Autodesk Q2 Filing: Strong Growth and a Major Shift in Sales Strategy

Autodesk, the software giant behind tools like AutoCAD and Revit, recently filed its second-quarter report for fiscal year 2026. For anyone following the company or the broader software-as-a-service (SaaS) industry, these filings are a treasure trove of information. Let's dive into the numbers from their latest 10-Q filing to see how the company is performing.

Healthy Growth Across Key Segments

Autodesk posted strong top-line numbers, with total net revenue for the quarter ending July 31, 2025, climbing 17% year-over-year to $1.76 billion. This growth is overwhelmingly driven by its subscription-based model, which now accounts for a massive 98% of its total revenue, demonstrating the stability and predictability of its business.

The growth wasn't just isolated to one area. The company saw robust performance across its main product families:

• Architecture, Engineering, Construction and Operations (AECO): This segment was the standout performer, growing 23% to $878 million. This division, which includes flagship products like Revit, continues to be Autodesk's largest and fastest-growing engine.
• AutoCAD and AutoCAD LT: The classic design software line grew by a solid 13% to $440 million.
• Manufacturing (MFG): This segment also posted a healthy 13% increase, reaching $334 million in revenue.

To visualize how Autodesk's revenue flows through its costs to generate profit, the following diagram breaks down the key components of its income statement for the quarter.

A Major Shift in Sales Strategy

One of the most striking changes in the report is a dramatic shift in Autodesk's sales channels. Revenue from direct sales skyrocketed 82% to $1.09 billion, while revenue from indirect channels (like resellers) fell by 26% to $676 million.

At first glance, this might look like a massive, organic shift in customer purchasing behavior. However, the Management's Discussion and Analysis (MD&A) section sheds more light on this. The change is largely due to a "new transaction model." Under this model, it appears Autodesk is recognizing more revenue directly and paying commissions to its partners, which are now booked under marketing and sales expenses. This is a critical detail, as it reclassifies how revenue is reported rather than reflecting a pure change in end-user demand. This new model also helps explain why Marketing and Sales expenses jumped 16% to $559 million.

Profitability and A Look Ahead

Despite rising costs, Autodesk demonstrated good operating leverage. Income from operations grew 29% to $444 million, outpacing revenue growth. However, net income saw a more modest 11% increase to $313 million, primarily due to a significantly higher provision for income taxes, which more than doubled to $143 million for the quarter.

The company also recorded a $111 million charge for "Restructuring, other exit costs, and facility reductions" for the first six months of the fiscal year, signaling an ongoing effort to realign its operations for future efficiency and growth.

In conclusion, Autodesk's Q2 results paint a picture of a company with a strong, predictable subscription business that continues to grow at a healthy clip, led by its AECO division. The shift in its transaction model is a significant development that reshapes its financial reporting, but the underlying demand for its products appears solid. As the company navigates this transition and continues its restructuring efforts, it remains a dominant force in the design and engineering software market, though it faces the universal challenge of adapting to and managing the risks and opportunities presented by rapidly advancing AI technologies.