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

Cadence Design Systems (NASDAQ:CDNS) updated its FY 2026 earnings guidance on Monday morning. 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.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. Citigroup boosted their target price on Cadence Design Systems from $385.00 to $400.00 and gave the stock a “buy” rating in a report on Wednesday, April 29th. 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. Benchmark started coverage on shares of Cadence Design Systems in a research note on Wednesday, July 15th. They set a “buy” rating and a $450.00 price objective for the company. Berenberg Bank set a $440.00 price objective on shares of Cadence Design Systems in a research report on Wednesday, May 27th. Finally, KeyCorp raised their target price on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a research note on Tuesday, April 28th. One 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $393.65.

Cadence Design Systems Stock Up 3.8%

Shares of CDNS stock traded up $12.37 during trading hours on Monday, reaching $338.61. The company had a trading volume of 3,353,419 shares, compared to its average volume of 2,460,094. The company has a market capitalization of $93.40 billion, a P/E ratio of 78.93, a price-to-earnings-growth ratio of 3.86 and a beta of 1.15. 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 has a twelve month low of $262.75 and a twelve month high of $416.69. The stock’s fifty day simple moving average is $373.92 and its 200 day simple moving average is $329.47.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates 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. As a group, sell-side analysts expect that Cadence Design Systems will post 6.23 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Anirudh Devgan sold 51,887 shares of the business’s 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 sale, the chief executive officer owned 303,525 shares of the company’s stock, valued at $112,304,250. This represents a 14.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $348.71, for a total transaction of $1,743,550.00. Following the sale, the chief financial officer owned 81,875 shares in the company, valued at approximately $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. In the last three months, insiders sold 157,057 shares of company stock worth $60,272,277. Corporate insiders own 0.49% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CDNS. T. Rowe Price Investment Management Inc. grew its position in shares of 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 acquiring an additional 777 shares during the last quarter. Compound Planning Inc. grew 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 worth $1,001,000 after purchasing an additional 55 shares during the last quarter. Corient Private Wealth LLC increased its stake in shares of Cadence Design Systems by 22.1% in the fourth quarter. Corient Private Wealth LLC now owns 293,243 shares of the software maker’s stock valued at $91,662,000 after purchasing an additional 53,168 shares during the period. Mercer Global Advisors Inc. ADV raised its holdings in shares of Cadence Design Systems by 19.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 43,300 shares of the software maker’s stock valued at $13,535,000 after buying an additional 6,931 shares during the last quarter. Finally, Raymond James Financial Inc. raised its stake 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 valued at $222,350,000 after acquiring an additional 20,475 shares in the last quarter. 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.