Autodesk Inc reported second-quarter fiscal 2027 earnings that exceeded Wall Street expectations, though its stock fell 4.5% as investors focused on a slightly conservative full-year outlook.
The San Francisco-based software company posted adjusted earnings per share of $3.30, up from $3.12 expected, on revenue of $2.05 billion compared with a $2.01 billion consensus. Despite the beat, shares declined to $258.30, leaving the company with a market capitalization of $54.9 billion and a year-to-date decline of 12.76%.
Autodesk raised its full-year billings guidance to between $8.505 billion and $8.58 billion, citing an 18% surge in billings to support the outlook. Revenue grew 18% year-over-year, with 16% growth in constant currency, driven in part by its new transaction model, which contributed roughly 3.5 percentage points to growth. Geographic performance remained broad-based, with Americas, EMEA, and APAC each posting 16–17% growth.
Operating margins expanded significantly, with GAAP operating margin jumping to 28%, a 14-point improvement from the prior year, while non-GAAP operating margins rose to 39%. Free cash flow reached $876 million in the quarter alone, and Autodesk raised its full-year FCF guidance to between $2.725 billion and $2.8 billion.
However, full-year adjusted EPS guidance of approximately $12.56 fell slightly below the $12.60 consensus. The company also reported a 2% year-over-year increase in remaining performance obligations, though unbilled deferred revenue declined 8%.
Autodesk completed its $3.6 billion all-cash acquisition of MaintainX on August 3, adding over 14,000 customers and expanding into the $40 billion operations management market. The deal incurred approximately $45 million in expenses and is expected to dilute EPS by $0.10–$0.15 for the fiscal year.
Analysts remain broadly bullish, with 30 Buy ratings, six Hold ratings, and no Sell ratings. The mean price target stands at $314.57, implying roughly 22% upside. UBS and Baird both raised their targets to $325, while Guggenheim lifted its target to $283, citing the raised revenue guidance.
Looking ahead, Autodesk has scheduled its next earnings release for December 1, 2026, with estimates calling for adjusted EPS of $3.15 and revenue of $2.08 billion. Integration of MaintainX is ongoing through fiscal 2028, and the company expects to begin monetizing AI products in the second half of fiscal 2027, focusing on Forma for Construction and the Autodesk Assistant. Autodesk also aims to complete its sales reorganization by the third or fourth quarter of fiscal 2027, targeting a long-term non-GAAP operating margin of 41% by fiscal 2029.
