When Autodesk, Inc. (NASDAQ: ADSK) reports second-quarter earnings next week, investors will be watching the event closely for signs of sustained momentum, following strong Q1 performance fueled by strength across its AEC collection. The company has significantly invested in integrating artificial intelligence across its design-and-make platform and products to streamline workflows and enhance user experience.
Autodesk’s stock has declined about 3% in the past 30 days, struggling to regain momentum after slipping below the $300 mark amid muted buying interest and broader tech softness. It has faced pronounced volatility this year and frequently trailed major indices, reflecting the macro uncertainty. Meanwhile, the relatively low valuation presents a compelling buying opportunity.
Estimates
As the design software company gears up to report second-quarter results on August 28, after the closing bell, analysts forecast earnings of $2.45 per share, on an adjusted basis. A year earlier, the company earned $2.15 per share. It is estimated that Q2 revenue increased 15% year-over-year to $1.72 billion. The management’s latest earnings guidance for Q2 is $2.44-2.48 per share. It predicts revenues in the range of $1.72 billion to $1.73 billion for the second quarter.
In the first three months of fiscal 2026, Autodesk’s adjusted earnings rose sharply to $2.29 per share from $1.87 per share in Q1 2025. The growth was driven by a 15% increase in revenues to $1.63 billion, with strong contributions from the core Subscription business.
Results Beat
Revenue grew across all geographical regions. Net income, on a reported basis, was $152 million or $0.70 per share in the April quarter, compared to $252 million or $1.16 per share in the same period last year. Earnings and the top line came in above analysts’ estimates, marking the eighth beat in a row. Adjusted operating margins rose modestly to 37%.
From Autodesk’s Q1 2026 earnings call:
“The Q1 margin strength was mainly driven by the revenue outperformance, combined with just ongoing expense discipline that we have here in the team. On the restructuring, we executed that well. As you’ll recall, we’re on a multi-year journey with the implementation of the new transaction model and deriving the benefits from that. And so, the restructuring reflected the initial, and we are building the capabilities now that we will need next year as we continue our sales and marketing evolution.”
In Growth Mode
Autodesk’s transition to annual billing and its strategic pivot toward cloud, platform, and AI investments are shaping near-term growth. The company is actively repurchasing its shares as free cash flows continue to grow. Currently, the management’s growth strategy is focused on pursuing strategic acquisitions, driving margin growth by optimizing sales & marketing, and allocating capital to organic investment.
The average price of Autodesk’s stock over the past 12 months is $286.47. The stock was trading lower on Wednesday afternoon.
