8 analysts' median target is $425[FMP target], stock is $333, +27.7% upside potential. After Q2 +2.9% EPS beat[FMP earnings], the stock moved +1.8%.
B = MoonshotScore 66[multi-pillar formula] + Council 4/6[6-lens rule]. Form 4: 0 transactions[FMP Form 4].
Q1 consensus: revenue $1.6B[FMP est], EPS $2.04[FMP est]. 8 consecutive quarters of beat[FMP earnings].
Q2 EPS +2.9% beat[FMP] but the stock +1.8% D+1[FMP D+1]. John Wall promised $52.6M CapEx + a sequential decline in Q1 during the Q2 earnings call[John Wall capex transcript].
Watchlist
Sda Growth
sda_growth
System design and analysis revenue grew 37% year-over-year, with Allegro X AI and 3D IC technology seeing significant customer adoption, while the integration of Hexagon's D&E business is progressing well.
"System design and analysis revenue grew 37% year-over-year. Al system complexity increases, customers are increasingly turning to our advanced packaging and PCB solutions. Allegro X Al was adopted by several customers, driven by significant layout design time reduction."
- Anirudh Devgan, President and Chief Executive Officer - Q2 FY26 Earnings Call - July 27, 2026
Ip Business Growth
ip_business_growth
Cadence's IP business had an outstanding quarter, growing over 40% year-over-year, driven by strong demand in AI and HPC applications and strategic focus.
"Our IP business had an outstanding quarter, growing over 40% year-over-year. Al performance is increasingly constrained by data movement, memory bandwidth, and advanced packaging, and our differentiated IP portfolio continued to see strong adoption."
- Anirudh Devgan, President and Chief Executive Officer - Q2 FY26 Earnings Call - July 27, 2026
Fy26 Guidance Raise
fy26_guidance_raise
Cadence is raising its 2026 revenue growth guidance to 19% with higher profitability, driven by growing business momentum and accelerating demand.
"Given the growing business momentum and accelerating demand, we are raising our guidance for the year to 19% revenue growth and with higher profitability as we become more central to our customers as a strategic and trusted partner."
- Anirudh Devgan, President and Chief Executive Officer - Q2 FY26 Earnings Call - July 27, 2026
Q2 Revenue Growth
q2_revenue_growth
Cadence delivered excellent Q2 results with 24% year-over-year revenue growth, achieving double-digit growth across all product groups.
"Robust design activity and customer demand drove 24% year-over-year revenue growth for Q2, with double-digit growth across all our product groups."
- John Wall, Senior Vice President and Chief Financial Officer - Q2 FY26 Earnings Call - July 27, 2026
Strategic Partnerships
strategic_partnerships
Cadence deepened its strategic partnerships with multi-year engagements with Intel on its 14A process and with Samsung Foundry on two nanometer and 3D IC technologies.
"We expanded our collaboration with Intel through a multi-year engagement focused on enabling its 14A process, leveraging our design IP and agentic Al-based EDA to co-optimize tool flows and methodologies for next-generation HPC and mobile design. We also deepened our collaboration with Samsung Foundry on two nanometer and 3D IC technologies, combining our Al-driven flows and design IP to enable next-generation AI, HPC, and mobile systems."
- Anirudh Devgan, President and Chief Executive Officer - Q2 FY26 Earnings Call - July 27, 2026
Record Backlog
record_backlog
Cadence achieved a record backlog of $8.1 billion in the second quarter, which was above expectations.
"Second-quarter bookings resulted in a record backlog of $8.1 billion."
- John Wall, Senior Vice President and Chief Financial Officer - Q2 FY26 Earnings Call - July 27, 2026
Stock Expert AI - Methodology
multi-pillar methodology. Revenue Growth and Gross Margin strong. Operating Leverage weak.
How is it calculated? ->6 investor frameworks. 4 bullish (Ray Dalio, Klarman, Buffett, Munger), 1 bearish (Ken Griffin), 1 neutral (Jim Simons).
How is it calculated? ->Quality business, discounted price.
How is it calculated? ->Past Performance
Q2 (July 27, 2026): EPS $2.11 vs $2.05 est[FMP], +2.9% beat. D+1 movement: +1.8%[FMP D+1]. Decline despite beat - market reacted to guidance, not numbers.
Q2: EPS $2.11 vs $2.05 beat[FMP], stock +1.8% D+1[FMP].
No RPO/backlog concentration disclosed in Q2 earnings call.
Q2 CapEx $52.6M[FMP cashflow]. Q2 op margin 28.4%[FMP op margin] - this level in Q1 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: Q1 EPS threshold $2.04[FMP], CapEx threshold "below $52.6M"[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 multi-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 Cadence Design Systems, Inc. (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.
Figures are sourced from Financial Modeling Prep (FMP) fundamentals and consensus data plus official earnings-call transcripts; derived metrics are labeled with their source next to each figure.
No. This page is educational research, not investment advice. It summarizes analyst consensus and company data; consult a licensed financial advisor before making any investment decision.