Cadence Design Systems, Inc. (CDNS) Earnings Call Transcripts
Cadence Design Systems, Inc.'s Latest Earnings Call - Q2 FY2026
In the second quarter of fiscal year 2026, Cadence Design Systems reported strong financial results, with total revenue reaching $1.584 billion, reflecting a 24% year-over-year growth. The company exceeded its guidance across all key metrics, leading to a raised full-year revenue growth outlook of 19%. Non-GAAP EPS was reported at $2.11, showcasing robust profitability driven by increased demand for AI-driven solutions and a record backlog of $8.1 billion. Management emphasized the growing importance of their Agentic AI offerings, which are expected to further enhance customer engagement and revenue streams.
Reported metrics
| Metric | Value |
|---|---|
| Total Revenue | $1.584 billion (beat) |
| Non-GAAP EPS | $2.11 (beat) |
| GAAP Operating Margin | 28.4% (beat) |
| Non-GAAP Operating Margin | 45.5% (inline) |
| Record Backlog | $8.1 billion (positive) |
| Full-Year Revenue Guidance | $6.260 billion to $6.340 billion (positive) |
Guidance from management
Management raised their full-year revenue guidance to a range of $6.260 billion to $6.340 billion, reflecting a 19% growth expectation. Q3 revenue is expected to be in the range of $1.595 billion to $1.625 billion.
What management said
Yes, Joe, I'll just add that like if I could just add, the customer engagement, as Anirudh said, continues to accelerate. We're seeing increased evaluations and pilots and early deployments. And we continue to expect monetization through both new workflow products as well as increased usage of underlying engines. But just to be clear, we're still not assuming a sudden step function in our guidance. The opportunity is...
Yes. Joe, Anirudh has always said that like Agentic AI actually increases demand because agents invoke EDA tools continuously while exploring more design alternatives and Kimi was a really good example of that.
What analysts pressed on
Analysts expressed concerns regarding the sustainability of the IP business growth and the potential impact of competitive pressures from peers in the AI space. There were also questions about the integration of Hexagon's D&E business and its effect on margins going forward.
Main topics on the call
- Revenue Growth Acceleration — Cadence achieved a 24% year-over-year revenue growth in Q2 2026, driven by strong demand across all product groups. Management stated, "We are seeing growing demand for our AI-driven solutions across our expanding custom...
- Record Backlog — The company reported a record backlog of $8.1 billion, indicating strong future revenue visibility. CEO Anirudh Devgan noted, "We exited the quarter with record backlog that was above our expectations."
- AI-Driven Solutions Demand — Cadence's AI-driven solutions are gaining traction, with management highlighting significant productivity improvements from their Agentic AI offerings. The ChipStack AI Super Agent has over 20 customer engagements, demon...
- Guidance Update — Management raised full-year revenue guidance to a range of $6.260 billion to $6.340 billion, reflecting a 19% growth expectation. John Wall stated, "At the midpoint, we now expect revenue growth of 19%, operating margin ...
Read the full Cadence Design Systems, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Cadence Design Systems, Inc.
Cadence Design Systems, Inc. (CDNS) is a publicly listed company in the Software industry, within the Information Technology sector. It trades on NasdaqGS and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 83 calls on record spanning February 12, 2020 to July 27, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 83 Cadence Design Systems, Inc. earnings call transcripts on record, spanning February 12, 2020 to July 27, 2026. Based on this history, Cadence Design Systems, Inc. reports quarterly. The most recent call on file is dated July 27, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- CDNS
- Exchange
- NasdaqGS
- Country
- US
- Sector
- Information Technology
- Industry
- Software
- Calls on record
- 83
- First call
- February 12, 2020
- Most recent
- July 27, 2026
- Reporting cadence
- quarterly