Autodesk Lifts Outlook After Q2 Beat

(NASDAQ:ADSK) reported second quarter fiscal 2026 results on August 28, 2025, exceeding guidance across revenue, non-GAAP operating margin, billings, and free cash flow, and subsequently raised full-year guidance for fiscal 2026 (ending Jan. 31, 2026). Total revenue (GAAP) grew 17% year-over-year, non-GAAP operating margin reached 39% (up 140 basis points YoY), free cash flow reached $451 million, and share repurchases totaled $709 million year-to-date; management provided updated targets on long-term margin and capital allocation, including full-year billings guidance of $7.355 billion to $7.445 billion, and articulated concrete progress on cloud, AI, and go-to-market strategic initiatives.

Autodesk implemented a cost discipline and restructuring plan at the beginning of the year. Optimization in sales and marketing contributed to operating leverage. The new transaction model is expected to increase operating margin drag in fiscal 2027, with management targeting long-term expansion through controllable efficiency levers despite non-linear progress.

Long-term profit expansion will be driven predominantly by improved sales and marketing efficiency and inherent operating leverage, positioning Autodesk for substantially higher margin structure as temporary transition headwinds subside.

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Source Fool.com