FY2026 Earnings Forecast for CDNS Issued By Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Cadence Design Systems to $6.20 from $6.12, putting it just below the broader consensus forecast of $6.23 per share.
• Cadence beat quarterly expectations in its latest earnings report, posting $1.96 EPS on revenue of $1.47 billion, while also guiding FY2026 EPS to $7.85-$7.95 and Q2 EPS to $2.02-$2.08.
• Wall Street remains broadly bullish on CDNS, with 14 Buy ratings and 3 Hold ratings, and an average target price of $380.59, while recent institutional buying highlights strong investor interest.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Investment analysts at Erste Group Bank upped their FY2026 earnings per share estimates for shares of Cadence Design Systems in a report issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now forecasts that the software maker will post earnings per share of $6.20 for the year, up from their previous estimate of $6.12. The consensus estimate for Cadence Design Systems' current full-year earnings is $6.23 per share.

CDNS has been the subject of a number of other research reports. Rosenblatt Securities reissued a "buy" rating and issued a $360.00 price objective on shares of Cadence Design Systems in a research report on Friday, April 24th. KeyCorp raised their price objective on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Robert W. Baird raised their price objective on Cadence Design Systems from $381.00 to $385.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 28th. Wells Fargo & Company raised their price objective on Cadence Design Systems from $375.00 to $400.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Finally, Morgan Stanley lowered their price objective on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company 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. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $380.59.

Cadence Design Systems Price Performance

Cadence Design Systems stock opened at $362.70 on Monday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32. The stock has a market capitalization of $100.04 billion, a price-to-earnings ratio of 84.55, a PEG ratio of 4.29 and a beta of 1.13. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $376.45. The business has a fifty day moving average price of $300.45 and a 200-day moving average price of $309.70.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.05. The business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The business's revenue for the quarter was up 18.6% on a year-over-year basis. During the same quarter last year, the firm 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.

Insider Transactions at Cadence Design Systems

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction dated 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 transaction, the director owned 7,470 shares in the company, valued at approximately $2,203,874.10. This trade represents a 2.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Paul Scannell sold 10,500 shares of Cadence Design Systems stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $339.00, for a total value of $3,559,500.00. Following the transaction, the vice president owned 33,946 shares of the company's stock, valued at $11,507,694. The trade was a 23.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 40,180 shares of company stock worth $12,924,790. Insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

A number of institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new position in shares of Cadence Design Systems in the 4th quarter valued at about $1,352,922,000. J. Stern & Co. LLP increased its stake in shares of 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 valued at $923,129,000 after purchasing an additional 2,924,470 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of 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 valued at $798,087,000 after purchasing an additional 1,751,927 shares in the last quarter. Massachusetts Financial Services Co. MA increased its stake in shares of Cadence Design Systems by 16.0% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 5,314,407 shares of the software maker's stock valued at $1,866,739,000 after purchasing an additional 731,788 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its stake in shares of Cadence Design Systems by 120.9% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,124,417 shares of the software maker's stock valued at $351,470,000 after purchasing an additional 615,440 shares in the last quarter. 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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