Cadence Q2 FY2026: revenue up 24.2%, EPS beat, 2026 outlook raised
Cadence beat on the bottom line and raised its full-year outlook: Q2 FY2026 revenue rose 24.2% to $1.58 billion and non-GAAP EPS of $2.11 edged past the $2.0959 consensus. The quarter reads well on growth and margin, but a $2.10 billion acquisition payment cut cash to $1.44 billion and nearly doubled goodwill, so watch integration and the widening GAAP-to-non-GAAP gap.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $1.33 compares with $0.59 a year ago, while non-GAAP EPS of $2.11 rose 27.9% from $1.65 and just cleared the $2.0959 consensus. The two lines tell different stories: GAAP net income was $367.1 million against non-GAAP net income of $582.4 million, a $215.3 million gap driven mostly by $146.9 million of stock-based compensation and $79.9 million of acquired-intangible amortization. Last year's quarter also carried a $128.5 million loss tied to the DOJ and BIS settlement, which flatters this year's GAAP comparison.
Revenue of $1.58 billion was up 24.2% from $1.28 billion a year earlier and up 7.5% from the $1.47 billion booked last quarter. Product and maintenance brought in $1.43 billion, or 90.3% of the total, with services at $153.8 million. Gross margin was 84.9%, meaning the direct cost of that revenue was just $15.1 out of every $100 of sales.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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