Cadence Design Systems (NASDAQ:CDNS) Updates Q3 2026 Earnings Guidance

Key Points

• Cadence raised its earnings outlook, guiding for Q3 2026 EPS of $2.01–$2.07 versus the $1.84 consensus estimate and setting full-year 2026 EPS guidance at $8.05–$8.15.
• The company’s latest quarterly results exceeded expectations, with EPS of $2.11 versus the $2.05 consensus, while revenue of $1.58 billion matched estimates.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus rating and an average price target of $393.65; CDNS shares rose 3.8% to $338.61 during Monday trading.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) updated its third quarter 2026 earnings guidance on Monday morning. The company provided earnings per share guidance of 2.010-2.070 for the period, compared to the consensus earnings per share estimate of 1.840. The company issued revenue guidance of -, compared to the consensus revenue estimate of $1.5 billion. Cadence Design Systems also updated its FY 2026 guidance to 8.050-8.150 EPS.

Analysts Set New Price Targets

CDNS has been the topic of a number of recent analyst reports. Needham & Company LLC reaffirmed a "buy" rating and issued a $400.00 target price on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Stifel Nicolaus upped 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. Berenberg Bank set a $440.00 target price on shares of Cadence Design Systems in a report on Wednesday, May 27th. Weiss Ratings reiterated a "hold (c)" rating on shares of Cadence Design Systems in a research report on Thursday, July 2nd. Finally, Benchmark started coverage on shares of Cadence Design Systems in a research report on Wednesday, July 15th. They set a "buy" rating and a $450.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $393.65.

Cadence Design Systems Trading Up 3.8%

Shares of CDNS stock traded up $12.37 during mid-day trading on Monday, reaching $338.61. The stock had a trading volume of 3,643,078 shares, compared to its average volume of 2,469,496. 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 price is $373.92 and its two-hundred day moving average price is $329.47. 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 52-week low of $262.75 and a 52-week high of $416.69.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.06. The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.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. Equities analysts expect that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, VP Paul Scannell sold 7,081 shares of Cadence Design Systems stock in a transaction on Monday, June 1st. The shares were sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president owned 32,181 shares in the company, valued at $12,676,417.71. The trade was a 18.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the business's stock in a transaction on 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 directly 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. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 157,057 shares of company stock valued at $60,272,277 over the last three months. Insiders own 0.49% of the company's stock.

Institutional Trading of Cadence Design Systems

A number of hedge funds have recently modified their holdings of CDNS. Wellington Management Group LLP boosted its stake in Cadence Design Systems by 218.6% in the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker's stock worth $798,087,000 after purchasing an additional 1,751,927 shares in the last quarter. Scge Management L.P. bought a new stake in Cadence Design Systems during the 2nd quarter valued at about $187,663,000. Amundi raised its holdings in Cadence Design Systems by 32.8% in the fourth quarter. Amundi now owns 1,984,842 shares of the software maker's stock worth $620,430,000 after buying an additional 489,930 shares during the last quarter. CIBC Private Wealth Group LLC raised its holdings in Cadence Design Systems by 164.0% in the fourth quarter. CIBC Private Wealth Group LLC now owns 331,882 shares of the software maker's stock worth $103,740,000 after buying an additional 206,163 shares during the last quarter. Finally, First Trust Advisors LP lifted its stake in shares of Cadence Design Systems by 50.7% in the fourth quarter. First Trust Advisors LP now owns 601,812 shares of the software maker's stock worth $188,114,000 after buying an additional 202,396 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.

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