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

Cadence Design Systems (NASDAQ:CDNS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 8.050-8.150 for the period, compared to the consensus estimate of 5.450. The company issued revenue guidance of $5.9 billion-$6.0 billion, compared to the consensus revenue estimate of $5.7 billion. Cadence Design Systems also updated its Q1 2026 guidance to 1.890-1.950 EPS.

Cadence Design Systems Price Performance

CDNS stock traded down $16.00 on Tuesday, hitting $283.46. 5,539,689 shares of the company’s stock traded hands, compared to its average volume of 2,542,919. The stock has a market cap of $77.16 billion, a price-to-earnings ratio of 73.06, a P/E/G ratio of 3.33 and a beta of 1.01. 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 stock has a fifty day moving average of $309.88 and a 200-day moving average of $328.89.

Wall Street Analyst Weigh In

CDNS has been the subject of several research reports. Needham & Company LLC reissued a “buy” rating and set a $390.00 price objective on shares of Cadence Design Systems in a research note on Monday, December 22nd. Wells Fargo & Company increased their price target on Cadence Design Systems from $405.00 to $410.00 and gave the company an “overweight” rating in a research report on Tuesday, October 28th. Wolfe Research restated an “outperform” rating and set a $385.00 price objective on shares of Cadence Design Systems in a report on Tuesday, October 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cadence Design Systems in a research note on Monday, December 29th. Finally, KeyCorp reissued an “overweight” rating and issued a $405.00 target price on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Thirteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $379.59.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 20,000 shares of the firm’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $340.00, for a total transaction of $6,800,000.00. Following the completion of the sale, the chief executive officer directly owned 195,844 shares of the company’s stock, valued at $66,586,960. This trade represents a 9.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Paul Scannell sold 5,490 shares of Cadence Design Systems stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $339.43, for a total value of $1,863,470.70. Following the sale, the vice president owned 20,321 shares of the company’s stock, valued at approximately $6,897,557.03. This represents a 21.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 56,475 shares of company stock worth $18,505,486. 1.99% of the stock is currently owned by company insiders.

Key Cadence Design Systems News

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

• Positive Sentiment: Reported Q4 results above expectations (EPS beat and revenue/gross profit growth); quarter showed improving margins and stronger cash flow, which supports longer‑term earnings momentum. Cadence Beats Q4 Estimates
• Positive Sentiment: Management issued very strong FY‑2026 and Q1 guidance well above Street estimates (FY EPS guide ~8.05–8.15 vs. consensus ~5.45; Q1 EPS guide ~1.89–1.95 vs. consensus ~1.74), a major positive catalyst for future revenue and profit expectations. (Guidance and results in company release.) Cadence Q4 & FY2025 Results
• Positive Sentiment: Launched a new ChipStack AI super agent for chip design, reinforcing Cadence’s exposure to AI-driven design demand and providing a product catalyst for adoption and revenue growth. ChipStack AI Launch
• Neutral Sentiment: Analyst coverage is mixed — some firms reaffirm/raise price targets (median targets remain well above the current price) while at least one firm remains cautious; this produces varying short‑term reactions from funds and traders. Analyst PTs
• Neutral Sentiment: Some data feeds show confusing/zeroed short‑interest figures this cycle; unreliable short‑interest reporting means this metric is not clearly driving today’s move. (Market data items in reports.)
• Negative Sentiment: Significant insider selling activity reported in recent months (multiple senior executives have sold shares), which can raise governance/near‑term sentiment concerns for some investors. QuiverQuant Insider Activity
• Negative Sentiment: Large institutional trimming reported in Q4 for some big holders (per third‑party data), plus the stock currently trades below its 50‑ and 200‑day moving averages and at a rich P/E; that combination can prompt profit‑taking even after upbeat results. Institutional Moves / Technicals

Institutional Trading of Cadence Design Systems

Several large investors have recently added to or reduced their stakes in the business. Abel Hall LLC bought a new position in Cadence Design Systems during the fourth quarter worth $436,000. EFG International AG acquired a new stake in Cadence Design Systems in the 4th quarter worth $8,990,000. Defiance ETFs LLC bought a new position in shares of Cadence Design Systems during the 4th quarter worth about $37,286,000. Prosperity Bancshares Inc acquired a new position in shares of Cadence Design Systems during the fourth quarter valued at about $38,000. Finally, Laird Norton Wetherby Trust Company LLC bought a new stake in shares of Cadence Design Systems in the fourth quarter valued at about $3,286,000. 84.85% of the stock is 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.