Analyst Consensus ?
ConsensusBuy30 ratings
Bullish2583.3%
Neutral413.3%
Bearish13.4%
Cadence Design Systems, Inc. · CDNS · FY2026 Q3 · Calendar Q4 2026
Cadence raises 2026 outlook as AI tools and verification demand accelerate
Cadence’s Q3 analysis supports a constructive growth case: resilient AI and advanced-design demand, stronger recurring revenue, and raised guidance reinforce the trajectory. The main test is whether AI products convert into durable, well-priced recurring revenue without margin or competitive pressure.
Reported After market closeNASDAQTechnology
$88.72B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$2.11
Consensus $2.05
EPS surprise
+2.9%
Reported versus consensus
Reported revenue
$1.63B
Consensus $1.61B
Revenue surprise
+1.3%
Reported versus consensus
Market reaction
close-to-close (session unavailable)
Stock move
+1.8%
Event window
SPY move
+0.7%
Same window
Abnormal move
+1.1%
Stock minus SPY
Volume
2.1×
Versus trailing sessions
Subsequent drift
0.0%
Up to 20 sessions
CDNSSPY benchmark
Ask FN2 about CDNS FY2026 Q3
Transcript, numbers and history already loaded
Why did CDNS rise 1.8% after beating EPS estimates in FY2026 Q3?What changed in CDNS's guidance and outlook in FY2026 Q3?Give me the bull and bear case for CDNS after FY2026 Q3 earnings.
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Transcript intelligence
What changed
Cadence reported a record Q3, raised its 2026 outlook, and highlighted faster recurring-revenue growth. The quarter also added Maestro as a domain-specific AI model offering and emphasized broad-based demand across software, IP, system design, and verification.
Guidance delta
Management raised the 2026 outlook to 21% revenue growth and $8.40 EPS.
Key takeaways
- Q3 revenue reached $1.633 billion, up 22% year over year, with a record $8.2 billion backlog.
- Management reported double-digit growth across core EDA, IP, SDA, and hardware.
- Recurring revenue growth accelerated to 18% year over year, alongside adoption of AI super agents.
- Maestro and other Agentic AI products are central to the company’s growth narrative, but monetization is still a key question.
Management priorities
- Scale Maestro and domain-specific AI model offerings.
- Expand the three-layer AI framework spanning simulation, agents, and accelerated compute.
- Grow hardware cloud services and AI super-agent coverage.
- Deepen partnerships supporting advanced-node, chiplet, and 3D-IC design.
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$322.17Current
$165Low
$344.13Average
$450High
Latest persisted target per named analyst; persisted current price 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 current price $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
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| INFY Infosys Limited | FY2027 Q2 · Calendar Q4 2026 | -4.8% | -6.6% | Infosys trims growth outlook as AI revenue and deal wins accelerate |
| SSNC SS&C Technologies Holdings, Inc. | FY2026 Q3 · Calendar Q4 2026 | +0.6% | +2.8% | SS&C raises 2026 outlook as AI and tokenization support growth |
| ROP Roper Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | +1.7% | +9.7% | Roper raises DEPS outlook as AI adoption expands across portfolio |
| 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
- 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
- FCNCOFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- FCNCPFY2026 Q3 · October 23, 2026+19.9% EPS+1.0% move
- RDYFY2027 Q2 · October 23, 2026+24.0% EPS-0.2% move
Missed on EPS
- 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
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% 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 · 2026-10-27T02:03:31.882479+00:00
- FN2 earnings calendar · 2026-10-27T01:23:15.065758+00:00
- Polygon adjusted daily market bars · 2026-10-27T02:10:45.335092+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-27T02:10:45.332384+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 2026-10-27. For educational purposes only; not investment advice.