Cadence Q2 adjusted EPS beats estimates, raises revenue, non-GAAP EPS outlook
CDNS•Updated 2026 outlook
- Cadence raised its 2026 revenue outlook to 19% year-over-year growth, now expecting $6.26 billion to $6.34 billion.
- The company expects 2026 non-GAAP EPS of $8.05 to $8.15.
- Cadence sees 2026 non-GAAP operating margin at 43.75% to 44.75%.
Q2 results and guidance
Cadence said second-quarter revenue grew year over year and met analyst expectations, while adjusted EPS beat estimates.
The EDA software firm raised its 2026 revenue and non-GAAP EPS outlook, citing strong AI-driven demand.
Drivers behind the quarter
- AI solutions demand - The company said accelerating demand for AI-driven solutions across both Design for AI and AI for Design drove Q2 results.
- Semiconductor IP growth - Cadence said IP revenue grew more than 40% year over year, driven by strong demand for its Star IP portfolio and a significant agreement with Intel.
- Hardware and system design - The company said hardware delivered a record quarter with 12 new customers and expansions with hyperscalers and AI innovators; system design and analysis revenue grew 37% year over year.
