistent execution and momentum.
• Management noted that fiscal 27 billings and revenue growth guidance were increased to reflect higher underlying growth expectations and the incremental contribution from MaintainX.
• Management indicated that fiscal 27 non-GAAP margin guidance is unchanged due to higher underlying margins from operating leverage and go-to-market optimization, offset by margin dilution from the MaintainX acquisition.

Other Key Points

• The fiscal 27 guidance includes the impact of the MaintainX acquisition.
• Free cash flow guidance includes approximately $45 million of transaction expenses related to the MaintainX acquisition.
• The company incurred approximately $45 million of transaction expenses related to the MaintainX acquisition in the current period.
• The company is transitioning from up-front to annual billings for multi-year contracts.
• The company classifies maintenance revenue within "Subscription revenue" for fiscal year 2027.
• Cash and cash equivalents at July 31, 2026, were $4.098 billion.
• Total assets were $12.983 billion as of July 31, 2026.
• Short-term debt, net, was $994 million as of July 31, 2026.
• Long-term notes payable, net, were $1.985 billion as of July 31, 2026.