Cadence Design

Q2 FY2026 EarningsQ2 FY26 results beat consensus on the top line and GAAP profitability: revenue reached $1,584.5M vs. $1,576.1M expected, while Diluted GAAP EPS of $1.33 significantly outperformed the $1.12 mean. Growth was driven by a 96% YoY surge in China revenue and the strategic integration of Hexagon’s D&E business, which lifted System Design and Analysis (SD&A) to 17% of sales. Despite the top-line beat, margins were weighed down by acquisition-related amortization, and the GAAP bottom line was aided by a $71.9M non-operating gain on investments.