Cadence Q2 adjusted EPS beats estimates, raises revenue, non-GAAP EPS outlook

Cadence Design Systems

27/07/2026 21:12

Overview
EDA software firm's Q2 revenue grew yr/yr, meeting analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised 2026 revenue and non-GAAP EPS outlook, citing strong AI-driven demand

Outlook
Cadence raises 2026 revenue outlook to 19% YoY growth, now $6.26 bln to $6.34 bln
Company expects 2026 non-GAAP EPS of $8.05 to $8.15
Cadence sees 2026 non-GAAP operating margin at 43.75% to 44.75%

Result Drivers
AI SOLUTIONS DEMAND - Co said accelerating demand for AI-driven solutions across both Design for AI and AI for Design drove Q2 results
SEMICONDUCTOR IP GROWTH - Co said IP revenue grew more than 40% yr/yr, driven by strong demand for its Star IP portfolio and a significant agreement with Intel
HARDWARE AND SYSTEM DESIGN - Co said hardware delivered a record quarter with 12 new customers and expansions with hyperscalers and AI innovators; system design and analysis revenue grew 37% yr/yr

Company press release: ID:nBwbh5Mppa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$1.58 bln
$1.58 bln (17 Analysts)
Q2 Adjusted EPS
Beat
$2.11
$2.05 (17 Analysts)
Q2 EPS
 
$1.33
 

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 $400.00, about 22.6% above its July 24 closing price of $326.24
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 33 three months ago

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(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.)