Pre-earnings brief
Reports
Mon, Oct 26, 2026
Est. EPS
—
Est. revenue
—
Implied move
±6.7%
EPS beat rate
100%
Cadence Design Systems, Inc. (CDNS) is a leader in electronic design automation software, helping companies design and verify advanced semiconductor chips. As technology continues to evolve, especially in areas like AI and cloud computing, Cadence plays a crucial role in enabling innovation in the information technology sector.
Last quarter
In Q2-2026, Cadence reported an EPS of $2.11, significantly exceeding expectations by 30.25%. The stock reacted positively, gaining 3.79% 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, investors are optimistic about Cadence's upcoming earnings, especially given its strong track record of beating EPS estimates.
Bull case
If Cadence continues its trend of exceeding EPS expectations, it could signal robust demand for its software solutions, leading to further stock appreciation.
Bear case
On the other hand, if the company fails to meet expectations or provides weak guidance, it could lead to a significant pullback in the stock price.
The print will turn on these.
Q1
What will the EPS be for Q3-2026?
Given Cadence's history of beating EPS estimates, this figure will be crucial in determining market sentiment post-earnings.
Q2
What guidance will management provide for revenue growth?
Investors will closely watch for any forward-looking statements that could impact future growth expectations.
—
Est. EPS
—
Est. Rev
—
Impl. Move
±10.3%
Why consensus could be wrong
The Street may underestimate Cadence's potential for revenue growth due to its strong position in emerging technologies like AI and cloud computing.
Supporting evidence
Cadence has consistently exceeded EPS estimates, indicating strong operational performance.
The options market is pricing in a significant move, suggesting traders expect volatility that could favor a positive surprise.
Historical trends show that after strong earnings, stocks often experience a pullback, which could create a buying opportunity.
Key risk
If Cadence's revenue growth significantly outpaces expectations, it could challenge the current bearish sentiment.
Pre-commit to what would confirm each case.
The market is debating whether Cadence can sustain its impressive growth in a competitive landscape.
Bull confirmed if
An EPS of $2.20 or higher would confirm the bull case and indicate strong demand for Cadence's products.
Bear confirmed if
An EPS below $1.90 would raise concerns about the company's growth trajectory and confirm the bear case.
What the market is pricing for the move.
Implied Move
±9.64%
Historical Avg
±2.2%
The options market is pricing in a notable move, suggesting that traders expect significant volatility around the earnings announcement.
Options are pricing ±6.7% while CDNS has averaged ±2.2% over the last 8 prints — setup is pricing rich.
ATM IV
0.5%
30d HV
44.8%
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, history suggests the stock could rise by around 0.06% on the following day, confirming strong demand.
In line / cautious
If results are in line with expectations but management is cautious, the stock may experience muted movement as investors reassess future growth.
Miss
If Cadence misses expectations, history indicates a potential decline of around 2.18%, which could lead to increased skepticism about its growth prospects.
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.
$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.