Cadence Design Systems (NASDAQ:CDNS) Updates Q2 2026 Earnings Guidance

Key Points

• Cadence updated Q2 2026 guidance to EPS $2.020–$2.080 (vs. Street $1.78) and revenue of $1.6 billion, and raised FY‑2026 EPS guidance to 7.85–7.95.
• Shares traded up about 1.2% to $336.74 on above‑average volume, while analysts remain largely constructive with a consensus "Moderate Buy" and a mean price target near $377.
• Several insiders have been selling recently (CFO sold 21,500 shares; insiders sold ~24,680 shares worth ~$7.6M), executed under Rule 10b5‑1 plans, which could add selling pressure or reflect routine rebalancing.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) updated its second quarter 2026 earnings guidance on Monday. The company provided earnings per share guidance of 2.020-2.080 for the period, compared to the consensus earnings per share estimate of 1.780. The company issued revenue guidance of $1.6 billion-$1.6 billion, compared to the consensus revenue estimate of $1.5 billion. Cadence Design Systems also updated its FY 2026 guidance to 7.850-7.950 EPS.

Analyst Ratings Changes

A number of research firms have issued reports on CDNS. Morgan Stanley decreased their price objective on shares of Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 18th. Needham & Company LLC boosted 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. 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. Finally, Wells Fargo & Company decreased their price objective on shares of Cadence Design Systems from $410.00 to $375.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 18th. Fifteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Cadence Design Systems presently has an average rating of "Moderate Buy" and a consensus price target of $377.06.

Cadence Design Systems Trading Up 1.2%

Shares of NASDAQ CDNS traded up $3.85 during midday trading on Monday, hitting $336.74. 3,968,637 shares of the company traded hands, compared to its average volume of 2,510,429. Cadence Design Systems has a 12-month low of $262.75 and a 12-month high of $376.45. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.67 and a current ratio of 2.86. The stock has a 50-day moving average price of $293.73 and a 200 day moving average price of $309.14. The firm has a market cap of $92.97 billion, a P/E ratio of 82.94, a P/E/G ratio of 4.00 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company 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 company earned $1.88 earnings per share. Cadence Design Systems's quarterly revenue was up 6.2% on a year-over-year basis. 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, analysts expect that Cadence Design Systems will post 6.51 earnings per share for the current year.

Insiders Place Their Bets

In other Cadence Design Systems news, CFO John M. Wall sold 21,500 shares of the company's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $309.45, for a total value of $6,653,175.00. Following the sale, the chief financial officer owned 86,875 shares in the company, valued at approximately $26,883,468.75. This represents a 19.84% 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 this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction dated Wednesday, April 1st. The stock was 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 owned 128,586 shares in the company, valued at approximately $36,028,511.34. This trade represents a 0.77% 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. Over the last quarter, insiders have sold 24,680 shares of company stock worth $7,579,340. 0.49% 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: Company guidance well above Street — Cadence raised/updated FY‑2026 EPS guidance to roughly 7.85–7.95 versus a consensus near ~5.13, and issued revenue guidance around $6.1–$6.2B. This big upward guidance surprise is the main bullish catalyst pushing the stock higher today.
• Positive Sentiment: Quarterly top‑line and EPS roughly in line to slightly beat consensus — Multiple sources report Q1 revenue of ~$1.47B and EPS near $1.96 (beats ~$1.89 estimates); revenue growth remains healthy year‑over‑year, supporting the stronger forward outlook. Article Title
• Neutral Sentiment: Elevated trading and options flow — Volume was above average and there was a noticeable increase in put buying (7,204 puts traded, ~59% above normal), indicating both heightened interest and hedging/speculative activity ahead of/after the print. This can amplify intraday moves but isn’t a directional fundamental signal.
• Neutral Sentiment: Analyst positioning and price targets remain constructive — Recent analyst coverage remains largely Buy/Overweight with median targets in the $320–$400 range, which supports upside momentum from the guidance beat. Article Title
• Negative Sentiment: Conflicting third‑party report on results and weakening cash metrics — One third‑party summary (QuiverQuant) reported a much lower EPS figure (1.23) and noted operating cash flow down ~27%, cash and equivalents down ~49%, and rising liabilities — details that, if accurate or emphasized by investors, can weigh on sentiment. Article Title
• Negative Sentiment: Heavy insider and some institutional selling — Recent filings show multiple senior executives selling shares (no reported buys) and large institutional reductions (e.g., UBS scaled back significantly), which can create longer‑term selling pressure or signal portfolio rebalancing. Article Title

Institutional Investors Weigh In On Cadence Design Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of CDNS. Swiss RE Ltd. purchased a new stake in Cadence Design Systems in the fourth quarter worth about $29,000. Imprint Wealth LLC purchased a new stake in Cadence Design Systems in the third quarter worth about $31,000. Strategic Wealth Investment Group LLC bought a new position in shares of Cadence Design Systems in the second quarter worth approximately $32,000. Kemnay Advisory Services Inc. bought a new position in shares of Cadence Design Systems in the fourth quarter worth approximately $34,000. Finally, Greenline Wealth Management LLC bought a new position in shares of Cadence Design Systems in the fourth quarter worth approximately $34,000. Hedge funds and other institutional investors 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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