Cadence Design Systems (NASDAQ:CDNS) Updates Q1 2026 Earnings Guidance

Cadence Design Systems (NASDAQ:CDNS) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.890-1.950 for the period, compared to the consensus earnings per share estimate of 1.740. The company issued revenue guidance of -, compared to the consensus revenue estimate of $1.4 billion. Cadence Design Systems also updated its FY 2026 guidance to 8.050-8.150 EPS.

Cadence Design Systems Stock Down 5.3%

Shares of CDNS stock traded down $16.00 on Tuesday, hitting $283.46. The stock had a trading volume of 5,539,689 shares, compared to its average volume of 2,542,919. The company has a quick ratio of 2.84, a current ratio of 3.05 and a debt-to-equity ratio of 0.48. The business has a 50 day moving average price of $309.88 and a 200 day moving average price of $328.89. Cadence Design Systems has a one year low of $221.56 and a one year high of $376.45. The company has a market cap of $77.16 billion, a PE ratio of 73.06, a P/E/G ratio of 3.33 and a beta of 1.01.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on CDNS shares. Needham & Company LLC reaffirmed a “buy” rating and set a $390.00 price target on shares of Cadence Design Systems in a research report on Monday, December 22nd. Citigroup started coverage on Cadence Design Systems in a research note on Monday, November 24th. They set a “buy” rating and a $385.00 price objective for the company. Robert W. Baird increased their price target on shares of Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a report on Tuesday, October 28th. Oppenheimer upgraded Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 price objective for the company in a research report on Monday, December 1st. Finally, Wolfe Research reiterated an “outperform” rating and set a $385.00 target price on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Thirteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $379.59.

Insider Transactions at Cadence Design Systems

In other news, CFO John M. Wall sold 27,805 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $318.57, for a total value of $8,857,838.85. Following the completion of the transaction, the chief financial officer owned 69,957 shares of the company’s stock, valued at approximately $22,286,201.49. This trade represents a 28.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $337.48, for a total transaction of $60,746.40. Following the completion of the transaction, the director directly owned 7,650 shares of the company’s stock, valued at $2,581,722. This represents a 2.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 56,475 shares of company stock worth $18,505,486. 1.99% of the stock is owned by corporate insiders.

Key Stories Impacting Cadence Design Systems

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Reported Q4 results above expectations (EPS beat and revenue/gross profit growth); quarter showed improving margins and stronger cash flow, which supports longer?term earnings momentum. Cadence Beats Q4 Estimates
• Positive Sentiment: Management issued very strong FY?2026 and Q1 guidance well above Street estimates (FY EPS guide ~8.05–8.15 vs. consensus ~5.45; Q1 EPS guide ~1.89–1.95 vs. consensus ~1.74), a major positive catalyst for future revenue and profit expectations. (Guidance and results in company release.) Cadence Q4 & FY2025 Results
• Positive Sentiment: Launched a new ChipStack AI super agent for chip design, reinforcing Cadence’s exposure to AI-driven design demand and providing a product catalyst for adoption and revenue growth. ChipStack AI Launch
• Neutral Sentiment: Analyst coverage is mixed — some firms reaffirm/raise price targets (median targets remain well above the current price) while at least one firm remains cautious; this produces varying short?term reactions from funds and traders. Analyst PTs
• Neutral Sentiment: Some data feeds show confusing/zeroed short?interest figures this cycle; unreliable short?interest reporting means this metric is not clearly driving today’s move. (Market data items in reports.)
• Negative Sentiment: Significant insider selling activity reported in recent months (multiple senior executives have sold shares), which can raise governance/near?term sentiment concerns for some investors. QuiverQuant Insider Activity
• Negative Sentiment: Large institutional trimming reported in Q4 for some big holders (per third?party data), plus the stock currently trades below its 50? and 200?day moving averages and at a rich P/E; that combination can prompt profit?taking even after upbeat results. Institutional Moves / Technicals

Institutional Trading of Cadence Design Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of CDNS. Townsquare Capital LLC raised its position in Cadence Design Systems by 3.6% in the 4th quarter. Townsquare Capital LLC now owns 977 shares of the software maker’s stock valued at $305,000 after purchasing an additional 34 shares during the last quarter. Triumph Capital Management lifted its holdings in shares of Cadence Design Systems by 6.9% in the 4th quarter. Triumph Capital Management now owns 539 shares of the software maker’s stock valued at $168,000 after buying an additional 35 shares during the period. Jacobi Capital Management LLC boosted its position in shares of Cadence Design Systems by 3.8% during the 4th quarter. Jacobi Capital Management LLC now owns 976 shares of the software maker’s stock worth $305,000 after purchasing an additional 36 shares in the last quarter. Circle Wealth Management LLC boosted its holdings in Cadence Design Systems by 1.5% during the fourth quarter. Circle Wealth Management LLC now owns 3,327 shares of the software maker’s stock worth $1,040,000 after buying an additional 50 shares in the last quarter. Finally, L2 Asset Management LLC grew its holdings in shares of Cadence Design Systems by 4.2% in the 3rd quarter. L2 Asset Management LLC now owns 1,277 shares of the software maker’s stock worth $449,000 after acquiring an additional 51 shares during the period. 84.85% of the stock is currently owned by institutional investors and hedge funds.

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.