Cadence Design Systems (NASDAQ:CDNS – Get Free Report) updated its first quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.890-1.950 for the period, compared to the consensus estimate of 1.740. The company issued revenue guidance of -, compared to the consensus revenue estimate of $1.4 billion. Cadence Design Systems also updated its FY 2026 guidance to 8.050-8.150 EPS.
Cadence Design Systems Trading Down 2.6%
CDNS traded down $7.90 on Thursday, hitting $297.11. The company had a trading volume of 157,263 shares, compared to its average volume of 2,510,361. The company’s fifty day moving average price is $309.22 and its 200 day moving average price is $328.72. Cadence Design Systems has a 1 year low of $221.56 and a 1 year high of $376.45. The company has a current ratio of 3.05, a quick ratio of 2.84 and a debt-to-equity ratio of 0.48. The firm has a market cap of $80.87 billion, a P/E ratio of 73.32, a PEG ratio of 3.15 and a beta of 1.01.
Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last announced its earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.08. The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.42 billion. Cadence Design Systems had a net margin of 20.93% and a return on equity of 30.04%. Cadence Design Systems’s revenue was up 6.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.88 earnings per share. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. As a group, equities analysts expect that Cadence Design Systems will post 5.41 earnings per share for the current year.
Wall Street Analysts Forecast Growth
Get Our Latest Report on Cadence Design Systems
Insider Activity at Cadence Design Systems
In other news, VP Paul Scannell sold 5,490 shares of Cadence Design Systems stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $339.43, for a total value of $1,863,470.70. Following the completion of the transaction, the vice president owned 20,321 shares in the company, valued at approximately $6,897,557.03. This trade represents a 21.27% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the business’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $337.48, for a total value of $60,746.40. Following the transaction, the director directly owned 7,650 shares of the company’s stock, valued at approximately $2,581,722. This represents a 2.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 56,475 shares of company stock worth $18,505,486 over the last quarter. 1.99% of the stock is currently owned by insiders.
Key Headlines Impacting Cadence Design Systems
Here are the key news stories impacting Cadence Design Systems this week:
- Positive Sentiment: Q4 results beat and management raised FY‑2026 and Q1 guidance, citing AI-driven demand for custom chips — the core reason the stock initially popped after the report. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
- Positive Sentiment: Several bullish analysts reaffirmed or raised targets after the print — Bank of America kept a Buy and a $400 target, supporting upside narrative for AI exposure. Bank of America Securities Remains Bullish on Cadence Design Systems, Inc. (CDNS)
- Positive Sentiment: Earnings‑call commentary emphasized an AI surge and recurring revenue strength — a structural tailwind that underpins the company’s higher FY guidance. Cadence Design Systems Earnings Call Highlights AI Surge
- Neutral Sentiment: Some shops are pausing — Rosenblatt reiterated a Neutral rating in recent coverage, which can temper buying even after a beat. Rosenblatt Securities Reiterates “Neutral” Rating for Cadence Design Systems (NASDAQ:CDNS)
- Negative Sentiment: Unusual put-option activity — large blocks of puts were bought (well above average volume), signaling either speculative bearish bets or hedging from institutions, which adds immediate downward pressure. Stock Traders Buy Large Volume of Cadence Design Systems Put Options (NASDAQ:CDNS)
- Negative Sentiment: Some analysts trimmed price targets (Piper Sandler cut its target; other shops revised forecasts), creating mixed messages that can prompt profit‑taking after the post‑earnings run. These Analysts Revise Their Forecasts On Cadence Design Systems Following Q4 Results
- Negative Sentiment: Notable insider and institutional selling noted in data summaries — visible sales can increase near‑term volatility and damp investor enthusiasm despite the beat. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings
Hedge Funds Weigh In On Cadence Design Systems
Institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LLC raised its stake in Cadence Design Systems by 22.1% during the 4th quarter. Corient Private Wealth LLC now owns 293,243 shares of the software maker’s stock worth $91,662,000 after acquiring an additional 53,168 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in shares of Cadence Design Systems by 19.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 43,300 shares of the software maker’s stock worth $13,535,000 after purchasing an additional 6,931 shares during the last quarter. Raymond James Financial Inc. increased its position in shares of Cadence Design Systems by 3.0% during the fourth quarter. Raymond James Financial Inc. now owns 711,292 shares of the software maker’s stock worth $222,350,000 after purchasing an additional 20,475 shares in the last quarter. Vident Advisory LLC lifted its holdings in shares of Cadence Design Systems by 3.0% in the 4th quarter. Vident Advisory LLC now owns 57,531 shares of the software maker’s stock valued at $17,983,000 after purchasing an additional 1,670 shares during the last quarter. Finally, Beacon Pointe Advisors LLC lifted its holdings in shares of Cadence Design Systems by 60.6% in the 4th quarter. Beacon Pointe Advisors LLC now owns 2,178 shares of the software maker’s stock valued at $681,000 after purchasing an additional 822 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company’s stock.
Cadence Design Systems Company Profile
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.
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