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.
Software maker Autodesk reported a stronger‑than‑expected second quarter driven by rising subscriptions and faster adoption of artificial intelligence tools. The company posted $1.76 billion in revenue, a 17% year‑over‑year gain, and raised its full‑year revenue forecast to a range of $7.03–$7.08 billion. Billings, a key indicator of future revenue, jumped 36% to $1.68 billion, signaling continued strength in customer spending.
On a non‑GAAP basis, earnings per share came in at $2.62, while GAAP EPS was $1.46. The Architecture, Engineering, Construction, and Operations business, referred to as AECO, grew 23% to $878 million, underscoring healthy demand in construction‑focused customers. The Design segment expanded about 10%, and the Make business, which covers manufacturing and 3D modeling, rose 20%.
Executives and analysts point to the company’s move to a subscription model as a core factor. The shift has stabilized recurring revenue and helped keep customers using the software over time. Autodesk also embedded generative AI into its cloud products, adding predictive design tools and automation to popular packages such as Revit and AutoCAD. This cloud‑first, AI‑driven approach aimed to speed up routine tasks and deliver personalized user workflows, which contributed to the uptick in renewal and sales activity.
Autodesk’s strategy aligns with rapid growth in related markets. The global Software as a Service market is projected to grow from about $318 billion in 2024 to $793 billion by 2029, giving software firms a large opportunity window. More narrowly, the AI in construction market is forecast to expand from roughly $4.0 billion in 2024 to $11.85 billion by 2029, while generative AI in construction has been estimated to grow at a particularly fast compounded annual rate. Autodesk’s early product integration of AI and industry‑specific models positions it to capture a significant slice of these trends.
The company showed it can convert revenue into profit, supported by cost discipline and restructuring steps that have boosted operating margins. Analysts at a major bank tied non‑GAAP margin gains to factors like headcount reduction and automation of internal processes. Management also increased share buyback targets alongside the higher guidance, which investors often view as a sign of confidence in future cash flow.
Despite the upbeat results, concerns remain. Nearly half of professionals surveyed expressed worry that AI could destabilize industries, a sentiment that highlights adoption and implementation risks. One large broker maintains a cautious rating on the stock, pointing to possible margin upside but also noting a conservative approach to capital allocation, uncertainty around future acquisitions, and soft demand signals from industry billing indexes.
Before the report, analysts had expected about $1.72 billion in revenue and an EPS forecast based on US‑GAAP around $1.39. Autodesk’s results topped those estimates. The company released its financial statement after market close on August 28 ET and typically follows up with a conference call to discuss the quarter and take investor questions.
The quarter shows Autodesk gaining momentum from subscription growth and early AI investments. Strong billings and raised guidance suggest management expects recurring revenue and margins to keep improving, even as adoption risks and market softness pose challenges. For customers and industry watchers, the focus will be on how quickly AI features translate into broader productivity gains and how Autodesk balances growth investments with disciplined capital use.
Autodesk reported $1.76 billion in revenue, non‑GAAP EPS of $2.62, and GAAP EPS of $1.46. Billings rose 36% to $1.68 billion.
The AECO segment grew 23% to $878 million. The Make business grew 20%, and the Design segment grew about 10%.
Autodesk embedded generative AI into its cloud software, improving predictive design and automation. This is credited with helping customer retention and new sales, supporting subscription growth.
Yes, Autodesk raised its full‑year revenue guidance to a range of $7.03–$7.08 billion.
Yes. Industry survey data shows significant worry about AI’s impact, and some analysts remain cautious due to soft demand signals and unclear acquisition plans.
| Item | Detail |
|---|---|
| Quarterly Revenue | $1.76 billion (+17% YoY) |
| Non‑GAAP EPS | $2.62 |
| GAAP EPS | $1.46 |
| Billings | $1.68 billion (+36% YoY) |
| AECO Revenue | $878 million (+23% YoY) |
| Design & Make Growth | Design +10%; Make +20% |
| Full‑Year Guidance | $7.03–$7.08 billion |
| Strategic Focus | Subscription model, cloud‑first AI features, industry‑specific AI models |
| Market Opportunities | SaaS market to ~$793B by 2029; AI in construction forecast to ~$11.85B by 2029 |
| Analyst Sentiment | Major broker maintains a cautious stance with a hold rating and a $330 price target |
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