Cadence Design Systems Inc (NASDAQ:CDNS) reported upbeat financial results for the first quarter of 2026 after the market close on Monday.

Cadence Design Systems reported first-quarter revenue of $1.47 billion, beating analyst estimates of $1.45 billion. The company reported first-quarter adjusted earnings of $1.96 per share, beating estimates of $1.90 per share, according to Benzinga Pro.

"Cadence had a strong start to 2026, delivering a solid Q1 with accelerating AI demand and record backlog, reflecting strong customer commitment to our AI-driven portfolio," said Anirudh Devgan, president and CEO of Cadence Design Systems.

Cadence Design Systems raised its full-year revenue guidance from a range of $5.90 billion to $6 billion to a new range of $6.13 billion to $6.23 billion versus estimates of $6.06 billion.

On the other hand, the company lowered its full-year earnings outlook. Cadence now expects full-year adjusted earnings of $7.85 to $7.95 per share, down from prior guidance of $8.05 to $8.15 per share. Analysts have been anticipating full-year earnings of $8.02.

Cadence Design shares fell 4.8% to trade at $320.62 on Tuesday.

These analysts made changes to their price targets on Cadence Design following earnings announcement.

  • Piper Sandler analyst Clarke Jeffries maintained the stock with a Neutral and raised the price target from $319 to $325.
  • Baird analyst Joe Vruwink maintained the stock with an Outperform rating and raised the price target from $381 to $385.
  • Rosenblatt analyst Blair Abernethy maintained the stock with a Buy and raised the price target from $360 to $375.
  • Keybanc analyst Jason Celino maintained Cadence Design Systems with an Overweight rating and raised the price target from $405 to $425.
  • Wells Fargo analyst Joe Quatrochi maintained the stock with an Overweight rating and raised the price target from $375 to $400.

Considering buying CDNS stock? Here’s what analysts think:

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