Cadence lifts 2026 outlook as Q2 revenue climbs 24% to $1.58B and backlog reaches record $8.1B
CDNS sits 29% above its 52-week low of $262.749.
Summary
Cadence posted Q2 revenue of $1.58 billion, a 24% year-over-year increase, and raised its full-year 2026 guidance for revenue, EPS, and cash flow. A record backlog of $8.1 billion underscores strong demand for its AI-driven design solutions.
Updates
· SEC 10-Q — Q2 net income was $367.1 million, or $1.33 diluted EPS, versus $160.1 million, or $0.59, a year earlier. Cash and equivalents fell to $1.44 billion from $3.00 billion at year-end after the $2.9 billion Hexagon D&E acquisition.
Key Events · Earnings and Guidance · CDNS
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Q2 Revenue Surges 24%
Total revenue reached $1.584 billion, up from $1.275 billion in Q2 2025, driven by 40%+ growth in IP revenue and 18% growth in core EDA.
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Record Backlog of $8.1 Billion
Quarter-end backlog hit an all-time high, with $4.2 billion expected to be recognized as revenue in the next 12 months, providing strong visibility.
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Full-Year Guidance Raised
2026 revenue outlook increased to $6.26-$6.34 billion (19% growth at midpoint), non-GAAP EPS to $8.05-$8.15, and operating cash flow to ~$2.0 billion.
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Q3 Guidance Above Consensus
Q3 revenue expected between $1.595-$1.625 billion with non-GAAP EPS of $2.01-$2.07, indicating continued momentum.
Analysis · CDNS · Technology
A standout quarter saw Cadence beat its own guidance and raise the full-year forecast across every key metric. Revenue jumped 24% year-over-year to $1.58 billion, fueled by broad-based strength in AI-related design tools, IP, and hardware. The record $8.1 billion backlog and a raised 2026 revenue growth outlook of 19% point to sustained demand that extends well beyond this quarter. Non-GAAP EPS guidance moved up to $8.10 at the midpoint, and operating cash flow is now expected to reach $2 billion — a significant jump that strengthens the balance sheet and supports the ongoing share repurchase program. For a $93 billion market-cap company, this level of outperformance and upward revision is a clear positive signal that the AI-driven semiconductor design cycle has further room to run.
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At the time of this filing, CDNS was trading at $339.01 on NASDAQ in the Technology sector, with a market capitalization of approximately $93.5B. The 52-week trading range was $262.75 to $416.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.