Summary
Autodesk's fiscal 2027 second quarter, which ended July 31, 2026, produced revenue of $2.05 billion, up 16.1% from the prior-year quarter, or 14% in constant currency. Operating income of $599 million rose 34.9%. Net income of $492 million rose 57.2%, and diluted EPS of $2.33 rose $0.87. Gross profit of $1.87 billion rose 16.6%, lifting gross margin to 91.4%, up 0.4 percentage points. Operating margin reached 29.3%, up 4.1 percentage points. On a non-GAAP basis, operating margin was 41%, up 2 percentage points, and non-GAAP diluted EPS was $3.30, up $0.68.
The first half follows the same pattern. Revenue for the six months ended July 31, 2026 was $3.98 billion, up 17.2%. Gross profit of $3.63 billion rose 17.9%, and gross margin was 91.2%, up 0.6 percentage points. Operating income of $1.14 billion rose 68.4%, and operating margin was 28.6%, up 8.7 percentage points. Net income of $983 million rose 111.4%, and diluted EPS of $4.64 rose $2.49. Subscription growth across the existing customer base carried the top line, and the company points to strength in AEC collections, Autodesk Forma, Revit, Fusion, and enterprise business agreement offerings. Growth was broad based across product families and geographies. The largest distributor accounted for 8% of total net revenue during the quarter, and management says the business is not substantially dependent on it.
Cash and backlog metrics held up. Operating cash flow was $575 million for the quarter, up 25.0%, and $1.47 billion for the first half, up 43.4%. Free cash flow, which the company reports as operating cash flow less capital expenditures, was $561 million in the quarter, up 24%. Capital expenditures were $14 million in the quarter, up 55.6%, and $31 million year to date, up 82.4%. Billings were $1,854 million, up 10%. Current deferred revenue was $4.04 billion, up 13.7% from the prior-year quarter, and remaining performance obligations totaled $7.43 billion. Recurring revenue was 97% of net revenue, and the net revenue retention rate sat slightly above the 100% to 110% range on a constant currency basis. The company is winding down multi-year discounting, a move that helps price realization over time while temporarily weighing on unbilled deferred revenue, down 8%, and on RPO growth. Current RPO rose 12%.
Guidance moved up on growth, not on margin. Management raised its full-year fiscal 2027 billings and revenue growth outlook to reflect higher underlying growth expectations plus the incremental contribution from MaintainX. Full-year fiscal 2027 billings guidance is $8,575 million to $8,650 million, and the non-GAAP operating margin outlook stays at 39%. Non-GAAP EPS for the full fiscal year is guided to $12.52 to $12.60. Free cash flow expectations for the full fiscal year were narrowed to $2,725 million to $2,750 million, a range that includes about $45 million of transaction expenses tied to the MaintainX acquisition. The non-GAAP margin outlook is unchanged because higher underlying margins from operating leverage and go-to-market savings are offset by margin dilution from MaintainX. Guidance for the third quarter of fiscal 2027 and for the full fiscal year both include MaintainX.
The biggest moving part is the acquisition itself. MaintainX closed on August 3, 2026 for approximately $3.6 billion, net of cash acquired, funded with term loan borrowings, commercial paper, and cash on hand. Cash, cash equivalents, and marketable securities were $4.36 billion at July 31, 2026. The CFO described the sales reorganization as proceeding as expected, while the company lists integration challenges, foreign exchange headwinds, tariffs and global trade tensions, geopolitical conflict, and acquisition margin dilution among the risks that could shift the outlook. Autodesk also repurchased 4 million shares for $901 million during the first half.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2027 | Q1 FY2027 | QoQ | Q2 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $2.05B | $1.93B | +5.8% | $1.76B | +16.1% |
| Gross profit | $1.87B | $1.76B | +6.3% | $1.60B | +16.6% |
| Gross margin | 91.4% | 91.0% | +0.5 pp | 91.0% | +0.4 pp |
| Research & development | $464.0M | $421.0M | +10.2% | $413.0M | +12.3% |
| Sales & marketing | $616.0M | $593.0M | +3.9% | $559.0M | +10.2% |
| General & administrative | $179.0M | $162.0M | +10.5% | $168.0M | +6.5% |
| Total operating expenses | $1.27B | $1.22B | +4.4% | $1.16B | +9.6% |
| Operating income (loss) | $599.0M | $541.0M | +10.7% | $444.0M | +34.9% |
| Operating margin | 29.3% | 28.0% | +1.3 pp | 25.2% | +4.1 pp |
| Net income (loss) | $492.0M | $491.0M | +0.2% | $313.0M | +57.2% |
| Net margin | 24.1% | 25.4% | -1.3 pp | 17.8% | +6.3 pp |
| Diluted EPS | $2.33 | $2.32 | +$0.01 | $1.46 | +$0.87 |
Risks
Autodesk and certain current and former officers and directors are defendants in purported federal securities class action litigation arising from the internal investigation into the company's free cash flow and non-GAAP operating margin practices, and the company cannot predict the losses it may incur. Indemnification obligations to directors and officers may expose it to substantial uninsured liabilities.
The company is building AI into many offerings and expects AI to drive future growth, but competitors or third parties may incorporate AI into their products more quickly or more successfully. Developing and maintaining AI offerings may cost more than the financial benefits, and AI output deficiencies or new AI regulation such as the EU AI Act could bring lawsuits, investigations, and reputational harm.
International net revenue represented 65% of net revenue for both the six months ended July 31, 2026 and 2025, exposing results to tariffs and trade policy. The filing details tariffs imposed under Sections 232, 122, 301, and 338, including announced 50% tariffs on certain Canadian products effective August 19, 2026, and notes uncertainty over refunds of rescinded IEEPA tariffs.
Remaining performance obligations were $7.43 billion, a decrease of 10% compared to the fourth quarter of the prior fiscal year, current RPO was $5.24 billion, a decrease of 4%, and deferred revenue was $4.26 billion, a decrease of 9%. The company cannot assure renewal rates or subscription mix, and declines in new or renewed subscriptions may not show up in revenue until future quarters given 1-year to 3-year contract terms.
On August 3, 2026 the company acquired MaintainX for approximately $3.6 billion, net of cash acquired, after several transactions in fiscal 2025, 2026, and 2027. Integration risks include failure to realize anticipated revenue and cost synergies, inherited liabilities, and diversion of management attention, and acquisitions have contributed to quarterly fluctuations in results.
As of July 31, 2026 the company had $2.5 billion aggregate principal amount of notes outstanding and $1 billion of short-term borrowings under its new commercial paper program, and on August 3, 2026 borrowed $1 billion under a 364-day term loan credit agreement for MaintainX. Covenants under the 2025 Credit Agreement and Term Loan Agreement could restrict access to additional indebtedness and a credit rating downgrade could raise borrowing costs or limit commercial paper market access.
Revenue from standalone AutoCAD and AutoCAD LT family products represented 24% of total net revenue during the six months ended July 31, 2026, so any factor adversely affecting those subscriptions would likely harm results. Distributor TD Synnex accounted for 8% of total net revenue for the six months ended July 31, 2026.
The 2026 Plan and the January 2026 Plan restructuring programs could result in personnel attrition beyond planned headcount reductions, reduce employee morale, and affect the ability to attract highly skilled employees, particularly engineering and sales personnel. The company states that competition for key technical, professional, managerial, sales, and marketing personnel has historically been intense.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Free Cash Flow
Billings
Deferred Revenue
Current RPO
Unbilled Deferred Revenue
Recurring Revenue as % of Net Revenue
Summary, forecast, risks and KPIs are extracted from Autodesk, Inc.'s SEC filings for Q2 FY2027 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.