Information Technology·Application Software·$91.9B
Cadence Design Systems (CDNS) is a leading provider of electronic design automation (EDA) software and engineering services. As a key player in the information technology sector, it supports industries like semiconductors and electronics, which are crucial for advancements in AI and cloud computing.
Earnings Per Share (EPS)
EPS is a critical measure of a company's profitability and reflects its ability to generate earnings for shareholders.
Revenue
Revenue growth indicates the company's ability to expand its business and capture market share in the competitive software industry.
Wall Street expectations, options signals, track record, and call prep available with Pro.
EPS Beat Streak
8Q
EPS Beat Rate
100%
Avg EPS Surprise
+33.92%
Avg Stock Reaction
-0.02%
In Q4 2025, Cadence reported an EPS of $1.99, significantly surpassing estimates by 28%. However, the stock experienced a decline of 5.34% the following day.
Management Promises & Guidance
Analysts are generally optimistic about Cadence's upcoming earnings, expecting strong EPS and revenue figures. The company has consistently beaten earnings estimates in the past, which adds to positive sentiment.
Bull Case
If Cadence exceeds the EPS estimate and shows robust revenue growth, it could signal strong demand for its software solutions, potentially driving the stock higher.
Bear Case
Conversely, if the company misses its targets or provides cautious guidance, it could lead to a significant sell-off, especially given the recent stock performance.
Earnings Per Share (EPS)
$1.89EPS is a critical measure of a company's profitability and reflects its ability to generate earnings for shareholders.
Revenue
$1.5BRevenue growth indicates the company's ability to expand its business and capture market share in the competitive software industry.
The print will turn on these two things.
Q1
Will Cadence achieve an EPS of $1.89 or higher?
Exceeding this EPS target would reinforce the company's strong performance and growth trajectory, positively influencing investor sentiment.
Q2
What revenue growth can we expect in comparison to the $1.5B consensus?
Revenue growth is crucial for assessing the company's market position and ability to capitalize on industry trends, especially in semiconductor design.
Why consensus could be wrong
The Street may be underestimating the impact of Cadence's recent product innovations, which could drive higher-than-expected demand, particularly in AI and cloud applications.
Supporting Evidence
Cadence's recent partnerships with leading semiconductor firms may not be fully reflected in current estimates.
The options market is pricing in a larger move than historical averages suggest, indicating potential for unexpected results.
Past earnings surprises have consistently led to stock declines, suggesting that the market may be overly cautious.
Key Risk
If Cadence's revenue growth exceeds $1.6B, it could challenge current market expectations and shift sentiment dramatically.
Pre-commit to what would confirm each case.
The market is closely watching Cadence's ability to maintain its growth momentum in a competitive landscape, with expectations set high based on past performance.
Bull Confirmed If
Achieving an EPS of $1.95 or higher, alongside revenue exceeding $1.55B, would confirm strong demand and operational efficiency.
Bear Confirmed If
An EPS below $1.82 or revenue under $1.4B would raise concerns about market demand and competitive pressures.
Implied Move
±7.67%
Historical Avg
±2.1%
The options market is pricing in a larger-than-average move, suggesting that traders expect significant volatility around the earnings announcement.
Options are pricing ±7.7% while CDNS has averaged ±2.1% over the last 8 prints — setup is pricing rich.
Likely market behavior by outcome — not investment advice.
Beat & Raise
If Cadence beats expectations, history suggests the stock could see an average one-day move of around -0.02%, indicating potential profit-taking despite positive results.
In-Line / Cautious
If results are in line with expectations but management provides cautious guidance, the stock may react moderately, reflecting uncertainty about future growth.
Miss
A miss on EPS or revenue could lead to a significant decline, with historical patterns suggesting an average one-day drop of around -1.34%.
AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.
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AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.
No charge today · Auto-bills $8/mo after 7 days · Cancel anytime
NORFOLK SOUTHN CORP
Apr 24, 2026