Cadence Design Systems, Inc.
Cadence Design Systems, Inc. Q2 FY26 Results — Earnings Call Analysis
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
What the Q2 FY26 call signalled
3 of 4 strong
The short version
- Cadence expects approximately 17% year-over-year revenue growth for 2026, raising their revenue outlook to $6.125 billion to $6.225 billion. - 2026 revenue outlook raised to approximately 17% year-over-year growth.
From Cadence Design Systems, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- Cadence expects approximately 17% year-over-year revenue growth for 2026, raising their revenue outlook to $6.125 billion to $6.225 billion.
- Q1 showed strong momentum with 19% year-over-year revenue growth and record bookings pushing backlog to $8 billion.
- The increase includes $65 million revenue uplift from Hexagon acquisition with potential strength in the second half, but full-year guide remains conservative for now.
- Agentic AI is expected to expand long-term total addressable market (TAM), increasing license consumption without a sudden step function in 2026.
- IP revenue is growing robustly due to expanded portfolio, new foundry nodes, and high-content advanced IP agreements.
2 more points from Cadence Design Systems, Inc.'s call on revenue
Pro opens every point from 15K+ earnings calls
Profitability & Margins
See what Cadence Design Systems, Inc. said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Cadence is investing significantly in agentic AI and new product areas, which may impact operating margins in the near term (Page 8).
- They are developing next-generation hardware systems (Z4 and Z5) to handle future design complexities, ensuring capacity for systems up to 1 trillion transistors by 2030 (Page 10).
- The company has made major acquisitions like Hexagon MSC to expand into industrial simulation and physical AI markets, with integration and strategic investments ongoing to create full-flow solutions (Page 10).
- Capital spending includes investments in expanding their SDA capabilities, integrating CFD, thermal, electromagnetic, and power delivery simulations (Page 10).
2 more points from Cadence Design Systems, Inc.'s call on capex
Pro opens every point from 15K+ earnings calls
Fundraising & Capital Structure
See what Cadence Design Systems, Inc. said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- The company reported a record backlog of $8 billion at the end of Q1 2026.
- Strong Q1 bookings exceeded expectations, contributing to this robust backlog.
- John Wall highlighted that Q1 was a very strong start, with bookings strength across all lines of business.
- Despite the strong start, the company maintains prudence in second-half guidance, preferring to wait for a couple of quarters before further guide increases.
2 more points from Cadence Design Systems, Inc.'s call on order book
Pro opens every point from 15K+ earnings calls
Continue your research
Others in Software this season
- Figma, Inc. (Q2 FY26)
Figma, Inc. Q2 FY26 quarterly results analysis. Q2 2026 revenue guidance: $348M - $350M, implying 40% YoY growth at midpoint. Market Cap $12,396, P/E 65.1. AI-p
- TeraWulf Inc. (Q2 FY26)
TeraWulf Inc. Q2 FY26 quarterly results analysis. HPC lease revenue is rapidly growing, increasing 117% from $9.7M in Q4 ’25 to $21M in Q1 ’26, with more data h
- Tyler Technologies, Inc. (Q2 FY26)
Tyler Technologies, Inc. Q2 FY26 quarterly results analysis. Revenue guidance for 2026 raised, primarily due to the acquisition of For The Record (FTR), contrib
- Hut 8 Corp. (Q2 FY26)
Hut 8 Corp. Q2 FY26 quarterly results analysis. Revenue grew approximately 226% year-over-year to $71 million, driven primarily by the compute segment, with gro
Arthneeti Pro · Annual
Cadence Design Systems, Inc. and 15K+ more earnings calls,
for less than your morning chai
a day
Every earnings call, ranking and concall Q&A across all four results seasons.
Secure Razorpay payment · instant access
Frequently Asked Questions
What were Cadence Design Systems, Inc. Q2 FY26 results?
- Cadence expects approximately 17% year-over-year revenue growth for 2026, raising their revenue outlook to $6.125 billion to $6.225 billion. - 2026 revenue outlook raised to approximately 17% year-over-year growth.
What is Cadence Design Systems, Inc. share price analysis?
Cadence Design Systems, Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 88.8 with a market cap of $103,114. Investors should review the full earnings analysis for detailed insights.
Is Cadence Design Systems, Inc. planning capital expenditure?
- Cadence is investing significantly in agentic AI and new product areas, which may impact operating margins in the near term (Page 8).
Keep Cadence Design Systems, Inc. on your radar — track it to get its next earnings analysis in your feed.
This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.