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EarningsQ2 2026 Earnings Report
CDNS Q2 2026 EPS Results
Actual EPS$2.11
Consensus EPS$2.05
Beat/MissBeat by +$0.06
One Year Ago EPS$1.65
CDNS Q2 2026 Revenue Results
Actual Revenue$1.58B
Expected Revenue$1.58B
Beat/MissBeat by +$7.53M
YoY Revenue Growth+24.23%
Earnings Announcement Details
QuarterQ2 2026
Date07/27/2026
TimeAfter Close
Conference CallMonday, July 27, 2026
CDNS Upcoming Earnings
Cadence Design's next earnings date is estimated for October 26, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
CDNS Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong, broad-based operational and financial momentum: 24% Q2 revenue growth, record backlog ($8.1B), robust margins (45.5% non-GAAP in Q2), and notable early traction for agentic AI products and strategic partnerships (Intel, Samsung, TSMC). Management raised full-year guidance to ~19% revenue growth and reiterated confidence in multi-year TAM expansion from agentic AI. Near-term headwinds include deliberate investment spending in H2 (Hexagon integration, Intel engagement), hardware supply constraints, regulatory sensitivity around export controls, and the early-stage nature of agentic AI monetization, but these were framed as strategic investments to drive future growth.Company Guidance
Record Q2 Revenue and Strong YoY Growth
Total revenue of $1,584 million in Q2, up 24% year-over-year; company raised full-year guidance to imply ~19% revenue growth for 2026 (updated revenue range $6,260M–$6,340M).
Robust Profitability and Margins
Non-GAAP operating margin of 45.5% in Q2 and GAAP operating margin of 28.4%; Q2 non-GAAP EPS $2.11 and GAAP EPS $1.33. Full-year non-GAAP operating margin guided to ~43.75%–44.75%.
Record Backlog and Strong Bookings
Bookings produced a record backlog of $8.1 billion at quarter end; analysts on the call noted roughly a 55% increase in bookings year-over-year in the first half (analyst commentary).
Material Cash Generation and Share Repurchases
Operating cash flow of $635 million in Q2 and expected ~ $2.0 billion operating cash flow for 2026; cash balance $1,440 million and $200 million of share repurchases executed in Q2; company expects to use ~50% of free cash flow for buybacks in 2026.
Strong IP and SDA Momentum
IP business grew over 40% year-over-year in the quarter; System Design & Analysis (SDA) revenue grew 37% year-over-year, with portfolio strength in advanced packaging, 3D IC and PCB solutions.
Broad-Based Software and Core EDA Strength
Core EDA grew 18% year-over-year; recurring revenue grew ~24% YoY in Q2 (pro forma/adjusted recurring revenue was still high-teens to ~20% excluding Hexagon contribution), with strong renewals and add-ons driving expansions.
Record Hardware Quarter and Strategic Customer Wins
Hardware delivered a record quarter driven by Palladium Z3 and Protium X3; added 12 new logos and expanded engagements with marquee AI/HPC customers; demand remains supply-constrained rather than demand-constrained.
Early Traction for Agentic AI (AuraStack/ChipStack/ViraStack/InnoStack)
Multiple agentic AI products reported strong early results and customer engagements: ChipStack >20 customer engagements and production deployments, ViraStack >25 engagements, AuraStack reported up to 15x productivity for PCB and 2x faster time-to-market, and an early customer result showing >40x faster RTL validation on an advanced node design.
Expanded Strategic Partnerships and DTCO Engagements
Announced multi-year engagement with Intel (14A/DTCO), deeper collaboration with Samsung Foundry on 2nm and 3D IC, integration work with TSMC 3DFabric, and continued integration of Hexagon's D&E business; these are positioned as multi-year growth drivers.
CDNS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed