Cadence Design Systems (NASDAQ:CDNS) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Cadence Design Systems exceeded earnings expectations, reporting quarterly EPS of $2.11 versus the $2.05 consensus. Revenue was $1.58 billion, in line with analyst forecasts, and the company updated its fiscal 2026 EPS guidance to $8.05–$8.15.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $393.65. Recent firms raised their targets as high as $450.
• Insiders sold approximately $60.3 million of stock over the past three months, including CEO Anirudh Devgan’s $10.4 million sale under a pre-arranged trading plan; institutional investors own 84.85% of the company.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) issued its earnings results on Monday. The software maker reported $2.11 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.06, FiscalAI reports. The company had revenue of $1.58 billion for 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%. Cadence Design Systems updated its FY 2026 guidance to 8.050-8.150 EPS.

Cadence Design Systems Stock Performance

Shares of CDNS traded up $12.37 during mid-day trading on Monday, hitting $338.61. The company's stock had a trading volume of 3,360,717 shares, compared to its average volume of 2,460,094. Cadence Design Systems has a one year low of $262.75 and a one year high of $416.69. The firm has a market capitalization of $93.40 billion, a PE ratio of 78.93, a price-to-earnings-growth ratio of 3.86 and a beta of 1.15. The stock's 50-day moving average is $373.92 and its two-hundred day moving average is $329.47. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on CDNS shares. Benchmark initiated coverage on Cadence Design Systems in a report on Wednesday, July 15th. They set a "buy" rating and a $450.00 price target on the stock. Stifel Nicolaus lifted their price objective on shares of Cadence Design Systems from $395.00 to $432.00 and gave the company a "buy" rating in a research note on Tuesday, June 9th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cadence Design Systems in a research note on Thursday, July 2nd. Citigroup increased their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Finally, KeyCorp boosted their target price on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $393.65.

Insider Buying and Selling

In related news, CEO Anirudh Devgan sold 25,005 shares of Cadence Design Systems stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total value of $10,377,075.00. Following the completion of the sale, the chief executive officer directly owned 253,519 shares in the company, valued at $105,210,385. This trade represents a 8.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total transaction of $69,741.00. Following the transaction, the director owned 8,004 shares in the company, valued at approximately $3,101,149.80. The trade was a 2.20% 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. In the last three months, insiders sold 157,057 shares of company stock worth $60,272,277. 0.49% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cadence Design Systems

A number of institutional investors have recently bought and sold shares of the business. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems in the fourth quarter valued at approximately $29,000. Imprint Wealth LLC bought a new stake in Cadence Design Systems in the 3rd quarter valued at $31,000. Strategic Wealth Investment Group LLC bought a new stake in Cadence Design Systems in the 2nd quarter valued at $32,000. Kemnay Advisory Services Inc. acquired a new stake in Cadence Design Systems during the 4th quarter valued at $34,000. Finally, Greenline Wealth Management LLC acquired a new stake in Cadence Design Systems during the 4th quarter valued at $34,000. Institutional investors and hedge funds own 84.85% of the company's stock.

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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