FY2026 Earnings Forecast for CDNS Issued By Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for Cadence Design Systems to $6.40 from $6.39, broadly in line with the $6.41 analyst consensus.
• Cadence recently reported quarterly EPS of $2.11, beating estimates by $0.06, while revenue rose 24.2% year over year to $1.58 billion. The company provided FY2026 EPS guidance of $8.05–$8.15.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $404.14; institutional investors own approximately 84.85% of the stock.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Analysts at Erste Group Bank increased their FY2026 earnings per share estimates for Cadence Design Systems in a research report issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the software maker will post earnings per share of $6.40 for the year, up from their prior forecast of $6.39. The consensus estimate for Cadence Design Systems' current full-year earnings is $6.41 per share.

Other analysts have also issued research reports about the stock. The Goldman Sachs Group upped their target price on shares of Cadence Design Systems from $410.00 to $470.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Weiss Ratings lowered shares of Cadence Design Systems from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, September 25th. Wall Street Zen raised shares of Cadence Design Systems from a "hold" rating to a "buy" rating in a research report on Monday. Piper Sandler boosted their price target on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a report on Tuesday, July 28th. Finally, Bank of America upped their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the stock a "buy" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $404.14.

Cadence Design Systems Trading Down 1.3%

NASDAQ CDNS opened at $348.42 on Tuesday. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. The business has a fifty day simple moving average of $319.81 and a 200 day simple moving average of $337.89. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The firm has a market capitalization of $95.95 billion, a P/E ratio of 69.27, a PEG ratio of 3.78 and a beta of 1.13.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%. The company had revenue of $1.58 billion for the quarter, compared to analysts' expectations of $1.58 billion. During the same quarter in the previous year, the firm earned $1.65 earnings per share. Cadence Design Systems's quarterly revenue was up 24.2% on a year-over-year basis. 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.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, VP Paul Cunningham sold 2,000 shares of the business's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $277.12, for a total value of $554,240.00. Following the transaction, the vice president directly owned 121,793 shares in the company, valued at $33,751,276.16. The trade was a 1.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 280 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $339.00, for a total transaction of $94,920.00. Following the transaction, the vice president directly owned 31,720 shares of the company's stock, valued at $10,753,080. This represents a 0.88% 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 ninety days, insiders sold 6,960 shares of company stock worth $2,185,879. Insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently bought and sold shares of CDNS. Van ECK Associates Corp raised its holdings in Cadence Design Systems by 21.8% during the 2nd quarter. Van ECK Associates Corp now owns 4,889,765 shares of the software maker's stock valued at $1,835,227,000 after buying an additional 874,392 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Cadence Design Systems by 1.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,385,655 shares of the software maker's stock worth $1,270,704,000 after acquiring an additional 48,937 shares during the last quarter. J. Stern & Co. LLP grew its holdings in Cadence Design Systems by 10,159.3% in the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker's stock worth $923,129,000 after acquiring an additional 2,924,470 shares during the last quarter. Amundi grew its holdings in Cadence Design Systems by 3.8% in the 1st quarter. Amundi now owns 2,060,334 shares of the software maker's stock worth $572,488,000 after acquiring an additional 75,492 shares during the last quarter. Finally, Legal & General Group Plc purchased a new position in shares of Cadence Design Systems in the second quarter valued at about $702,615,000. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc is a technology company that develops electronic design automation (EDA) software, hardware, and semiconductor intellectual property. Its products help engineers design, verify, analyze, and manufacture complex semiconductor chips, printed circuit boards, and electronic systems.

The company's offerings include digital and custom/analog integrated-circuit design tools, functional verification and emulation platforms, semiconductor intellectual property, and system analysis solutions.

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