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ConsensusBuy30 ratings
Bullish2583.3%
Neutral413.3%
Bearish13.4%
Cadence Design Systems, Inc. · CDNS · FY2026 Q1 · Calendar Q2 2026
Cadence Q1 2026: Revenue Up 19% YoY, Agentic AI Platform Launched, Guidance Raised
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…
Reported After market closeNASDAQTechnology
$95.08B market cap
90quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$1.96
Consensus $1.91
EPS surprise
+2.6%
Reported versus consensus
Reported revenue
$1.47B
Consensus $1.46B
Revenue surprise
+1.2%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
-3.3%
Event window
SPY move
-0.5%
Same window
Abnormal move
-2.9%
Stock minus SPY
Volume
2.1×
Versus trailing sessions
Subsequent drift
+15.0%
Up to 20 sessions
CDNSSPY benchmark
Ask FN2 about CDNS FY2026 Q1
Transcript, numbers and history already loaded
Why did CDNS fall 3.3% after beating EPS estimates in FY2026 Q1?What changed in CDNS's guidance and outlook in FY2026 Q1?Give me the bull and bear case for CDNS after FY2026 Q1 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Cadence's Q1 results marked a meaningful step up in the AI-driven design narrative. The company introduced a full agentic AI platform with new super agents spanning the design flow, a product category not previously emphasized at this scale. Guidance was raised to approximately 17% revenue growth for 2026, up from prior expectations. The Hexagon D&E acquisition, a major strategic addition to the system design and analysis portfolio, was announced as a new development impacting near-term margin guidance. Record backlog of $8 billion signals sustained demand visibility across the business.
Guidance delta
Management raised the full-year 2026 revenue growth outlook to approximately 17% year over year, up from prior expectations. The company reiterated its goal of achieving the Rule of 60. The Hexagon D&E acquisition is expected to contribute $160 million in 2026 revenue but will be dilutive to EPS and operating margin in the short term, with accretion expected in subsequent periods.
Key takeaways
- Q1 revenue rose 19% YoY to $1.474 billion; non-GAAP operating margin reached 45% and backlog hit a record $8 billion.
- Full-year 2026 revenue growth outlook raised to approximately 17%, targeting the Rule of 60.
- Agentic AI super-agent platform (ChipStack, ViraStack, InnoStack) launched, expanding the addressable market and expected to drive higher consumption of core EDA tools.
- Hexagon D&E acquisition adds $160 million in 2026 revenue but is near-term dilutive to margins and EPS.
- Strong demand across IP, core EDA, and system design businesses, with notable growth in AI, HPC, automotive, and physical AI segments.
Management priorities
- Launch and commercialize AgentStack, ViraStack, and InnoStack across the design flow.
- Fully integrate Hexagon D&E capabilities into Cadence's system design and analysis portfolio.
- Expand cloud-native AI workflows with Google Gemini and NVIDIA technologies.
- Develop next-generation hardware platforms (Palladium Z4, Z5).
- Grow the Millennium platform for CFD, thermal, and 3D-IC sign-off applications.
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Analyst 52W Price Targets
$322.17Previous close
$165Low
$344.13Average
$450High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 27, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Rosenblatt | Buy | Buy | Maintain | Oct 23, 2026 |
| Piper Sandler | Neutral | Neutral | Maintain | Jul 28, 2026 |
| Needham | Buy | Buy | Maintain | Jul 28, 2026 |
| Citigroup | Buy | Buy | Maintain | Jul 28, 2026 |
| Baird | Outperform | Outperform | Maintain | Jul 28, 2026 |
| B of A Securities | Buy | Buy | Maintain | Jul 28, 2026 |
| Stifel | Buy | Buy | Maintain | Jun 9, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | May 26, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Apr 28, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Feb 18, 2026 |
| Oppenheimer | Underperform | Underperform | Maintain | Oct 28, 2025 |
| JP Morgan | Overweight | Overweight | Maintain | Oct 28, 2025 |
| Mizuho | Outperform | Outperform | Maintain | Jul 29, 2025 |
| Loop Capital | Buy | Buy | Maintain | Jul 29, 2025 |
| Deutsche Bank | Buy | Buy | Maintain | Apr 26, 2023 |
| Atlantic Equities | Overweight | Neutral | Upgrade | Jan 17, 2023 |
| Wolfe Research | Outperform | Outperform | Maintain | Aug 17, 2022 |
| UBS | Neutral | Neutral | Maintain | Apr 26, 2022 |
| Berenberg | Buy | Hold | Upgrade | Feb 23, 2022 |
| Credit Suisse | Neutral | Neutral | Maintain | Oct 26, 2021 |
| RBC Capital | Outperform | Outperform | Maintain | Feb 23, 2021 |
| CFRA | Buy | Buy | Maintain | Apr 24, 2020 |
| Bank of America | Buy | Neutral | Upgrade | Apr 22, 2020 |
| Benchmark | Buy | Hold | Upgrade | Oct 23, 2018 |
| DA Davidson | Buy | Neutral | Upgrade | Apr 5, 2018 |
| Pacific Crest | Sector Perform | Outperform | Downgrade | Feb 5, 2015 |
| Summit Research Partners | Buy | Hold | Upgrade | May 20, 2014 |
| Summit Insights Group | Buy | Hold | Upgrade | May 20, 2014 |
| Topeka | Buy | Buy | Maintain | Jun 6, 2013 |
| PiperJaffray | Overweight | Overweight | Maintain | Apr 16, 2012 |
Named analyst price targets
Upside is calculated against the persisted previous close $322.17. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Deutsche Bank | Analyst unavailable | $420 | $356.34 | +30.4% | Oct 7, 2026 |
| FBN Securities | Analyst unavailable | $375 | $284.95 | +16.4% | Sep 11, 2026 |
| Morgan Stanley | Analyst unavailable | $400 | $344.72 | +24.2% | Jul 29, 2026 |
| Oppenheimer | Analyst unavailable | $300 | $338.61 | -6.9% | Jul 28, 2026 |
| Piper Sandler | Clarke Jeffries | $349 | $338.61 | +8.3% | Jul 28, 2026 |
| Robert W. Baird | Analyst unavailable | $420 | $338.61 | +30.4% | Jul 28, 2026 |
| Benchmark Co. | Analyst unavailable | $450 | $371.5 | +39.7% | Jul 15, 2026 |
| Stifel Nicolaus | Analyst unavailable | $432 | $394.24 | +34.1% | Jun 9, 2026 |
| Berenberg Bank | Nay Soe Naing | $440 | $381.75 | +36.6% | May 27, 2026 |
| Wells Fargo | Analyst unavailable | $425 | $373.59 | +31.9% | May 26, 2026 |
| Robert W. Baird | Joe Vruwink | $385 | $336.54 | +19.5% | Apr 28, 2026 |
| KeyBanc | Analyst unavailable | $425 | $336.54 | +31.9% | Apr 28, 2026 |
| Stifel Nicolaus | Ruben Roy | $395 | $309.3 | +22.6% | Feb 18, 2026 |
| Morgan Stanley | Analyst unavailable | $370 | $283.46 | +14.8% | Feb 18, 2026 |
| Wells Fargo | Joe Quatrochi | $375 | $283.46 | +16.4% | Feb 18, 2026 |
| Oppenheimer | Edward Yang | $275 | $309.86 | -14.6% | Dec 1, 2025 |
| KeyBanc | Jason Celino | $405 | $341 | +25.7% | Oct 28, 2025 |
| Robert W. Baird | Joe Vruwink | $418 | $340.68 | +29.7% | Oct 28, 2025 |
| Wells Fargo | Analyst unavailable | $410 | $339.04 | +27.3% | Oct 28, 2025 |
| Wolfe Research | Gal Munda | $385 | $351.4 | +19.5% | Oct 28, 2025 |
| BNP Paribas | Andrew DeGasperi | $400 | $351.97 | +24.2% | Oct 2, 2025 |
| Berenberg Bank | Analyst unavailable | $400 | $371.03 | +24.2% | Jul 30, 2025 |
| Piper Sandler | Clarke Jeffries | $355 | $363.75 | +10.2% | Jul 29, 2025 |
| Mizuho Securities | Siti Panigrahi | $300 | $259.47 | -6.9% | Apr 15, 2025 |
| Loop Capital Markets | Gary Mobley | $360 | $300.9 | +11.7% | Nov 11, 2024 |
| Bank of America Securities | Vivek Arya | $310 | $280.18 | -3.8% | Oct 29, 2024 |
| Needham | Charles Shi | $315 | $252.77 | -2.2% | Oct 29, 2024 |
| Robert W. Baird | Jon Vruwink | $340 | $278.19 | +5.5% | Oct 29, 2024 |
| Stifel Nicolaus | Ruben Roy | $350 | $252.77 | +8.6% | Oct 29, 2024 |
| Mizuho Securities | Siti Panigrahi | $325 | $253.15 | +0.9% | Oct 21, 2024 |
| Oppenheimer | Edward Yang | $225 | $273.32 | -30.2% | Sep 24, 2024 |
| Robert W. Baird | Joe Vruwink | $338 | $287.08 | +4.9% | Jul 23, 2024 |
| Robert W. Baird | Jon Vruwink | $341 | $310.92 | +5.8% | Jul 2, 2024 |
| KeyBanc | Jason Celino | $355 | $310.17 | +10.2% | Jun 27, 2024 |
| KeyBanc | Jason Celino | $350 | $297.3 | +8.6% | Jun 6, 2024 |
| Piper Sandler | Clarke Jeffries | $318 | $285.02 | -1.3% | Apr 23, 2024 |
| Robert W. Baird | Jon Vruwink | $322 | $293.71 | -0.1% | Apr 18, 2024 |
| KeyBanc | Jason Celino | $340 | $305.36 | +5.5% | Apr 15, 2024 |
| Piper Sandler | Clarke Jeffries | $334 | $310.58 | +3.7% | Apr 4, 2024 |
| Morgan Stanley | Lee Simpson | $350 | $300.74 | +8.6% | Feb 14, 2024 |
| Needham | Charles Shi | $235 | $202.98 | -27.1% | Apr 25, 2023 |
| Needham | Charles Shi | $200 | $153.4 | -37.9% | Oct 25, 2022 |
| Deutsche Bank | Johannes Schaller | $200 | $166.97 | -37.9% | Sep 28, 2022 |
| Needham | Charles Shi | $193 | $153.41 | -40.1% | Apr 28, 2022 |
| UBS | Analyst unavailable | $180 | $153.67 | -44.1% | Apr 26, 2022 |
| Berenberg Bank | Gal Munda | $180 | $140.88 | -44.1% | Feb 23, 2022 |
| KeyBanc | Jason Celino | $205 | $161.75 | -36.4% | Jan 14, 2022 |
| Westpark Capital | Ruben Roy | $168 | $137.55 | -47.9% | Jul 15, 2021 |
| D.A. Davidson | Thomas Diffely | $165 | $132.75 | -48.8% | Apr 27, 2021 |
Track every rating change on CDNS the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationCadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip.…
Historical context
All CDNS earningsTechnology peers this season
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| VRSN VeriSign, Inc. | FY2026 Q3 · Calendar Q4 2026 | -2.0% | -0.9% | VeriSign reports record registrations as renewal mix becomes a key watchpoint |
| TTMI TTM Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | +16.8% | -27.7% | TTM Technologies Q3: Record Growth, Higher Investment, More Deal Risk |
| NOK Nokia Oyj | FY2026 Q3 · Calendar Q4 2026 | +25.0% | -14.8% | Nokia Q3: AI and cloud growth lifts margins as cash flow stays negative |
Latest beats and misses
Who reports nextBeat on EPS
- VZFY2026 Q3 · October 26, 2026+3.1% EPS-3.5% move
- CXFY2026 Q3 · October 26, 2026+12.0% EPS-0.1% move
- CDNSFY2026 Q3 · October 26, 2026+2.9% EPS+1.8% move
- BAHFY2027 Q2 · October 23, 2026+18.9% EPS-0.3% move
- FCNCAFY2026 Q3 · October 23, 2026+19.9% EPS+8.2% move
- FCNCNFY2026 Q3 · October 23, 2026+19.9% EPS+0.2% move
Missed on EPS
- KOFFY2026 Q3 · October 26, 2026-9.0% EPS-1.9% move
- INFYFY2027 Q2 · October 23, 2026-4.8% EPS-6.6% move
- BBDFY2026 Q3 · October 22, 2026-7.7% EPS+3.0% move
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
- SPOTFY2026 Q3 · October 22, 2026-11.6% EPS+11.1% move
- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
Get the CDNS recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-29T04:11:47.158561+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-29T04:11:47.155801+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-07-29. For educational purposes only; not investment advice.