Autodesk Q2 Earnings Call Highlights

Autodesk exceeded fiscal Q2 guidance, with revenue up 16% year over year and non-GAAP operating margin reaching 41%. The company raised its fiscal 2027 billings outlook to $8.575 billion–$8.65 billion and revenue outlook to $8.295 billion–$8.345 billion. The MaintainX acquisition, completed Aug. 3, expands Autodesk into asset maintenance and operations and is expected to add about $60 million in second-half revenue. However, MaintainX’s current unprofitability will dilute Autodesk’s fiscal 2027 operating margin. Management highlighted strong renewals, improving sales productivity and construction growth of more than 20%, while advancing an AI-driven “project intelligence” strategy that connects design, construction, manufacturing and operational workflows. Autodesk NASDAQ: ADSK reported fiscal 2027 second-quarter revenue and earnings per share above the high end of its guidance ranges, prompting the company to raise its full-year outlook for billings and revenue. The updated forecast also incorporates the acquisition of MaintainX, which closed on Aug. 3. Chief Executive Officer Andrew Anagnost said Autodesk is pursuing a strategy centered on “project intelligence,” connecting data and workflows across design, construction, manufacturing and asset operations. The company aims to extend information generated during planning and construction into the operational life of assets, then use operating performance data to inform future projects. “We delivered another strong quarter,” Anagnost said, citing the company’s execution and the ongoing benefits of prior business-model changes. Chief Financial Officer Janesh Moorjani said second-quarter revenue increased 16% year over year as reported, or 14% in constant currency. The company said its new transaction model added about 2 percentage points to revenue growth during the quarter. Billings rose 10% as reported and 12% in constant currency. Moorjani said the transaction model did not have a significant impact on billings growth in the second quarter. He also said Autodesk continued reducing multi-year contract discounts, including winding down multi-year renewals under its maintenance-to-subscription program. The company expects that approach to improve price realization over time, though it may temporarily weigh on unbilled deferred revenue and remaining performance obligations growth. GAAP operating margin was 29%, up about 4 percentage points year over year. Non-GAAP operating margin was 41%, up about 2 percentage points. Free cash flow totaled $561 million. Autodesk repurchased about 2.1 million shares for $453 million. Moorjani attributed margin improvement to operating leverage, sales optimization and a lower level of stock-based compensation as a percentage of revenue. Autodesk expects stock-based compensation to represent about 9% of revenue in fiscal 2027, down from about 11% in fiscal 2026. For fiscal 2027, Autodesk raised its billings outlook to a range of $8.575 billion to $8.65 billion and increased its revenue outlook to $8.295 billion to $8.345 billion. The forecast includes approximately six months of MaintainX results. Autodesk expects MaintainX to contribute about $60 million in second-half revenue and about $70 million in second-half billings, with both weighted somewhat toward the fourth quarter. The company narrowed its free-cash-flow forecast to $2.725 billion to $2.75 billion. The outlook reflects stronger underlying expectations, offset by MaintainX op.