5 analysts' median target is $380[FMP target], stock is $341, +11.5% upside potential. After Q1 +2.6% EPS beat[FMP earnings], the stock moved -3.3%.
B = MoonshotScore 71[9-pillar formula] + Council 3/6[6-lens rule]. Form 4: 0 transactions[FMP Form 4].
Q4 consensus: revenue $1.6B[FMP est], EPS $2.05[FMP est]. 8 consecutive quarters of beat[FMP earnings].
Q1 EPS +2.6% beat[FMP] but the stock -3.3% D+1[FMP D+1]. John Wall promised $48.8M CapEx + a sequential decline in Q4 during the Q1 earnings call[John Wall capex transcript].
Watchlist
Q1 Operating Margin
q1_operating_margin
Cadence delivered 19% year-over-year revenue growth and 45% operating margin for Q1, driven by robust design activity, coupled with our solid execution.
"Robust design activity, coupled with our solid execution, drove 19% year-over-year revenue growth and 45% operating margin for Q1."
- John Wall, Senior Vice President and Chief Financial Officer - Q1 FY26 Earnings Call - April 27, 2026
System Design Analysis Growth
system_design_analysis_growth
Our System Design and Analysis business delivered 18% year-over-year revenue growth as AI-driven multiphysics simulation and 3D-IC become essential to addressing growing system challenges.
"Our System Design and Analysis business delivered 18% year-over-year revenue growth as AI-driven multiphysics simulation and 3D-IC become essential to addressing growing system challenges."
- Anirudh Devgan, President and Chief Executive Officer - Q1 FY26 Earnings Call - April 27, 2026
Eda Business Growth
eda_business_growth
Cadence's core EDA business delivered another strong quarter, with revenue growing 18% year-over-year, driven by increasing proliferation of our solutions at market-shaping customers.
"Our core EDA business delivered another strong quarter, with revenue growing 18% year-over-year, driven by increasing proliferation of our solutions at market-shaping customers."
- Anirudh Devgan, President and Chief Executive Officer - Q1 FY26 Earnings Call - April 27, 2026
Fy26 Revenue Growth
fy26_revenue_growth
Cadence is raising its 2026 revenue growth outlook to 17% due to accelerating momentum in its business and expects to achieve the Rule of 60 for the first time.
"Given the accelerating momentum of our business, we are raising our 2026 revenue growth outlook to 17% and expect to achieve the Rule of 60 for the first time."
- Anirudh Devgan, President and Chief Executive Officer - Q1 FY26 Earnings Call - April 27, 2026
Ip Business Growth
ip_business_growth
Cadence's IP business continued its strong momentum, with 22% year-over-year revenue growth driven by accelerating demand of AI, HPC and automotive workloads.
"Our IP business continued its strong momentum, with 22% year-over-year revenue growth driven by accelerating demand of AI, HPC and automotive workloads."
- Anirudh Devgan, President and Chief Executive Officer - Q1 FY26 Earnings Call - April 27, 2026
Record Backlog
record_backlog
Cadence's record backlog of $8 billion reflects strong customer confidence in its AI-driven portfolio and its pivotal role in enabling delivery of their increasingly complex chip and system design road maps.
"Our record backlog of $8 billion was ahead of plan, reflecting strong customer confidence in our AI-driven portfolio and its pivotal role in enabling delivery of their increasingly complex chip and system design road maps."
- Anirudh Devgan, President and Chief Executive Officer - Q1 FY26 Earnings Call - April 27, 2026
Stock Expert AI - Methodology
9-pillar methodology. Revenue Growth and Gross Margin strong. Operating Leverage weak.
How is it calculated? ->6 investor frameworks. 3 bullish (Ray Dalio, Ken Griffin, Buffett), 0 bearish (none), 3 neutral (Jim Simons, Klarman, Munger).
How is it calculated? ->Quality business, trading at fair value.
How is it calculated? ->Past Performance
Q1 (April 27, 2026): EPS $1.96 vs $1.91 est[FMP], +2.6% beat. D+1 movement: -3.3%[FMP D+1]. Decline despite beat - market reacted to guidance, not numbers.
Q1: EPS $1.96 vs $1.91 beat[FMP], stock -3.3% D+1[FMP].
No RPO/backlog concentration disclosed in Q1 earnings call.
Q1 CapEx $48.8M[FMP cashflow]. Q1 op margin 29.3%[FMP op margin] - this level in Q4 is sensitive to CapEx revision risk.
Not advice - a structural framework for earnings night. Decision discipline is yours.
Market Outlook
You read it in 5 minutes. When the numbers come out on Monday evening - you know what you're looking at.
Data arrives at night. The framework is ready now.
Data arrives on Monday evening. The framework is ready on this page: Q4 EPS threshold $2.05[FMP], CapEx threshold "below $48.8M"[John Wall]. Two anchors, three scenarios.
Comparison Stock Expert AI Pro $24/month ($240/year), 77% cheaper than the total of three earnings-tracking tools ($1,059/year -> $240/year).
Seeking Alpha $299/yr - analyst opinions + earnings coverage TipRanks $360/yr - Smart Score (1-10) + analyst consensus + insider trades Trendspider $400/yr - AI pattern detection + automated TA + multi-timeframe alerts
Prices as of April 2026. Sources: seekingalpha.com/subscriptions - tipranks.com/pricing - trendspider.com/pricing
Stock Expert AI Pro: $24/month ($240/year). Council 7-lens analysis + MoonshotScore 9-pillar + Insider tracker + Technical levels - all in one platform, for every stock.
Educational tool, not investment advice. Past performance does not guarantee future results.
Calendar
DATA GAP: Events not in the FMP /stable/calendar feed - Investor day, analyst day, product launches, regulatory dates. These require company IR page scraping or manual calendar entry.
This CDNS (CDNS) earnings preview covers the analyst consensus, key catalysts, and what to watch on the earnings call.
Consensus EPS, revenue guidance, segment growth rates, and the tone of management commentary — the full breakdown with sources is on this page.