AI-extracted from the 10-Q filed 2026-07-29 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue rose 24% YoY to $1,584.5M and operating margin expanded to 28% from 19%, aided by the absence of the prior-year $128.5M export-settlement charge.
Biggest Revenue Drivers
Product and maintenance$1,430.7M+22% YoY
Growth in software, hardware and IP offerings as existing customers continued investing in complex designs
Services$153.8M+47% YoY
Fluctuates with timing of fulfillment of services and IP performance obligations
Biggest Revenue Drivers
Total revenue: $1,584.5M+24% YoY
Product and maintenance$1,430.7M+22% YoY
Growth in software, hardware and IP offerings as existing customers continued investing in complex designs
Services$153.8M+47% YoY
Fluctuates with timing of fulfillment of services and IP performance obligations
Largest Expense Items
Research and development$531.3M+20% YoY
Salary and employee-related costs up $50.2M and stock-based compensation up $20.1M, including headcount from acquisitions
Marketing and sales$241.0M+20% YoY
Salary and employee-related costs up $26.6M for technical sales support, including additional headcount from acquisitions
Cost of product and maintenance$175.2M+26% YoY
Amortization of acquired intangibles rose $31.1M, primarily from the Hexagon D&E acquisition
General and administrative$88.5M+28% YoY
Professional services up $13.5M on increased consulting associated with acquisition-related activities
Margins: Operating margin rose to 28% from 19%, primarily due to the prior-year loss related to a contingent liability, partially offset by incremental acquisition expenses including amortization of acquired intangibles exceeding incremental revenue.
Watch Items from the Filing
China revenue grew 96% to $236.2M, 15% of total versus 9%; growth partly reflects BIS export license requirements that restricted China software delivery May–July 2025.
Hexagon D&E acquisition closed February 23, 2026 for $2.9B net of cash; goodwill rose to $4.9B and acquired intangibles to $1.87B, with preliminary purchase allocation.
Contracted but unsatisfied performance obligations of $8.1B, with 58% expected to be recognized as revenue over the next 12 months.
Cash fell to $1.44B from $3.0B; BIS/DOJ export settlement (guilty plea, $140.6M paid in Q3 2025) carries ongoing audit and compliance obligations.
Core EDA slipped to 68% of revenue from 71%; no single customer accounted for 10% or more of total revenue or receivables.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Taxay MarcSVP & General CounselShares withheld for tax or exercise price · May 15, 2026
Congress trading in CDNS
19 transactions in CDNS reported by 9 members of Congress under the STOCK Act, most recent trade Sep 14, 2026. Reported transactions, not recommendations.
About CADENCE DESIGN SYSTEMS INC (CDNS): stock profile, AI score and financials
CADENCE DESIGN SYSTEMS INC (CDNS) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores CDNS at 75.6/100 on a composite quality score built from its SEC filings, placing it at rank #90 of 2,925 stocks — the top 5% of the AI-ranked universe. CDNS scores in the top quartile across balance sheet strength (90.2), profitability (85.8), institutional flow (85.2). Shareholder dilution risk is elevated at 17.3/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), CADENCE DESIGN SYSTEMS INC reports quarterly revenue of $1.6B, net income of $367.1M, an operating margin of 28.4%. Top institutional holders of CDNS by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. CDNS trades on the Nasdaq exchange and files with the SEC under CIK 813672. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CDNS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CADENCE DESIGN SYSTEMS INC directly from SEC EDGAR.