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]

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]

Core Insights - AutoDesk (ADSK) is set to release its second-quarter 2025 results on August 28, with revenue expectations of $1.73 billion, reflecting a year-over-year growth of 14.65% [1] - The consensus estimate for earnings per share is $2.44, unchanged over the past 30 days, compared to $2.15 in the same quarter last year [1] - AutoDesk has consistently beaten earnings estimates in the past four quarters, with an average surprise of 6.22% [1] Financial Performance - AutoDesk entered the second quarter of fiscal 2026 with strong momentum, reporting a 15% revenue growth to $1.63 billion in the first quarter [3] - The Architecture, Engineering, Construction and Operations segment is expected to be the primary growth driver, supported by the adoption of Autodesk Construction Cloud and enterprise business agreements [4] - The Manufacturing portfolio is anticipated to benefit from demand for Fusion and the Product Design and Manufacturing Collection, with AI-driven design automation providing additional support [5] Geographic Insights - The Americas and EMEA regions are expected to lead in expansion, showing sustained double-digit growth, while Asia-Pacific may lag due to Japan's transition and trade dynamics with China and Korea [6] Challenges - Potential headwinds include heightened policy and geopolitical uncertainty that could delay project spending, as well as currency fluctuations [7] - Restructuring and sales optimization actions from the previous quarter may cause short-term disruptions [7] Earnings Prediction - Current analysis does not predict a definitive earnings beat for AutoDesk, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [8]

Core Viewpoint - Analysts expect Autodesk (ADSK) to report quarterly earnings of $2.44 per share, reflecting a year-over-year increase of 13.5%, with revenues projected at $1.73 billion, up 14.7% from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' forecasts [1] - Analysts predict 'Net Revenue- Maintenance' to reach $9.26 million, a decrease of 15.8% from the prior-year quarter [4] - 'Net Revenue- Other' is expected to be $89.56 million, showing an increase of 4.1% year-over-year [4] - 'Net Revenue- Subscription' is projected at $1.63 billion, reflecting a year-over-year increase of 15.6% [4] Group 2: Total Revenue and Product Family Estimates - Total subscription and maintenance revenue is estimated to be $1.64 billion, indicating a 15.3% increase from the prior-year quarter [5] - 'Net Revenue by Product Family- M&E (Media and Entertainment)' is expected to reach $97.34 million, a rise of 26.4% from the previous year [5] - 'Net Revenue by Product Family- Other' is forecasted at $39.76 million, showing a year-over-year increase of 32.5% [6] - 'Net Revenue by Product Family- AECO (Architecture, Engineering, Construction and Operations)' is projected to be $821.80 million, reflecting a 15.3% increase [6] - 'Net Revenue by Product Family- MFG (Manufacturing)' is expected to be $341.65 million, indicating a 15.4% increase [7] - 'Net Revenue by Product Family- AutoCAD and AutoCAD LT' is estimated at $416.04 million, reflecting a 7% increase from the prior-year quarter [7] Group 3: Billings and Market Performance - Analysts predict 'Billings' to be $1.57 billion, compared to $1.24 billion reported in the same quarter of the previous year [8] - Autodesk shares have decreased by 4.3% in the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [8] - Autodesk holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the overall market performance in the near term [8]

Financial Performance - Q1 FY26 - Billings reached $1434 million, a 29% year-over-year increase[5] - Revenue totaled $1633 million, up 15% compared to the previous year[5] - Non-GAAP operating margin was 37%, a 3 percentage point increase year-over-year[5] - Free cash flow amounted to $556 million, a 14% increase from the prior year[5] Revenue Breakdown - Q1 FY26 - Design revenue was $1361 million, showing a 14% year-over-year increase[9] - Make revenue reached $179 million, a 23% increase compared to the previous year[9] - Americas revenue was $725 million, up 17% year-over-year[9] - EMEA revenue totaled $627 million, a 17% increase from the prior year[9] Outlook - FY26 - The company projects billings between $7160 million and $7310 million[11] - Revenue is expected to be in the range of $6925 million to $6995 million[11] - Non-GAAP operating margin is forecasted to be between 365% and 37%[11]

Financial Data and Key Metrics Changes - Total revenue in Q4 grew 12% year-over-year, with broad-based growth across products and regions [18][19] - GAAP and non-GAAP operating margins for Q4 were 22% and 37%, reflecting year-over-year increases of 90 basis points and 160 basis points, respectively [21] - Free cash flow for fiscal 2025 was $1.57 billion, exceeding guidance [22] Business Line Data and Key Metrics Changes - By product in constant currency: AutoCAD and AutoCAD LT revenue grew 9%; AECO revenue grew 15%; manufacturing revenue grew 10%; and M&E revenue grew 10% [18] - Direct revenue increased 35% in constant currency, representing 47% of total revenue, up 8 percentage points from last year [19] - Contribution from the new transaction model to revenue was $46 million in Q4 and $71 million for the year [19] Market Data and Key Metrics Changes - Revenue grew 11% in the Americas, 13% in EMEA, and 11% in APAC in constant currency [19] - RPO (Remaining Performance Obligations) of $6.9 billion and current RPO of $4.5 billion grew 14% and 12%, respectively [20] Company Strategy and Development Direction - Autodesk is focusing on the convergence of design and make in the cloud, enabled by platform, industry clouds, and AI [11][36] - The company is initiating an optimization phase of its sales and marketing plan to enhance customer satisfaction and productivity [8][10] - Future focus includes tighter channel partner integration and broad deployment of self-service capabilities [10][34] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty continues to impact customer willingness to invest, but they are optimistic about new product subscriptions and emerging businesses driving growth [58][60] - The company expects constant currency billings growth of 17% to 19% and revenue growth of 8% to 9% for fiscal 2026, excluding the impact of the new transaction model [28][29] - Management emphasized the importance of executing their go-to-market optimization plan to drive higher margins over time [65][100] Other Important Information - The company plans to buy back between $1.1 billion and $1.2 billion of shares in fiscal 2026, a 30% to 40% increase compared to fiscal 2025 [31] - Autodesk is committed to further margin expansion beyond fiscal 2026, aiming for GAAP margins among the best in the industry [100] Q&A Session Summary Question: What drives new business growth higher over time? - Management indicated that enhancing channel productivity and investing in emerging high-growth businesses will drive new business growth [58][60] Question: Can you provide more color on margin potential and restructuring? - Management expressed confidence in margin expansion due to strong fiscal discipline and the ongoing optimization of the go-to-market strategy [62][65] Question: How is macro uncertainty affecting customer sentiment? - Management noted that customers desire certainty and that uncertainty is fueling customer angst, but they believe Autodesk's diversified business can absorb policy changes [72][73] Question: What are the critical product or technology executables for the future? - Management highlighted investments in industry clouds and AI capabilities as key areas for future growth [81][82] Question: How does the revenue guide reflect potential disruption from restructuring? - Management acknowledged that the guidance considers potential risks associated with restructuring and the CRO transition [88] Question: What is the timeline for seeing benefits from sales and marketing adjustments? - Management indicated that significant benefits are expected in fiscal 2026, with ongoing investments to build capabilities for future optimization [106] Question: How does Autodesk view M&A in light of recent changes? - Management reaffirmed their commitment to being an acquisitive company, looking for opportunities that align with their strategy [108]

For the quarter ended January 2025, Autodesk (ADSK) reported revenue of $1.64 billion, up 11.6% over the same period last year. EPS came in at $2.29, compared to $2.09 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.63 billion, representing a surprise of +0.50%. The company delivered an EPS surprise of +7.51%, with the consensus EPS estimate being $2.13.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

This presentation contains forward-looking statements that involve risks and uncertainties, including quotations from management, statements in the paragraphs under "Business Outlook" above, statements regarding reallocating internal resources, our new transaction model and sales and marketing optimization, statements about our short-term and long-term goals, statements regarding our strategies, market and product positions, performance and results, statements regarding our share repurchase programs, and al ...