Cadence Q1 revenue beats on demand for AI solutions

Cadence Design Systems

27/04/2026 21:11

Overview

EDA software provider's Q1 revenue rose 19% yr/yr, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company raised 2026 revenue outlook to ~17% yr/yr growth, citing strong AI demand and record backlog

Outlook

Cadence raises 2026 revenue outlook to ~17% YoY growth, now $6.125 bln to $6.225 bln

Company sees 2026 non-GAAP diluted EPS of $7.85 to $7.95

Cadence expects 2026 non-GAAP operating margin of 43.5% to 44.5%

Result Drivers

AI-DRIVEN SOLUTIONS - Co said accelerating demand for AI solutions drove broad-based growth across core EDA, hardware, IP, and system design businesses

CORE EDA AND IP GROWTH - Core EDA revenue grew 18% yr/yr and IP business rose 22% yr/yr, driven by expanding adoption among AI infrastructure, HPC, and automotive customers

HARDWARE AND SYSTEM DESIGN DEMAND - Hardware delivered a record quarter on strong AI and HPC demand, while system design and analysis revenue increased 18% yr/yr, aided by the Hexagon D&E acquisition

Company press release: ID:nBw252dyBa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.47 bln
$1.45 bln (18 Analysts)
Q1 Adjusted EPS
Beat
$1.96
$1.90 (18 Analysts)
Q1 EPS
$1.23


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Cadence Design Systems Inc is $380.00, about 14.2% above its April 24 closing price of $332.89

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 39 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)