Autodesk, Inc.

What they do

Autodesk sells subscriptions for individual products, Industry Collections and cloud services, largely as a hybrid of desktop software and cloud functionality, through both direct and indirect channels worldwide. Its portfolio covers architecture, engineering, construction and operations (AECO), product development and manufacturing, and digital media and entertainment. Products named in the 10-K include the AEC Collection, AutoCAD Civil 3D, Autodesk Build, BIM Collaborate Pro, Fusion, Forma and Flow Production Tracking.

Revenue drivers

• AECO — Architecture, engineering, construction and operations software; largest product family at $1,029M of Q2 FY27 net revenue, up 17% year over year (15% constant currency).
• AutoCAD and AutoCAD LT — Core design products; $500M of Q2 FY27 net revenue, up 14% year over year (11% constant currency), and the 10-K risk factors note a substantial portion of net revenue derives from a small number of solutions including AutoCAD-based products.
• Manufacturing (MFG) — Design, engineering and production software including cloud-based Fusion; $385M of Q2 FY27 net revenue, up 15% (12% constant currency).
• Media and Entertainment (M&E) — Tools for digital sculpting, modeling, animation, effects, rendering and compositing; $92M of Q2 FY27 net revenue, up 15% (14% constant currency).

Recent performance

For Q2 FY27, ended July 31, 2026, revenue was $2,046M, up 16% year over year (14% constant currency), and billings were $1,854M, up 10%. GAAP operating margin was 29% and non-GAAP operating margin 41%; GAAP EPS was $2.33 and non-GAAP EPS $3.30. Cash flow from operating activities was $575M and free cash flow $561M. By product type, Design revenue was $1,708M (up 16%) and Make was $244M (up 26%), while Other was $94M (down 3%). Remaining performance obligations were $7,433M, up 2%, with current RPO of $5,245M, up 12%.

Strategy

Management says it is driving customer workflow convergence through a trusted design and make platform, organized around AI-powered industry clouds, Fusion, Forma and Flow. The stated priorities include building the platform of choice for Design and Make, accelerating adoption of Fusion, Forma and Flow, and transforming the customer experience. Autodesk has invested in agentic AI for design, engineering, manufacturing, construction and operations, built on proprietary data, contextual integration and specialized AI expertise. The company also supplements organic development with acquisitions, including Payapps in fiscal 2025 and simulation technology in fiscal 2024.

Risks

• Competition and technology change — The 10-K cites existing and increased competition and rapidly evolving technological changes as risks to the business.
• International exposure — Autodesk depends on international revenue and operations, exposing it to regulatory, economic, intellectual property, collections, currency, tax and political risks.
• Renewal rate uncertainty — The company says it is unable to predict subscription renewal rates and their impact on future revenue and operating results.
• Product and acquisition concentration — A substantial portion of net revenue comes from a small number of solutions including AutoCAD-based products, and strategic acquisitions carry cost, integration and potential margin challenges.

Outlook

In the August 27, 2026 earnings release, CFO Janesh Moorjani said fiscal 2027 billings and revenue growth guidance was increased to reflect higher underlying growth expectations plus the incremental contribution from MaintainX. Fiscal 27 non-GAAP margin guidance is unchanged, with higher underlying margins from operating leverage and go-to-market optimization offset by margin dilution from MaintainX. Fiscal 27 free cash flow expectations were narrowed, reflecting stronger underlying expectations offset by MaintainX operating and net financing costs, including approximately $45 million of transaction expenses related to the acquisition.