The beat-and-raise quarter with accelerating revenue growth and record backlog signals strong AI-driven demand across Cadence's portfolio. Monitor Q3 guidance for continued momentum and any impact from Hexagon DE integration. The raised FY outlook supports a positive re-rating.
Price Chart
Executive Summary
Cadence reported a strong Q2 2026 beat on both revenue and non-GAAP EPS, with revenue of $1.584B (+24% YoY) and non-GAAP EPS of $2.11 (+28% YoY). The company raised its full-year 2026 revenue growth outlook to 19% YoY and non-GAAP EPS midpoint to $8.10, supported by a record backlog of $8.1B and accelerating AI-driven demand across its EDA, IP, and System Design segments.
Key Financial Metrics
Key Facts
- Revenue of $1.584B, up 24% YoY from $1.275B
- Non-GAAP EPS of $2.11, up 28% YoY from $1.65
- Record backlog of $8.1B
- FY 2026 revenue guidance raised to $6.26B-$6.34B (19% YoY growth at midpoint)
- FY 2026 non-GAAP EPS guidance raised to $8.05-$8.15 (midpoint $8.10)
- Operating cash flow of $635M in Q2, FY 2026 OCF guidance raised to $2.0B
- IP revenue grew >40% YoY; Core EDA grew 18% YoY; System Design & Analysis grew 37% YoY
- Non-GAAP operating margin expanded to 45.5% from 42.8% YoY
Financial Impact
Revenue beat by ~$4M vs consensus; Non-GAAP EPS beat by ~$0.05 vs consensus; FY guidance raised by ~$100M at revenue midpoint and $0.15 at non-GAAP EPS midpoint
Risk Factors
- Integration risk from Hexagon DE acquisition
- Geopolitical exposure to China (15% of Q2 revenue)
- DOJ/BIS settlement compliance obligations
- Potential macro slowdown in semiconductor spending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000813672-26-000089 |
| Document: cdns07272026ex9901.htm | 0000813672-26-000089 |
| Document: cdns-20260727.htm | 0000813672-26-000089 |
| Document: 0000813672-26-000089-index-headers.html | 0000813672-26-000089 |
| Document: 0000813672-26-000089-index.html | 0000813672-26-000089 |
| Document: 0000813672-26-000089.txt | 0000813672-26-000089 |
| 8-K Data (Synthetic) | 0000813672-26-000089 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Insider Cluster | $340.39 $326.70 | ▼ −4.02% | ▼ −4.53% | $351.35 (+3.22%) |
Aug 25, 2026 5w ago | Insider Cluster | $334.68 $294.90 | ▼ −11.89% | ▼ −13.09% | $351.35 (+4.98%) |
Aug 17, 2026 6w ago | Court Ruling | $323.47 $273.96 | ▼ −15.31% | ▼ −13.33% | $351.35 (+8.62%) |
Aug 13, 2026 7w ago | Court Ruling | $323.77 $289.37 | ▼ −10.62% | ▼ −8.88% | $351.35 (+8.52%) |
Aug 6, 2026 8w ago | Institutional Cluster | $338.42 $304.88 | ▼ −9.91% | ▼ −10.51% | $351.35 (+3.82%) |
Jul 28, 2026 9w ago | Court Ruling | $344.72 $331.90 | ▼ −3.72% | ▼ −7.10% | $351.35 (+1.92%) |
Jul 27, 2026 9w ago | 8-K | $344.72 $331.90 | ▼ −3.72% | ▼ −7.10% | $351.35 (+1.92%) |
Jul 24, 2026 10w ago | Insider Cluster | $326.24 $318.75 | ▲ +2.30% | ▲ +5.92% | $351.35 (−7.70%) |
Jul 20, 2026 10w ago | Court Ruling | $329.93 $323.47 | ▼ −1.96% | ▼ −6.08% | $351.35 (+6.49%) |
Jul 16, 2026 11w ago | ANALYST-UPGRADE | $364.65 $323.77 | ▼ −11.21% | ▼ −14.83% | $351.35 (−3.65%) |
US Market Status
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