On July 28, Cadence Design rose 3.5% overnight, trading at $350.45/share. The rally was driven by the company's strong Q2 financial results and upward revision of full-year guidance released after market close.
Cadence Design reported Q2 revenue of $1.58 billion, up 24% year-over-year, slightly beating the consensus estimate of $1.577 billion. Adjusted earnings per share came in at $2.11, surpassing the analyst estimate of $2.06 by approximately 2.4%, representing a 28% increase from $1.65 in the prior-year period. Non-GAAP operating margin expanded to 45.5% from 42.8% a year ago, reflecting broad-based growth across business segments.
The company raised its full-year fiscal guidance, now expecting adjusted EPS of $8.05-$8.15 on revenue of $6.26-$6.34 billion, up from prior guidance of $7.85-$7.95 EPS on $6.13-$6.23 billion revenue, both above the FactSet consensus of $7.94 and $6.21 billion respectively. Management cited sustained demand for AI-driven semiconductor design tools and record backlog as primary drivers for the improved outlook.
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