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

Key Points

• FY 2026 EPS guidance of 7.850–7.950 far exceeds the consensus estimate of 5.130, while revenue guidance of $6.1–$6.2 billion is roughly in line with the consensus.
• Shares reacted positively, trading up to $336.74 midday; the company has a market cap of about $92.97 billion, a PE of ~82.9, and an average analyst target of $377.06 with a "Moderate Buy" consensus.
• Cadence also reported a recent quarter beat with EPS of $1.99 vs. estimates of $1.91 and revenue of $1.44 billion (up 6.2% year-over-year), with a net margin of ~20.9% and ROE of ~29.3%.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) issued an update on its FY 2026 earnings guidance on Monday morning. The company provided EPS guidance of 7.850-7.950 for the period, compared to the consensus EPS estimate of 5.130. The company issued revenue guidance of $6.1 billion-$6.2 billion, compared to the consensus revenue estimate of $6.1 billion.

Cadence Design Systems Stock Performance

CDNS stock traded up $3.85 during midday trading on Monday, reaching $336.74. 2,795,959 shares of the company's stock traded hands, compared to its average volume of 2,490,816. The company has a 50-day moving average price of $293.73 and a two-hundred day moving average price of $309.14. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.67 and a current ratio of 2.86. Cadence Design Systems has a 52 week low of $262.75 and a 52 week high of $376.45. The firm has a market capitalization of $92.97 billion, a PE ratio of 82.94, a price-to-earnings-growth ratio of 4.00 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.91 by $0.08. Cadence Design Systems had a net margin of 20.93% and a return on equity of 29.34%. The business had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.42 billion. During the same quarter in the previous year, the firm posted $1.88 EPS. The business's revenue for the quarter was up 6.2% compared to the same quarter last year. 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 anticipate that Cadence Design Systems will post 6.51 EPS for the current year.

Analyst Upgrades and Downgrades

CDNS has been the subject of a number of analyst reports. Stifel Nicolaus set a $395.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, February 18th. Weiss Ratings restated a "hold (c)" rating on shares of Cadence Design Systems in a research report on Monday, December 29th. Wells Fargo & Company cut their price objective on shares of Cadence Design Systems from $410.00 to $375.00 and set an "overweight" rating for the company in a research report on Wednesday, February 18th. Piper Sandler cut their price objective on shares of Cadence Design Systems from $355.00 to $319.00 and set a "neutral" rating for the company in a research report on Wednesday, February 18th. Finally, Needham & Company LLC raised their price objective on shares of Cadence Design Systems from $390.00 to $400.00 and gave the company a "buy" rating in a research report on Monday, April 20th. Fifteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $377.06.

Insider Buying and Selling at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $280.19, for a total transaction of $280,190.00. Following the completion of the sale, the vice president directly owned 128,586 shares in the company, valued at $36,028,511.34. The trade was a 0.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 21,500 shares of Cadence Design Systems stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $309.45, for a total transaction of $6,653,175.00. Following the sale, the chief financial officer owned 86,875 shares of the company's stock, valued at approximately $26,883,468.75. The trade was a 19.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 24,680 shares of company stock worth $7,579,340 over the last three months. 0.49% of the stock is owned by insiders.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds have recently bought and sold shares of the stock. T. Rowe Price Investment Management Inc. lifted its position in Cadence Design Systems by 8.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 10,511 shares of the software maker's stock valued at $3,286,000 after purchasing an additional 777 shares during the last quarter. Compound Planning Inc. lifted its position in Cadence Design Systems by 1.7% during the fourth quarter. Compound Planning Inc. now owns 3,201 shares of the software maker's stock valued at $1,001,000 after purchasing an additional 55 shares during the last quarter. Corient Private Wealth LLC lifted its position in Cadence Design Systems by 22.1% during the fourth quarter. Corient Private Wealth LLC now owns 293,243 shares of the software maker's stock valued at $91,662,000 after purchasing an additional 53,168 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake 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 acquiring an additional 6,931 shares in the last quarter. Finally, Raymond James Financial Inc. raised its stake 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 acquiring an additional 20,475 shares in the last quarter. 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.

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