Post-earnings recap
Reported
Mon, Jul 27, 2026
EPS actual
$2.11
EPS est.
$1.62
EPS surprise
+30.25%
1-day move
+3.79%
Cadence Design Systems reported an EPS of $2.11, significantly beating expectations. The stock reacted positively, rising by 3.79%. However, there was no revenue figure provided, and no guidance was issued, leaving some uncertainty about future performance.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $2.11 | N/A | +30.25% |
| Revenue | N/A | N/A | N/A |
No transcript is on record, and the analysis is based on numerical results only.
—
Est. EPS
—
Est. Rev
—
Impl. Move
±3.5%
Cadence Design Systems, Inc. (CDNS) is a leading provider of electronic design automation software, helping companies design and verify advanced semiconductor chips. As the demand for technology in sectors like AI and cloud computing grows, Cadence plays a crucial role in enabling innovation in these areas.
Last quarter
In Q1-2026, Cadence reported an EPS of $1.96, significantly beating expectations by 28.44%. The stock reacted positively, gaining 1.10% the following day.
Management promises and guidance
EPS beat streak
8Q
EPS beat rate
100%
Avg EPS surprise
+32.48%
Avg 1-day reaction
+0.06%
Overall, expectations are mixed as Cadence has consistently beaten EPS estimates in the past, but revenue guidance remains unclear.
Bull case
If Cadence continues its trend of beating EPS estimates, it could signal strong operational performance and lead to a positive market reaction.
Bear case
Concerns about revenue growth and potential market saturation could weigh on investor sentiment, especially if the company fails to provide clear guidance.
Key metrics to watch
Earnings Per Share (EPS)
Expected to be around $1.96.EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.
Revenue Growth
Not available.Revenue growth reflects the company's ability to expand its market presence and attract new customers.
The print will turn on these.
Q1
What specific revenue growth figures can Cadence provide for its software solutions this quarter?
Investors will closely watch this metric to gauge the company's market demand and future growth potential.
Q2
How does Cadence plan to address any competitive pressures in the semiconductor design space?
Understanding the company's strategy to maintain its competitive edge will be crucial for investor confidence.
Why consensus could be wrong
The Street may be underestimating Cadence's ability to capture market share in the growing AI and cloud sectors, which could drive higher revenue growth than currently anticipated.
Supporting evidence
Cadence has consistently beaten EPS estimates, indicating strong operational performance.
The options market is pricing a significant move, suggesting that investors expect a notable shift in sentiment.
The historical trend shows that Cadence has a strong track record of outperforming expectations.
Key risk
If Cadence reports revenue growth significantly above 10%, it could challenge the current cautious consensus.
Pre-commit to what would confirm each case.
This quarter's performance will hinge on how well Cadence can demonstrate its growth trajectory in a competitive landscape.
Bull confirmed if
A revenue growth rate of 15% or higher would confirm the bull case and indicate strong demand for Cadence's products.
Bear confirmed if
A revenue growth rate below 5% would confirm the bear case, suggesting potential challenges in the market.
What the market is pricing for the move.
Implied Move
±18.31%
Historical Avg
±2.2%
The options market is pricing in a significant potential move following the earnings report, indicating uncertainty among investors.
Options are pricing ±18.3% while CDNS has averaged ±2.2% over the last 8 prints — setup is pricing rich.
ATM IV
0.5%
30d HV
37.0%
Cross-company pattern from 30 similar setups.
Prior-quarter beat + options rich in Information Technology
Fade rate: 4 of 9 (44%)
This setup has occurred 30 times across Information Technology in the last 2 years. 4 of 9 faded and 5 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.4%, with a raw directional average of -0.5% (modestly negative historical bias).
Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.
Bought
$0.00
0 sh
0 insiders
Sold
$437,589.88
1,250 sh
1 insider
Net
$437,589.88
Net selling
Most Active Insiders· 1 open-market trade
Smart-money positioning from the most recent 13F filings.
Institutional
91.60%
of float
Insider
0.33%
of float
Holders
2,212
institutions
Top Holders· as of Jun 2026
Blackrock Inc.
26,660,845 sh · $9.5B
9.68%
4.8%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Cadence beats expectations and raises guidance, history suggests a potential average move of around +2% in the stock price, confirming strong operational health.
In line / cautious
If results are in line with expectations but management provides cautious commentary, the stock may experience a muted reaction, reflecting uncertainty.
Miss
If Cadence misses expectations, history suggests a potential average move of around -0.09%, indicating investor disappointment.
House and Senate STOCK Act disclosures over the trailing 6 months.
Trades
3
0 buys·3 sells
Members
2
House only
Est. Notional
$31,003.00–$115,000.00
disclosed dollar ranges
Most Active Members
2 trades
The lines on the call that would change the story.
Gross Margin
Gross margin indicates how efficiently the company is producing its software and managing costs.
$437,589.88
Net selling
Recent Transactions
Oct 1, 2026 · @ $350.07
1,250 sh
$437,589.88
Open-market trades only (Form 4 codes P/S). Awards, exercises, and tax-withholding excluded as routine compensation noise.
Vanguard Capital Management LLC
18,016,381 sh · $6.4B
6.54%
1.1%
State Street Corporation
13,031,391 sh · $4.6B
4.73%
4.3%
FMR, LLC
9,554,947 sh · $3.4B
3.47%
4.4%
Invesco Ltd.
8,980,518 sh · $3.2B
3.26%
1.9%
13F filings updated quarterly. Position deltas show change in shares vs. the prior quarter.
Net selling
1 trade
Net selling
Recent Transactions
Traded Sep 14, 2026 · disclosed Sep 25, 2026
$15,001.00–$50,000.00
Traded Sep 2, 2026 · disclosed Sep 25, 2026
$15,001.00–$50,000.00
Traded Jun 5, 2026 · disclosed Jul 15, 2026
$1,001.00–$15,000.00
Filed 30–45+ days after the trade. Treat as positional context, not a leading indicator. Amounts are SEC-mandated dollar ranges, not exact values.