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.