Autodesk Q2 FY2027 Earnings: Revenue Rises 16% as Margins Expand

Autodesk (NASDAQ: ADSK) reported fiscal Q2 2027 revenue of $2.046 billion, up 16% from $1.763 billion a year earlier, while GAAP diluted EPS increased to $2.33 from $1.46. For the quarter ended July 31, 2026, GAAP operating margin expanded four percentage points to 29%, and free cash flow rose 24% to $561 million. Subscription revenue and broad product-family growth supported the results, while Autodesk’s updated full-year outlook incorporates MaintainX.

Core Earnings Data

Subscription revenue increased approximately 17% to $1.952 billion and accounted for most of the top-line expansion, while other revenue declined slightly to $94 million. Gross profit grew faster than operating expenses, which increased about 10% to $1.271 billion, allowing GAAP operating income to rise approximately 35%.

Net income increased about 57% to $492 million. Cash generation also improved, with quarterly operating cash flow reaching $575 million and free cash flow reaching $561 million.

Calculated gross margins and the prior-year non-GAAP EPS are approximate. Non-GAAP figures exclude items including stock-based compensation, amortization and acquisition-related costs.

Business and Segment Performance

Design remained Autodesk’s largest product category, but Make recorded the fastest growth among the main product types. Growth remained positive on both reported and constant-currency bases for these two categories, while Other revenue contracted.

By product family, AECO generated $1.029 billion and grew 17%, making it the largest family. AutoCAD and AutoCAD LT revenue rose 14% to $500 million, Manufacturing increased 15% to $385 million, and Media and Entertainment grew 15% to $92 million.

Geographically, EMEA posted the highest reported growth at 19%, compared with 13% in constant currency, on revenue of $804 million. The Americas generated $898 million and APAC produced $344 million, with both regions growing 14% on reported and constant-currency bases.

Profitability, Cash Flow, and Balance Sheet

Operating leverage was the main driver of margin expansion. Gross profit increased about 17%, while marketing and sales, research and development, and general and administrative expenses grew more slowly in aggregate. This widened GAAP operating margin to 29% and non-GAAP operating margin to 41%.

The 12-point difference between GAAP and non-GAAP operating margins consisted primarily of nine points from stock-based compensation, two points from amortization of purchased intangibles and developed technologies, and one point from acquisition-related costs.

For the first six months of fiscal 2027, operating cash flow was $1.468 billion, compared with $1.024 billion in the prior-year period. Autodesk used $901 million for share repurchases during those six months, up from $712 million a year earlier.

Cash and cash equivalents increased to $4.098 billion at July 31 from $2.249 billion at January 31. Over the same period, total short-term debt, the current portion of long-term notes and long-term notes increased to approximately $3.478 billion from $2.483 billion. Autodesk also held $259 million of current and long-term marketable securities at quarter-end.

Reduced Multi-Year Discounts Temper RPO Growth

Remaining performance obligations increased only 2% to $7.433 billion even as revenue grew 16%. The difference reflects Autodesk’s program to reduce multi-year discounts, including the wind-down of multi-year Maintenance-to-Subscription renewals.

Unbilled deferred revenue declined 8% to $3.175 billion, while deferred revenue rose 11% to $4.258 billion and current RPO increased 12% to $5.245 billion. Management said reduced discounting should support price realization over time but is temporarily weighing on unbilled deferred revenue and total RPO growth.

Guidance

Autodesk raised its fiscal 2027 billings and revenue growth guidance, citing higher underlying growth expectations and an incremental contribution from MaintainX. The company maintained its roughly 39% non-GAAP operating margin outlook because underlying operating leverage and go-to-market optimization are expected to offset MaintainX-related dilution.

Free cash flow guidance was narrowed as stronger underlying expectations were offset by MaintainX operating and net financing costs. All fiscal 2027 guidance below includes MaintainX.

Full-year free cash flow guidance assumes approximately $70 million of capital expenditures and includes about $45 million of transaction expenses related to MaintainX.

Recent Insider Transactions

The provided insider transaction data lists four purchases during May and June 2026 with a combined reported value of approximately $2.17 million. These records describe transaction amounts rather than share quantities and do not, by themselves, establish insiders’ views on the company’s valuation or outlook.

Risks Investors Need to Watch

• MaintainX integration and acquisition costs: The acquisition is expected to add revenue but dilute margins. Its operating and net financing costs, along with approximately $45 million of transaction expenses, are also affecting free cash flow guidance.
• Slower total RPO growth: Total RPO grew only 2%, and unbilled deferred revenue declined 8% as Autodesk reduced multi-year discounts. The policy may improve price realization over time, but it is currently suppressing reported backlog growth.
• Currency sensitivity: EMEA grew 19% as reported but 13% in constant currency, indicating that favorable exchange rates contributed materially to reported regional growth this quarter.
• Go-to-market execution: Autodesk’s sales reorganization is proceeding as expected, but the margin outlook partly depends on realizing operating leverage and benefits from its go-to-market optimization.

Summary

Autodesk’s fiscal Q2 2027 results combined double-digit subscription-led revenue growth with wider operating margins and higher free cash flow. Make was the fastest-growing major product type, while reduced multi-year discounting held back total RPO growth. The main items to monitor are MaintainX’s contribution and associated costs, execution of the sales reorganization, and whether current RPO growth and operating leverage remain consistent with the updated fiscal 2027 outlook.