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

Cadence Design Systems (NASDAQ:CDNS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 8.050-8.150 for the period, compared to the consensus estimate of 5.450. The company issued revenue guidance of $5.9 billion-$6.0 billion, compared to the consensus revenue estimate of $5.7 billion. Cadence Design Systems also updated its Q1 2026 guidance to 1.890-1.950 EPS.

Cadence Design Systems Stock Performance

CDNS opened at $307.09 on Wednesday. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.05 and a quick ratio of 2.84. The company has a market capitalization of $83.59 billion, a PE ratio of 77.30, a price-to-earnings-growth ratio of 3.33 and a beta of 1.01. The business has a fifty day simple moving average of $309.88 and a 200 day simple moving average of $328.89. Cadence Design Systems has a 1 year low of $221.56 and a 1 year high of $376.45.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.08. The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.42 billion. Cadence Design Systems had a return on equity of 30.13% and a net margin of 20.35%.The firm’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.88 earnings per share. Cadence Design Systems has set its Q1 2026 guidance at 1.890-1.950 EPS and its FY 2026 guidance at 8.050-8.150 EPS. Research analysts expect that Cadence Design Systems will post 5.41 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts have weighed in on CDNS shares. Needham & Company LLC restated a “buy” rating and set a $390.00 target price on shares of Cadence Design Systems in a research note on Wednesday. Morgan Stanley dropped their price objective on Cadence Design Systems from $385.00 to $370.00 and set an “overweight” rating for the company in a research report on Wednesday. Citigroup started coverage on shares of Cadence Design Systems in a report on Monday, November 24th. They issued a “buy” rating and a $385.00 target price for the company. KeyCorp reiterated an “overweight” rating and set a $405.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Cadence Design Systems in a report on Monday, December 29th. Fifteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $376.50.

Insider Buying and Selling 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 stock was sold at an average price of $318.57, for a total value of $8,857,838.85. Following the transaction, the chief financial officer owned 69,957 shares in the company, valued at $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 Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ita M. Brennan sold 180 shares of the stock in a transaction dated 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 sale, the director owned 7,650 shares of the company’s stock, valued at approximately $2,581,722. This trade represents a 2.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 56,475 shares of company stock valued at $18,505,486 over the last three months. 0.37% of the stock is currently owned by corporate insiders.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Q4 beat and very strong guidance: Cadence reported Q4 revenue and EPS above estimates and issued FY‑2026 EPS guidance (8.05–8.15) and Q1 guidance above Street expectations — a major fundamental positive that supports longer‑term growth expectations tied to AI demand. Business Wire: Q4 Results
• Positive Sentiment: Rosenblatt upgraded CDNS to Buy and raised its PT to $360, signaling confidence from some shops that the stock still has upside after the print. Benzinga: Rosenblatt Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating and maintains a $390 price target, the sort of bullish analyst backing that can support a recovery if sentiment stabilizes. Benzinga: Needham Reaffirmed
• Neutral Sentiment: Morgan Stanley trimmed its price target (from $385 to $370) but kept an Overweight call — a mild recalibration rather than a sell signal. The Fly: Morgan Stanley PT Change
• Neutral Sentiment: Market roundup: multiple firms revised models post‑earnings (some higher, some lower); analyst consensus and price‑target dispersion remain wide, which increases short‑term volatility but doesn’t change the strong forward revenue/EPS story. Benzinga: Analyst Revisions
• Negative Sentiment: Piper Sandler cut its price target to $319 (neutral rating), which is a downward signal that can pressure the stock given multiple mixed PT moves today. Benzinga: Piper Sandler PT Cut
• Negative Sentiment: Notable insider and institutional selling highlighted in data feeds (large sales by several insiders and big fund position trims) can amplify downside as some holders lock gains after the strong print. QuiverQuant: Insider & Institutional Activity

Institutional Investors Weigh In On Cadence Design Systems

Hedge funds have recently added to or reduced their stakes in the company. Swiss RE Ltd. bought a new stake in Cadence Design Systems in the 4th quarter worth approximately $29,000. Imprint Wealth LLC bought a new stake in Cadence Design Systems in the third quarter worth $31,000. Strategic Wealth Investment Group LLC purchased a new stake in Cadence Design Systems during the second quarter valued at about $32,000. Kemnay Advisory Services Inc. purchased a new position in shares of Cadence Design Systems in the fourth quarter worth about $34,000. Finally, Greenline Wealth Management LLC bought a new position in Cadence Design Systems during the 4th quarter worth approximately $34,000. 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.