Cadence Design Systems, Inc. earnings overview

CDNS FY2026 Q1 · Calendar Q2 2026

Cadence Design Systems, Inc.

Cadence delivered a strong start to fiscal 2026, with Q1 revenue of $1.474 billion up 19% year over year, a record $8 billion backlog, and a non-GAAP operating margin of 45%. The company raised its full-year revenue growth outlook to approximately 17%, reflecting momentum across IP, core EDA, and system design businesses. The headline strategic development was the launch of an agentic AI super-agent platform (ChipStack, ViraStack, InnoStack) alongside collaborations with Google and NVIDIA, positioning Cadence to expand its total addressable market. The recently announced Hexagon Design and Engineering acquisition is expected to add $160 million in 2026 revenue but will be dilutive to margins and EPS in the near term before turning accretive. Despite the beat and raised guidance, the stock initially sold off, down 2.85% on an abnormal basis in the session following the print, before…