Autodesk, Inc. Q2 FY2026 earnings call

• Andrew noted Autodesk delivered strong second quarter results with revenue and non-GAAP earnings per share topping guidance ranges, billings, margins, and free cash flow exceeding expectations, leading to raising full-year guidance.
• Janesh discussed Q2 financials, highlighting strength in AECO, better-than-expected Autodesk Store, billings linearity, and upfront revenue. Mentioned go-to-market optimization plan on track and operational friction from new transaction model easing. Talked about revenue growth, billings, RPO, margins, and capital allocation.
• Andrew provided examples of customer successes: AtkinsRéalis using Autodesk technologies, Kimley-Horn renewing and expanding with Autodesk, Dynamic Energy adopting Autodesk Construction Cloud. In manufacturing, examples included a European research institution using Product Design & Manufacturing Collection, MotorScrubber adopting Fusion, and a biopharmaceutical company using Fusion. Also discussed AI initiatives like Sketch AutoConstrain in Fusion with high acceptance rates, and education initiatives like Anna University's strategic engagement with Autodesk.

In the second quarter, total revenue grew 17% as reported and 18% in constant currency. Billings increased 36% as reported and 34% at constant currency. RPO was $7.3 billion, growing 24%, and current RPO was $4.7 billion, growing 20%. GAAP operating margin was 25% and non-GAAP operating margin was 39% in the second quarter. AECO showed strength with customers benefiting from investment in data centers, infrastructure, and industrial buildings, offsetting softness in commercial. The contribution from the new transaction model to revenue was approximately $105 million in Q2, and to billings was approximately $129 million.

• Raised billings guidance range to $7.355 billion to $7.445 billion and revenue guidance range to $7.025 billion to $7.075 billion.
• Raised non-GAAP operating margin guidance for the year to approximately 37% underlying. Expect reported non-GAAP operating margin to be 41% in fiscal '29 or about 45% underlying.
• Raised free cash flow guidance range for fiscal '26 by $88 million at midpoint to $2.2 billion to $2.275 billion.
• Raised fiscal '26 share buyback targets to between approximately $1.2 billion and $1.3 billion.

Q: Saket Kalia of Barclays asked about Autodesk's appetite for transformative M&A.

A: Andrew Anagnost stated Autodesk invests organically first, then looks at M&A for tech tuck-ins and targeted acquisitions to extend adjacency strategy, with excess capital used for stock buybacks.

Q: Adam Borg of Stifel asked about construction momentum.

A: Andrew Anagnost said construction momentum is unchanged, performing well across U.S. and international, with strong performance in payments business and upcoming updates at Autodesk University.

Q: Jay Vleeschhouwer of Griffin Securities asked about billings guidance and customer usage telemetry.

A: Janesh Moorjani said areas of strength like AECO and Make continue into the back half, with strong net revenue retention rates.

Q: Jason Celino of KeyBanc Capital Markets asked about revenue growth driver.

A: Andrew Anagnost mentioned AEC sector strength due to secular trends in data centers, industrial buildings, infrastructure, strong EBAs, Autodesk Store strength, and Middle East/India infrastructure investments.

Q: Elizabeth Porter of Morgan Stanley asked about customer conversations on tariffs and channel productivity.

A: Andrew Anagnost said customers are coping well with tariffs, and Janesh Moorjani added on guidance assumptions and tougher comps from acquisitions and new transaction model.

Q: Taylor McGinnis of UBS asked about operating income margin guide and expense growth.

A: Janesh Moorjani said underlying basis shows operating leverage with incremental margin flow through of 2/3 of incremental revenue, and cost discipline with restructuring on track.

Q: Joe Vruwink of Baird asked about AI in manufacturing.

A: Andrew Anagnost discussed Autodesk's AI strategy focusing on foundation models, partnership with AI CAM offering, and upcoming AI advancements at AU.

Q: Ken Wong of Oppenheimer & Company asked about guidance conservatism and AI appetite.

A: Janesh Moorjani said low end of guidance assumes conservative outlook, and Andrew Anagnost talked about AI convergence, Autodesk Assistant, and productivity gains.

Q: Josh Tilton of Wolfe Research asked about business momentum and AI impact.

A: Janesh Moorjani said underlying momentum to continue, and Andrew Anagnost talked about AI in Design and Make, productivity gains, and upcoming AU announcements.

Q: Siti Panigrahi of Mizuho asked about channel activity and Autodesk Construction Cloud.

A: Andrew Anagnost said lower level channel business coming directly to Autodesk, partners getting comfortable with renewals, and Janesh Moorjani added on renewal timelines for partners.

Q: Tyler Radke of Citi asked about margins and free cash flow.

A: Janesh Moorjani said Analyst Day was to share long-term margin views, and free cash flow to move with operating income as business model settles.

Q: Koji Ikeda of Bank of America asked about construction industry triggers.

A: Andrew Anagnost talked about capacity problem, regulatory environment, and industrialized construction as unlocks.

Q: Michael Turrin of Wells Fargo Securities asked about AEC strength and free cash flow.

A: Andrew Anagnost discussed Autodesk's diversification, and Janesh Moorjani said free cash flow more weighted towards Q4 due to timing of EBAs and renewals.