Q2 26 EPS
$2.11
BEAT +2.66%
Est. $2.06
Q2 26 Revenue
$1.58B
BEAT +0.53%
Est. $1.58B
vs S&P Since Q2 26
-5.9%
TRAILING MARKET
CDNS -1.6% vs S&P +4.3%
Market Reaction
Did CDNS Beat Earnings? Q2 2026 Results
Cadence Design Systems posted a clean beat across both top and bottom lines in the second quarter of 2026, extending its streak of beating consensus EPS estimates to four consecutive quarters as robust demand for its AI-driven design tools powered re… Read more Cadence Design Systems posted a clean beat across both top and bottom lines in the second quarter of 2026, extending its streak of beating consensus EPS estimates to four consecutive quarters as robust demand for its AI-driven design tools powered results well ahead of expectations. The company reported non-GAAP EPS of $2.11, ahead of the $2.06 consensus by 2.66%, while revenue reached $1.58 billion, up 24.2% year-over-year and just ahead of the $1.58 billion estimate. The single biggest driver of the quarter's strength was a surge in Semiconductor IP revenue, which climbed more than 40% year-over-year on the back of strong Star IP demand and a significant Intel agreement, complemented by record hardware shipments and 37% growth in System Design and Analysis. Non-GAAP operating margin expanded to 45.5% from 42.8% a year ago, while backlog reached a record $8.10 billion. Cadence raised its full-year 2026 revenue outlook to $6.26 billion to $6.34 billion, reflecting roughly 19% growth at the midpoint, with non-GAAP EPS now guided at $8.05 to $8.15.
Key Takeaways
- • Broad-based strength driving double-digit growth across all businesses
- • Accelerating demand for AI-driven solutions across Design for AI and AI for Design
- • IP revenue grew more than 40% YoY driven by Star IP portfolio and significant Intel agreement
- • Core EDA revenue grew 18% YoY driven by AI portfolio and expanded adoption across hyperscalers, semiconductor companies and startups
- • Hardware delivered another record quarter adding 12 new customers
- • System Design and Analysis revenue grew 37% YoY driven by PCB, advanced packaging solutions and Hexagon D&E integration
CDNS Forward Guidance & Outlook
Cadence raised its fiscal year 2026 outlook: revenue of $6.26 billion to $6.34 billion (approximately 19% YoY growth at midpoint, up from prior 16%-18%), GAAP operating margin of 27.75% to 28.75%, non-GAAP operating margin of 43.75% to 44.75%, GAAP EPS of $4.76 to $4.86, non-GAAP EPS of $8.05 to $8.15, and operating cash flow of approximately $2.0 billion. For Q3 2026, revenue is guided at $1.595 billion to $1.625 billion (19%-21% YoY growth), non-GAAP operating margin of 43.5% to 44.5%, GAAP EPS of $1.11 to $1.17, and non-GAAP EPS of $2.01 to $2.07. The company expects to use approximately $200 million to repurchase shares in Q3 and approximately 50% of free cash flow for share repurchases for the full year.
CDNS YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
CDNS Revenue by Segment
With YoY comparisons, source: SEC Filings
CDNS Revenue by Geography
With YoY comparisons, source: SEC Filings
“Cadence delivered an outstanding Q2 driven by broad-based strength and the accelerating demand for our AI-driven solutions across both Design for AI and AI for Design fronts.”
— Anirudh Devgan, Q2 2026 Earnings Press Release
CDNS Earnings Trends
CDNS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CDNS EPS Trend
Earnings per share: estimate vs actual
CDNS Revenue Trend
Quarterly revenue: estimate vs actual
CDNS Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $2.06 | $2.11 | +2.66% | $1.58B | +0.53% |
| Q1 26 BEAT | $1.89 | $1.96 | +3.70% | $1.47B | +1.24% |
| Q4 25 BEAT FY | $1.91 | $1.99 | +4.19% | $1.44B | +1.13% |
| FY Full Year | — | $7.14 | — | $5.30B | — |
| Q3 25 BEAT | $1.79 | $1.93 | +7.82% | $1.34B | +1.16% |
| Q2 25 BEAT | $1.56 | $1.65 | +5.77% | $1.28B | +1.94% |