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

Cadence Design Systems (NASDAQ:CDNS) updated its FY 2026 earnings guidance on Monday. The company provided EPS guidance of 8.050-8.150 for the period, compared to the consensus 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 also updated its Q3 2026 guidance to 2.010-2.070 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Piper Sandler lifted their price target on shares of Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a research report on Tuesday, April 28th. KeyCorp upped their price target on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, April 28th. Benchmark began coverage on Cadence Design Systems in a research report on Wednesday, July 15th. They issued a “buy” rating and a $450.00 price target on the stock. Citigroup increased their target price on Cadence Design Systems from $385.00 to $400.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Finally, Berenberg Bank set a $440.00 price objective on Cadence Design Systems in a research report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $393.65.

Cadence Design Systems Price Performance

Cadence Design Systems stock traded up $12.37 during trading hours on Monday, hitting $338.61. 3,649,056 shares of the stock were exchanged, compared to its average volume of 2,469,496. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47. The stock has a market capitalization of $93.40 billion, a P/E ratio of 78.93, a P/E/G ratio of 3.86 and a beta of 1.15. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $416.69. The business’s 50-day moving average is $373.92 and its two-hundred day moving average is $329.47.

Cadence Design Systems (NASDAQ:CDNS) last posted its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. The company had revenue of $1.58 billion during the quarter, compared to analysts’ expectations 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. Equities research analysts expect that Cadence Design Systems will post 6.23 EPS for the current fiscal year.

Insider Buying and Selling

In other Cadence Design Systems news, Director James D. Plummer sold 1,511 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $381.34, for a total transaction of $576,204.74. Following the sale, the director owned 23,264 shares of the company’s stock, valued at $8,871,493.76. This represents a 6.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 10,500 shares of the firm’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the completion of the sale, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 157,057 shares of company stock valued at $60,272,277. Insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Townsquare Capital LLC increased its stake in Cadence Design Systems by 3.6% during the 4th quarter. Townsquare Capital LLC now owns 977 shares of the software maker’s stock worth $305,000 after purchasing an additional 34 shares in the last quarter. Triumph Capital Management increased its stake in shares of Cadence Design Systems by 6.9% during the fourth quarter. Triumph Capital Management now owns 539 shares of the software maker’s stock worth $168,000 after purchasing an additional 35 shares during the period. Jacobi Capital Management LLC lifted its holdings in 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 during the last quarter. Circle Wealth Management LLC lifted its holdings in Cadence Design Systems by 1.5% during the 4th quarter. Circle Wealth Management LLC now owns 3,327 shares of the software maker’s stock worth $1,040,000 after purchasing an additional 50 shares during the last quarter. Finally, L2 Asset Management LLC boosted its stake in 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 valued at $449,000 after purchasing 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.