Cadence climbs as AI demand drives annual forecast hike

Cadence Design Systems

28/07/2026 09:26

** Shares of chip design software provider Cadence Design CDNS.O rise 3.4% to $350 before the bell
** CDNS raised 2026 rev forecast to $6.26 bln- $6.34 bln, up from its prior outlook of $6.13 bln- $6.23 bln
** Expects adj. EPS between $8.05 and $8.15, up from previous forecast of $7.85-$7.95
** Piper Sandler says, while Cadence continues to impress, its higher valuation vs peers already prices in "likelihood of great growth outcomes"   
** Reported Q2 adj. EPS of $2.11, beating analysts' avg. estimate of $2.05 - data compiled by LSEG
** 24 of 26 brokerages rate the stock "buy" or higher, and the rest rate it "hold"; their median PT is $400 - as per LSEG data
** As of last close, stock up 8.3% YTD

 (Reporting by Kanchana Chakravarty in Bengaluru)
 ((Kanchana.Chakravarty@thomsonreuters.com;))