Cadence Design Systems (NASDAQ:CDNS – Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 8.050-8.150 for the period, compared to the consensus earnings per share 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 Trading Down 2.6%
Shares of Cadence Design Systems stock traded down $7.90 during trading hours on Thursday, reaching $297.11. 157,263 shares of the company’s stock were exchanged, compared to its average volume of 2,510,361. Cadence Design Systems has a 52-week low of $221.56 and a 52-week high of $376.45. The company has a fifty day moving average of $309.22 and a 200-day moving average of $328.72. The company has a current ratio of 3.05, a quick ratio of 2.84 and a debt-to-equity ratio of 0.48. The firm has a market capitalization of $80.87 billion, a price-to-earnings ratio of 73.32, a price-to-earnings-growth ratio of 3.15 and a beta of 1.01.
Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last released its earnings results on Tuesday, February 17th. The software maker reported $1.99 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.08. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.42 billion. Cadence Design Systems had a return on equity of 30.04% and a net margin of 20.93%.The firm’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the prior year, the business 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. Sell-side analysts forecast that Cadence Design Systems will post 5.41 EPS for the current fiscal year.
Analyst Ratings Changes
Check Out Our Latest Stock Analysis on CDNS
Insider Buying and Selling at Cadence Design Systems
In related news, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $295.09, for a total transaction of $295,090.00. Following the transaction, the vice president owned 95,137 shares in the company, valued at approximately $28,073,977.33. The trade was a 1.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Anirudh Devgan sold 20,000 shares of the stock in a transaction on Friday, December 5th. The shares were sold at an average price of $340.00, for a total value of $6,800,000.00. Following the completion of the sale, the chief executive officer owned 195,844 shares of the company’s stock, valued at approximately $66,586,960. This represents a 9.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 56,475 shares of company stock worth $18,505,486. Corporate insiders own 1.99% of the company’s stock.
Cadence Design Systems News Summary
Here are the key news stories impacting Cadence Design Systems this week:
- Positive Sentiment: Q4 results beat and management raised FY‑2026 and Q1 guidance, citing AI-driven demand for custom chips — the core reason the stock initially popped after the report. Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
- Positive Sentiment: Several bullish analysts reaffirmed or raised targets after the print — Bank of America kept a Buy and a $400 target, supporting upside narrative for AI exposure. Bank of America Securities Remains Bullish on Cadence Design Systems, Inc. (CDNS)
- Positive Sentiment: Earnings‑call commentary emphasized an AI surge and recurring revenue strength — a structural tailwind that underpins the company’s higher FY guidance. Cadence Design Systems Earnings Call Highlights AI Surge
- Neutral Sentiment: Some shops are pausing — Rosenblatt reiterated a Neutral rating in recent coverage, which can temper buying even after a beat. Rosenblatt Securities Reiterates “Neutral” Rating for Cadence Design Systems (NASDAQ:CDNS)
- Negative Sentiment: Unusual put-option activity — large blocks of puts were bought (well above average volume), signaling either speculative bearish bets or hedging from institutions, which adds immediate downward pressure. Stock Traders Buy Large Volume of Cadence Design Systems Put Options (NASDAQ:CDNS)
- Negative Sentiment: Some analysts trimmed price targets (Piper Sandler cut its target; other shops revised forecasts), creating mixed messages that can prompt profit‑taking after the post‑earnings run. These Analysts Revise Their Forecasts On Cadence Design Systems Following Q4 Results
- Negative Sentiment: Notable insider and institutional selling noted in data summaries — visible sales can increase near‑term volatility and damp investor enthusiasm despite the beat. Cadence Design Systems (CDNS) stock rises on Q4 2025 Earnings
Hedge Funds Weigh In On Cadence Design Systems
Institutional investors and hedge funds have recently bought and sold shares of the stock. Townsquare Capital LLC raised its stake in shares of Cadence Design Systems by 3.6% during the fourth 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 period. Triumph Capital Management boosted its stake in shares of Cadence Design Systems by 6.9% in the fourth quarter. Triumph Capital Management now owns 539 shares of the software maker’s stock valued at $168,000 after purchasing an additional 35 shares during the period. Jacobi Capital Management LLC grew 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 valued at $305,000 after purchasing an additional 36 shares in the last quarter. Circle Wealth Management LLC increased its stake 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 buying an additional 50 shares during the period. Finally, L2 Asset Management LLC lifted its holdings 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 worth $449,000 after buying an additional 51 shares in the last quarter. Hedge funds and other institutional investors own 84.85% of the company’s stock.
About Cadence Design Systems
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.
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