Companies /Technology
Cadence Design Systems Inc
NASDAQ: CDNS Software - Application
$330.55
▼ $3.65 (−1.09%) today
Markets open · 1:20pm ET

Cadence Design Systems (CDNS) Q1 2026 Earnings

Reported Apr 27, 2026, 4:03pm ET · SEC source
$1.96
Beat +3.70%
EPS · est. $1.89
$1.5B
Beat +1.24%
Revenue · est. $1.5B
+9.0%
Beating market
CDNS vs S&P since report
5 quarters
Consecutive EPS beats

How Did CDNS Stock React to Q1 2026 Earnings?

% change · around the report
−3%0+3%Apr 27Apr 28report 4:03pm ETearnings−0.4%−1.8%
−3%0+3%Apr 27Apr 28earnings−0.4%−1.8%
CDNS −1.8%S&P 500 −0.4%
−3%0+3%Apr 27Apr 28report 4:03pm ETearnings−0.8%−1.8%
−3%0+3%Apr 27Apr 28earnings−0.8%−1.8%
CDNS −1.8%NASDAQ −0.8%
−4%0+4%Apr 27May 5report 4:03pm ETearnings+1.3%+6.1%
−4%0+4%Apr 27May 5earnings+1.3%+6.1%
CDNS +6.1%S&P 500 +1.3%
−4%0+4%Apr 27May 5report 4:03pm ETearnings+3.0%+6.1%
−4%0+4%Apr 27May 5earnings+3.0%+6.1%
CDNS +6.1%NASDAQ +3.0%
−3.34%
Day of report
+1.43%
Next session
+8.71%
One week
+15.25%
30 days

S&P 500 over the same 30 days: +6.29%.

Did CDNS Beat Earnings? Q1 2026 Results

Yes. Cadence Design Systems reported Q1 2026 earnings of $1.96 a share on Apr 27, 2026, beating the $1.89 consensus estimate by 3.7%. Revenue was $1.5B against a $1.5B estimate.

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

“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.”

Cadence Design Systems CEO, on the earnings call

What Was Cadence Design Systems's Outlook in Q1 2026?

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 · SEC filings Q1 2025 Q1 2026
$0$500.0M$1.0B$1.5B$1.2B$1.5BRevenue$1.1B$1.3BGross Profit$361.5M$431.3MOperating Income$273.6M$335.7MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income
CDNS income statement, Q1 2026 versus Q1 2025
Metric Q1 2026 Q1 2025 Year over year
Revenue $1.5B $1.2B +18.7%
Gross Profit $1.3B $1.1B +17.2%
Operating Income $431.3M $361.5M +19.3%
Net Income $335.7M $273.6M +22.7%

CDNS Revenue by Segment

Product and Maintenance
Core EDA$1.0B+18.0%
System Design and Analysis$221.1M+18.0%
Semiconductor IP$206.4M+22.0%
Services

CDNS Revenue by Geography

Americas$663.4M
Asia Pacific$294.8M
China$191.6M
EMEA$235.9M
Japan$88.5M

Figures from SEC filings and company reports. Not investment advice.