Cadence Design Systems (NASDAQ:CDNS) Issues FY 2026 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) updated its FY 2026 earnings guidance on Monday morning. The company provided earnings per share guidance of 8.050-8.150 for the period, compared to the consensus EPS estimate of 4.850. The company issued revenue guidance of $6.3 billion-$6.3 billion, compared to the consensus revenue estimate of $6.2 billion. Cadence Design Systems also updated its Q3 2026 guidance to 2.010-2.070 EPS.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $338.61 on Tuesday. The stock has a market cap of $93.40 billion, a P/E ratio of 78.93, a PEG ratio of 3.86 and a beta of 1.15. The company’s 50-day simple moving average is $373.77 and its 200 day simple moving average is $329.63. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38.

Cadence Design Systems (NASDAQ:CDNS) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. The firm had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company’s revenue for the quarter was up 24.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.65 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. As a group, research analysts forecast that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

CDNS has been the topic of several recent analyst reports. Wells Fargo & Company boosted their price target on Cadence Design Systems from $400.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, May 26th. Berenberg Bank set a $440.00 target price on shares of Cadence Design Systems in a research note on Wednesday, May 27th. Citigroup reiterated a “buy” rating on shares of Cadence Design Systems in a research report on Tuesday. Rosenblatt Securities boosted their price target on shares of Cadence Design Systems from $375.00 to $410.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Finally, KeyCorp upped their price objective on shares of Cadence Design Systems from $405.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $397.12.

Insider Transactions at Cadence Design Systems

In related news, Director Ita M. Brennan sold 180 shares of the company’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $387.45, for a total value of $69,741.00. Following the completion of the sale, the director owned 8,004 shares in the company, valued at approximately $3,101,149.80. This represents a 2.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the completion of the sale, the vice president owned 32,181 shares in the company, valued at $12,676,417.71. This represents a 18.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 157,057 shares of company stock valued at $60,272,277. 0.49% of the stock is currently owned by insiders.

Cadence Design Systems News Summary

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Q2 earnings beat expectations: Cadence reported adjusted earnings of $2.11 per share, above the $2.05 consensus estimate. Revenue reached $1.58 billion, in line with expectations but up 24.2% year over year. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised full-year guidance: Management projected 2026 earnings of $8.05-$8.15 per share and revenue of approximately $6.3 billion, modestly above prior expectations. Third-quarter EPS guidance of $2.01-$2.07 also exceeded the $1.84 analyst consensus. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: AI-driven demand remains strong: Cadence cited robust customer spending on AI-powered chip and system design software. Reports highlighted a record $8.1 billion backlog and expanding partnerships around agentic AI, supporting expectations for roughly 19% revenue growth in 2026. Cadence signals 19 percent 2026 revenue growth
• Neutral Sentiment: Valuation remains demanding: With CDNS trading at a high earnings multiple and above its 200-day moving average, continued share-price gains may depend on the company sustaining elevated growth and converting its backlog into revenue.

Institutional Investors Weigh In On Cadence Design Systems

Several large investors have recently modified their holdings of the business. Swiss RE Ltd. bought a new position in shares of Cadence Design Systems during the 4th quarter valued at about $29,000. Imprint Wealth LLC bought a new stake in Cadence Design Systems during the 3rd quarter worth approximately $31,000. Strategic Wealth Investment Group LLC acquired a new stake in Cadence Design Systems during the 2nd quarter worth approximately $32,000. Kemnay Advisory Services Inc. acquired a new stake in Cadence Design Systems during the 4th quarter worth approximately $34,000. Finally, Greenline Wealth Management LLC bought a new position in Cadence Design Systems in the fourth quarter valued at approximately $34,000. 84.85% of the stock is currently owned by institutional investors.

About Cadence Design Systems

Cadence Design Systems, Inc (NASDAQ: CDNS) is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company’s offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.