Correction, 18 September 2026: an earlier version of this post described April 27 as the end of the quarter. It is the date the results were reported.
What changed
$CDNS (Cadence Design Systems) reported results on April 27, 2026. EPS came in at $1.96, up from $1.57 in the same period a year earlier — a year-over-year increase of 24.8%. Quarterly revenue grew 18.7% year over year. Both metrics show the business accelerating at a meaningful clip.
We don't have guidance commentary to work with here, so this recap focuses on what the reported figures and underlying fundamentals tell us.
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What it means
The earnings growth rate outpacing revenue growth is worth noting. When EPS climbs faster than the top line, it typically signals margin expansion, share count reduction, or both. Cadence's net margin sits at 21.2% and ROE at 20.7%, which are strong readings for a software and EDA tools business. Quality scores at 91 out of 100 on the ACCE model, the highest sub-score in the breakdown.
The ACCE score overall is 63 out of 100. Growth scores 80, reflecting the kind of double-digit revenue and earnings momentum the quarter confirmed. Value scores 19 — the lowest sub-score by a wide margin — and that's where the picture gets complicated. The trailing P/E is 76.4, and the forward P/E drops to 41.2, which implies the market is pricing in continued earnings expansion. The 6-model fair value estimate from ACCE sits at $98.24, a -70.6% gap to the current price of $333.87. That's a significant divergence, and it's the central tension in the $CDNS story right now: strong operational execution trading at a valuation that leaves little room for error.
Momentum scores 63, and the 1-year return is +2.8%, which is modest relative to the earnings growth the company has delivered. The analyst consensus target is $395.94, implying upside from current levels, though that sits well above the ACCE fair value estimate.
FCF yield is 1.8%, and earnings quality is flagged as strong, which supports the view that the reported numbers reflect real cash generation rather than accounting noise.
The quarter reported on April 27, 2026 adds another data point to a consistent growth track record for Cadence. The operational fundamentals are hard to argue with. The valuation debate is harder to resolve, especially without guidance to anchor forward expectations. For the current ACCE score and live price, see acceinvestments.com/stocks/CDNS.
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