Cadence Design Systems (NASDAQ:CDNS) Releases FY 2026 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) issued an update on its FY 2026 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of 8.050-8.150 for the period, compared to the consensus earnings per share estimate of 4.850. The company issued revenue guidance of $6.3 billion-$6.3 billion, compared to the consensus revenue estimate of $6.2 billion.

Cadence Design Systems Price Performance

NASDAQ CDNS traded up $12.37 during trading hours on Monday, reaching $338.61. The company’s stock had a trading volume of 3,353,419 shares, compared to its average volume of 2,460,094. The stock has a market cap of $93.40 billion, a PE ratio of 78.93, a PEG ratio of 3.86 and a beta of 1.15. Cadence Design Systems has a fifty-two week low of $262.75 and a fifty-two week high of $416.69. The company’s 50-day moving average is $373.92 and its two-hundred day moving average is $329.47. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47.

Cadence Design Systems (NASDAQ:CDNS) last announced its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company had revenue of $1.58 billion during the quarter, compared to analysts’ expectations of $1.58 billion. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS. Analysts forecast that Cadence Design Systems will post 6.23 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on CDNS shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Cadence Design Systems in a report on Thursday, July 2nd. Stifel Nicolaus increased their price objective on Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a research note on Tuesday, June 9th. KeyCorp lifted 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 boosted their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the company an “outperform” rating in a research note on Tuesday, April 28th. Finally, Needham & Company LLC restated a “buy” rating and issued a $400.00 target price on shares of Cadence Design Systems in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $393.65.

Insider Activity at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 51,887 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the sale, the chief executive officer owned 303,525 shares in the company, valued at $112,304,250. This trade represents a 14.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the firm’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total value of $1,743,550.00. Following the sale, the chief financial officer owned 81,875 shares in the company, valued at $28,550,631.25. This trade represents a 5.76% decrease in their position. 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 quarter, insiders have sold 157,057 shares of company stock worth $60,272,277. Company insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC grew its holdings in Cadence Design Systems by 80.2% in the fourth quarter. Brighton Jones LLC now owns 1,519 shares of the software maker’s stock valued at $456,000 after purchasing an additional 676 shares during the period. Integrated Wealth Concepts LLC raised its stake in Cadence Design Systems by 3.8% during the first quarter. Integrated Wealth Concepts LLC now owns 2,203 shares of the software maker’s stock worth $560,000 after purchasing an additional 80 shares during the period. Thompson Davis & CO. Inc. acquired a new position in shares of Cadence Design Systems in the 2nd quarter valued at $205,000. NewEdge Advisors LLC boosted its holdings in shares of Cadence Design Systems by 39.3% in the 2nd quarter. NewEdge Advisors LLC now owns 34,787 shares of the software maker’s stock valued at $10,720,000 after purchasing an additional 9,807 shares during the last quarter. Finally, Glenview Trust co purchased a new stake in shares of Cadence Design Systems during the 2nd quarter valued at $226,000. 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.