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Investing.com -- Autodesk, Inc. (NASDAQ:ADSK) shares jumped 9% after the design software giant reported second-quarter fiscal 2026 results that exceeded analyst expectations and raised its full-year guidance, driven by strong performance in its architecture, engineering, construction, and operations (AECO) segment.
The company reported adjusted earnings per share of $2.62, surpassing the analyst consensus of $2.45 by $0.17. Revenue climbed 17% YoY (18% in constant currency) to $1.76 billion, above the $1.72 billion analysts had expected. The strong performance was fueled by sustained investment in data centers, infrastructure, and industrial buildings, which more than offset softness in commercial construction.
"Q2 was another strong quarter. We saw strength in AECO, where our customers are benefiting from sustained investment in data centers, infrastructure, and industrial buildings, which is more than offsetting softness in commercial," said Janesh Moorjani, Autodesk CFO.
Autodesk raised its full-year guidance, now expecting revenue between $7.025 billion and $7.075 billion, up from the previous consensus of $6.97 billion. The company also increased its adjusted EPS forecast to $9.80-$9.98, above the prior consensus of $9.66.
For the third quarter, Autodesk projects revenue of $1.8-$1.81 billion and adjusted EPS of $2.48-$2.51, both exceeding analyst expectations.
The company’s AECO segment showed particularly strong growth, with revenue increasing 23% YoY to $878 million. Billings surged 36% to $1.68 billion, while free cash flow more than doubled, rising 122% to $451 million.
"For more than a decade, Autodesk has been at the forefront of innovation in BIM, SaaS, generative design, and now in generative AI," said Andrew Anagnost, Autodesk president and CEO. "We’re excited about the road ahead not only because of the industry-leading AI tools and foundation models we are creating."
Autodesk also announced that previously disclosed investigations by the SEC and U.S. Attorney’s Office regarding the company’s free cash flow and non-GAAP operating margin practices have been closed.