AI-enhanced cloud design and construction modeling driving revenue and billings growth
San Rafael, California, August 29, 2025
Autodesk reported quarterly results that beat analyst expectations, driven by subscription adoption and generative AI integration across its cloud products. Revenue was $1.76 billion, up 17% year-over-year, with non-GAAP EPS of $2.62 and GAAP EPS of $1.46. Billings rose 36% to $1.68 billion and AECO revenue grew 23% to $878 million. Management raised full-year revenue guidance and increased share buybacks, citing strong recurring sales and accelerating billings. Margin gains reflected cost discipline and automation. Analysts note implementation risks for AI, uneven construction demand, and uncertainty around M&A and capital deployment.
Autodesk reported quarterly results that topped analyst expectations and signaled momentum in its move to cloud software and artificial intelligence. The company posted $1.76 billion in revenue for fiscal Q2 2026, a rise of 17% year over year, and reported a non-GAAP earnings per share of $2.62 alongside a GAAP EPS of $1.46. Management raised full-year revenue guidance to a range of $7.03 billion to $7.08 billion, citing strong recurring sales and accelerating billings.
The construction-focused business within Autodesk, referred to as AECO for Architecture, Engineering, Construction, and Operations, grew 23% to $878 million. Overall billings, a forward-looking measure of contract value, surged 36% year over year to $1.68 billion. These figures helped convince executives to raise guidance and increase share buyback targets, seen as signs of management confidence in both revenue and margin trends.
The company’s shift to a subscription-first model played a central role in stabilizing recurring revenue and improving customer retention. Autodesk has been embedding generative AI across its cloud platform to give tools such as Revit and AutoCAD predictive design and automation features. That combination of software-as-a-service and AI is spotlighted by the company as a driver of growth across its product lines.
Autodesk reported improved profitability and continued free cash flow generation. Margin gains were attributed to disciplined cost management, including workforce optimization and process automation. Analysts from a major investment bank noted that headcount reductions and automation helped boost non-GAAP margins, while also flagging that capital allocation and merger-and-acquisition plans remain less clear.
Autodesk is positioning itself to capture a slice of rapidly expanding markets. The global software-as-a-service market is projected to grow from about $317.6 billion in 2024 to $793.1 billion by 2029. The AI-in-construction market is forecast to expand from roughly $4.0 billion in 2024 to $11.85 billion by 2029, and generative AI in construction is expected to grow at a very high rate. Autodesk’s early push to build industry-specific AI models and embed automation into its cloud offerings is intended to match these trends.
Despite positive results and raised guidance, risks remain. Some industry professionals express concern that AI could destabilize roles or processes, and adoption poses implementation challenges. Analysts point to soft demand indicators in parts of the construction pipeline and say that while margin expansion looks possible, the company’s M&A strategy and capital deployment warrant close watching.
Prior to the release, analysts had estimated revenue of roughly $1.72 billion and EPS near $1.39 on a GAAP basis, meaning the reported results exceeded these estimates. The company released results after the market close on August 28 ET and typically follows such releases with a conference call for investors, analysts, and media.
Autodesk’s quarterly performance shows that a cloud-first subscription approach combined with early AI integration can lift revenue, billings, and margins. The company raised its full-year revenue outlook and increased share buyback activity, signaling management confidence. Still, demand softness in parts of the industry and execution risks around AI implementation keep some analysts cautious.
Autodesk reported $1.76 billion in revenue, non-GAAP EPS of $2.62, and GAAP EPS of $1.46. Billings rose to $1.68 billion.
The AECO segment grew 23% to $878 million. Design grew about 10% and the Make business grew roughly 20%.
Autodesk embedded generative AI into cloud products like Revit and AutoCAD, adding predictive design and automation features that helped drive adoption and recurring revenue.
Autodesk raised full-year revenue guidance to a range of $7.03 billion to $7.08 billion and increased share buyback targets.
Yes. Industry concerns include implementation challenges and fears that AI could disrupt jobs or workflows. Analysts also note variable demand in parts of the construction sector.
| Feature | Detail |
|---|---|
| Quarterly revenue | $1.76 billion, up 17% YoY |
| Non-GAAP EPS | $2.62 |
| GAAP EPS | $1.46 |
| AECO revenue | $878 million, up 23% YoY |
| Billings | $1.68 billion, up 36% YoY |
| Full-year guidance | $7.03B to $7.08B |
| Strategic drivers | Subscription model, cloud SaaS, generative AI in design tools |
| Market opportunities | Global SaaS to ~$793B by 2029; AI in construction growing rapidly |
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