Filing Flows › Cadence Design Systems (CDNS) › Guidance & outlook
Cadence Design Systems (CDNS) guidance and outlook
Cadence Design Systems (CDNS) raised some and lowered other parts of its guidance on Oct 26, 2026: Revenue +21% for FY2026; EPS $8.40 for FY2026; Revenue $4.2B for FY2026; Revenue +21% for FY2026. Cadence Design Systems' 10-Q filed Jul 29, 2026 makes 15 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | +21% | raised |
| EPS | FY2026 | $8.40 | raised |
| Revenue | FY2026 | $4.2B | reaffirmed |
| Revenue | FY2026 | +21% | raised |
| Operating margin | FY2026 | 28.2%–29.2% | raised |
| Operating margin | FY2026 | 44.2%–45.2% | raised |
| EPS | FY2026 | $4.84–$4.90 | raised |
| Revenue | FY2026 | +24% | new |
| Stock-based compensation | FY2026 | +8% | lowered |
| Net income | FY2026 | $339M–$355M | raised |
| Stock-based compensation | FY2026 | $139M | lowered |
| Other income | FY2026 | −$3.0M | reaffirmed |
From the earnings release filed Oct 26, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Jul 29, 2026
- We expect the impact of these current expanded trade control laws and regulations on our business to be limited, but we will continue to monitor future developments.
- We are monitoring these developments, including any pauses, escalations, exemptions, court rulings, refunds, replacements and new investigations, with respect to the threatened or imposed tariffs and trade policy, and will continue to assess their potential impact on our business either directly, such as on our hardware business and cost of imported components, or due to downstream effects on our customers and…
- While our business model provides some resilience against these factors, we will continue to monitor the direct and indirect impacts of these or similar circumstances on our business and financial results.
- In preparing our condensed consolidated financial statements, we make assumptions, judgments and estimates that can have a significant impact on our revenue, operating income and net income, as well as on the value of certain assets and liabilities on our condensed consolidated balance sheets.
- On an annual basis, we expect recurring and up-front revenue as a percentage of total revenue to remain relatively consistent.
- Cost of services may fluctuate from period to period based on our utilization of design services engineers on revenue-generating projects rather than internal development projects and the timing of design service projects being completed.
- We expect our operating expenses will increase during the remainder of fiscal 2026, as compared to fiscal 2025, due to our recent acquisitions.
- We expect to continue attracting and retaining talent dedicated to technical sales support through hiring and acquisitions.
- We expect to continue attracting and retaining talent dedicated to research and development activities through hiring and acquisitions.
- We expect to continue to utilize professional services as we continue to acquire and integrate companies and businesses.
- Our provision for income taxes for the three and six months ended June 30, 2026 was primarily attributable to federal, state and foreign income taxes on our anticipated fiscal 2026 income.
- Our provision for income taxes for the three and six months ended June 30, 2025 was primarily attributable to federal, state and foreign income taxes on our then anticipated fiscal 2025 income.
Cadence Design Systems' latest quarter
Cadence Design Systems, Q3 2026: revenue $1.6B (+22% year over year), operating margin 26.2%, net earnings $290M, operating cash flow $424M. The chart follows the revenue to costs, profit and cash.
Questions
Did Cadence Design Systems raise or lower its guidance?
Cadence Design Systems (CDNS) raised some and lowered other parts of its guidance on Oct 26, 2026: Revenue +21% for FY2026; EPS $8.40 for FY2026; Revenue $4.2B for FY2026; Revenue +21% for FY2026.
What does Cadence Design Systems expect?
We expect the impact of these current expanded trade control laws and regulations on our business to be limited, but we will continue to monitor future developments. We are monitoring these developments, including any pauses, escalations, exemptions, court rulings, refunds, replacements and new investigations, with respect to the threatened or imposed tariffs and trade policy, and will continue to assess their potential impact on our business either directly, such as on our hardware business and cost of imported components, or due to downstream effects on our customers and… While our business
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.