Autodesk Inc (NASDAQ:ADSK) stock rose 2.47% (As on August 30, 11:28:12 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second-quarter results and raised its full-year guidance, citing robust spending on its design software amid signs of an easing economy. Autodesk’s results indicate that industries ranging from construction and architecture to animation are heavily investing in the company’s software, driven by its artificial intelligence and machine learning capabilities that enhance and streamline workflows. Autodesk’s total billings in the quarter were up 13% year-over-year, to $1.24 billion, and subscription plan revenue rose 11%, to $1.41 billion. By segment, Autodesk’s Design revenue came in at $1.26 billion, up 9% year-over-year, and Make revenue was up 25%, to $162 million. Subscription plan revenue was $1.41 billion, an increase of 11 percent as reported, and 12 percent on a constant currency basis. Despite the positive figures, deferred revenue was surprisingly down 13%, to $3.69 billion, though there’s nothing in the earnings report that would suggest any downturn. Conversely, remaining performance obligations were up 12% to $5.86 billion. Net revenue retention rate remained within the range of 100 to 110 percent, on a constant currency basis. Total non-GAAP operating income was $560 million, compared to $489 million. Non-GAAP operating margin was 37 percent, up 1 percentage point. Cash flow from operating activities was $212 million, an increase of $77 million. Free cash flow was $203 million, an increase of $75 million. The company generated broad-based growth across products and regions in architecture, engineering and construction (AEC) and manufacturing in the second quarter.

ADSK in the second quarter of FY 25 has reported the adjusted earnings per share of $2.15, beating the analysts’ estimates for the adjusted earnings per share of $2. The company had reported the adjusted revenue growth of 12 percent to $1.51 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue of $1.48 billion.

Autodesk raised its outlook for fiscal 2025, now projecting full-year adjusted EPS of $8.18 to $8.31, above the previous analyst consensus of $8.12. The company also boosted its revenue guidance to a range of $6.08 billion to $6.13 billion, topping expectations of $6.05 billion.

For the third quarter, Autodesk forecast adjusted EPS of $2.08 to $2.14 on revenue between $1.555 billion and $1.57 billion. At the midpoint, the earnings outlook was in line with the $2.11 expected by analysts, while the revenue outlook was ahead of an expected $1.55 billion.