NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-07-08
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Cadence grows revenue about 17% yearly, hitting $6.175 billion in 2026. Profit margins stay strong near 44.5%. EPS rises to about $4.44 per share. Partnerships with Intel and AI product launches boost its edge.
Growth may slow below 17% as market demand softens. Profit margins could shrink under cost pressures. EPS might miss targets if investments fail to pay off.
The market expects about 18% revenue growth and values Cadence richly with a PE near 49. Our fair value is about 50% below the Street median, reflecting more cautious growth and margin assumptions.
Breaks if: EPS falls below $4.20 in FY26
Cadence aims to achieve EPS growth with a target range of $4.39 to $4.49 for 2026.
Stated in 2 of last 2 quarters. GAAP EPS was $1.23 in 2026-Q1, indicating progress towards the annual target range of $4.39 to $4.49. Management is on track with EPS growth objectives.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“GAAP EPS: $4.39 - $4.49 for fiscal year 2026.”
“Non-GAAP EPS: $7.02 - $7.08.”
Breaks if: Operating margin falls below 43.0% in FY26
Cadence aims to maintain a non-GAAP operating margin in the range of 43.5% to 44.5% for 2026.
Stated in 2 of last 2 quarters. Non-GAAP operating margin was 44.7% in 2026-Q1, within the target range of 43.5% to 44.5%. Management is delivering on maintaining the margin as planned.
“Non-GAAP operating margin in the range of 43.5% to 44.5%.”
“Non-GAAP operating margin in the range of 44.75% to 45.75%.”
Breaks if: Revenue falls below $6.0 billion in FY26
Cadence aims to achieve a 17% year-over-year revenue growth for 2026.
Stated in 2 of last 2 quarters. Revenue grew from $1.242 billion in 2025-Q1 to $1.474 billion in 2026-Q1, reflecting a positive trajectory towards the 17% growth target for 2026. Management is delivering on this priority with consistent revenue increases.
“CFO: 'We are raising our 2026 revenue outlook to 17% year-over-year growth.'”
“We are raising our full year revenue outlook to ~14% growth year-over-year.”
