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

Cadence Design Systems (NASDAQ:CDNS) issued an update on its FY 2026 earnings guidance on Monday. 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.

Wall Street Analyst Weigh In

Several analysts recently issued reports on CDNS shares. Piper Sandler lifted their price target on shares of Cadence Design Systems from $325.00 to $349.00 and gave the company a “neutral” rating in a research report on Tuesday. Rosenblatt Securities lifted their price objective on shares of Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a report on Tuesday. Robert W. Baird upped their target price on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a report on Tuesday. Bank of America boosted their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday. Finally, Berenberg Bank set a $440.00 target price on Cadence Design Systems in a research report on Wednesday, May 27th. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and an average target price of $403.81.

Cadence Design Systems Price Performance

CDNS stock opened at $344.72 on Wednesday. The firm has a 50 day moving average of $373.90 and a 200-day moving average of $329.80. The firm has a market capitalization of $95.08 billion, a P/E ratio of 68.53, a price-to-earnings-growth ratio of 4.01 and a beta of 1.15. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last announced its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. Cadence Design Systems had a net margin of 23.60% and a return on equity of 29.34%. Cadence Design Systems’s revenue for the quarter was up 24.2% on a year-over-year basis. During the same period in the previous year, the business posted $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, sell-side analysts predict that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Anirudh Devgan sold 51,887 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $370.00, for a total value of $19,198,190.00. Following the completion of the sale, the chief executive officer owned 303,525 shares of the company’s stock, valued at approximately $112,304,250. This represents a 14.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of Cadence Design Systems stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the completion of the transaction, the chief financial officer owned 81,875 shares in the company, valued at approximately $28,550,631.25. The trade was a 5.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 157,057 shares of company stock valued at $60,272,277. Insiders own 0.49% of the company’s stock.

Key Stories Impacting Cadence Design Systems

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

• Positive Sentiment: Cadence reported second-quarter EPS of $2.11, exceeding the $2.05 consensus estimate, while revenue reached $1.58 billion and increased 24.2% year over year. Cadence Design Systems Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its full-year 2026 outlook, including revenue guidance of approximately $6.3 billion and EPS guidance of $8.05 to $8.15. Third-quarter EPS guidance of $2.01 to $2.07 also came in above the $1.84 analyst consensus. Cadence Raises Annual Forecasts as Demand Booms for AI Chip Design
• Positive Sentiment: Demand for AI-powered chip-design software and expanding “agentic AI” applications is driving broader use of Cadence’s core tools. The company also reported a record $8.1 billion backlog, supporting visibility into future growth. Cadence Stock Surges on Q2 Results and Record Backlog
• Positive Sentiment: Bank of America, Rosenblatt Securities and Robert W. Baird each raised their price targets to $420 and maintained bullish ratings. Needham reaffirmed its $400 Buy rating, signaling continued analyst confidence in Cadence’s earnings trajectory.
• Neutral Sentiment: Piper Sandler raised its price target from $325 to $349 but retained a Neutral rating, suggesting some analysts view the improved outlook as largely reflected in the stock’s valuation.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC increased its position in shares of Cadence Design Systems by 80.2% during the fourth quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock valued at $456,000 after buying an additional 676 shares during the period. Equitable Holdings Inc. bought a new stake in Cadence Design Systems in the third quarter worth $202,000. Triumph Capital Management purchased a new stake in shares of Cadence Design Systems during the third quarter valued at approximately $177,000. WFA of San Diego LLC bought a new position in Cadence Design Systems in the 2nd quarter valued at approximately $154,000. Finally, J.Safra Asset Management Corp lifted its holdings in shares of Cadence Design Systems by 128.7% during the fourth quarter. J.Safra Asset Management Corp now owns 398 shares of the software maker’s stock valued at $124,000 after purchasing an additional 224 shares in the last quarter. Institutional investors 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.