Cadence Design Systems (NASDAQ:CDNS) Releases Q3 2026 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) issued an update on its third quarter 2026 earnings guidance on Monday. The company provided EPS guidance of 2.010-2.070 for the period, compared to the consensus EPS estimate of 1.840. The company issued revenue guidance of -, compared to the consensus revenue estimate of $1.5 billion. Cadence Design Systems also updated its FY 2026 guidance to 8.050-8.150 EPS.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Benchmark began coverage on shares of Cadence Design Systems in a research note on Wednesday, July 15th. They set a “buy” rating and a $450.00 target price on the stock. Citigroup lifted their price target on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Rosenblatt Securities upped their price objective on shares of Cadence Design Systems from $375.00 to $410.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Robert W. Baird increased their price objective on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 28th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $400.00 target price on shares of Cadence Design Systems in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $393.65.

Cadence Design Systems Stock Up 3.8%

Shares of NASDAQ:CDNS traded up $12.37 during trading on Monday, reaching $338.61. 3,655,185 shares of the stock were exchanged, compared to its average volume of 2,469,958. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69. The stock has a fifty day moving average of $373.92 and a two-hundred day moving average of $329.47. 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 firm has a market cap of $93.40 billion, a price-to-earnings ratio of 78.93, a price-to-earnings-growth ratio of 3.86 and a beta of 1.15.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly 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. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. 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. Research analysts anticipate that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insider Transactions at Cadence Design Systems

In other news, CEO Anirudh Devgan sold 51,887 shares of Cadence Design Systems stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $370.00, for a total transaction of $19,198,190.00. Following the completion of the transaction, the chief executive officer directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of the business’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the sale, the director directly owned 23,264 shares of the company’s stock, valued at approximately $8,871,493.76. The trade was a 6.10% 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 three months, insiders sold 157,057 shares of company stock valued at $60,272,277. Corporate 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: Q2 earnings topped expectations: Cadence reported adjusted EPS of $2.11, exceeding the $2.05 consensus estimate. Revenue was $1.58 billion, in line with forecasts, while the company maintained strong profitability with a 21.18% net margin. Cadence Design Systems Beats Q2 Estimates, Raises 2026 Outlook
• Positive Sentiment: 2026 guidance was raised: The company provided full-year EPS guidance of $8.05 to $8.15 and revenue guidance of approximately $6.3 billion, above the respective analyst expectations cited in the reports. Cadence also forecast third-quarter EPS of $2.01 to $2.07, ahead of the $1.84 consensus estimate. Cadence raises annual forecasts as demand booms for AI chip design
• Positive Sentiment: AI demand is supporting growth: Management attributed the stronger outlook to robust demand for AI-powered chip and system design software, a key growth theme for semiconductor infrastructure companies. Cadence raises annual forecasts as demand booms for AI chip design
• Neutral Sentiment: Despite the positive results, Cadence trades at a premium valuation, with a reported P/E ratio near 79. That valuation could leave the stock sensitive to execution, guidance changes, or any slowdown in AI-related spending.

Institutional Trading of Cadence Design Systems

Institutional investors and hedge funds have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. grew its holdings in Cadence Design Systems by 8.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 10,511 shares of the software maker’s stock worth $3,286,000 after buying an additional 777 shares in the last quarter. Compound Planning Inc. raised its position in Cadence Design Systems by 1.7% in the 4th quarter. Compound Planning Inc. now owns 3,201 shares of the software maker’s stock valued at $1,001,000 after buying an additional 55 shares during the last quarter. Corient Private Wealth LLC lifted its stake in Cadence Design Systems by 22.1% during the 4th quarter. Corient Private Wealth LLC now owns 293,243 shares of the software maker’s stock valued at $91,662,000 after acquiring an additional 53,168 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in Cadence Design Systems by 19.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 43,300 shares of the software maker’s stock valued at $13,535,000 after acquiring an additional 6,931 shares in the last quarter. Finally, Raymond James Financial Inc. boosted its holdings in Cadence Design Systems by 3.0% during the 4th quarter. Raymond James Financial Inc. now owns 711,292 shares of the software maker’s stock worth $222,350,000 after acquiring an additional 20,475 shares during the last quarter. 84.85% of the stock is owned by hedge funds and other institutional investors.

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.