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

Cadence Design Systems (NASDAQ:CDNS) updated its first quarter 2026 earnings guidance on Tuesday. The company provided EPS guidance of 1.890-1.950 for the period, compared to the consensus EPS 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 Trading Down 5.3%

Shares of CDNS stock traded down $16.00 on Tuesday, hitting $283.46. 5,539,689 shares of the stock traded hands, compared to its average volume of 2,542,919. The firm’s 50-day moving average price is $309.88 and its two-hundred day moving average price is $328.89. The company has a debt-to-equity ratio of 0.48, a quick ratio of 2.84 and a current ratio of 3.05. The stock has a market capitalization of $77.16 billion, a PE ratio of 73.06, a PEG ratio of 3.33 and a beta of 1.01. Cadence Design Systems has a twelve month low of $221.56 and a twelve month high of $376.45.

Analyst Ratings Changes

CDNS has been the topic of several recent analyst reports. Oppenheimer upgraded shares of Cadence Design Systems from an “underperform” rating to a “market perform” rating and set a $275.00 target price on the stock in a report on Monday, December 1st. Wells Fargo & Company lifted their price target on shares of Cadence Design Systems from $405.00 to $410.00 and gave the company an “overweight” rating in a research report on Tuesday, October 28th. Robert W. Baird increased their price objective on Cadence Design Systems from $390.00 to $418.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 28th. KeyCorp reissued an “overweight” rating and set a $405.00 target price on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Cadence Design Systems in a research report on Monday, December 29th. Thirteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Cadence Design Systems presently has an average rating of “Moderate Buy” and a consensus price target of $379.59.

Insider Transactions at Cadence Design Systems

In related news, CFO John M. Wall sold 27,805 shares of Cadence Design Systems 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 in the company, valued at approximately $22,286,201.49. The trade was a 28.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $337.48, for a total transaction of $60,746.40. Following the sale, the director owned 7,650 shares in the company, valued at approximately $2,581,722. This trade represents a 2.30% decrease in their ownership of the stock. 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 Cadence Design Systems News

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 Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CDNS. Imprint Wealth LLC acquired a new position in Cadence Design Systems in the third quarter valued at $31,000. Swiss RE Ltd. acquired a new stake in shares of Cadence Design Systems during the fourth quarter worth about $29,000. JPL Wealth Management LLC acquired a new stake in shares of Cadence Design Systems during the third quarter worth about $35,000. Strategic Wealth Investment Group LLC purchased a new stake in shares of Cadence Design Systems in the 2nd quarter valued at about $32,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Cadence Design Systems in the 4th quarter valued at about $34,000. Hedge funds and other institutional investors 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.