Cadence Design Systems, Inc. (CDNS) Earnings
Cadence Design Systems, Inc. is expected to report next earnings on July 27, 2026 (in NaN days), with a consensus EPS estimate of $2.05. CDNS has beaten EPS estimates in 12 of its last 12 reported quarters (average surprise +3.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 27, 2026 | $1.91 | $1.96 | +2.6% | $1.5B | +1.2% |
| Feb 17, 2026 | $1.91 | $1.99 | +4.2% | $1.4B | +1.1% |
| Feb 18, 2025 | $1.82 | $1.88 | +3.3% | $1.4B | +0.7% |
| Jul 22, 2024 | $1.23 | $1.28 | +4.1% | $1.1B | +1.7% |
| Feb 12, 2024 | $1.33 | $1.38 | +3.8% | $1.1B | +0.7% |
| Jul 24, 2023 | $1.18 | $1.22 | +3.4% | $977M | +0.2% |
| Feb 13, 2023 | $0.92 | $0.96 | +4.3% | $900M | +1.7% |
| Jul 25, 2022 | $0.97 | $1.08 | +11.3% | $858M | +2.7% |
| Feb 22, 2022 | $0.76 | $0.82 | +7.9% | $773M | +2.1% |
| Feb 22, 2021 | $0.75 | $0.83 | +10.7% | $760M | — |
| Oct 19, 2020 | $0.61 | $0.70 | +14.8% | $667M | +21.4% |
| Jul 20, 2020 | $0.52 | $0.66 | +26.9% | $638M | +26.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 27, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Agendic AI era is here, Cadence is leading the transformation of semiconductor and system design. At Cadence Live Silicon Valley 2026, they took a major step towards fully autonomous chip design, introducing AgentStack, VeraStack for analog and custom design, and InnoStack for digital implementation and sign - off. - Announced strategic collaboration with Google to optimize chip stack AI super agent with Gemini on Google Cloud. - Furthered partnership with MediaTek through expansion across new agentic AI offerings and core EDA, 3DIC, and system analysis solutions. - Addition of Hexagon's D&E leading structural and multi - body dynamics technologies transforms system analysis portfolio. - Announced expanded partnership on AI and robotics with NVIDIA. - IP business had strong momentum with 22% year - over - year revenue growth, core EDA business had 18% year - over - year revenue growth, hardware demand accelerated, digital platform gained share, custom and analog had strong momentum, system design analysis business had 18% year - over - year revenue growth
Guidance
- Raised 2026 revenue growth outlook to 17% and expect to achieve the rule of 60 for the first time. - 2026 revenue range: $6,125,000,000 to $6,225,000,000. Gap operating margin range: 27.5 to 28.5%. Non - GAAP operating margin range: 43.5 to 44.5%. GAAP EPS range: $4.39 to $4.49. Non - GAAP EPS range: $7.85 to $7.95. Operating cash flow range: $1.875 to $1.975 billion. Expect to use approximately 50% of free cash flow to repurchase shares in 2026. - Q2 revenue range: $1,555,000,000 to $1,595,000,000. Gap operating margin range: 28.5% to 29.5%. Non - GAAP operating margin range: 44.5 to 45.5%. GAAP EPS range: $1.07 to $1.13. Non - GAAP EPS range: $2.02 to $2.08
Segment performance
IP business: 22% year - over - year revenue growth, driven by accelerating demand of AI, HPC, and automotive workloads, with strong market tailwinds, focused strategy, and expanding customer proliferation. Core EDA business: Revenue grew 18% year over year, driven by increasing proliferation of solutions at market - shaping customers, with AI - driven solutions and agentic offerings becoming important in customer renewals and expansions. Hardware: Demand accelerated in Q1, with best quarter ever led by AI HPC customers and increasing demand in automotive and robotics. Digital platform: Led by AI - driven Cadence Cerebris solution, gaining share especially at most advanced nodes. Custom and analog: AI - driven Virtuoso Studio continued strong momentum in design migration and layout automation. System design analysis business: 18% year - over - year revenue growth, with strong momentum in 3DIC where unified multi - die integrated design to analysis flow helps customers address chiplet and advanced packaging complexities, and strong momentum in security and clarity with customers expanding deployments to address signal integrity, power integrity, and thermal challenges earlier in the design flow
Analyst Q&A
Q: Concerns around AI's ability to write software and defensibility of EDA - based tool business.
A: Anirudh is confident in Cadence's position in base tool, with large R&D team. Agentic part creates new category, drives more base tool usage.
Q: Operating margin guide coming down, drivers.
A: Primarily impact of including Hexagon design and engineering business in outlook, timing of integration.
Q: Effect of semiconductor shortages and customers' pricing power on engagement with Cadence.
A: Environment is healthy, customers committed to long - term R&D roadmaps, more design activity with shortages, agentic solutions give more productivity and customer engagement.
Q: Commentary on agentic solutions driving increased consumption for base tools, pricing, and revenue value capture.
A: Agentic solutions automate what was manual, priced as subscription plus consumption model, and by nature run more base tools, overall pricing environment improved.
Q: IP business update, key drivers, and contribution of newer foundries.
A: IP growth due to quality and performance, expanding portfolio, and new foundries.
Q: Operating margin structure as revenue increases.
A: Organic incremental margin closer to 60%, similar pattern to previous acquisitions with short - term headwind but opportunities to improve profitability.
Q: 2Q guidance and second half lumpiness.
A: First half strong, second half has prudence, Hexagon's D&E business is first half weighted.
Q: Momentum in physical AI and take - up of emulation tools.
A: Physical AI is big opportunity, Hexagon acquisition enhances system analysis portfolio, and physical AI drives silicon design.
Q: Hardware refresh cycle and agentic AI impact on development timelines.
A: Cadence designs own hardware, current products doing well, and agentic AI can make R&D more productive.
Q: Objectives for SDA business after Hexagon acquisition.
A: Integrate solutions, improve solvers, and strengthen go - to - market.
Q: Agent stack adoption, monetization.
A: Customers may write their own agents, but Cadence's super agents are valuable, monetization through subscription and increased base tool usage.
Q: Marquee AI infrastructure company's sign - off solution and physical AI timeline.
A: Marquee is a major AI infrastructure, physical AI timeline may be brought forward with TAM expansion.
Q: 2026 renewal period and Q1 booking strength.
A: 2026 is lighter in renewals but strong growth due to add - on activity.
Q: Largest IP arrangement with Global Foundry.
A: Driven by new node and more content in IP.
Q: Strong quarter for China and organic raise to full year.
A: China was 13% of Q1 revenue, strong start with hexagon impact and cash flow strength.
Q: Millennium platform adoption and health in non - semi - verticals.
A: Millennium is doing great, applying to traditional areas like autos and new areas like aerospace and drones, and to 3D IC sign - offs