Cadence oznámila, že její subsystém PCIe 6.0 s PHY a řadičem prošel na první pokus všemi oficiálními compliance testy PCI-SIG. Řešení pro x8 na TSMC N3 běží na 64 GT/s a je na Integrators List.
Cadence Subsystem for PCIe 6.0 Architecture Achieves First-Pass PCI Express Specification Compliance Cadence (Nasdaq: CDNS) today announced that its PHY and controller IP for the PCI Express® (PCIe®) 6.0 specification, implemented in the TSMC N3 process, achieved first-pass success at the recent PCI-SIG® compliance workshop held in late July. The workshop marked the industry’s first official event for PCIe 6.0 specification compliance testing, with Cadence’s x8 subsystem solution tested at the full PCIe 6.0 specification speed of 64 GT/s.
The complete Cadence subsystem solution, comprising both PHY and controller, successfully passed all official PCIe 6.0 compliance specification tests and is on PCI-SIG’s Integrators List.
“PCI Express is a crucial scale-up interconnect for AI/HPC data centers and AI factories, and Cadence’s subsystem for the PCIe 6.0 specification delivers best-in-class performance with among the lowest power in the industry,” said Marc Loinaz, vice president of research and development for high-performance PHY, Silicon Solutions Group at Cadence. “This first-pass compliance success validates our complete PHY and controller solution and gives customers confidence that our technology is fully interoperable and ready for production.”
The milestone underscores the importance of early ecosystem collaboration in bringing new standards to market. Cadence worked closely with PCI-SIG, test equipment providers, and industry partners in the months leading up to the official compliance workshop, conducting interoperability testing to identify and resolve potential issues before the formal evaluation.
“As PCIe 6.0 technology enables the next wave of AI and high-performance computing systems, rigorous compliance and interoperability testing are essential for ecosystem success,” said Brig Asay, General Manager, Network Data Center, Keysight Technologies. “Cadence’s first-pass compliance achievement reflects both the quality of its PCIe 6.0 subsystem implementation and the effectiveness of comprehensive validation using Keysight’s test and measurement solutions. We are pleased to support industry leaders in accelerating PCIe 6.0 technology deployment with confidence.”
“Cadence is a long-standing PCI-SIG member helping to further PCIe technology adoption,” said Al Yanes, president and chairperson of PCI-SIG. “Cadence’s PCIe 6.0 compliance milestone plays a role in the continued advancement of PCIe technology architecture.”
PCIe 6.0 technology addresses growing demand for high-bandwidth connectivity in AI and high-performance computing systems, where the standard is used for accelerator cards, network interfaces, and storage devices. The interface is expected to see wide adoption in data center and AI infrastructure, with broader deployment in automotive and enterprise systems following as the ecosystem matures.
“Positron AI has licensed Cadence’s SerDes IP for the PCIe 6.0 specification for our AI inference accelerator chip,” said Thomas Sohmers, CTO at Positron AI. “Cadence’s complete PCIe 6.0 subsystem built in silicon and robust interoperability testing give us confidence that our PCIe 6.0 interface will meet the high-bandwidth connectivity demands of our transformer workloads.”
Key features of Cadence’s PCIe 6.0 technology solution include:
Complete subsystem solution with PHY and controller built in siliconADC and DSP-based equalizationFirmware-optimized SerDes operationMulti-protocol flexibility and supportOptimized for low power, including support for the latest PCI-SIG engineering change notices (ECNs)Certification for x8 configuration on TSMC N3 processPCI-SIG has continued to advance the PCIe standard to meet the needs of advanced HPC and AI workloads. Cadence offers a broad portfolio of PCIe technology solutions up to the PCIe 7.0 specification.
Cadence’s complete subsystem solution for PCIe 6.0 technology, including PHY and controller, is available now for SoC providers to design in. For more information on Cadence IP for PCIe 6.0 technology, visit the Cadence PCIe 6.0 and CXL PHY product page or download the Design IP brochure.
About Cadence
Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design™ strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2025, Cadence was recognized by Fortune as one of the world’s top 100 best companies to work for. Cadence solutions offer limitless opportunities.
PCI-SIG, PCI Express, and PCIe are trademarks or registered trademarks of PCI-SIG. All other trademarks are the property of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260901910079/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Cadence ve 2. čtvrtletí vytvořila provozní peněžní tok 635 mil. USD a volný peněžní tok 582 mil. USD, přičemž odkoupila akcie za 200 mil. USD. Na rok 2026 očekává provozní peněžní tok 2 mld. USD a zhruba 50 % volného peněžního toku chce použít na zpětné odkupy akcií.
Key Takeaways Cadence generated $582 million in second-quarter free cash flow and repurchased $200 million of shares.Cadence expects $2 billion in 2026 operating cash flow and plans to use about 50% of FCF for buybacks.Cadence is investing in AI, M&A and go-to-market capabilities while remaining an asset-light business. Cadence Design Systems (CDNS - Free Report) appears well-positioned to balance growth investments with shareholder returns, buoyed by strong cash flow generation.
In the second quarter of 2026, Cadence generated an operating cash flow of $635 million compared with the prior quarter’s $356 million. Free cash flow was $582 million compared with $307 million in the previous quarter. As of June 30, 2026, cash and cash equivalents stood at $1.44 billion while long-term debt was $2.482 billion.
The company repurchased its shares worth $200 million in the second quarter. For 2026, operating cash flow is expected to be $2 billion compared with $1.875 billion to $1.975 billion projected earlier. The company expects to utilize roughly 50% of its free cash flow to repurchase shares in 2026.
The key question is whether this level of cash generation can remain sufficient as Cadence steps up spending on strategic opportunities.
These investments are aimed at strengthening the company’s technology portfolio and go-to-market capabilities. The company also does not expect Agentic AI to require a massive increase in capital intensity. Cadence remains an asset-light business.
Cadence expects acquisition profitability and IP profitability to improve as it moves into 2027. The company also pursues strategic M&A to supplement organic growth. In February 2026, Cadence acquired the Design & Engineering division of Hexagon AB, including its MSC Software business, in a deal worth €2.7 billion. The buyout will extend its presence in the multi-billion-dollar structural analysis market.
Cadence is a well-known name in the electronic system design space. The company is witnessing broad-based demand for its solutions, especially the AI-driven portfolio, amid increasing design complexity. Given strong demand trends, management raised 2026 revenue guidance to $6.26-$6.34 billion from $6.125-$6.225 billion previously. It also continues to expect roughly 80% recurring revenue.
Nonetheless, volatile global macroeconomic conditions and substantial exposure to the semiconductor vertical are concerning for CDNS. Stiff competition from players such as Synopsys (SNPS - Free Report) and Keysight Technologies (KEYS - Free Report) remains concerning.
Mapping the Competitive TerrainSynopsys is one of the closest competitors for CDNS in the EDA space. The company generated $746 million in third-quarter free cash flow. SNPS raised its cash flow from operations guidance to approximately $2.8 billion (up $500 million) on strong cash collections while reducing capex guidance to $225 million. This will result in free cash flow of roughly $2.6 billion, an increase of $600 million compared with the previous guidance. The company did not repurchase shares in the third quarter of fiscal 2026.
Synopsys ended the third quarter with $3.6 billion in cash and short-term investments.
Keysight Technologies is a provider of electronic design and test instrumentation systems. In the third quarter of fiscal 2026, Keysight Technologies generated $403 million in free cash flow and repurchased $210 million of shares, taking year-to-date buybacks to $517 million. As of July 31, 2026, the company had $2.61 billion in cash and cash equivalents and $1.82 billion of long-term debt. The company is simultaneously investing ahead of opportunities in AI infrastructure, 6G and advanced semiconductors.
For the fourth quarter of fiscal 2026, Keysight Technologies expects revenues in the range of $1.93-$1.95 billion.
CDNS Price Performance, Valuation and EstimatesShares of CDNS have edged up 1.3% in the past month compared with the Computer Software industry’s growth of 6.4%.
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CDNS trades at a forward 12-month price-to-earnings (P/E) ratio of 37.9X, below the industry’s 24.02X.
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The Zacks Consensus Estimate for CDNS’ earnings for 2026 has been revised upward over the past 60 days.
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CDNS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cadence ve 2. čtvrtletí zvýšila tržby o 24 % na 1,584 miliardy USD a backlog dosáhl rekordu 8,1 miliardy USD. Firma zároveň zvýšila výhled na celý rok 2026 díky silné poptávce po AI a HPC.
Key Takeaways Cadence posted 24% revenue growth and a record $8.1 billion backlog in Q2 2026.Agentic AI is expanding design exploration, with early customer gains of 2x to more than 40x.Cadence raised 2026 guidance as AI and HPC demand drives broad-based growth across all product groups. Cadence Design Systems, Inc. (CDNS - Free Report) is benefiting from accelerating design activity as AI drives greater design complexity and creates demand for new system architectures across hyperscaler infrastructure and physical AI. The company delivered strong second-quarter 2026 results, with revenue rising 24% year over year to $1.584 billion and record backlog reaching $8.1 billion. On the last earnings call, management highlighted growing demand for AI-driven solutions across its expanding customer base, supported by both design for AI and AI for design.
Agentic AI is emerging as an important growth opportunity for Cadence as autonomous agents expand the design exploration space and call the company’s underlying physically accurate engines more frequently. Cadence has expanded its Agentic AI portfolio with AuraStack, ChipStack, ViraStack and InnoStack. ChipStack has more than 20 customer engagements and is deployed in production across multiple chip designs, while ViraStack has more than 25 customer engagements. Early customer results have demonstrated productivity improvements ranging from 2x to more than 40x in certain use cases.
The company is also seeing broad-based strength across its businesses. All product groups delivered double-digit year-over-year growth in the second quarter. IP revenue increased more than 40%, Core EDA grew 18%, hardware delivered another record quarter and System Design and Analysis revenue increased 37%. Strong demand from AI and HPC customers, including hyperscalers and leading semiconductor companies, supported these results.
Cadence raised its 2026 outlook, reflecting continued business momentum. The company now expects revenue of $6.260-$6.340 billion, non-GAAP operating margin of 43.75-44.75% and non-GAAP EPS of $8.05-$8.15. At the midpoint, revenue growth is expected to be 19%, with operating cash flow of approximately $2 billion. For the third quarter, revenue is projected at $1.595-$1.625 billion.
Management views Agentic AI as a demand accelerator, with customers seeking to manage rising design complexity rather than reduce design activity. Increased agent usage can drive both new Agentic workflow products and greater use of Cadence’s core tools.
Taking a Look at CDNS’ CompetitorsKeysight Technologies, Inc. (KEYS - Free Report) is benefiting from growing customer investments in advanced node, memory and silicon photonics. It has secured wafer test solution wins supporting silicon photonics and advanced node programs across Asia, the United States and Europe. The company continues to convert growth into cash, which supports product investment, acquisitions and shareholder returns. An expanding software and services mix, recurring revenue streams and leadership in 5G, 6G and network technologies strengthen its competitive position. Focus on product diversification and expansion into aerospace, defense and automotive markets is a positive. For the third quarter of fiscal 2026, Keysight expects revenues in the range of $1.73-$1.75 billion.
Synopsys, Inc. (SNPS - Free Report) is gaining from design wins, driven by its product portfolio. Growth in the hybrid working trend is driving demand for bandwidth. Strong traction for Synopsys’ Fusion Compiler product is boosting its top line. The growing demand for advanced technology, design, IP and security solutions also creates solid prospects. The rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new computing and machine learning architectures. For fiscal 2026, Synopsys raised its revenue outlook to $9.625-$9.705 billion, up from the prior guided range of $9.56-$9.66 billion. For the third quarter of fiscal 2026, the company expects revenues of $2.41-$2.46 billion and non-GAAP earnings of $3.63-$3.69 per share.
CDNS’ Price Performance, Valuation & EstimatesShares of Cadence have gained 10.1% in the past six months, underperforming the Zacks Computer and Technology sector’s appreciation of 17.5%.
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From a valuation standpoint, CDNS stock is currently trading at a trailing 12-month Price/Earnings ratio of 53.88X, which is higher than the Zacks Computer - Software industry average of 26.97X.
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The Zacks Consensus Estimate for CDNS’ 2026 earnings is pegged at $8.12, which suggests 13.73% growth over the figure reported in 2025.
CDNS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cadence Design Systems uvedla, že poptávku po softwaru pro návrh čipů podporuje růst vlastních čipů a využití AI. Firma zároveň rozšiřuje „super agenty“ pro automatizaci návrhu.
Shares Fall, Targets Rise—Markets and Analysts Diverge on SynopsysCadence Design Systems NASDAQ: CDNS said demand for semiconductor design software is being supported by a growing number of companies developing custom chips, rising design complexity and the use of artificial intelligence in semiconductor development.
Speaking at Deutsche Bank’s 20th annual technology conference, Richard Gu, Cadence’s vice president of investor relations, said the semiconductor and systems industries have increasingly converged over the past 10 to 15 years. Hyperscalers, autonomous-vehicle companies and AI model companies are among the organizations designing their own application-specific integrated circuits, he said.
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3 Companies Quietly Essential to Data Center and AI Operations“The aperture is expanded dramatically” through new customers and design starts, Gu said, while the complexity of those designs is also increasing. He characterized those factors as long-term tailwinds for Cadence, which supplies electronic design automation, intellectual property, hardware systems and simulation software.
AI agents and productivity Gu said AI is serving as a “turbocharger” for the semiconductor ecosystem and that Cadence is both supplying tools used to develop AI accelerators and applying AI to its own products.
Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong MomentumThe company has introduced several “super agents” designed to automate portions of chip development, including ChipStack for front-end design verification, Veristack for analog design-flow orchestration, Innostack for digital flows and Aurastack for packaging. Gu said ChipStack can generate RTL code from design specifications, create test benches and invoke underlying simulation and verification tools.
According to Gu, the agents are intended to address a widening gap between customers’ engineering needs and the supply of available chip designers. He said chip-design workloads could rise by 30 to 40 times over the next five to six years, making automation increasingly important.
Gu cited comments by NVIDIA CEO Jensen Huang at Computex indicating that ChipStack had produced a 40-times productivity benefit. Cadence plans to monetize the agents through standalone pricing, additional token-based consumption once prescribed workloads are exceeded, and increased use of the company’s underlying EDA tools, he said.
He added that the agents could help smaller teams undertake more sophisticated chip-development efforts, potentially lowering barriers for newer entrants.
Broad-based growth across product lines Gu said Cadence’s most recent second-quarter revenue grew 24%, with core EDA revenue up approximately 18% to 19%, system design and analysis revenue rising more than 35%, and IP revenue increasing more than 40%. Core EDA represents about 70% of the company’s business, he said.
For the full year, Gu said Cadence expects to grow 19% and generate a non-GAAP operating margin of 44.25%. He said the company expects its combined growth and profitability metrics to exceed the “Rule of 60,” referring to the sum of revenue growth and operating margin.
Cadence’s IP strategy is focused on advanced-node technologies rather than attempting to serve every category, Gu said. The company is targeting connectivity-related IP, including HBM, UCIe and PCIe, that is exposed to AI infrastructure demand. He said the IP business is on pace to reach a $1 billion annualized run rate by year-end.
While Gu called IP a good business, he said EDA remains more attractive because customers generally must purchase EDA capabilities rather than build them internally. He said Cadence aims to balance IP growth with margin expansion and continue targeting a 50% incremental margin for the company overall.
Backlog, China and system simulation Cadence exited the second quarter with a record $8.1 billion backlog, Gu said. He noted that its current remaining performance obligation coverage ratio was about 58%, which he said provides visibility into revenue expected over the next 12 months.
The company’s typical EDA software contracts run for roughly 2.5 to three years and are recognized ratably, while hardware follows a shorter pattern and is typically evaluated on a six-month outlook, Gu said.
Gu said China remains a healthy and balanced market for Cadence, with growth expected to be at least in line with the company average this year. Cadence sells emulation systems, EDA tools and IP in China, he said, and works with customers including large language model developers, hyperscalers and autonomous-driving companies.
He said local Chinese competitors remain smaller, offer more point tools and lack the full design flows and foundry certifications that Cadence provides. The company does not view them as a near- or medium-term threat, he said.
In system design and analysis, Gu said Cadence is integrating the Hexagon business it acquired about two years ago and is focused on creating a full flow for physical AI and structural design. He said the integration is tracking in line with expectations.
Gu also highlighted Cadence’s Millennium platform, developed with NVIDIA, which combines GPU computing with Cadence simulation software. He said customers have reported productivity improvements of 50 to 60 times in certain applications, and the technology could have uses in aerospace, defense and automotive markets.
Long-term outlook Gu said investors should watch recurring revenue growth as a measure of Cadence’s progress, as the company’s subscription and consumption-based AI offerings are expected to flow through that metric. He maintained that Cadence’s business is more closely tied to design starts and design complexity than semiconductor unit volumes.
Even if semiconductor customers enter a downturn, R&D budgets have historically been among their most protected spending categories, Gu said. He said Cadence’s revenue, margins, earnings per share and cash flow have shown steady growth through prior industry cycles.
“Our business is not driven by volume,” Gu said. “It’s driven by design starts and design complexities.”
About Cadence Design Systems (NASDAQ:CDNS)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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Cadence zvýšila výhled tržeb na rok 2026 na 6,26–6,34 miliardy USD a non-GAAP EPS na 8,05–8,15 USD po silném druhém čtvrtletí. Backlog dosáhl rekordu 8,1 miliardy USD.
Key Takeaways Cadence raised 2026 revenue and non-GAAP EPS forecasts after second-quarter results beat expectations.Systems Design & Analysis grew 37%, while IP rose 40% on AI and high-performance computing demand.All segments delivered double-digit growth, and backlog reached a record $8.1 billion.
Cadence Design Systems (CDNS - Free Report) raised its 2026 financial outlook after second-quarter results topped expectations and AI-oriented demand expanded across its portfolio.
The larger issue is whether agentic AI can become a durable source of electronic design automation usage rather than a short-lived boost. Cadence’s recent engagement and product data provide early support for that thesis.
Cadence Q2 Beats Set Up the Guidance RaiseSecond-quarter revenues reached $1.584 billion, up 24.2% year over year and 0.5% above the Zacks Consensus Estimate. Non-GAAP earnings of $2.11 per share increased 27.9% and beat the consensus mark by 2.9%.
All product groups delivered double-digit growth, and backlog reached a record $8.1 billion. Core electronic design automation grew 18%, Systems Design & Analysis increased 37% and the intellectual property business rose 40%.
CDNS Raises Its 2026 Revenue and EPS ViewCadence lifted its 2026 revenue forecast to $6.26-$6.34 billion from $6.125-$6.225 billion. It also raised its non-GAAP earnings outlook to $8.05-$8.15 per share from $7.85-$7.95.
The company now expects operating cash flow of $2 billion, above the previous $1.875-$1.975 billion range. Its non-GAAP operating margin forecast increased to 43.75%-44.75% from 43.5%-44.5%.
CDNS Broadens AI Demand Across Hardware and IPThe Systems Design & Analysis business grew 37% in the second quarter, helped by demand for Allegro X AI, 3D-IC and BETA CAE solutions. The intellectual property business increased 40%, driven by demand across AI and high-performance computing applications.
Hardware demand remained firm among AI and high-performance computing customers. Cadence added 12 new hardware customers during the quarter and expanded business with several hyperscalers and AI innovators.
The company also cited agentic AI as a durable tailwind. Cadence has launched AuraStack AI Super Agent and is expanding and ChipStack and ViraStack. ViraStack has recorded more than 25 engagements and delivered 2X-10X productivity improvements versus traditional flows, as per Cadence.
Cadence Risks Still Temper the Growth NarrativeSynopsys, Inc. (SNPS - Free Report) competes across electronic design automation, silicon intellectual property and engineering simulation. Siemens AG (SIEGY - Free Report) , through Siemens EDA, also provides integrated-circuit design, verification and manufacturing tools, so Cadence must keep investing to defend its position.
International exposure creates currency risk, while AI infrastructure capital spending can be volatile. Goodwill and acquired intangible assets represented 56.2% of total assets at June 30, 2026, adding another execution and financial consideration.
CDNS Signals Support Growth but Not Aggressive BuyingThe higher outlook strengthens the operating narrative, but it does not eliminate valuation and execution risks. Cadence currently carries a Zacks Rank #3 (Hold), which supports a balanced stance rather than an aggressive near-term buying signal.
The Growth Score of B and Momentum Score of A fit the favorable growth and price-trend characteristics. The Value Score of F and VGM Score of C are less supportive, keeping valuation discipline important even as agentic AI broadens demand.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Cadence is benefiting from rising AI-driven design demand as chip and system complexity increases.CDNS estimates call for 2026 revenues of $6.313B and earnings of $8.12 per share.Cadence trades at 36.3X forward earnings, while 2026 operating cash flow is expected near $2B.
Cadence Design Systems (CDNS - Free Report) combines rising AI-related demand, higher earnings expectations and stronger cash generation with a valuation that remains well above major benchmarks.
That mix creates a clear trade-off for investors. Growth prospects are improving, but the stock still requires buyers to pay a sizable premium for that growth.
Cadence AI Demand Supports a Strong Growth CaseCadence is benefiting from rising chip and system complexity and greater spending on AI-driven design. Management expects agentic AI to increase electronic design automation consumption as customers run more simulation, verification and implementation cycles.
The company is broadening its AI portfolio through AuraStack, ChipStack and ViraStack. ViraStack has more than 25 engagements and has delivered 2X-10X productivity improvements versus traditional design flows, as Cadence highlighted, supporting the case for wider platform usage.
CDNS Estimates Point to Continued Earnings ExpansionThe Zacks Consensus Estimate calls for 2026 revenues of $6.313 billion and 2027 revenues of $7.130 billion. Consensus earnings are $8.12 per share for 2026 and $9.41 for 2027.
Projected 2026 sales growth is 19.2%, while projected earnings growth is 13.7%. Those figures indicate continued expansion even after Cadence increased second-quarter revenues 24.2% year over year.
Cadence Still Trades at a Premium ValuationCDNS trades at 36.3X forward 12-month earnings versus 23.4X for its sub-industry and 20.7X for the S&P 500. Although that multiple is at the five-year low and below the 52.8X median, the relative premium remains substantial.
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The same pattern appears in sales-based measures. CDNS trades at 13.1X forward sales and 13.9X forward enterprise value to sales, compared with 6.2X on both measures for the sub-industry.
CDNS Cash Flow Strengthens the Investment CaseCadence expects about $2 billion in 2026 operating cash flow and plans to use at least 50% of annual free cash flow for share repurchases. It bought back $200 million of stock in each of the first two quarters.
Second-quarter operating cash flow reached $635 million, up from $356 million in the prior quarter. Free cash flow increased to $582 million from $307 million, giving the company more flexibility to fund investment and capital returns.
CDNS Risks Could Limit Multiple ExpansionSynopsys, Inc. (SNPS - Free Report) competes across electronic design automation, silicon intellectual property and engineering simulation. Siemens AG (SIEGY - Free Report) , through Siemens EDA, also spans integrated-circuit design, verification and manufacturing, which keeps competitive intensity high.
Cadence faces currency sensitivity because international operations have historically generated more than half of revenues. AI infrastructure spending can also be volatile, while goodwill and acquired intangible assets represented 56.2% of total assets at June 30, 2026.
Cadence Signals Favor Growth Over ValueCadence’s operating outlook supports the growth case, but the premium valuation argues against treating strong AI demand alone as sufficient reason to buy. The stock currently carries a Zacks Rank #3 (Hold), consistent with a more measured position.
Cadence ve 2. čtvrtletí zvýšila tržby o 24,2 % na 1,584 miliardy USD a backlog dosáhl rekordních 8,1 miliardy USD. Firma zároveň zvedla výhled tržeb i EPS pro rok 2026.
Key Takeaways Cadence's Q2 revenues rose 24.2% to $1.584 billion, while backlog reached a record $8.1 billion.AI demand, stronger bookings and hardware traction supported double-digit growth across all product groups.Cadence raised 2026 guidance for revenue to $6.26-$6.34 billion and EPS to $8.05-$8.15. Cadence Design Systems (CDNS - Free Report) , a well-known player in the electronic design automation (“EDA”) space, recently reported strong second-quarter 2026 results with a record backlog that underscores sustained demand for its solutions.
Revenues of $1.584 billion beat the Zacks Consensus Estimate by 0.5% and increased 24.2% year over year. The figure was within the management’s guided range of $1.555-$1.595 billion. All the product groups witnessed double-digit growth. Non-GAAP earnings per share (EPS) of $2.11 beat the Zacks Consensus Estimate by 2.9%, increased 27.9% year over year.
One of the standout factors of this quarter was Cadence’s expanding backlog, which stood at $8.1 billion at the quarter-end. Backlog growth was supported by strong bookings momentum, rising significantly in the first half, highlighting the strength of underlying demand trends.
The Zacks Consensus Estimate for order backlog stood at $7.68 billion.
Record Backlog Underscores AI TailwindsAI is driving a major transformation in semiconductor and system design. Cadence is deeply integrated into this shift. Design activity across several verticals, especially data centers and automotive, has been robust due to AI, hyperscale computing and 5G. The focus on Generative AI, Agentic AI and Physical AI has been driving an exponential increase in computing demand and semiconductor innovation. Customers have been significantly increasing their R&D budgets in AI-driven automation.
On the recent earnings call, Cadence added that it is witnessing momentum on both “AI for Design” and “Design for AI” fronts.
The company cited agentic AI as a durable tailwind. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles, thereby expanding the addressable market. Management highlighted “strong early traction” for its AI Super-Agent portfolio.
Cadence’s hardware business also contributed to backlog growth. The demand for new hardware systems continued to gain traction, driven by AI/HPC customers. Apart from hardware, demand for digital full-flow solutions was steady, with expanded adoption of the Tempus and Certus sign-off tools within the Core EDA segment. It added 12 new logos in the reported quarter and expanded business with several AI clients.
Deepening its strategic partnerships with Samsung, Intel, TSMC and OpenAI, among others bodes well.
Overall, Cadence’s record backlog underscores strong demand visibility and reinforces confidence in its growth trajectory. With AI acting as a key catalyst and customer engagements deepening across segments, the company appears well-positioned to sustain momentum.
CDNS’ Upbeat Outlook Cadence raised its full-year 2026 revenue outlook to a band of $6.26-$6.34 billion, compared with the earlier guided range of $6.125-$6.225 billion. The Zacks Consensus Estimate is currently pinned at $6.29 billion.
Non-GAAP EPS for 2026 is now expected to be between $8.05 and $8.15, compared with the earlier guided range of $7.85 to $7.95. The Zacks Consensus Estimate is currently pinned at $8.03 per share.
In the past year, shares have lost 8.7% compared with Computer-Software industry’s decline of 31.6%
Other Stocks to Consider in the Same SpaceSome better-ranked stocks worth consideration are Keysight Technologies, Inc (KEYS - Free Report) , Synopsys (SNPS - Free Report) and Commvault Systems (CVLT - Free Report) . All stocks carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KEYS’ fiscal 2026 EPS is pegged at $10.17, unchanged in the past 30 days. Keysight’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 9.46%. Shares of Keysight have gained 81% in the past year.
The Zacks Consensus Estimate for SNPS’ fiscal 2026 EPS is pegged at $14.75, unchanged in the past 30 days. Synopsys’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with the average surprise being 0.88%. Shares of Synopsys have lost 41% in the past year.
The Zacks Consensus Estimate for CVLT’s fiscal 2027 EPS is pegged at $5.24, up two cents in the past 30 days. Commvault’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once, with the average surprise of 13.49%. Shares of Commvault have declined 36.6% in the past year.
Amundi v 1. čtvrtletí navýšila podíl v Cadence Design Systems o 3,8 % na 2 060 334 akcií v hodnotě 572,49 mil. USD. Cadence zároveň oznámila EPS 2,11 USD a tržby 1,58 mld. USD, obojí nad odhady.
Amundi increased its holdings in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS – Free Report) by 3.8% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,060,334 shares of the software maker’s stock after buying an additional 75,492 shares during the period. Amundi owned 0.75% of Cadence Design Systems worth $572,488,000 at the end of the most recent quarter.
Several other large investors have also bought and sold shares of the business. Vanguard Group Inc. grew its position in shares of Cadence Design Systems by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker’s stock worth $8,511,888,000 after buying an additional 307,753 shares during the period. State Street Corp grew its holdings in Cadence Design Systems by 1.1% during the fourth quarter. State Street Corp now owns 12,603,368 shares of the software maker’s stock valued at $3,939,561,000 after purchasing an additional 135,206 shares during the period. Geode Capital Management LLC grew its holdings in Cadence Design Systems by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker’s stock valued at $2,378,707,000 after purchasing an additional 92,152 shares during the period. Norges Bank bought a new stake in Cadence Design Systems in the fourth quarter valued at approximately $1,352,922,000. Finally, Van ECK Associates Corp increased its stake in Cadence Design Systems by 11.9% in the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker’s stock valued at $1,104,714,000 after purchasing an additional 376,654 shares in the last quarter. 84.85% of the stock is currently owned by institutional investors and hedge funds.
Cadence Design Systems Price Performance Shares of NASDAQ CDNS opened at $333.30 on Thursday. The company has a fifty day moving average price of $373.55 and a 200 day moving average price of $329.91. The firm has a market cap of $91.93 billion, a PE ratio of 66.26, a PEG ratio of 4.07 and a beta of 1.15. The company has a current ratio of 1.74, a quick ratio of 1.32 and a debt-to-equity ratio of 0.36. Cadence Design Systems, Inc. has a 1-year low of $262.75 and a 1-year high of $416.69.
Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last released its quarterly earnings results on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. The firm had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.58 billion. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The company’s revenue for the quarter was up 24.2% on a year-over-year basis. During the same quarter last year, the business posted $1.65 EPS. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. Research analysts predict that Cadence Design Systems, Inc. will post 6.25 earnings per share for the current fiscal year.
Insiders Place Their Bets In other news, VP Paul Scannell sold 7,081 shares of Cadence Design Systems stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president directly owned 32,181 shares in the company, valued at $12,676,417.71. This trade represents a 18.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ita M. Brennan sold 180 shares of the business’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $387.45, for a total transaction of $69,741.00. Following the completion of the sale, the director directly owned 8,004 shares in the company, valued at approximately $3,101,149.80. This represents a 2.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 157,057 shares of company stock worth $60,272,277 in the last 90 days. Company insiders own 0.49% of the company’s stock.
Key Stories Impacting Cadence Design Systems Here are the key news stories impacting Cadence Design Systems this week:
Positive Sentiment: Cadence reported second-quarter adjusted earnings of $2.11 per share, above the $2.05 consensus estimate, while revenue reached approximately $1.58 billion, up 24.2% year over year and broadly in line with expectations. Cadence Q2 Earnings Top Estimates, 2026 Revenue Outlook Raised Positive Sentiment: Management raised its 2026 outlook, including full-year adjusted EPS guidance of $8.05 to $8.15, and indicated roughly 19% revenue growth. A record $8.1 billion backlog provides visibility into future results. Cadence signals 19 percent 2026 revenue growth Positive Sentiment: Demand for Cadence’s electronic-design automation tools is broadening as customers develop AI and “agentic AI” systems, increasing usage of core design software and supporting growth across the company’s portfolio. Cadence rises after Q2 beat Positive Sentiment: Several analysts raised their price targets to $420, including Bank of America, Rosenblatt Securities and Robert W. Baird, while maintaining positive ratings. Needham reaffirmed its buy rating. Analyst price-target changes Neutral Sentiment: Piper Sandler raised its target to $349 but retained a neutral rating, suggesting more limited near-term upside than other analysts. Piper Sandler rating update Negative Sentiment: Despite the strong fundamentals, CDNS trades at a high valuation—about 66 times earnings and a PEG ratio near 4—leaving the stock vulnerable to profit-taking or a “sell-the-news” reaction after its results and rally. Its shares are also below the 50-day moving average, indicating continued near-term technical pressure. Analyst Ratings Changes A number of equities analysts have recently weighed in on CDNS shares. Oppenheimer reissued a “market perform” rating and set a $300.00 price target on shares of Cadence Design Systems in a research report on Tuesday. Bank of America upped their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday. Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price objective on shares of Cadence Design Systems in a research note on Tuesday. Wells Fargo & Company lifted their target price on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a report on Tuesday, May 26th. Finally, Stifel Nicolaus lifted their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Thirteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $405.69.
Check Out Our Latest Report on Cadence Design Systems
About Cadence Design Systems (Free Report)
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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Cadence Design Systems uspořádala konferenční hovor k výsledkům za 2. čtvrtletí 2026. Vedení zároveň upozornilo, že výhled podléhá rizikům a nejistotám.
Cadence Design Systems, Inc. (CDNS) Q2 2026 Earnings Call July 27, 2026 5:00 PM EDT
Company Participants
Richard Gu - Vice President of Investor Relations
Anirudh Devgan - CEO, President & Director
John Wall - Senior VP & CFO
Conference Call Participants
Joseph Quatrochi - Wells Fargo Securities, LLC, Research Division
Joseph Vruwink - Robert W. Baird & Co. Incorporated, Research Division
Vivek Arya - BofA Securities, Research Division
Sitikantha Panigrahi - Mizuho Securities USA LLC, Research Division
James Schneider - Goldman Sachs Group, Inc., Research Division
Harlan Sur - JPMorgan Chase & Co, Research Division
Yu Shi - Needham & Company, LLC, Research Division
Lee Simpson - Morgan Stanley, Research Division
Jason Celino - KeyBanc Capital Markets Inc., Research Division
Gianmarco Conti - Deutsche Bank AG, Research Division
Ruben Roy - Stifel, Nicolaus & Company, Incorporated, Research Division
Wei Chia - Citigroup Inc., Research Division
Jay Vleeschhouwer - Griffin Securities, Inc., Research Division
Joshua Tilton - Wolfe Research, LLC
Gary Mobley
Presentation
Operator
Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cadence Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Thank you.
And I will now turn the call over to Richard Gu, Vice President of Investor Relations for Cadence. Please go ahead.
Richard Gu
Vice President of Investor Relations
Thank you, operator. I would like to welcome everyone to our second quarter of 2026 earnings conference call. I'm joined today by Anirudh Devgan, President and Chief Executive Officer; and John Wall, Senior Vice President and Chief Financial Officer. The webcast of this call and a copy of today's prepared remarks will be available on our website, cadence.com.
Today's discussion will contain forward-looking statements, including our outlook on future business and operating results. Due to risks and uncertainties, actual results may differ materially from those projected
The logo of Cadence Design Systems is pictured outside the company's offices in San Jose, California, U.S., January 31, 2020. Picture taken January 31, 2020. REUTERS/Stephen Nellis Purchase Licensing Rights, opens new tab
July 27 (Reuters) - Cadence Design Systems (CDNS.O), opens new tab raised its annual revenue and profit forecasts on Monday, banking on robust demand for its AI-powered chip and system design software.
Shares of the company rose more than 5% in extended trading.
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The company's electronic design automation (EDA) tools are used to design and validate semiconductors and electronic systems.
Here are some details:
Demand has risen sharply for Cadence's software as chipmakers and technology companies develop increasingly sophisticated systems-on-chip (SoCs) and AI accelerators.
Its customers include AI-chip leader Nvidia (NVDA.O), opens new tab and iPhone-maker Apple (AAPL.O), opens new tab.
Cadence now expects 2026 revenue to be between $6.26 billion and $6.34 billion, up from its prior projection of $6.13 billion to $6.23 billion.
On average, analysts were expecting annual revenue of $6.21 billion, according to data compiled by LSEG.
Annual adjusted profit is expected to be between $8.05 and $8.15 per share, up from its previous forecast of $7.85 to $7.95 and above estimates of $7.96.
Earlier in the month, Cadence launched an AI "super agent" called AuraStack that lets engineers describe their goals in plain language and then plans and carries out the work using the company's existing software tools to lay out and virtually test circuit designs.
Cadence's second-quarter revenue rose 24.2% to $1.584 billion, largely in line with estimates. Adjusted profit came in at $2.11 per share, compared with estimates of $2.05.
Quarter-end backlog stood at $8.1 billion, with $4.2 billion expected to be recognized as revenue within the next 12 months.
Reporting by Anhata Rooprai in Bengaluru; Editing by Diti Pujara and Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Cadence Design Systems vykázala zisk na akcii 2,11 USD a tržby 1,58 miliardy USD, obojí nad odhady. Zisk byl meziročně vyšší oproti 1,65 USD na akcii a tržby vzrostly z 1,28 miliardy USD.
Cadence Design Systems (CDNS - Free Report) came out with quarterly earnings of $2.11 per share, beating the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $1.65 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.93%. A quarter ago, it was expected that this maker of hardware and software products for validating chip designs would post earnings of $1.88 per share when it actually produced earnings of $1.96, delivering a surprise of +4.26%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cadence, which belongs to the Zacks Computer - Software industry, posted revenues of $1.58 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.52%. This compares to year-ago revenues of $1.28 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cadence shares have added about 4.4% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Cadence?While Cadence has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cadence was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.92 on $1.55 billion in revenues for the coming quarter and $7.94 on $6.2 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Smith Micro Software, Inc. (SMSI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +85.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Smith Micro Software, Inc.'s revenues are expected to be $4.8 million, up 8.6% from the year-ago quarter.
Cadence Design Systems má po uzavření trhu zveřejnit výsledky za 2. čtvrtletí; analytici čekají EPS 2,06 USD a tržby 1,58 mld. USD. Loni to bylo 1,65 USD na akcii a 1,28 mld. USD.
Cadence Design Systems, Inc. (NASDAQ:CDNS) will release its second quarter earnings report after the closing bell on Monday, July 27.
Analysts expect the San Jose, California-based company to report quarterly earnings of $2.06 per share, up from $1.65 per share in the year-ago period. The consensus estimate for Cadence Design’s quarterly revenue is $1.58 billion. It reported $1.28 billion last year, according to Benzinga Pro.
On April 27, Cadence posted better-than-expected first-quarter earnings.
Cadence Design shares fell 1.3% to close at $326.24 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying CDNS stock? Here’s what analysts think:
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Key Takeaways Cadence reports Q2 results on July 27, with EPS and revenues expected to rise more than 20%.Recurring revenues, an $8 billion backlog and rising EDA spending support Cadence's outlook.Macroeconomic uncertainty, U.S.-China tensions and stiff competition remain concerns. Cadence Design Systems, Inc. (CDNS - Free Report) will release results for the second quarter of 2026 on July 27.
The Zacks Consensus Estimate for second-quarter earnings is $2.05 per share, unchanged in the past 60 days. The consensus mark implies a 24.2% increase from the year-ago actual. The Zacks Consensus Estimate for revenues is pinned at $1.58 billion, indicating a nearly 23.6% uptick from the year-ago actual.
Management expects revenues to be $1.555-$1.595 billion for the second quarter. The company reported sales of $1.275 billion in the year-ago quarter. Non-GAAP EPS is anticipated to be between $2.02 and $2.08. The company reported an EPS of $1.65 in the year-ago quarter. Non-GAAP operating margin is estimated to be between 44.5% and 45.5% in the second quarter.
Cadence has an impressive earnings surprise history. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.48%.
Price Performance
Image Source: Zacks Investment Research
CDNS stock has gained 2.7% in the past six months against the Computer-Software industry’s decline of 22.7%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 5.6% and 8.7%, respectively, in the same time frame.
Factors Shaping CDNS’ Q2 ResultsBroad-based momentum across electronic design automation (“EDA”), IP and System Design & Analysis (“SDA”), supported by robust bookings, improving pricing dynamics and sustained demand tied to AI-driven semiconductor complexity, remains a key catalyst.
AI has been driving a major transformation in semiconductor and system design and Cadence is deeply integrated into this shift. Design activity across several verticals, especially data centers, drones, robotics and automotive, has been robust, due to AI, hyperscale computing and 5G. The focus on Generative AI, Agentic AI and Physical AI has been leading to an exponential increase in computing demand and semiconductor innovation.
Rising customer R&D investments in AI-driven automation have been creating a favorable demand environment for Cadence. On the last earnings call, Management noted that EDA spending has now increased from approximately 7% to 11% of customer R&D budgets, and this is expected to rise further with AI-driven automation.
The launch of ChipStack AI Super Agent (February 2026), the industry’s first agentic AI workflow purpose-built for front-end silicon design and verification, bodes well. Cadence acquired Chipstack, which provides agentic AI solutions for chip verification, in November 2025. On the last earnings call, the company emphasized its agentic AI strategy, including the launch of AgentStack framework and new AI Super Agents (ViraStack and InnoStack) that are designed to automate more of the chip design workflow. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles.
Cadence’s ratable software model and high mix of recurring revenues are other positives. At the end of the first quarter of 2026, Cadence had a backlog of $8 billion.
The company has been collaborating with several tech giants, including Qualcomm and NVIDIA, on their next-generation AI designs across both training and inference. Expanding partnerships with its foundry partners, like Samsung, Taiwan Semiconductor Manufacturing, Intel and Arm Holdings, bodes well.
Ongoing uncertainty prevailing over global macroeconomic conditions, especially U.S.-China tech tensions, along with stiff competition in the EDA space and inflation, remains a concern ahead of the first-quarter earnings. China contributed to about 13% of first-quarter 2026 revenues and management expects 2026 contribution to be about the same percentage.
Taking a Look at SegmentsCore electronic design automation (“EDA”) business (which constitutes Custom IC, Digital IC and Functional Verification businesses) is likely to have gained from demand for the new hardware systems, especially among AI, automotive and high-performance computing clients. Uptake of solutions such as Cerebrus AI Studio, Virtuoso Studio, Xcelium, Verisium SimAI and ChipStack is likely to have cushioned the segment’s performance.
The SDA division is likely to have gained from the increasing demand for BETA CAE solutions, along with 3D-IC, Sigrity and Clarity.
The IP business has been gaining from an expanding silicon solutions portfolio and increasing demand for solutions in AI, HPC and automotive use cases. The company has been witnessing higher demand for its Star IP portfolio across interface, memory and foundation IP amid higher complexity of advanced node designs and chiplet-based architectures.
Earnings Whispers for CDNSOur proven model does not predict an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
CDNS currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Celestica (CLS - Free Report) currently has an Earnings ESP of +1.86% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celestica is scheduled to report quarterly earnings on July 27. The Zacks Consensus Estimate for CLS’ to-be-reported quarter’s earnings and revenues stands at $2.29 per share and $4.35 billion, respectively. Shares of Celestica have gained 96.7% in the past year.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #1 at present. STX is scheduled to report quarterly figures on July 28. The Zacks Consensus Estimate for Seagate Technology’s to-be-reported quarter’s earnings and revenues is pinned at $5.10 per share and $3.49 billion, respectively. Shares of Seagate Technology are up 505.3% in the past year.
Teradyne (TER - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on July 28. The Zacks Consensus Estimate for Teradyne’s to-be-reported quarter’s earnings and revenues is pinned at $2.04 per share and $1.22 billion, respectively. Shares of Teradyne are up 314.6% in the past year.
Cadence Design Systems (CDNS) v poslední seanci klesla o 2,21 % na 337,02 USD, tedy více než S&P 500, který oslabil o 0,14 %. Akcie za poslední měsíc ztratily 9,08 %.
In the latest close session, Cadence Design Systems (CDNS - Free Report) was down 2.21% at $337.02. This change lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.57%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 9.08% in the past month. In that same time, the Computer and Technology sector lost 4.82%, while the S&P 500 gained 0.25%.
Investors will be eagerly watching for the performance of Cadence Design Systems in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 27, 2026. The company is forecasted to report an EPS of $2.05, showcasing a 24.24% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.58 billion, indicating a 23.58% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.94 per share and a revenue of $6.2 billion, signifying shifts of +11.2% and +17.11%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Cadence Design Systems holds a Zacks Rank of #3 (Hold).
Digging into valuation, Cadence Design Systems currently has a Forward P/E ratio of 43.42. This indicates a premium in contrast to its industry's Forward P/E of 15.81.
We can also see that CDNS currently has a PEG ratio of 3.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.28 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
AIA Group Ltd grew its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS – Free Report) by 181.5% in the first quarter, according to its most recent filing with the SEC. The fund owned 60,416 shares of the software maker’s stock after acquiring an additional 38,957 shares during the period. AIA Group Ltd’s holdings in Cadence Design Systems were worth $16,788,000 at the end of the most recent reporting period.
Several other large investors have also modified their holdings of CDNS. Whipplewood Advisors LLC lifted its position in shares of Cadence Design Systems by 933.3% in the 1st quarter. Whipplewood Advisors LLC now owns 93 shares of the software maker’s stock valued at $26,000 after acquiring an additional 84 shares in the last quarter. Brown Lisle Cummings Inc. boosted its stake in shares of Cadence Design Systems by 860.0% during the 1st quarter. Brown Lisle Cummings Inc. now owns 96 shares of the software maker’s stock valued at $27,000 after buying an additional 86 shares during the period. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Cadence Design Systems during the 4th quarter valued at $28,000. Swiss RE Ltd. purchased a new position in shares of Cadence Design Systems during the 4th quarter valued at $29,000. Finally, Lodestone Wealth Management LLC purchased a new position in shares of Cadence Design Systems during the 4th quarter valued at $30,000. 84.85% of the stock is owned by institutional investors.
Trending Headlines about Cadence Design Systems Here are the key news stories impacting Cadence Design Systems this week:
Positive Sentiment: Benchmark upgraded Cadence to Strong Buy, and recent brokerage commentary put the average price target around $387, indicating Wall Street still sees upside from current levels. Zacks.com Positive Sentiment: Cadence recently launched new AI products, including the AuraStack AI Super Agent for PCB and advanced packaging design, reinforcing the company’s growth narrative in AI-driven design workflows. Business Wire article Positive Sentiment: The company also announced a partnership with Rapidus to advance agentic AI for advanced SoC design, which could support longer-term demand for Cadence’s software tools. Business Wire article Neutral Sentiment: Cadence is due to report second-quarter results on July 27, and some of the weakness may reflect investors taking profits or reducing exposure ahead of earnings. MSN article Negative Sentiment: Shares are also being hit by broader fears that Moonshot and other AI-driven tools could disrupt the EDA industry, pressuring Cadence and peers like Synopsys on concerns about future pricing power and competition. MSN article Analysts Set New Price Targets A number of equities research analysts have recently weighed in on the company. Benchmark started coverage on Cadence Design Systems in a research note on Wednesday. They set a “buy” rating and a $450.00 price target for the company. Robert W. Baird boosted their target price on shares of Cadence Design Systems from $381.00 to $385.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 28th. Wells Fargo & Company increased their price target on shares of Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 26th. Stifel Nicolaus raised their price target on shares of Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Finally, Needham & Company LLC reissued a “buy” rating and set a $400.00 price objective on shares of Cadence Design Systems in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $393.65.
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Insider Buying and Selling In other news, VP Paul Scannell sold 10,500 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the sale, the vice president owned 33,946 shares in the company, valued at approximately $11,507,694. This represents a 23.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James D. Plummer sold 1,511 shares of the company’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $381.34, for a total transaction of $576,204.74. Following the transaction, the director owned 23,264 shares in the company, valued at approximately $8,871,493.76. This trade represents a 6.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 157,057 shares of company stock valued at $60,272,277. Insiders own 0.49% of the company’s stock.
Cadence Design Systems Stock Down 9.5% Shares of NASDAQ CDNS opened at $330.11 on Friday. The stock has a market cap of $91.05 billion, a PE ratio of 76.95, a PEG ratio of 3.91 and a beta of 1.15. The business has a fifty day moving average of $376.09 and a two-hundred day moving average of $328.57. Cadence Design Systems, Inc. has a 52-week low of $262.75 and a 52-week high of $416.69. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.47.
Cadence Design Systems (NASDAQ:CDNS – Get Free Report) last posted its earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.05. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the firm earned $1.57 EPS. The firm’s quarterly revenue was up 18.6% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. As a group, equities research analysts expect that Cadence Design Systems, Inc. will post 6.23 earnings per share for the current fiscal year.
About Cadence Design Systems (Free Report)
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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Cadence Design Systems spustila AI „super agenta“ AuraStack pro návrh desek plošných spojů a čipových pouzder. Firma říká, že může zkrátit dobu uvedení na trh až o polovinu.
The logo of Cadence Design Systems is pictured outside the company's offices in San Jose, California, U.S., January 31, 2020. Picture taken January 31, 2020. REUTERS/Stephen Nellis Purchase Licensing Rights, opens new tab
SAN FRANCISCO, July 15 (Reuters) - Cadence Design Systems (CDNS.O), opens new tab on Wednesday launched an artificial-intelligence "super agent" that designs printed circuit boards and chip packages, extending the company's push to automate more of the engineering process.
The tool, called AuraStack, lets engineers describe their goals in plain language, then plans and carries out the work using Cadence's existing software tools to lay out and virtually test circuit designs. Cadence said Nvidia (NVDA.O), opens new tab chips will accelerate the AI work.
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Cadence said AuraStack can cut time to market by up to half and lift productivity on individual tasks as much as 15-fold. The AI agent for circuit boards and chip packaging follows similar offerings earlier this year to help speed up the design of chips themselves.
In a demonstration, Cadence showed an engineer using the tool to rework a 5G smartphone's circuit board to build a cheaper version for a new market. It recommended consolidating components for a 28% cost saving, then found a lower-cost power-management chip that worked with circuit board design.
"The bottleneck isn't automation. It's really engineering intelligence," Michael Jackson, Cadence's corporate vice president and general manager for system design and analysis, said in an interview, referring to the reasoning across cost and performance trade-offs that the system is designed to handle.
Cadence named Nvidia, Taiwan Semiconductor Manufacturing Co and Schneider Electric among early users.
Jackson said Cadence customers can pair AuraStack with the AI model of their choice, including OpenAI's ChatGPT, Google's Gemini or Anthropic's Claude, or open-source models. Pricing will follow a consumption-based model based on how hard the AI models work, and still require Cadence's underlying tools, Jackson said.
AuraStack will be available this year, with the rollout to be completed in September, Jackson said.
Reporting by Stephen Nellis in San Francisco; Editing by Sanjeev Miglani
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Cadence Design Systems v 1. čtvrtletí zvýšila tržby na 1,474 miliardy USD a upravený zisk na akcii (non-GAAP) byl 1,96 USD, nad odhadem 1,89 USD. Firma zároveň zvýšila výhled tržeb na 6,125 až 6,225 miliardy USD.
Every AI accelerator that lands in a hyperscaler data center starts as software running on tools from a small club of vendors. Cadence Design Systems (NASDAQ:CDNS | CDNS Price Prediction) sits at the center of that club, and the numbers show what the AI buildout is doing to its business.
An AI Chip Design Tollbooth Cadence’s Q1 FY2026 report, filed April 27, 2026, showed revenue of $1.474 billion, up 18.7% year over year, with non-GAAP EPS of $1.96 against a $1.89 consensus. Backlog hit a record $8.0 billion, with $4.0 billion expected to convert within twelve months. Management raised FY2026 revenue guidance to $6.125 billion to $6.225 billion.
CEO Anirudh Devgan framed the demand picture bluntly: "Cadence had a strong start to 2026 with accelerating AI demand and disciplined execution, delivering one of the best Q1s in the company’s history." On the mechanics of agentic AI expanding tool consumption, he added: "When an agent runs, it explores many more variations than a human would. For example, if a chip has 100 blocks, humans might run one or two experiments per block, but an agent may try 10 or 100 variations."
Powering NVIDIA’s Silicon NVIDIA (NASDAQ:NVDA) is the customer that best illustrates the flywheel. NVIDIA’s Q1 FY2027 revenue reached $81.615 billion, up 85.23% year over year, with Data Center revenue of $75.246 billion. Jensen Huang described the moment as "the largest infrastructure expansion in human history." Cadence expanded that relationship as well, with Devgan noting an "expanded partnership on AI and robotics with NVIDIA" spanning chip design, physical AI systems, and hyperscale AI factories.
The AI Investor Portfolio, run by Eric Bleeker, holds Cadence as an active recommendation, part of a broader thesis that "colleges aren’t going to be able to graduate 10 times as many designers for chips", forcing customers to lean on AI-augmented EDA software.
How It Stacks Up Against Synopsys The obvious peer is Synopsys (NASDAQ:SNPS), whose Q2 FY2026 revenue jumped 41.9% year over year, boosted by the ~$35 billion Ansys deal. Investor reception has diverged sharply this year. Cadence is up 19.37% year to date to $373.14, while Synopsys is down 6.93%.
Valuation is the counterweight. Cadence trades at a trailing P/E of 87 and forward P/E of 48, with analysts carrying an average target of $388.78 and 22 Buy or Strong Buy ratings against 3 Holds. With FY2026 guidance calling for Cadence to hit the "Rule of 60 for the first time," the AI-chip tollbooth thesis is showing up cleanly in the operating numbers.
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