Cadence Q2 Revenue Jumps 24% to $1.58B, EPS More Than Doubles; Backlog Hits $8.1B
CDNS sits 31% above its 52-week low of $262.749 on elevated volume (2.0× avg).
Summary
Cadence reported Q2 2026 revenue of $1.58 billion, up 24% YoY, with diluted EPS of $1.33 more than doubling. Contracted backlog reached $8.1 billion, and operating cash flow for the first half was $990.7 million, even as the company invested heavily in acquisitions.
Key Events · Earnings and Guidance · CDNS
-
Q2 Revenue +24% to $1.58B
Total revenue grew 24% year-over-year to $1.58 billion, driven by strength across Core EDA, Semiconductor IP, and System Design & Analysis. Product and maintenance revenue rose 22%, while services revenue jumped 47%.
-
Diluted EPS More Than Doubles
Diluted EPS reached $1.33, up from $0.59 a year ago, reflecting strong operating leverage and a lower effective tax rate. Operating margin expanded to 28% from 19% in Q2 2025, aided by the absence of a prior-year $128.5 million contingent liability charge.
-
Backlog Hits $8.1 Billion
Contracted but unsatisfied performance obligations stood at $8.1 billion as of June 30, 2026, with 58% expected to convert to revenue over the next 12 months, providing exceptional forward visibility.
-
China Revenue Surges 96%
Revenue from China reached $236.2 million, nearly doubling from $120.7 million a year ago, as temporary export license restrictions that impacted Q2 2025 deliveries were resolved.
Analysis · CDNS · Technology
A standout quarter for Cadence saw revenue climb 24% year-over-year to $1.58 billion and diluted EPS more than double to $1.33. Broad-based strength across all product categories and geographies fueled the results, with a particularly sharp 96% surge in China revenue as prior-year export license headwinds faded. Exceptional forward visibility comes from the $8.1 billion contracted backlog, 58% of which is expected to convert to revenue over the next twelve months. The business's cash-generation power is underscored by operating cash flow of $990.7 million for the first half, even as the company deployed $2.1 billion on acquisitions—primarily the Hexagon D&E deal—and returned $400 million to shareholders via buybacks. The balance sheet remains robust with $1.44 billion in cash and an undrawn $1.25 billion revolver, though cash balances are down sharply from year-end due to acquisition spending. This filing confirms the strong momentum previewed in the July 27 earnings release and 8-K, adding granular detail on segment performance, backlog composition, and post-acquisition financial position.
At the time of this filing, CDNS was trading at $345.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $95.1B. 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.