Autodesk Shares Surge 11% on Strong Earnings, Raised Outlook
Software maker's stock jumps after Q2 results beat estimates, billings surge 36%, and federal investigations are closed.
Shares of Autodesk, Inc. surged more than 10% after the design and engineering software company reported robust second-quarter earnings that surpassed analyst expectations and raised its full-year financial guidance. The positive results were further buoyed by the news that both the Securities and Exchange Commission (SEC) and the Department of Justice have closed their investigations into the company's accounting practices.\n\nFor the quarter ending July 31, 2025, Autodesk posted revenue of $1.76 billion, a 17% increase from the same period last year, narrowly beating estimates. Non-GAAP earnings per share came in at $2.62, comfortably ahead of the $2.50 consensus forecast. A key indicator of future growth, billings, surged by an impressive 36% year-over-year to $1.68 billion, signaling strong demand for its software suites.\n\nAdding to investor confidence, Autodesk announced that the SEC and the U.S. Attorney's Office for the Northern District of California had concluded their inquiries into the company's free cash flow and non-GAAP operating margin practices, which began in March 2024. The closure of these investigations removes a significant cloud of uncertainty that has hung over the company.\n\n"Q2 was another strong quarter. We saw strength in AECO [Architecture, Engineering, Construction, and Operations], where our customers are benefiting from sustained investment in data centers, infrastructure, and industrial buildings," said Janesh Moorjani, Autodesk's Chief Financial Officer. CEO Andrew Anagnost highlighted the company's focus on artificial intelligence, stating, "We have been building industry-specific foundation models and products capable of understanding and reasoning about 2D and 3D geometry, design and make data, complex structures, and even physical behavior."\n\nBuoyed by the strong performance and favorable foreign exchange rates, Autodesk raised its full-year fiscal 2026 guidance. The company now projects revenue between $7.03 billion and $7.08 billion, representing approximately 15% growth, with free cash flow expected to be in the range of $2.20 billion to $2.28 billion.