Autodesk Shares Decline on Disappointing Fiscal 2027 Earnings Guidance Despite Strong Q2 Performance
Autodesk reported second-quarter results that beat analyst expectations, with adjusted earnings per share of $3.30 and revenue rising to $2.05 billion—16% higher year over year. Subscription growth also outperformed estimates at 17%. However, the company's fiscal 2027 guidance for adjusted EPS came in below consensus at a midpoint of $12.56 versus an expected $12.60. The slowdown in remaining performance obligations to 12% year-over-year was attributed partly to changes in contract structures and discounting strategies, which are expected to affect growth over the next few quarters. Despite raising its billings and revenue guidance for fiscal 2027 due to higher underlying expectations and contributions from MaintainX, Autodesk's stock fell more than 4% in pre-market trading as investors reacted negatively to the conservative outlook. Bank of America analysts described the results as mixed but reiterated a 'Buy' rating with a $300 price target. Free cash flow rose by 24%, adjusted operating margin expanded two percentage points, and revenue across key product lines like AECO and AutoCAD showed strong growth.
Tickers: $ADSK
Topics: Earnings Guidance Stock Price Movement