TLDR
- Autodesk Q2 adjusted EPS came in at $3.30, beating the $3.12 consensus estimate
- Revenue rose 16% year-over-year to $2.05 billion, above the $2.01 billion estimate
- Full-year fiscal 2027 adjusted EPS guidance midpoint of $12.56 missed the $12.60 consensus
- Stock dropped more than 4% in premarket trading on the guidance miss
- Guggenheim raised its price target to $283 from $277, maintaining a Buy rating
Autodesk posted a solid second quarter, but investors focused on what comes next. The stock dropped more than 4% in premarket trading Friday after the company’s fiscal 2027 guidance fell short of expectations.
The design software company reported Q2 adjusted EPS of $3.30 against a consensus of $3.12. Revenue came in at $2.05 billion, up 16% year-over-year, beating the $2.01 billion estimate.
Subscription growth hit 17%, ahead of the Street’s 14.5% estimate. Renewal rates and linearity were both better than expected.
AUTODESK $ADSK Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $2.05B (Est. $2.01B) 🟢; +16% YoY
🔹 Adj. EPS: $3.30 (Est. $3.12) 🟢
🔹 Non-GAAP Operating Margin: 41%; +2 pts YoY
🔹 Free Cash Flow: $561M; +24% YoYFY27 Guide:
🔹 Revenue: $8.30B-$8.35B (Est. $8.21B) 🟢
🔹 Non-GAAP EPS:…— Wall St Engine (@wallstengine) August 27, 2026
But not everything was clean. Current remaining performance obligations growth slowed to 12% in Q2, down from 18% to 20% in recent quarters. The culprit: the removal of multi-year discounts, which pushed some customers toward annual contracts. That headwind is expected to stick around for several more quarters.
Free cash flow rose 24% to $561 million. Adjusted operating margin expanded 2 percentage points to 41%. Billings came in at $1.85 billion, up 10% year-over-year.
Full-Year Guidance Misses the Mark
The full-year fiscal 2027 adjusted EPS guidance range of $12.52 to $12.60 landed just below the $12.60 analyst consensus. The midpoint of $12.56 was enough to disappoint.
For Q3, Autodesk guided revenue of $2.125 billion to $2.140 billion and adjusted EPS of $3.04 to $3.09.
For the full year, the company expects billings of $8.575 billion to $8.650 billion and revenue of $8.295 billion to $8.345 billion. The full-year revenue guidance was raised by about $135 million at the midpoint, with roughly $60 million coming from the MaintainX acquisition.
Bank of America called it “mixed 2Q27 results with conservatism into 2H27 guide,” but kept its Buy rating and $300 price target. The firm noted renewals support durable underlying growth at or above current guidance levels.
Analyst Targets Raised Despite Drop
Guggenheim raised its price target on Autodesk to $283 from $277 while keeping a Buy rating. The firm noted Q2 revenue and billings beat consensus by roughly 1.7% and 2%, respectively. Free cash flow and non-GAAP EPS also topped estimates.
UBS went further, raising its price target to $325 from $290, also maintaining a Buy rating. UBS highlighted the company’s low-teens organic growth, pointing to a 12% increase in both revenue and billings on a constant currency basis.
By segment, Design revenue grew 16% to $1.71 billion. Make revenue jumped 26% to $244 million. The AECO product family brought in $1.03 billion, up 17%, and AutoCAD revenue hit $500 million, up 14%.
CFO Janesh Moorjani said the sales reorganization is “proceeding as expected” and that the raised billings and revenue guidance reflects higher underlying growth expectations plus the MaintainX contribution.
Autodesk was trading at $270.58 with a market cap of $57.13 billion as of the most recent data.
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