A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
For 2026-Q2, Cadence Design Systems reported a 24% year-over-year revenue increase to $1,584.5 million and operating margin expansion to 28%, propelled by strong software demand, international growth, and strategic acquisitions.
Filed · Source: SEC EDGAR 10-Q filing
Cadence delivered 24% revenue growth to $1,584.5M in 2026-Q2 with operating margin expanding to 28%.
Last 4 quarters: 4 beats
Reported EPS of $2.11 versus the $2.10 analyst consensus — a +0.7% beat for Jun 2026.
Total revenue for 2026-Q2 rose 24% year-over-year to $1,584.5 million, up from $1,275.4 million in 2025-Q2, driven by product and maintenance revenue growth of 22% to $1,430.7 million and 96% revenue growth in China to $236.2 million.
Source: 10-Q Item 2 MD&A, p.26-27
On February 23, 2026, Cadence completed the acquisition of Hexagon Smart Solutions AB's design and engineering business to expand its System Design and Analysis portfolio, increasing headcount, operating expenses, and intangible amortization.
Source: 10-Q Item 2 MD&A, p.24
Operating margin expanded to 28% in 2026-Q2 compared to 19% in 2025-Q2, primarily due to the non-recurrence of a prior-year contingent liability loss, partially offset by acquisition-related incremental expenses and intangible amortization.
Source: 10-Q Item 2 MD&A, p.31-32
Operating cash flow for the six months ended June 30, 2026 grew 15% year-over-year to $990.7 million from $864.6 million, supported by improved operating performance and customer collection timing.
Source: 10-Q Item 2 MD&A, p.33-34
Expanded U.S. trade controls, export licensing restrictions concerning advanced node IC production in China, tariffs, and global geopolitical conflicts could reduce customer demand, restrict sales, disrupt supply chains, and increase operational costs.
Source: 10-Q Item 1A, p.38
Cyberattacks targeting IT systems or cloud service providers could lead to system disruptions or compromise confidential information and proprietary software source code, as illustrated by a recent contained security incident involving test files and source code.
Source: 10-Q Item 1A, p.39
Ongoing business acquisitions increase operating expenses, management complexity, professional fees, and intangible amortization, while posing integration risks regarding corporate security policies and financial performance.
Source: 10-Q Item 1A, p.39
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the CDNS earnings preview — expected date, analyst estimates and what to watch →
In 2026-Q2, Cadence generated total revenue of $1,584.5 million, up 24% year-over-year, while its operating margin improved significantly to 28% from 19% in 2025-Q2. Growth was driven by robust broad-based demand for Core EDA software and silicon IP, as well as contributions from acquisitions.
Cadence's revenue in China grew 96% year-over-year in 2026-Q2 to $236.2 million, up from $120.7 million in 2025-Q2. China accounted for 15% of Cadence's total Q2 revenue, boosted by strong customer demand for software, IP, and hardware offerings.
Cadence highlighted risks related to expanding U.S. export controls and trade regulations targeting Chinese technology firms, potential geopolitical disruptions, cybersecurity risks following a contained incident involving source code files, and integration costs from recent acquisitions.
Expected release date, analyst estimates & what to watch
Cadence Design Systems delivered strong Q1 FY2026 results with revenue of $1.47B (+18.7% YoY) and net income of $335.7M (+22.7% YoY), though operating cash flow declined 26.9% and investing cash outflows surged nearly 96x YoY, reflecting significant acquisition activity.
Cadence Design Systems delivered strong FY2025 results with revenue growing 14.1% to $5.30B and operating cash flow surging 37.1% to $1.73B, though net income growth moderated to 5.1% amid higher costs.
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