Recurring Revenue Remains Dominant
Recurring revenue reached $1.992 billion in Q2 FY2027, up 16% year over year and representing 97% of total net revenue.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Autodesk's fiscal 2027 second quarter was defined by broad-based subscription momentum and faster profit growth. Total net revenue rose 16% year over year, with operating income expanding faster and net income up more than half. Management attributed the top-line growth primarily to higher subscription revenue from the existing customer base. The main tension is that remaining performance obligations declined 10% sequentially from the fiscal year-end, reflecting normal fourth-quarter billing seasonality and multi-year billing timing.
Revenue
$2.05B
+16.05% YoY
EPS (Diluted)
$2.33
+59.59% YoY
Gross Margin
91.4%
+0.4 pts YoY
Operating Income
$599M
+34.91% YoY
Source: SEC XBRL
Autodesk (ADSK) reported Q2 FY2027 revenue of $2.05B, up 16.1% year over year. Operating margin was 29.3%, up 4.1 points from 25.2% a year earlier. ADSK's fiscal Q2 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 3.30 | 3.19 | Beat +3.6% |
| Jun 2026 | 2.99 | 2.90 | Beat +3.1% |
| Mar 2026 | 2.85 | 2.70 | Beat +5.7% |
| Dec 2025 | 2.67 | 2.55 | Beat +4.8% |
Adjusted (non-GAAP) EPS of $3.30 versus the $3.19 analyst consensus — a +3.6% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.33.
Compiled by AI from 10-Q Item 2 of this filing
Recurring revenue reached $1.992 billion in Q2 FY2027, up 16% year over year and representing 97% of total net revenue.
Source: 10-Q Item 2 MD&A
Net revenue retention rate (NR3) approximated the top end of the 100% to 110% range on a constant currency basis as of July 31, 2026.
Source: 10-Q Item 2 MD&A
Deferred revenue was $4.26 billion, down 9% from Q4 FY2026, and remaining performance obligations were $7.43 billion, down 10%, reflecting seasonality and billing timing.
Source: 10-Q Item 2 MD&A
Management expects cost of revenue, marketing and sales, research and development, and general and administrative expenses to increase in Q3 FY2027, while restructuring costs are expected to remain flat.
Source: 10-Q Item 2 MD&A
Revenue from distributor TD Synnex fell to 8% of total net revenue in Q2 FY2027 from 16% in the prior-year quarter, as Autodesk increasingly transacts directly with customers.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Autodesk is investing heavily in AI features, industry clouds, and new business models such as named-user plans and flex subscriptions. If these innovations do not achieve market acceptance or keep pace with rapid technological changes, the company may fail to generate sufficient revenue and its profitability could decline.
Source: 10-Q Item 1A Risk Factors
Autodesk derives 65% of net revenue from international markets and faces increasing tariffs, trade wars, sanctions, and export restrictions. Recent U.S. tariff actions and potential foreign retaliation could raise costs, disrupt operations, and harm financial results.
Source: 10-Q Item 1A Risk Factors
Customers are not obligated to renew subscriptions, and renewal rates may decline due to pricing, competition, or economic downturns. Because most revenue is recognized over 1- to 3-year terms, a decline in renewals may not be fully reflected until future periods.
Source: 10-Q Item 1A Risk Factors
Recent acquisitions, including MaintainX, carry integration risks such as customer retention, cultural mismatches, and unforeseen liabilities. Failure to integrate acquired businesses successfully could prevent realization of expected synergies and negatively impact financial results.
Source: 10-Q Item 1A Risk Factors
A substantial portion of net revenue comes from a small number of solutions, including AutoCAD-based software products and Industry Collections. If sales of these flagship products decline without a corresponding increase in collections or cloud revenue, results of operations could be adversely affected.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.05 $B | 1.76 $B | +16.05% |
Cost of Revenue $M | 176.00 $M | 159.00 $M | +10.69% |
Gross Profit $B | 1.87 $B | 1.60 $B | +16.58% |
Operating Income $M | 599.00 $M | 444.00 $M | +34.91% |
Net Income $M | 492.00 $M | 313.00 $M | +57.19% |
EPS (Basic) $ | 2.34 $ | 1.47 $ | +59.18% |
EPS (Diluted) $ | 2.33 $ | 1.46 $ | +59.59% |
R&D Expense $M | 464.00 $M | 413.00 $M | +12.35% |
Answers draw on this SEC filing and the data on this page
Autodesk (ADSK) delivered strong Q1 FY2027 growth, with revenue up 18.4% year over year to $1.93B and net income up 223.0% to $491M, driven by subscription growth and sharply lower restructuring expense. Source: 10-Q Item 2 MD&A, pp.29-34.
Autodesk delivered strong FY2026 results with revenue growing 17.5% to $7.21B and operating cash flow surging 52.6% to $2.45B, though net income growth was modest at 1.1% due to higher operating expenses.
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