CDNS Q1 2026 Earnings
Reported Apr 27, 2026 at 4:03 PM ET · SEC Source
Q1 26 EPS
$1.96
BEAT +3.70%
Est. $1.89
Q1 26 Revenue
$1.47B
BEAT +1.24%
Est. $1.46B
vs S&P Since Q1 26
+6.4%
BEATING MARKET
CDNS +9.5% vs S&P +3.0%
Market Reaction
Did CDNS Beat Earnings? Q1 2026 Results
Cadence Design Systems kicked off fiscal 2026 on firm footing, posting first-quarter revenue of $1.47 billion, up 18.7% year over year, while non-GAAP EPS of $1.96 cleared the $1.89 consensus estimate by 3.97%, reflecting broad-based demand for its c… Read more Cadence Design Systems kicked off fiscal 2026 on firm footing, posting first-quarter revenue of $1.47 billion, up 18.7% year over year, while non-GAAP EPS of $1.96 cleared the $1.89 consensus estimate by 3.97%, reflecting broad-based demand for its chip and system design tools amid an accelerating AI infrastructure buildout. The quarter's momentum was anchored by Core EDA, which accounts for roughly 71% of revenue and grew 18% year over year as semiconductor and AI infrastructure customers deepened adoption of Cadence's AI-driven design solutions, while the IP segment added 22% growth and the hardware business delivered a particularly strong performance on high-performance computing demand. A record backlog of $8.00 billion, with $4.00 billion expected to convert over the next twelve months, underscored the durability of that demand signal. Management responded by lifting the full-year 2026 revenue outlook to $6.13 billion to $6.23 billion, implying approximately 17% growth at the midpoint, and setting non-GAAP EPS guidance of $7.85 to $7.95, with second-quarter revenue guided at $1.56 billion to $1.60 billion.
Key Takeaways
- • Accelerating AI demand across customer base
- • Record backlog of $8.0 billion reflecting strong customer commitment
- • Expanding customer adoption of AI-driven EDA solutions
- • Strong demand from AI infrastructure and semiconductor customers for hardware
- • Robust demand for IP from AI infrastructure, HPC, and automotive workloads
- • Hexagon D&E acquisition contributing to System Design and Analysis growth
- • Broad-based strength across all business segments
CDNS Forward Guidance & Outlook
For fiscal year 2026, Cadence raised its revenue outlook to $6.125 billion–$6.225 billion (approximately 17% YoY growth at the midpoint), up from the prior range of $5.9 billion–$6.0 billion. Full-year GAAP operating margin is expected at 27.5%–28.5%, non-GAAP operating margin at 43.5%–44.5%, GAAP EPS of $4.39–$4.49, and non-GAAP EPS of $7.85–$7.95. Operating cash flow is guided at $1.875 billion–$1.975 billion. For Q2 2026, the company expects revenue of $1.555 billion–$1.595 billion (22%–25% YoY growth), GAAP EPS of $1.07–$1.13, non-GAAP EPS of $2.02–$2.08, and plans to use approximately $200 million for share repurchases. The company expects to use approximately 50% of free cash flow for share repurchases for the full year.
CDNS YoY Financials
Q1 2026 vs Q1 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 had a strong start to 2026, delivering a solid Q1 with accelerating AI demand and record backlog, reflecting strong customer commitment to our AI-driven portfolio.”
— Anirudh Devgan, Q1 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
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| 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% |