--- canonical_url: https://www.stockexpertai.com/earnings/cdns last_updated: 2026-05-04T10:24:29.114Z --- # Cadence Design Systems, Inc. (CDNS) Q4 FY2026 Earnings Preview > This content was automatically generated with FMP live data + Q1 FY2026 earnings call transcript. Generated: 2026-05-04T10:24:28.128Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $340.94 (▲ 3.44%) | fmp:quote | | Market Cap | $94.1B | fmp:profile | | 52w range | $262.75 – $376.45 | fmp:quote | | Earnings | Mon 27 Jul | fmp:earnings-history | | EPS estimate | $2.05 (+24% YoY) | fmp:earnings-estimate | | Revenue estimate | $1.6B | fmp:earnings-estimate | | Beat streak | 8/4 | fmp:earnings-history | | Rating | B (overall 3/5) | fmp:ratings | | Analyst median target | $380 (+11.5% upside) | fmp:price-target-consensus | | MoonshotScore | 71/100 | derived | | Council | 3/6 bullish | derived | | Munger verdict | Fairly Valued | derived | ## Cadence Design Systems, Inc. — Q4 FY2026 Expectations Q4 consensus: revenue $1.6B^{[FMP est]}, EPS $2.05^{[FMP est]}. 8 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** B · **Stance:** HOLD · **Council:** 3/6 · **Moonshot:** 71 = MoonshotScore 71^{[9-pillar formula]} + Council 3/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (6 metrics) ### 1. 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, Risk Indicator · Q1 FY2026 ### 2. 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, Investor Focus · Q1 FY2026 ### 3. 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, Investor Focus · Q1 FY2026 ### 4. 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, Investor Focus · Q1 FY2026 ### 5. 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, Investor Focus · Q1 FY2026 ### 6. 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, Investor Focus · Q1 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 8.0 | strong | Q1 vs Q2: fast growth (+15.6%) | | Gross Margin | 10.0 | strong | Q1: very high margin (95.8%, software/cloud territory) | | Operating Leverage | 3.0 | weak | op margin healthy (29.3%) | | Cash Runway | 10.0 | strong | FCF very strong ($0.3B, 6.3× CapEx) | | R&D Intensity | 3.0 | weak | very high R&D (33.2%, margin pressure risk) | | Price Momentum | 7.0 | strong | RSI 65.5 positive momentum, 50d above | | News Sentiment | 9.0 | strong | strong buy consensus (89%) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +11.5% | | Ken Griffin | bull | flow · 50d MA above | | Jim Simons | neutral | quant · RSI 66 | | Klarman | neutral | value · target upside +11.5% | | Buffett | bull | quality · ROE score 4/5 | | Munger | neutral | valuation · target upside +11.5% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Fairly Valued - **Financial Health:** Moderate - **Margin of Safety:** Moderate - **Interest Coverage:** Adequate - **ROIC vs WACC:** Healthy **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 65.5 — yükselişte nötr — overbought sınırının altında, momentum pozitif - **50d MA:** $298 — hisse %14.5 üstünde — kısa vadeli destek - **200d MA:** $322 — hisse %6.0 üstünde — uzun vadeli destek - **Volume (10d):** -38% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q2 FY25 | $1.65 | $1.56 | BEAT | +9.7% | | Q3 FY25 | $1.93 | $1.79 | BEAT | -2.9% | | Q4 FY25 | $1.99 | $1.91 | BEAT | +7.6% | | Q1 FY26 | $1.96 | $1.91 | +2.6% EPS | -3.3% | 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. ## 3 Scenarios ### Scenario A · Beat **Q4 EPS > $2.05 + CapEx discipline** Threshold: EPS > $2.05^{[FMP est]}. Target: Break above median target $380^{[FMP target]}; high target $425^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $2.05 + CapEx < $48.8M** Threshold: EPS ≈ $2.05^{[FMP est]}, Q4 CapEx < $48.8M^[FMP]. Target: Consolidation in the band between current $341^[FMP] and median $380^[FMP]. ### Scenario C · Miss **EPS < $1.99 or CapEx ≥ $48.8M** Threshold: EPS < $1.99^{[FMP est×0.97]}. Target: Current $341 below SMA200 $322^[FMP], if rejection continues, $273^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q1: EPS $1.96 vs $1.91 beat^[FMP], stock -3.3% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q1 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q1 FY26 ### CapEx shock Q1 CapEx $48.8M^{[FMP cashflow]}. Q1 op margin 29.3%^{[FMP op margin]} — this level in Q4 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $380 (+11.5% upside vs current $341) - **High / Low:** $425 / $275 - **Buy / Hold / Sell:** 24 / 3 / 0 - **Analyst count:** 5 (last quarter), 39 all-time ## Additional Transcript Insights ### 1. fy26_revenue_growth **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 17% ### 2. record_backlog **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** $8 ### 3. ip_business_growth **Claim:** 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. **Evidence (transcript):** "Our IP business continued its strong momentum, with 22% year-over-year revenue growth driven by accelerating demand of AI, HPC and automotive workloads." **Numbers:** 22% ### 4. eda_business_growth **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 18% ### 5. system_design_analysis_growth **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 18% ### 6. q1_operating_margin **Claim:** Cadence delivered 19% year-over-year revenue growth and 45% operating margin for Q1, driven by robust design activity, coupled with our solid execution. **Evidence (transcript):** "Robust design activity, coupled with our solid execution, drove 19% year-over-year revenue growth and 45% operating margin for Q1." **Numbers:** 19%, 45% --- *Data source: FMP (live query, 2026-05-04), Q1 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*