3D design software company Autodesk (NASDAQ: ADSK) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 16.1% year on year to $2.05 billion. Guidance for next quarter’s revenue was optimistic at $2.13 billion at the midpoint, 2.3% above analysts’ estimates. Its non-GAAP profit of $3.30 per share was 5.6% above analysts’ consensus estimates.
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Autodesk (ADSK) Q2 CY2026 Highlights:
- Revenue: $2.05 billion vs analyst estimates of $2.01 billion (16.1% year-on-year growth, 1.7% beat)
- Adjusted EPS: $3.30 vs analyst estimates of $3.12 (5.6% beat)
- The company lifted its revenue guidance for the full year to $8.32 billion at the midpoint from $8.19 billion, a 1.6% increase
- Management slightly raised its full-year Adjusted EPS guidance to $12.56 at the midpoint
- Operating Margin: 29.3%, up from 25.2% in the same quarter last year
- Free Cash Flow Margin: 27.4%, down from 45.3% in the previous quarter
- Billings: $1.85 billion at quarter end, up 10.5% year on year
- Market Capitalization: $53.79 billion
"AI turns connected data and context into actionable project intelligence that can ease endemic capacity constraints, raise the bar on what's possible in the physical world, and help our customers do more with scarce resources," said Andrew Anagnost, CEO of Autodesk. "To realize that promise, customers need AI that is accurate, fast enough to stay in the flow of work, and affordable enough to use every day. The future of AI for the built world will belong to the trusted platform that combines the richest context with the right models to deliver the best outcomes for customers. Autodesk is uniquely positioned because we build project intelligence across the asset lifecycle by converging design, make, and operate through a continuous flow of data, context, and experience."
Company Overview
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Autodesk grew its sales at a 14% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Autodesk’s annualized revenue growth of 15.8% over the last two years is above its five-year trend, suggesting some bright spots. 
This quarter, Autodesk reported year-on-year revenue growth of 16.1%, and its $2.05 billion of revenue exceeded Wall Street’s estimates by 1.7%. Company management is currently guiding for a 15.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 10.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Autodesk’s billings punched in at $1.85 billion in Q2, and over the last four quarters, its growth was impressive as it averaged 20.7% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
Autodesk’s recent customer acquisition efforts haven’t yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company’s inefficiency indicates it operates in a competitive market and must continue investing to grow.
Key Takeaways from Autodesk’s Q2 Results
We enjoyed seeing Autodesk beat analysts’ billings expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed. Zooming out, we think this was a mixed quarter. Investors were likely hoping for more, and shares traded down 4.9% to $257.50 immediately following the results.
Is Autodesk an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
