AI-enhanced cloud design and construction modeling driving revenue and billings growth
San Rafael, California, August 29, 2025
Autodesk reported quarterly results that beat analyst expectations, driven by subscription adoption and generative AI integration across its cloud products. Revenue was $1.76 billion, up 17% year-over-year, with non-GAAP EPS of $2.62 and GAAP EPS of $1.46. Billings rose 36% to $1.68 billion and AECO revenue grew 23% to $878 million. Management raised full-year revenue guidance and increased share buybacks, citing strong recurring sales and accelerating billings. Margin gains reflected cost discipline and automation. Analysts note implementation risks for AI, uneven construction demand, and uncertainty around M&A and capital deployment.
Software company Autodesk reported second‑quarter fiscal 2026 revenue of $1.76 billion, up 17% year‑over‑year. The company posted non‑GAAP earnings per share of $2.62 and GAAP EPS of $1.46. Autodesk said results exceeded expectations and raised full‑year revenue guidance to a range of $7.03–$7.08 billion.
A sharp rise in billings was a major factor. Billings grew 36% from a year earlier to $1.68 billion, underlining stronger cash conversion from subscription sales. The Architecture, Engineering, Construction, and Operations segment expanded 23% to $878 million, while the Design segment grew 10% and the Make business, which covers manufacturing and 3D modeling, grew 20%.
Autodesk credited a long‑running move to a subscription‑based model with stabilizing recurring revenue and improving customer retention. The company has pushed a cloud‑first approach and has embedded generative AI across its cloud software stack so core tools can offer predictive design and automation. Examples cited include AI features inside commonly used programs for building and product design.
Autodesk’s investments come as several related markets are forecast to expand quickly. The global Software‑as‑a‑Service market is projected to grow from about $317.55 billion in 2024 to roughly $793.10 billion by 2029. The AI in construction market is forecast to rise from about $3.99 billion in 2024 to $11.85 billion by 2029, with generative AI in construction estimated to grow at a very rapid annual rate. Autodesk’s early integration of AI and industry‑specific models for construction and manufacturing is positioned to capture part of that expansion.
The company reported improved ability to convert revenue into profit, helped by cost discipline and earlier restructuring initiatives that boosted operating margins. Analysts and market notes point to actions such as headcount reductions and process automation as factors behind non‑GAAP margin expansion. Autodesk also signaled confidence by increasing share buyback targets and generating free cash flow, which management says helps buffer against wider economic uncertainty.
Some analysts reacted with caution despite the strong quarter. One large broker keeps a neutral rating and a price target that reflects potential margin upside but notes soft demand in parts of the industry and an unclear M&A plan. Broader concerns about AI implementation remain: surveys cited indicate nearly half of professionals worry AI could destabilize established roles and workflows, a factor that could slow enterprise adoption or change customer behavior.
The results were released after the market on August 28 ET, with a conference call planned for investors and analysts around the same time. Before the report, consensus analyst estimates had pointed to revenue of roughly $1.72 billion and EPS near $1.39, so the actual numbers came in above those forecasts.
Autodesk’s mix of recurring subscriptions, cloud delivery and embedded AI is designed to speed design cycles, reduce repetitive work and give project teams predictive tools. For contractors and manufacturers, that can translate to faster modeling, fewer errors and better planning—if the technology is adopted at scale. How quickly firms choose to add AI features will shape how much of the fast‑growing AI and SaaS market Autodesk can capture.
Strong billings growth, a meaningful AECO increase and higher guidance point to a company benefiting from recurring revenue and early AI integration. Profitability gains and buybacks show management confidence, though some analysts remain cautious about demand trends and long‑term capital strategy. Continued execution on AI tools and customer adoption will be key to sustaining this momentum.
Revenue was $1.76 billion (+17% YoY). Non‑GAAP EPS was $2.62, and GAAP EPS was $1.46. Billings rose to $1.68 billion (+36% YoY).
The AECO segment grew 23% to $878 million. The Make business grew about 20%, and the Design segment grew about 10%.
Management cited stronger-than-expected sales and billings, steady recurring revenue from subscriptions, and better margin conversion driven by cost discipline and automation.
Autodesk has embedded generative AI into its cloud platform and core design products to add predictive and automation features. This is part of a broader push to capture growth in AI‑driven construction and manufacturing markets.
Yes. Industry demand softness and concerns about AI implementation are possible headwinds. Some analysts also note uncertainty around the company’s M&A plan and long‑term capital allocation choices.
The financial results were released after market close on August 28 ET, with a conference call scheduled for the usual investor and analyst audience around that time.
| Metric / Feature | Q2 2026 Result | Year‑over‑Year Change | Notes |
|---|---|---|---|
| Revenue | $1.76B | +17% | Subscription revenue driving recurring streams |
| Non‑GAAP EPS | $2.62 | — | Adjusted profit metric |
| GAAP EPS | $1.46 | — | Standard accounting measure |
| Billings | $1.68B | +36% | Strong indicator of future revenue and cash |
| AECO revenue | $878M | +23% | Building and operations software growth |
| Design growth | — | +10% | AI and SaaS features contributed |
| Make growth | — | +20% | Manufacturing and 3D modeling |
| Full‑year revenue guidance | $7.03–$7.08B | Raised | Reflects confidence in recurring revenue |
| Market opportunity | SaaS & AI growth | Large | Global SaaS forecasted to reach ~$793B by 2029 |
| Conference call | Aug 28 (post‑market) | — | Company and analysts to discuss results |
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