Autodesk falls on fiscal 2027 guidance concerns

Investing.com -- Autodesk Inc (NASDAQ: ADSK) reported second quarter results that exceeded analyst expectations, but shares tumbled 5% in after-hours trading Thursday as the company's fiscal 2027 guidance disappointed investors.

The design software company posted adjusted earnings per share of $3.30 for the second quarter ended July 31, beating the analyst consensus of $3.12 by $0.18. Revenue rose 16% YoY to $2.05 billion, surpassing the $2.01 billion estimate. The revenue growth reflected a 14% increase on a constant currency basis. Despite the strong quarterly performance, Autodesk's full-year fiscal 2027 adjusted EPS guidance of $12.52 to $12.60 fell short of investor expectations. The midpoint of $12.56 came in below the analyst consensus of $12.60. The company provided third quarter revenue guidance of $2.125 billion to $2.140 billion and adjusted EPS of $3.04 to $3.09.

"We delivered strong second quarter results with consistent execution and momentum. Our sales reorganization is proceeding as expected," said Janesh Moorjani, Autodesk CFO. "We have increased our fiscal 27 billings and revenue growth guidance to reflect higher underlying growth expectations, as well as the incremental contribution from MaintainX."

The company reported billings of $1.85 billion for the quarter, up 10% YoY. Adjusted operating margin expanded 2 percentage points to 41%. Free cash flow surged 24% to $561 million.

By product segment, Design revenue grew 16% to $1.71 billion, while Make revenue increased 26% to $244 million. The AECO product family generated $1.03 billion in revenue, up 17% YoY, and AutoCAD revenue reached $500 million, up 14%.

For fiscal 2027, Autodesk expects billings of $8.575 billion to $8.650 billion and revenue of $8.295 billion to $8.345 billion.

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