Executive Summary
Autodesk delivered a strong Q2 FY2026, with revenue of $1.763 billion, up 17% year over year and 18% in constant currency, and a robust gross margin of 90.98%. Non-GAAP operating margin reached 39% and GAAP operating margin was 25%, reflecting operating leverage and discipline, tempered by a dilution from the ongoing transition to the new transaction model. Free cash flow was $451 million for the quarter, underscoring the company’s ability to convert earnings into cash as billings acelerarate and working capital timing favors cash generation. Management raised full-year guidance across billings ($7.355–$7.445B) and revenue ($7.025–$7.075B), and lifted free cash flow guidance to $2.2B–$2.275B, with a higher share-repurchase target of $1.2B–$1.3B. The company highlighted strength in AECO (data centers, infrastructure, industrials) and continued momentum in Construction (ACC), driven by cloud, platform, and AI initiatives. Autodesk articulated a long-term margin trajectory, targeting roughly 41% GAAP non-GAAP operating margin by fiscal 2029 (about 45% on an underlying basis, excluding the new transaction model’s mechanical impact). This sets up a multi-year path to expanding operating margin while increasing free cash flow, supported by ongoing sales/marketing optimization and disciplined capital allocation. Investors should monitor EBA renewals, the cadence of the new transaction model, FX effects, and AU/Investors Day updates for near-term catalysts and potential revisions to the long-range plan.
Key Performance Indicators
QoQ: 105.92% | YoY:10.99%
QoQ: 107.04% | YoY:12.21%
Key Insights
Revenue: $1.763B in Q2 FY2026, up 17% YoY (18% in constant currency). Gross profit: $1.604B; gross margin: 90.98%. Operating income: $444M; operating margin (GAAP): 25%; non-GAAP operating margin: 39%.
Net income: $313M; net income margin: 17.75%. EPS (GAAP): $1.47; diluted EPS: $1.46; weighted-average shares: 213–215M.
Cash flow: net cash provided by operating activities $460M; free cash flow $458M; cash at end of period $2.003B; cash at beginning of period $1.816B; net change in cash $187M.
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Financial Highlights
Revenue: $1.763B in Q2 FY2026, up 17% YoY (18% in constant currency). Gross profit: $1.604B; gross margin: 90.98%. Operating income: $444M; operating margin (GAAP): 25%; non-GAAP operating margin: 39%.
Net income: $313M; net income margin: 17.75%. EPS (GAAP): $1.47; diluted EPS: $1.46; weighted-average shares: 213–215M.
Cash flow: net cash provided by operating activities $460M; free cash flow $458M; cash at end of period $2.003B; cash at beginning of period $1.816B; net change in cash $187M.
Balance sheet: total assets $10.856B; total liabilities $8.141B; total stockholders’ equity $2.716B. Goodwill and intangible assets collectively ~ $9.7B, reflecting acquisitions and IP. Net debt: $731M; cash and equivalents $2.003B; net liquidity position favorable despite goodwill/intangibles.
Key operational metrics: RPO $7.3B; current RPO $4.7B; RPO growth 24% YoY; current RPO growth 20% YoY. Billings $7.355B–$7.445B guidance implies continued strong upfront revenue contribution from the new transaction model; revenue guidance excludes the new model’s impact for underlying view. Free cash flow guidance raised to $2.2B–$2.275B; share buybacks increased to $1.2B–$1.3B (40–50% increase vs. fiscal 2025).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.76B |
17.14% |
8.49% |
| Gross Profit |
1.60B |
17.51% |
19.61% |
| Operating Income |
444.00M |
29.45% |
98.21% |
| Net Income |
313.00M |
10.99% |
105.92% |
| EPS |
1.47 |
12.21% |
107.04% |
Management Commentary
Themes from the earnings call: 1) Strategy and capital allocation: management reaffirmed a disciplined, dual-path approach—organic investment in platform/AI and selective tech tuck-in acquisitions, with excess capital returned to shareholders via buybacks. Quote:
"I think it's best probably to kind of restate our capital allocation strategy. First and foremost, we invest organically in the business to drive our strategy around platform, AI and all the things related to our product strategy. The second thing we look to do is we look at M&A as the next option. And we look at it for tech tuck-in reasons, really things that accelerate our existing road map and move us forward. And we look at it through the lens of targeted acquisitions that extend our adjacency strategy, things like construction, operations. These kinds of acquisitions tend to be in the hundreds of thousands to the billions of dollars range, not in the tens of billions of dollars range, right?"
— Andrew Anagnost
"The momentum in our construction business is unchanged. We're seeing similar momentum to what we saw in the past. There's no deceleration. It's performing quite well. And it's performing well across a broad swath of the business, performing well in the U.S. We continue to see wins up at the top of the pyramid. And we also continue to see wins in the mid-market. Our international performance is doing quite well, so we're growing well internationally."
— Andrew Anagnost
Forward Guidance
Autodesk raised its full-year guidance, highlighting stronger early-half execution and a favorable FX backdrop. Billings guidance increased to $7.355B–$7.445B and revenue to $7.025B–$7.075B, with non-GAAP operating margin guidance raised to ~37% (approximately 40% on an underlying basis, excluding the new transaction model). Free cash flow guidance increased to $2.2B–$2.275B; share buybacks raised to $1.2B–$1.3B. Management signaled ongoing optimization of sales and marketing efficiency and a path to higher margins through operating leverage. The guidance assumes no material change in external conditions and includes the back-half EBA renewal cycle and tougher year-over-year comparisons related to the new transaction model. Key risks cited include macro uncertainty, potential tariff-related effects, and the timing risk around EBA renewals and new transaction model ramp. Monitoring factors for investors include EBA renewal activity, new transaction model adoption pace, store/M2M growth, AI product rollouts (AU/Investors Day), and FX dynamics.