NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Achieve EPS of about $4.44 per share: FY26 EPS guidance mid $8.10 vs $4.39 target.
Cadence grows revenue about 17% yearly, hitting $6.175 billion in 2026. Profit margins stay strong near 44.5%. EPS rises to about $4.44 per share. Partnerships with Intel and AI product launches boost its edge.
Growth may slow below 17% as market demand softens. Profit margins could shrink under cost pressures. EPS might miss targets if investments fail to pay off.
The market expects about 18% revenue growth and values Cadence richly with a PE near 49. Our fair value is about 50% below the Street median, reflecting more cautious growth and margin assumptions.
Breaks if: EPS falls below $4.20 in FY26
Breaks if: Operating margin falls below 43.0% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent growth. The current thesis state is cautious, as recent performance has shown signs of weakness despite a strong revenue outlook.
The market appears to have priced in a premium valuation compared to peers, reflecting high expectations for growth. However, the current valuation is considered stretched, indicating that investors may be anticipating strong future performance.
Management is on track to achieve its revenue and EPS growth targets, but the operating margin improvement is mixed. There is a moderate risk of missing future earnings, especially given the recent trend of earnings misses in the industry.
The long-term thesis hinges on the ability of CDNS to maintain its revenue growth outlook and manage margins effectively. Additionally, the performance of sector bellwethers like SAP, CRM, and NOW will be crucial in determining the overall momentum in the tech sector.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improvement. The company raised its 2026 revenue outlook, indicating strong demand. They are expanding their AI-driven product portfolio and market adoption. No new threats have emerged to weaken this outlook.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Cadence aims to maintain a non-GAAP operating margin in the range of 43.5% to 44.5% for 2026.
Breaks if: Revenue falls below $6.0 billion in FY26
Over the next 1 to 3 years, CDNS's performance will depend on its execution and the broader tech sector's health. Not investment advice.
