Research Analysts Offer Predictions for CDNS FY2026 Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for Cadence Design Systems to $6.39 from $6.20, broadly in line with the $6.40 consensus estimate.
• Cadence’s latest quarter exceeded expectations, with EPS of $2.11 versus $2.05 expected and revenue of $1.58 billion; revenue increased 24.2% year over year. The company issued FY2026 EPS guidance of $8.05–$8.15.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $405.69. Shares opened at $339.24, while insiders have sold $54.6 million of stock over the past three months.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Analysts at Erste Group Bank increased their FY2026 earnings estimates for shares of Cadence Design Systems in a research report issued to clients and investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now anticipates that the software maker will earn $6.39 per share for the year, up from their previous forecast of $6.20. The consensus estimate for Cadence Design Systems' current full-year earnings is $6.40 per share.

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

Other research analysts also recently issued reports about the company. Oppenheimer reaffirmed a "market perform" rating and set a $300.00 target price on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Rosenblatt Securities boosted their price target on shares of Cadence Design Systems from $410.00 to $420.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Piper Sandler upped their price objective on shares of Cadence Design Systems from $325.00 to $349.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 28th. Wall Street Zen upgraded shares of Cadence Design Systems from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Finally, KeyCorp reissued an "overweight" rating on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Thirteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $405.69.

Cadence Design Systems Price Performance

Shares of CDNS opened at $339.24 on Monday. The company has a current ratio of 1.74, a quick ratio of 1.53 and a debt-to-equity ratio of 0.36. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The stock's 50 day moving average is $368.63 and its two-hundred day moving average is $330.75. The firm has a market cap of $93.42 billion, a P/E ratio of 67.44, a PEG ratio of 3.64 and a beta of 1.15.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Cunningham sold 2,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $391.00, for a total value of $782,000.00. Following the transaction, the vice president directly owned 126,586 shares of the company's stock, valued at approximately $49,495,126. This trade represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anirudh Devgan sold 25,005 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $415.00, for a total transaction of $10,377,075.00. Following the transaction, the chief executive officer owned 253,519 shares in the company, valued at $105,210,385. The trade was a 8.98% 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. Over the last three months, insiders have sold 140,557 shares of company stock valued at $54,631,737. 0.49% of the stock is owned by company insiders.

Institutional Trading of Cadence Design Systems

A number of hedge funds have recently bought and sold shares of the business. Pinnacle Wealth Management Advisory Group LLC raised its position in shares of Cadence Design Systems by 3.1% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker's stock worth $287,000 after acquiring an additional 31 shares during the last quarter. Westfuller Advisors LLC boosted its holdings in Cadence Design Systems by 8.2% in the first quarter. Westfuller Advisors LLC now owns 408 shares of the software maker's stock valued at $113,000 after acquiring an additional 31 shares during the last quarter. Cornerstone Planning Group LLC increased its position in Cadence Design Systems by 32.0% in the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker's stock worth $37,000 after purchasing an additional 32 shares during the period. KCM Investment Advisors LLC raised its holdings in Cadence Design Systems by 0.4% during the 1st quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker's stock worth $2,227,000 after purchasing an additional 32 shares during the last quarter. Finally, Fulton Bank N.A. raised its holdings in Cadence Design Systems by 2.6% during the 2nd quarter. Fulton Bank N.A. now owns 1,296 shares of the software maker's stock worth $486,000 after purchasing an additional 33 shares during the last quarter. Institutional investors and hedge funds 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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