Equities Analysts Offer Predictions for CDNS FY2026 Earnings

Key Points

• Erste Group lowered its FY2026 EPS estimate to $6.14 (versus a $6.51 consensus), even though Cadence set its own FY2026 guidance much higher at $7.85–$7.95 per share.
• Q1 beat and AI momentum: Cadence reported EPS $1.96 (vs. $1.89 est.) and revenue $1.47B (up 18.6% YoY), citing strong AI/HPC chip-design demand and a record ~$8B backlog that supports multi-quarter revenue visibility.
• Analyst sentiment and risks: Analysts are mostly bullish (14 Buys, 3 Holds, average price target ~$380.59), but the stock carries a rich valuation (P/E ~76.9) and faces near-term risks from M&A integration/margin pressure, insider selling, and potential post-earnings profit-taking.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Equities research analysts at Erste Group Bank issued their FY2026 EPS estimates for Cadence Design Systems in a report released on Monday, April 27th. Erste Group Bank analyst H. Engel expects that the software maker will post earnings of $6.14 per share for the year. The consensus estimate for Cadence Design Systems' current full-year earnings is $6.51 per share. Erste Group Bank also issued estimates for Cadence Design Systems' FY2027 earnings at $7.54 EPS.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last released its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.89 by $0.07. Cadence Design Systems had a net margin of 21.18% and a return on equity of 30.26%. The firm had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.45 billion. The business's revenue was up 18.6% on a year-over-year basis. During the same quarter last year, the business earned $1.57 EPS. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS.

Other equities research analysts also recently issued reports about the company. KeyCorp increased their price target on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a report on Tuesday. Morgan Stanley reduced their target price on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Rosenblatt Securities reiterated a "buy" rating and set a $360.00 target price on shares of Cadence Design Systems in a research report on Friday, April 24th. Wells Fargo & Company upped their price target on shares of Cadence Design Systems from $375.00 to $400.00 and gave the stock an "overweight" rating in a report on Tuesday. Finally, Stifel Nicolaus set a $395.00 target price on shares of Cadence Design Systems in a research report on Wednesday, February 18th. Fourteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $380.59.

Cadence Design Systems Stock Performance

Cadence Design Systems stock opened at $329.95 on Thursday. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.86 and a quick ratio of 2.67. The firm has a market capitalization of $91.10 billion, a P/E ratio of 76.91, a price-to-earnings-growth ratio of 4.04 and a beta of 1.04. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $376.45. The company's 50-day moving average is $295.82 and its 200 day moving average is $309.19.

Institutional Trading of Cadence Design Systems

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Y.D. More Investments Ltd bought a new position in shares of Cadence Design Systems in the 3rd quarter worth $26,000. Brown Lisle Cummings Inc. boosted its position in Cadence Design Systems by 860.0% during the first quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker's stock valued at $27,000 after purchasing an additional 86 shares in the last quarter. University of Texas Texas AM Investment Management Co. bought a new stake in Cadence Design Systems during the fourth quarter valued at about $28,000. Caitlin John LLC purchased a new position in Cadence Design Systems in the third quarter valued at about $29,000. Finally, Swiss RE Ltd. bought a new position in Cadence Design Systems in the fourth quarter worth about $29,000. Institutional investors own 84.85% of the company's stock.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $297.78, for a total value of $297,780.00. Following the completion of the sale, the vice president owned 94,137 shares in the company, valued at approximately $28,032,115.86. The trade was a 1.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total transaction of $53,105.40. Following the completion of the sale, the director directly owned 7,470 shares of the company's stock, valued at $2,203,874.10. The trade was a 2.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 24,680 shares of company stock valued at $7,579,340. Company insiders own 0.49% of the company's stock.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Q1 beat and guidance raise — Cadence posted Q1 non-GAAP EPS $1.96 and revenue ~$1.47B, topping estimates, and raised FY2026 revenue guidance, which supports revenue growth expectations and justifies the stock’s bullish move. Cadence Q1 Earnings Top Estimates, 2026 Revenue Outlook Raised
• Positive Sentiment: AI demand & product momentum — Management highlighted strong AI/HPC chip-design demand, launched agentic-AI workflow products (Super Agents) and reported a record ~$8B backlog, pointing to durable, multi-quarter revenue visibility from AI-driven projects. CDNS Q1 Deep Dive: AI Demand Drives Growth, Margin Guidance Adjusts Post-Hexagon Acquisition
• Positive Sentiment: Analyst upgrades and higher price targets — Several firms boosted forecasts and targets after the quarter (Wells Fargo, Baird, Needham and others), which supports further upside in the shares through revised expectations. These Analysts Increase Their Forecasts On Cadence Design Systems Following Upbeat Q1 Results
• Neutral Sentiment: Wall Street sentiment metric (ABR) favors buys but is debated — Media pieces note the average brokerage recommendation is bullish, yet analysts’ optimism can be persistent; this contextualizes upgrades but doesn’t change fundamentals by itself. Wall Street Bulls Look Optimistic About Cadence (CDNS): Should You Buy?
• Neutral Sentiment: Positive long-term thesis with near-term headwinds — Independent coverage (Seeking Alpha) reiterates Cadence as core to AI chip design growth but flags temporary margin softness and cash-flow impacts from recent M&A, making the outlook constructive but mixed. Cadence Design Systems: The Foundation For All Things AI
• Negative Sentiment: Post-earnings profit-taking and a short-term pullback — Some trading activity suggests a “sell-the-news” reaction after the beat-and-raise, producing short-term pressure as investors lock gains after a strong run. Cadence Design Systems (CDNS) slides despite Q1 beat-and-raise, suggesting post-earnings profit-taking
• Negative Sentiment: Near-term integration and margin risk from M&A and insider selling — Coverage and the earnings discussion note margin drag and integration costs (Hexagon deal), and datasets show recent insider sales, which can weigh on investor sentiment. CDNS Q1 Deep Dive: AI Demand Drives Growth, Margin Guidance Adjusts Post-Hexagon Acquisition

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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