Core Viewpoint - Autodesk (ADSK.US) shares rose over 7%, reaching a new high for the year at $309.50 following the release of its Q2 fiscal 2026 earnings report, which exceeded analyst expectations [1] Financial Performance - The company reported a 17% year-over-year revenue increase to $1.763 billion [1] - Adjusted earnings per share (EPS) were $2.62, surpassing analyst forecasts [1] Future Guidance - Autodesk raised its fiscal 2026 revenue forecast to between $7.025 billion and $7.075 billion [1] - The adjusted EPS guidance was also increased to a range of $9.80 to $9.98 [1]

Core Insights - Autodesk reported strong second-quarter fiscal 2026 results with non-GAAP earnings of $2.62 per share, exceeding estimates by 7.38% and reflecting a 21.9% year-over-year increase [1][8] - Total revenues reached $1.76 billion, surpassing consensus by 2.17% and growing 17.1% year over year, driven by strength in AECO, enterprise agreements, and the Autodesk Store [1][2][8] Revenue Breakdown - Subscription revenues, which constitute 94% of total revenues, increased by 17.8% year over year to $1.66 billion [3] - Maintenance revenues declined by 18.2% to $9 million, while other revenues rose by 11.6% to $96 million [3] Regional Performance - Revenues from the Americas increased by 18.7% to $786 million, accounting for 44.6% of total revenues [4] - EMEA revenues climbed 18.4% to $675 million, representing 38.3% of total revenues [4] - Asia-Pacific revenues grew by 10.6% to $302 million, making up 17.1% of total revenues [4] Product Line Performance - AECO revenues, which account for 49.8% of total revenues, increased by 23.1% to $878 million [5] - AutoCAD and AutoCAD LT revenues rose by 13.1% to $440 million, representing 25% of total revenues [5] - Manufacturing revenues increased by 12.8% to $334 million, while Media and Entertainment revenues grew by 3.9% to $80 million [5] Operating Results - Non-GAAP operating expenses rose by 14.4% year over year to $959 million [6] - The non-GAAP operating margin contracted by 140 basis points to 38.6% [6] Balance Sheet and Cash Flow - As of July 31, 2025, Autodesk had cash and cash equivalents of $2.24 billion, up from $2.04 billion as of April 30, 2025 [7] - Deferred revenues increased by 4% to $3.84 billion, with unbilled deferred revenues rising by 59% year over year to $3.45 billion [7] Future Guidance - For Q3 fiscal 2026, Autodesk projects revenues between $1.80 billion and $1.81 billion, with non-GAAP earnings per share expected between $2.48 and $2.51 [10] - The company raised its fiscal 2026 revenue guidance to between $7.03 billion and $7.08 billion, up from the previous estimate of $5.99 billion to $6.09 billion [10] - Non-GAAP earnings per share guidance was also increased to a range of $9.80 to $9.98, compared to the prior range of $7.99 to $8.21 [11]

Group 1 - Caterpillar's stock fell by 2.3% as the company raised its annual tariff cost expectations [1] - Dell's stock dropped by 7.3% due to Q3 profit forecasts falling short of expectations [1] - Autodesk's stock increased by 11.4% after reporting Q2 earnings that exceeded expectations [1] - SentinelOne's stock rose by 8.8% after the company raised its full-year revenue guidance for fiscal year 2026 [1] - Alibaba's stock gained 7.8% as its cloud business accelerated growth and it developed a more advanced AI chip [1]

Group 1 - Autodesk executives will be speaking at the Citi's 2025 Global TMT Conference on September 4, 2025, and the Goldman Sachs Communacopia + Technology Conference 2025 on September 8, 2025 [1] - A live webcast and replay of the presentations will be available on Autodesk's Investor Relations Website [1] - Autodesk will host its digital Investor Day on October 7, 2025, at 8:30 a.m. PT [2] Group 2 - Autodesk is recognized for its Design and Make Platform, which empowers designers, engineers, builders, and creators to utilize data for better insights and automated processes [3] - The company emphasizes its commitment to transparency by using its investor relations website for disclosing material non-public information and announcing investor conferences [3]

Autodesk Jumps on Strong Report and Raised Guidance. Get the numbers on the Bloomberg Stock Movers report. https://t.co/nywNQE5F8t ...

Core Viewpoint - Autodesk reported strong second-quarter earnings, exceeding market expectations, which led to a significant increase in its stock price [1] Financial Performance - Revenue for the second quarter reached $1.763 billion, representing a year-over-year growth of 17%, surpassing market expectations of $1.72 billion [1] - Net income was $313 million, an increase of 11% compared to the previous year [1] - Adjusted earnings per share (EPS) were $2.62, exceeding the forecast of $2.47 [1] Future Guidance - For the third quarter, Autodesk expects revenue to be between $1.8 billion and $1.81 billion, with adjusted EPS projected between $2.48 and $2.51 [1] - The full-year revenue guidance has been raised to between $7.025 billion and $7.075 billion, with adjusted EPS expectations also increased to between $9.80 and $9.98 [1]

Financial Data and Key Metrics Changes - Autodesk reported a total revenue growth of 17% year-over-year, with an 18% increase in constant currency [11] - Billings increased by 36% as reported and 34% in constant currency, reflecting a shift to annual billings for most multiyear contracts [12] - Free cash flow for the second quarter was $451 million, benefiting from earlier timing of billings [13] - Non-GAAP operating margins improved to 25% and 39% year-over-year, reflecting increases of 240 and 140 basis points respectively [13] Business Line Data and Key Metrics Changes - The AECO segment showed strength due to sustained investment in data centers and infrastructure, offsetting softness in commercial [10] - The contribution from the new transaction model to revenue was approximately $105 million in the second quarter [11] - Autodesk's store billings linearity during the quarter and upfront revenue were stronger than expected [10] Market Data and Key Metrics Changes - The company experienced strong performance in the AEC sector, driven by investments in data centers and industrial buildings [72] - International performance was robust, particularly in the Middle East and India, which saw significant infrastructure investments [73] Company Strategy and Development Direction - Autodesk is focused on the convergence of design and make in the cloud, leveraging platforms, industry clouds, and AI [20] - The company is investing in organic growth, targeted acquisitions, and share repurchase programs to enhance shareholder value [8][39] - The strategic initiatives include optimizing sales and marketing efficiency and expanding operating margins over time [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum despite geopolitical and macroeconomic uncertainties [7] - The guidance for billings and revenue for the full year has been raised, reflecting strong performance in the first half [15] - Management remains cautious about the macroeconomic environment but sees no immediate red flags from customers regarding tariffs [80] Other Important Information - Autodesk has raised its fiscal 2026 share buyback targets by $100 million to between approximately $1.2 billion and $1.3 billion [19] - The company is set to provide more details on its strategic growth initiatives at Autodesk University and Investor Day [9] Q&A Session Summary Question: Appetite for transformative M&A - Management stated that the focus is on organic investments first, with M&A considered for tech tuck-ins that accelerate existing roadmaps [38] Question: High-level assumptions for operating margin goals - Management indicated that margin expansion will primarily come from sales and marketing efficiency and inherent operating leverage [41] Question: Ongoing momentum in construction - Management confirmed that momentum in the construction business remains strong, with no signs of deceleration [47] Question: EBA renewal opportunity - Management noted a large pool of renewals and a strong setup for the back half of the year [52] Question: Increased billings guidance - Management attributed the increase in guidance to strong performance in AECO and construction, with net revenue retention rates remaining strong [58] Question: Customer adoption of new technologies - Management acknowledged that while adoption takes time, there is increasing usage of granular data and APIs among customers [62] Question: Operating income margin guide - Management explained that the increase in guidance reflects strong operating leverage and cost discipline [90] Question: AI's role in manufacturing - Management emphasized the importance of creating a new IP layer around AI and the focus on enhancing productivity through AI features [94]

Financial Data and Key Metrics Changes - Autodesk reported a total revenue growth of 17% year-over-year, with an 18% increase in constant currency [9] - Billings increased by 36% as reported and 34% in constant currency, reflecting a shift to annual billings for most multiyear contracts [10] - Free cash flow for the second quarter was $451 million, benefiting from earlier timing of billings [11] - The company raised its full-year billings guidance range to $7.355 billion to $7.445 billion and revenue guidance to $7.025 billion to $7.075 billion [13][16] Business Line Data and Key Metrics Changes - The AECO sector showed strength due to sustained investment in data centers, infrastructure, and industrial buildings, offsetting softness in commercial [8] - The contribution from the new transaction model to revenue was approximately $105 million, while billings from the new model were about $129 million [9][10] - The company noted consistent MACE revenue growth when excluding the impact of acquisitions [10] Market Data and Key Metrics Changes - Autodesk's performance in the U.S. and international markets remained strong, with notable growth in the Middle East and India due to infrastructure investments [65] - The company experienced strong momentum in the construction business, with no signs of deceleration [42] Company Strategy and Development Direction - Autodesk is focused on cloud, platform, and AI strategies, optimizing sales and marketing to drive higher operating margins [6] - The company aims to enhance its position in the construction sector through comprehensive end-to-end platforms and industry clouds [21] - Autodesk is investing in AI and generative design to improve productivity and streamline workflows across its product offerings [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum despite geopolitical and macroeconomic uncertainties [6] - The outlook for the second half of the year remains cautious, with expectations of continued strong performance in the construction and AECO sectors [12][76] - Management emphasized the importance of execution and control over factors that drive revenue and operating margins [13][68] Other Important Information - The company has initiated a sales and marketing efficiency plan to enhance operational leverage and margin expansion [14] - Autodesk's share buyback targets for fiscal 2026 have been raised to between $1.2 billion and $1.3 billion, a 40% to 50% increase compared to fiscal 2025 [16] Q&A Session Summary Question: What is Autodesk's appetite for transformative M&A? - Autodesk's capital allocation strategy prioritizes organic investments, with M&A considered for targeted acquisitions that accelerate existing roadmaps [34] Question: Can you elaborate on the operating margin goal for fiscal 2029? - The margin expansion will largely come from sales and marketing efficiency, with inherent operating leverage contributing to the goal [37] Question: What is driving the ongoing momentum in the construction business? - The construction business is performing well across various segments, with strong international growth and a comprehensive end-to-end platform [42] Question: How is the EBA renewal opportunity shaping up for the back half of the year? - Autodesk has a large pool of renewals and feels well set up for the back half of the year, with strong execution in the first half continuing [48] Question: What are the dynamics behind the increased billings guidance? - The increase in billings guidance reflects strong performance in AECO and construction, with net revenue retention rates remaining robust [52] Question: How is Autodesk addressing customer adoption of new technologies? - Autodesk is seeing increased API usage and customer adoption of granular data, indicating a positive trend in technology acceptance [56] Question: What is the outlook for the second half of the year given the cautious guidance? - The cautious guidance reflects a prudent approach, but management expects to outperform the low end of the range if current momentum continues [104]

Financial Performance - Q2 FY26 - Billings reached $1,678 million, a 36% year-over-year increase[5] - Revenue totaled $1,763 million, up 17% year-over-year[5] - GAAP operating margin was 25%, a 2 percentage point increase[5] - Non-GAAP operating margin was 39%, a 1 percentage point increase[5] - Free cash flow was $451 million, a 122% increase[5] Revenue Breakdown - Q2 FY26 - Design revenue was $1,472 million, up 17% year-over-year (18% in constant currency)[7] - Make revenue was $194 million, up 20% year-over-year (20% in constant currency)[7] - Americas revenue was $786 million, up 19% year-over-year (19% in constant currency)[7] - AECO revenue was $878 million, up 23% year-over-year (24% in constant currency)[7] FY26 Outlook - Billings are projected to be between $7,355 million and $7,445 million[9] - Revenue is projected to be between $7,025 million and $7,075 million[9] - Free cash flow is projected to be between $2,200 million and $2,275 million[9]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Autodesk reported strong Q2 FY26 results, featuring **17% revenue growth** and management's positive outlook on AI innovation and raised full-year guidance [Q2 FY26 Financial Highlights](index=1&type=section&id=Q2%20FY26%20Financial%20Highlights) Autodesk reported strong second-quarter fiscal 2026 results, with revenue growing 17% year-over-year to $1.76 billion, demonstrating robust performance - Second quarter revenue grew **17 percent**, and **18 percent** on a constant currency basis, to **$1.76 billion**[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted Autodesk's AI leadership, strong AECO performance, and raised full-year guidance reflecting business strength and foreign exchange tailwinds - Autodesk is at the forefront of innovation in **generative AI**, building **industry-specific foundation models** and products capable of understanding 2D and 3D geometry, design data, and physical behavior[2](index=2&type=chunk) - Q2 saw **strength in AECO**, benefiting from sustained investment in data centers, infrastructure, and industrial buildings, offsetting softness in commercial. The Autodesk Store, billings linearity, and up-front revenue were **stronger than expected**[2](index=2&type=chunk) - **Full-year guidance was raised** to reflect the underlying strength of the business in the first half of the year and additional foreign exchange tailwinds[2](index=2&type=chunk) [Q2 FY26 Financial Performance](index=1&type=section&id=Q2%20FY26%20Financial%20Performance) Autodesk demonstrated robust financial performance in Q2 FY26, with significant growth across key metrics including revenue, billings, and free cash flow [Overall Financial Metrics](index=1&type=section&id=Overall%20Financial%20Metrics) Autodesk delivered strong Q2 FY26 financial results, with significant year-over-year growth in billings (36%), revenue (17%), GAAP operating margin (2 ppt increase), and free cash flow (122%) | (In millions, except percentages and per share amounts) | | Q2 FY26 | YoY Change | |---|---|---|---| | Billings | $ | 1,678 | 36 % | | Revenue | $ | 1,763 | 17 % | | GAAP Operating Margin | | 25 % | 2 ppt | | Non-GAAP Operating Margin | | 39 % | 1 ppt | | GAAP EPS | $ | 1.46 | $ 0.16 | | Non-GAAP EPS | $ | 2.62 | $ 0.47 | | Cash flow from operating activities | $ | 460 | 117 % | | Free cash flow | $ | 451 | 122 % | [Net Revenue by Product Type](index=1&type=section&id=Net%20Revenue%20by%20Product%20Type) In Q2 FY26, Design revenue grew 17% (18% constant currency) to $1,472 million, while Make revenue increased 20% (20% constant currency) to $194 million, demonstrating strong performance across core product categories | (In millions, except percentages) | | Q2 FY26 | YoY Change | YoY Change in Constant Currency | |---|---|---|---|---| | Design | $ | 1,472 | 17 % | 18 % | | Make | | 194 | 20 % | 20 % | | Other | | 97 | 13 % | 11 % | | Total Net Revenue | $ | 1,763 | 17 % | 18 % | [Net Revenue by Geographic Area](index=1&type=section&id=Net%20Revenue%20by%20Geographic%20Area) All geographic regions contributed to revenue growth in Q2 FY26, with Americas leading at 19% (19% constant currency) to $786 million, followed by EMEA at 18% (19% constant currency) to $675 million, and APAC at 11% (14% constant currency) to $302 million | (In millions, except percentages) | | Q2 FY26 | YoY Change | YoY Change in Constant Currency | |---|---|---|---|---| | Americas | $ | 786 | 19 % | 19 % | | EMEA | | 675 | 18 % | 19 % | | APAC | | 302 | 11 % | 14 % | | Total Net Revenue | $ | 1,763 | 17 % | 18 % | [Net Revenue by Product Family](index=2&type=section&id=Net%20Revenue%20by%20Product%20Family) AECO was the strongest performing product family in Q2 FY26, growing 23% (24% constant currency) to $878 million, while AutoCAD and AutoCAD LT and MFG both grew 13% (14% constant currency) | (In millions, except percentages) | | Q2 FY26 | YoY Change | YoY Change in Constant Currency | |---|---|---|---|---| | AECO | $ | 878 | 23 % | 24 % | | AutoCAD and AutoCAD LT | | 440 | 13 % | 14 % | | MFG | | 334 | 13 % | 14 % | | M&E | | 80 | 4 % | 4 % | | Other | | 31 | 3 % | 4 % | | Total Net Revenue | $ | 1,763 | 17 % | 18 % | [Remaining Performance Obligations (RPO)](index=2&type=section&id=Remaining%20Performance%20Obligations%20(RPO)) Total Remaining Performance Obligations (RPO) increased 24% year-over-year to $7,297 million in Q2 FY26, with unbilled deferred revenue showing significant growth of 59% to $3,453 million | (In millions, except percentages) | Q2 FY26 | | YoY Change | |---|---|---|---| | Deferred Revenue | $ | 3,844 | 4 % | | Unbilled deferred revenue | | 3,453 | 59 % | | Remaining performance obligations ("RPO") | | 7,297 | 24 % | | Current RPO | | 4,677 | 20 % | [Business Outlook (Guidance)](index=3&type=section&id=Business%20Outlook%20(Guidance)) Autodesk provided Q3 and full-year FY26 guidance, projecting continued revenue growth and increased non-GAAP EPS, reflecting strong business momentum [Q3 FY26 Guidance](index=3&type=section&id=Q3%20FY26%20Guidance) For Q3 FY26, Autodesk projects revenue between $1,800 million and $1,810 million, with non-GAAP EPS expected to be in the range of $2.48 to $2.51 | Q3 FY26 Guidance Metrics | Q3 FY26 (ending October 31, 2025) | |---|---| | Revenue (in millions) | $1,800 - $1,810 | | EPS GAAP | $1.34 - $1.42 | | EPS non-GAAP (1) | $2.48 - $2.51 | [Full Year FY26 Guidance](index=3&type=section&id=Full%20Year%20FY26%20Guidance) Autodesk raised its full-year FY26 guidance, now expecting billings between $7,355 million and $7,445 million, revenue between $7,025 million and $7,075 million, and non-GAAP EPS between $9.80 and $9.98. Free cash flow is projected to be $2,200 million to $2,275 million | FY26 Guidance Metrics | FY26 (ending January 31, 2026) | |---|---| | Billings (in millions) (1) | $7,355 - $7,445 | | Revenue (in millions) (1) | $7,025 - $7,075 | | GAAP operating margin | 21% - 22% | | Non-GAAP operating margin (2) | ~37% | | EPS GAAP | $4.68 - $5.09 | | EPS non-GAAP (2) | $9.80 - $9.98 | | Free cash flow (in millions) (3) | $2,200 - $2,275 | [Corporate Updates](index=3&type=section&id=Corporate%20Updates) Autodesk announced the closure of government investigations into its free cash flow and non-GAAP operating margin practices [Government Investigations Closed](index=3&type=section&id=Government%20Investigations%20Closed) The U.S. Securities and Exchange Commission (SEC) and the United States Attorney's Office for the Northern District of California (USAO) have both closed their respective investigations into Autodesk's free cash flow and non-GAAP operating margin practices - The SEC notified Autodesk on August 19, 2025, and the USAO on August 21, 2025, that they were **closing their matters** regarding the internal investigation into the Company's free cash flow and non-GAAP operating margin practices[13](index=13&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) Supplemental investor materials and conference call details are available, providing further insights into Autodesk's financial performance and operations [Earnings Conference Call and Webcast](index=4&type=section&id=Earnings%20Conference%20Call%20and%20Webcast) Autodesk hosted its second-quarter conference call on August 28, 2025, with a live broadcast and replay available on its investor relations website - The live broadcast of the Q2 conference call was accessible at autodesk.com/investor, with a replay available for at least 12 months[14](index=14&type=chunk) [Investor Presentation and Contacts](index=4&type=section&id=Investor%20Presentation%20and%20Contacts) Supplemental investor materials, including an investor presentation and Excel financials, are available on Autodesk's investor relations website, along with contact information for investor relations and press - An investor presentation, Excel financials, and other supplemental materials are available at autodesk.com/investor[15](index=15&type=chunk) [Key Performance Metrics & Glossary](index=5&type=section&id=Key%20Performance%20Metrics%20%26%20Glossary) The report details key performance metrics and a comprehensive glossary to clarify financial and operational terms used in Autodesk's business [Key Performance Metrics](index=5&type=section&id=Key%20Performance%20Metrics) Autodesk utilizes key performance metrics such as billings, recurring revenue, and net revenue retention rate to monitor the strength and long-term health of its recurring business, emphasizing that these metrics are independent of GAAP revenue and deferred revenue - **Key performance metrics like billings, recurring revenue, and net revenue retention rate** are used to monitor the strength and long-term health of the recurring business, and should be viewed **independently of revenue and deferred revenue**[16](index=16&type=chunk) [Glossary of Terms](index=5&type=section&id=Glossary%20of%20Terms) The report provides a comprehensive glossary defining key financial and operational terms specific to Autodesk's business, such as Billings, Cloud Service Offerings, Constant Currency Growth Rates, Design Business, Enterprise Business Agreements (EBAs), Flex, Free Cash Flow, Industry Collections, Maintenance Plan, Make Business, Net Revenue Retention Rate (NR3), Other Revenue, Product Family, Product Subscription, Recurring Revenue, Remaining Performance Obligations (RPO), Solution Provider, Spend, Subscription Plan, Subscription Revenue, and Unbilled Deferred Revenue - Definitions are provided for key terms such as **Billings**, **Net Revenue Retention Rate (NR3)**, and **Remaining Performance Obligations (RPO)**, among others, to clarify financial and operational terminology[17](index=17&type=chunk)[24](index=24&type=chunk)[29](index=29&type=chunk) [Safe Harbor Statement](index=7&type=section&id=Safe%20Harbor%20Statement) This section outlines the inherent risks and uncertainties associated with forward-looking statements, including global economic conditions, geopolitical tensions, product development, competition, and regulatory changes, which could cause actual results to differ materially from projections - The press release contains **forward-looking statements subject to significant risks and uncertainties**, including global economic and political conditions, product development, competition, and regulatory changes, which could cause **actual results to differ materially**[33](index=33&type=chunk) [About Autodesk](index=8&type=section&id=About%20Autodesk) Autodesk empowers designers, engineers, builders, and creators globally with its Design and Make Platform, which leverages data and AI to accelerate insights, automate processes, and deliver better outcomes for businesses and the planet - Autodesk's **Design and Make Platform** helps designers, engineers, builders, and creators design and make anything, **unlocking the power of data to accelerate insights and automate processes**[35](index=35&type=chunk) [Financial Statements (GAAP)](index=9&type=section&id=Financial%20Statements%20(GAAP)) The unaudited condensed consolidated financial statements provide a detailed overview of Autodesk's Q2 FY26 operations, balance sheet, and cash flows [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited condensed consolidated statements of operations for the three and six months ended July 31, 2025, show total net revenue of $1,763 million for Q2 FY26, with net income of $313 million and diluted EPS of $1.46 | (In millions, except per share data) | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | |---|---|---| | Total net revenue | $1,763 | $3,396 | | Gross profit | $1,604 | $3,077 | | Income from operations | $444 | $677 | | Net income | $313 | $465 | | Diluted net income per share | $1.46 | $2.15 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets as of July 31, 2025, show total assets of $10,856 million and total stockholders' equity of $2,715 million, reflecting a stable financial position | (In millions) | July 31, 2025 | January 31, 2025 | |---|---|---| | Total assets | $10,856 | $10,833 | | Total current liabilities | $4,566 | $5,151 | | Long-term notes payable, net | $2,481 | $1,987 | | Total stockholders' equity | $2,715 | $2,621 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended July 31, 2025, net cash provided by operating activities was $1,024 million, a significant increase from $706 million in the prior year, while net cash used in financing activities was $634 million | (In millions) | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | |---|---|---| | Net cash provided by operating activities | $1,024 | $706 | | Net cash provided by (used in) investing activities | $8 | $(864) | | Net cash used in financing activities | $(634) | $(221) | | Net increase (decrease) in cash and cash equivalents | $404 | $(379) | | Cash and cash equivalents at end of period | $2,003 | $1,513 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, offering enhanced transparency into Autodesk's core business performance and future guidance [Explanation of Non-GAAP Measures](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Autodesk provides non-GAAP measures to offer greater transparency into key metrics used by management for financial and operational decision-making, helping investors understand core business performance, while also providing GAAP measures for comprehensive evaluation - Non-GAAP measures are used to supplement GAAP financial statements, providing **meaningful supplemental information** regarding earning potential and performance by excluding certain expenses not indicative of **core business operating results**[41](index=41&type=chunk) - These measures allow for **greater transparency** with respect to **key metrics used by management** and are used by institutional investors and analysts to analyze business health[41](index=41&type=chunk) - Non-GAAP measures have **limitations as they are not prepared in accordance with GAAP** and exclude items that may **materially impact reported financial results**[42](index=42&type=chunk) [Q2 FY26 GAAP to Non-GAAP Reconciliation](index=12&type=section&id=Q2%20FY26%20GAAP%20to%20Non-GAAP%20Reconciliation) The reconciliation for Q2 FY26 shows a non-GAAP operating margin of 39% (vs. GAAP 25%) and non-GAAP diluted EPS of $2.62 (vs. GAAP $1.46), primarily adjusted for stock-based compensation and amortization of intangibles. Free cash flow was $451 million | | Three Months Ended July 31, 2025 | |---|---| | GAAP operating margin | 25 % | | Non-GAAP operating margin | 39 % | | GAAP diluted net income per share | $1.46 | | Non-GAAP diluted net income per share | $2.62 | | Net cash provided by operating activities | $460 | | Free cash flow | $451 | [Q3 FY26 & FY26 Guidance GAAP to Non-GAAP Reconciliation](index=13&type=section&id=Q3%20FY26%20%26%20FY26%20Guidance%20GAAP%20to%20Non-GAAP%20Reconciliation) The reconciliation for guidance shows projected non-GAAP EPS for Q3 FY26 at $2.48 - $2.51 (vs. GAAP $1.34 - $1.42) and for full-year FY26 at $9.80 - $9.98 (vs. GAAP $4.68 - $5.09), with non-GAAP operating margin for FY26 at ~37% (vs. GAAP 21%-22%) | GAAP to non-GAAP diluted EPS reconciliation | Q3 FY26 (ending October 31, 2025) | |---|---| | GAAP EPS | $1.34 - $1.42 | | Non-GAAP EPS | $2.48 - $2.51 | | GAAP to non-GAAP operating margin reconciliation | FY26 (ending January 31, 2026) | |---|---| | GAAP operating margin | 21%- 22% | | Non-GAAP operating margin (1) | 37% | | GAAP to non-GAAP diluted EPS reconciliation | FY26 (ending January 31, 2026) | |---|---| | GAAP EPS | $4.68 - $5.09 | | Non-GAAP EPS | $9.80 - $9.98 |