CDNS

Cadence Design Systems, Inc. CDNS will release results for the third quarter of 2026 on Oct. 26. The Zacks Consensus Estimate for third-quarter earnings is $2.04 per share, unchanged in the past 60 days. The consensus mark implies a 5.7% increase from the year-ago actual. The Zacks Consensus Estimate for revenues is pinned at $1.61 billion, indicating a nearly 20.3% uptick from the year-ago actual. Management expects revenues to be $1.595-$1.625 billion for the third quarter. The company reported sales of $1.339 billion in the year-ago quarter. Non-GAAP EPS is anticipated to be between $2.01 and $2.07. The company reported an EPS of $1.93 in the year-ago quarter. Cadence has an impressive earnings surprise history. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 4.94%. Image Source: Zacks Investment Research CDNS stock has lost 7% in the past six months against the Computer-Software industry's growth of 16.6%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 7.5% and 8.6%, respectively, in the same time frame. Broad-based momentum across electronic design automation ("EDA"), IP and System Design & Analysis ("SDA"), supported by sustained demand for its AI-oriented portfolio amid robust design activity and new system architectures across hyperscaler infrastructure and physical AI, remains the key catalyst. The company had a backlog of $8.1 billion at the second quarter-end driven by bookings momentum, while revenues expected to be recognized over the following 12 months from remaining performance obligations totaled $4.2 billion. This provides substantial visibility into future business performance. Cadence's ratable software model and high mix of recurring revenues are other positives. AI has been driving a major transformation in semiconductor and system design and Cadence is deeply integrated into this shift. Design activity across several verticals, especially data centers, drones, robotics and automotive, has been robust due to AI, hyperscale computing and 5G. The focus on Generative AI, Agentic AI and Physical AI has been leading to an exponential increase in computing demand and semiconductor innovation. Rising customer R&D investments in AI-driven automation have been creating a favorable demand environment for Cadence. On the last earnings call, management cited agentic AI as a durable tailwind. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles, thereby expanding the addressable market. Management highlighted "strong early traction" for its AI Super-Agent portfolio. Cadence Design Systems, Inc. price-eps-surprise | Cadence Design Systems, Inc. Quote Cadence's agentic AI portfolio includes ChipStack, ViraStack, and InnoStack. In September, the company introduced an RTL Generation Agent for its ChipStack AI Super Agent. The expanded capabilities, expected to become available to select early-access customers in the fourth quarter, strengthen the company's longer-term AI-driven growth prospects. The company has been collaborating with several tech giants, including Qualcomm and NVIDIA, on their next-generation AI designs across both training and inference. Expanding partnerships with Samsung, Taiwan Semiconductor Manufacturing, Intel and Arm Holdings, bodes well. Cadence expanded its collaboration with TSMC in September, securing tool certification for advanced A14 design tools and introducing additional silicon-proven IP for N3P and N2P technologies. In October, Cadence collaborated with NVIDIA and launched Europe's first sovereign AI platform for semiconductor, system and AI factory design. Nonetheless, ongoing uncertainty prevailing over global macroeconomic conditions, especially U.S.-China tech tensions, along with stiff competition in the EDA space and inflation, remains a concern ahead of the third-quarter earnings. Management expects third-quarter non-GAAP operating margin between 43.5% and 44.5%, compared with 47.6% in the prior-year quarter. Core EDA business (which constitutes Custom IC, Digital IC and Functional Verification businesses) is likely to have gained from demand for the new hardware systems, especially among AI, automotive and high-performance computing clients. Continued adoption of Cadence's digital full-flow solutions, including Tempus and Certus signoff technologies, is likely to have cushioned the segment's performance. The SDA division is likely to have gained from the increasing demand for BETA CAE solutions, PCB and advanced packaging solutions and the integration of Hexagon's Design and Engineering business. Growing adoption of the AuraStack AI Super Agent, which automates PCB and advanced packaging design workflows, could further strengthen the division's prospects. The IP business has been gaining from an expanding silicon solutions portfolio and increasing demand for solutions in AI and HPC use cases. The company has been witnessing higher demand for its Star IP portfolio across AI and HPC applications, including HBM, PCIe, UCIe and LPDDR6. Our proven model predicts an earnings beat for Cadence this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here. CDNS currently has a Zacks Rank #2 and an Earnings ESP of +0.91%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season. Seagate Technology Holdings plc STX has an Earnings ESP of +2.49% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. STX is scheduled to report quarterly figures on Oct. 27, 2026. The Zacks Consensus Estimate for Seagate Technology's to-be-reported quarter's earnings and revenues is pinned at $7.40 per share and $4.11 billion, respectively. Shares of Seagate Technology are up 162.8% in the past year. Intel INTC currently has an Earnings ESP of +2.22% and a Zacks Rank #2. INTC is scheduled to report quarterly earnings on Oct. 29, 2026. The Zacks Consensus Estimate for Intel's to-be-reported quarter's earnings and revenues stands at 39 cents per share and $16.44 billion, respectively. Shares of Intel have gained 123.4% in the past year. Vertiv VRT has an Earnings ESP of +0.89% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on Oct. 28, 2026. The Zacks Consensus Estimate for Vertiv's to-be-reported quarter's earnings and revenues is pinned at $1.82 per share and $3.76 billion, respectively. Shares of Vertiv are up 5.2% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CoStar Group CSGP is slated to report third-quarter 2026 results on Oct. 27. For the third quarter of 2026, CoStar Group expects revenues to be between $935 million and $945 million, representing a 13% year-over-year increase at the midpoint, and adjusted earnings of 31-34 cents per share. The Zacks Consensus Estimate for third-quarter 2026 revenues is currently pegged at $950.99 million, suggesting growth of 14.08% from the year-ago quarter's levels. The consensus mark for third-quarter 2026 earnings has been unchanged at 34 cents per share over the past 30 days, suggesting a 47.83% increase from the year-ago quarter's figure. CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote CoStar Group's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 21.17%. Let us see how things have shaped up for CSGP before the announcement. CoStar Group's third-quarter performance is likely to have been driven by strong demand for its commercial real estate information and analytics solutions, growing adoption of its residential marketplaces and improving operational efficiencies. The company's Commercial segment is expected to have benefited from increasing subscriptions to the CoStar platform, growing adoption of CoStar Debt Solutions and strong momentum in LoopNet's paid listings. In the second quarter of 2026, CoStar Group's revenues increased 9% year over year to $337 million, while LoopNet revenues rose 14% to $87 million. CoStar Group's subscriber base expanded 19% to 327,000. For the third quarter of 2026, Commercial segment revenues are projected to be between $489 million and $494 million, indicating 7% year-over-year growth at the midpoint. Residential segment performance is expected to have benefited from continued growth in Apartments.com, Homes.com and Domain. Apartments.com is likely to have gained from increasing paid property listings and strong customer retention, while Homes.com is expected to have benefited from expanding agent subscriptions and the introduction of its Platinum advertising tier. In the second quarter, Apartments.com revenues increased 9% to $318 million, while Homes.com revenues surged 66% to $28.5 million. For the third quarter, Residential segment revenues are expected to be between $446 million and $451 million, representing 20% year-over-year growth at the midpoint. CoStar Group's third-quarter profitability is expected to have benefited from disciplined expense management and improving residential operating leverage. The company expects adjusted EBITDA between $190 million and $210 million, implying an adjusted EBITDA margin of approximately 21% at the midpoint, up more than 700 basis points year over year. Commercial adjusted EBITDA is projected to be between $162 million and $172 million, while residential adjusted EBITDA is expected to be between $28 million and $38 million. However, CSGP's third-quarter 2026 results are expected to have been hurt by declining Ten-X transaction revenues, slower near-term growth at Homes.com due to sales-force restructuring and pricing pressures at Apartments.com amid intense competition and elevated multifamily vacancies. Our proven model does not conclusively predict an earnings beat for CoStar Group this time. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. CoStar Group presently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they report earnings with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases: Cadence Design Systems CDNS, Seagate Technology STX, and Amphenol APH are some stocks with favorable combinations. Cadence Design Systems has an Earnings ESP of +0.91% and carries a Zacks Rank #2 at present. CDNS is slated to report its third-quarter 2026 results on Oct. 26. You can see the complete list of today's Zacks #1 Rank stocks here. Seagate Technology has an Earnings ESP of +2.49% and sports a Zacks Rank #1 at present. Seagate Technology is set to report its first-quarter fiscal 2027 results on Oct. 27. Amphenol has an Earnings ESP of +1.72% and a Zacks Rank #2 at present. Amphenol is set to report its third-quarter 2026 results on Oct. 28. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CoStar Group, Inc. (CSGP) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

F5 Inc. FFIV is scheduled to report fourth-quarter fiscal 2026 results on Oct. 27, after market close. For the fourth quarter of fiscal 2026, F5 projects non-GAAP earnings per share (EPS) in the range of $4.14-$4.26 (midpoint of $4.20). The Zacks Consensus Estimate for the same is pegged at $4.24, suggesting a year-over-year decline of 3.2%. The figure has remained unchanged for the past 60 days. FFIV's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 16.09%. FFIV projects its fourth-quarter fiscal 2026 non-GAAP revenues in the range of $870-$890 million. The Zacks Consensus Estimate for the same is pegged at $884.4 million, suggesting year-over-year growth of 9.2%. F5, Inc. price-eps-surprise | F5, Inc. Quote F5's performance in the fiscal fourth quarter is likely to have benefited from sustained demand for its application delivery and security solutions as enterprises continue to modernize their IT infrastructure and adopt hybrid and multi-cloud architectures. The rising need to distribute workloads across on-premises data centers and cloud environments is expected to support demand for F5's flexible application delivery offerings. Increasing AI adoption and the need to manage data-intensive workloads could further strengthen this trend. Demand for F5's Systems products is expected to have remained a key contributor to product performance in the to-be-reported quarter. Customers are increasingly investing in higher-performance infrastructure to support expanding data-center capacity, improve application availability and prepare their environments for AI workloads. Ongoing infrastructure modernization, workload repatriation and platform consolidation initiatives are likely to have supported demand for the company's BIG-IP offerings. However, the sustainability of hardware demand beyond customer refresh cycles remains an important factor to watch. The Software segment is likely to have benefited from continued traction in subscription-based offerings, including BIG-IP and NGINX. Enterprises seeking to improve application performance, automate network operations and strengthen security across distributed environments are expected to have favored integrated solutions that offer flexibility and lower operational complexity. F5's transition toward subscription-based software could support recurring revenue generation and improve revenue visibility over time. However, the pace of software growth might have remained uneven, depending on renewal timing, customer spending priorities and the adoption of new offerings. Growing demand for application security solutions is also expected to have supported F5's performance. As enterprises expand their use of cloud applications, APIs and AI-powered tools, the need to protect applications against automated attacks, fraud and emerging security threats is likely to increase. F5's Distributed Cloud Services and AI Security Platform offerings could help the company capitalize on these requirements. Recent product enhancements and partnerships aimed at securing AI applications, models and agents are expected to broaden its opportunities as organizations seek greater visibility and control over enterprise AI deployments. Nevertheless, slower growth in perpetual software licenses and cautious enterprise IT spending amid macroeconomic uncertainty could have limited the overall pace of expansion. Higher memory and storage costs, supply-chain pressures and competitive pricing could also weigh on Systems demand and profitability. In addition, acquisition integration requirements and lingering costs associated with the previously disclosed cyber incident may remain sources of execution risk. While recurring software revenues and demand for application security are likely to have provided support, these headwinds might have tempered the benefits from F5's expanding cloud and AI opportunities. Our proven model does not conclusively predict an earnings beat for F5 this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that's not the case here. F5 has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases: Cadence Design Systems CDNS, Seagate Technology STX and Amphenol APH are some stocks with favorable combinations. Cadence Design Systems has an Earnings ESP of +0.91% and carries a Zacks Rank #2 at present. CDNS is slated to report its third-quarter 2026 results on Oct. 26. You can see the complete list of today's Zacks #1 Rank stocks here. Seagate Technology has an Earnings ESP of +2.49% and sports a Zacks Rank #1 at present. Seagate Technology is set to report its first-quarter fiscal 2027 results on Oct. 27. Amphenol has an Earnings ESP of +1.72% and a Zacks Rank #2 at present. Amphenol is set to report its third-quarter 2026 results on Oct. 28. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report F5, Inc. (FFIV) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Cadence Design Systems heads into its September 2026 earnings report with analyst expectations for higher EPS and revenue, supported by a US$8.1b backlog and a business mix spanning EDA software, IP and hardware. - The key shift is the recent wave of upward earnings estimate revisions, which indicates rising confidence in how Cadence is monetising AI driven design tools and newer IP and system analysis offerings. - We will now look at how Cadence Design Systems' investment narrative could be affected by these upbeat earnings revisions ahead. Compare how Cadence Design Systems stacks up against a curated group of AI focused peers by scanning the 39 AI small caps that analysts are watching closely around earnings season. To own Cadence Design Systems, you need to believe its AI driven EDA tools, IP portfolio and system analysis platforms can keep turning chip complexity into recurring software and IP revenue. The near term story hinges on execution in AI super agents and advanced node IP while digesting Hexagon Design & Engineering without letting integration costs squeeze margins too hard. The upcoming October 26 earnings release is the next real test. Guidance already bakes in US$20m to US$25m of extra second half 2026 operating expense from Hexagon, so any pressure on profitability or slower China demand would matter more than short term share price swings. The most relevant data point for this earnings setup is the expectation for September quarter EPS of US$2.04 and revenue of US$1.61b, both projected higher than a year ago. That is where you see whether AI super agents, IP closer to a US$1b run rate and the US$8.1b backlog are translating into cleaner top line execution. Analysts recently raised earnings estimates and point to a positive Earnings ESP alongside the Zacks Rank. This frames sentiment but does not change the core job for Cadence Design Systems. Management still has to show that higher recurring revenue and AI consumption pricing can offset Hexagon dilution, premium P/E risk and any tightening of export controls in China. Cadence Design Systems' current analyst narrative points to revenues of US$8.4b and earnings of US$2.0b by 2029. This aligns with a forecast 12.9% yearly revenue growth rate and an earnings increase of US$600m from US$1.4b today. Discover how Cadence Design Systems' fair value indicates a 27% potential upside to its current price that could close sooner than many investors expect. Some of the highest Cadence Design Systems analysts lean hard into AI as a catalyst. They were pencilling in about US$9.3b of revenue and US$2.7b of earnings by 2029, well above the US$8.4b and US$2.0b consensus view. With the October 26 earnings update approaching, those pre news assumptions may shift meaningfully. Explore 5 other Cadence Design Systems fair value estimates, including one that suggests potential upside of up to 47% from the current price. Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. - A great starting point for your Cadence Design Systems research is our analysis highlighting 3 key rewards that could impact your investment decision. - See our latest analysis for Cadence Design Systems. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Cadence Design Systems' overall financial health at a glance. Once you have formed a view on Cadence Design Systems, it often helps to compare that thesis with other opportunities that match your risk tolerance and income needs. The Simply Wall St Screener can help you quickly surface candidates that fit different objectives. - For investors who care most about balance sheet strength and fundamental resilience, the list of solid balance sheet and fundamentals (25 results) can help you focus on companies that may better handle stress. - If your priority is uncovering potential mispricings, use the 34 high quality undervalued stocks to filter for businesses where fundamentals and price appear out of sync. - Those seeking income and stability might start with the 8 dividend fortresses to find stocks that pair higher yields with an emphasis on durability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CDNS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Manhattan Associates (MANH) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This business software company is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +7.4%. Revenues are expected to be $296.82 million, up 7.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.26% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Manhattan Associates, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.65%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Manhattan Associates will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Manhattan Associates would post earnings of $1.31 per share when it actually produced earnings of $1.39, delivering a surprise of +6.11%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Manhattan Associates appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Computer - Software industry, Cadence Design Systems (CDNS), is soon expected to post earnings of $2.04 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +5.7%. Revenues for the quarter are expected to be $1.61 billion, up 20.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Cadence has been revised 0.8% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.56%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Cadence will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Cadence Design Systems (CDNS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 26. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This maker of hardware and software products for validating chip designs is expected to post quarterly earnings of $2.04 per share in its upcoming report, which represents a year-over-year change of +5.7%. Revenues are expected to be $1.61 billion, up 20.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.85% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Cadence, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.56%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Cadence will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cadence would post earnings of $2.05 per share when it actually produced earnings of $2.11, delivering a surprise of +2.93%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cadence appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

International Business Machines Corporation IBM is scheduled to report third-quarter 2026 earnings after the closing bell on Oct. 21. In the quarter, the company is likely to have recorded marginally higher revenues from the Consulting segment driven by rising demand for technology consulting and business transformation services. The Consulting segment comprises Strategy and Technology (previously reported as Business Transformation and Technology Consulting) and Intelligent Operations (previously reported as Application Operations). It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy and process know-how. During the to-be-reported quarter, IBM partnered with India-based artificial intelligence (AI) company Sarvam to develop and test sovereign AI technologies for government agencies and regulated industries in the subcontinent. The collaboration aims to build AI systems that give organizations greater control over data, governance and operations while supporting digital transformation across the public sector. IBM also collaborated with Arm Holdings plc to give enterprises more software choices for mission-critical workloads. IBM's latest processor will enable Arm-native Linux environments to run alongside z/OS and Linux on IBM Z, giving enterprises access to a broader software ecosystem while maintaining security, reliability and scalability. These are likely to have generated additional revenues for the Consulting segment. In the third quarter, IBM acquired Logiq Consulting, a U.K.-based cybersecurity consultancy, to strengthen its secure digital transformation capabilities and expand its presence across highly regulated industries. The acquisition reinforces IBM's strategy of expanding its cybersecurity portfolio while capitalizing on the growing demand for secure hybrid cloud and AI solutions. Logiq Consulting brings specialized Secure by Design capabilities, allowing organizations to integrate cybersecurity throughout the technology lifecycle rather than addressing vulnerabilities after deployment. These capabilities complement IBM's existing cybersecurity transformation services and SiXworks' digital transformation expertise in defense and public sector markets. In addition, Logiq's DISX managed sovereign collaboration platform enables government suppliers to exchange sensitive information securely with U.K. government and defense organizations while maintaining control over data management. Integrating these capabilities with IBM's hybrid cloud, AI and consulting expertise could create opportunities for cross-selling services and expanding relationships with security-conscious customers. The buyout also boosts IBM's digital sovereignty offerings as governments and regulated enterprises increasingly prioritize data control, regulatory compliance and operational resilience. The Zacks Consensus Estimate for Consulting revenues is pegged at $5.35 billion, indicating an improvement from $5.32 billion in the year-ago quarter. The Zacks Consensus Estimate for total revenues for the company is pegged at $16.84 billion. It generated revenues of $16.33 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $2.87 per share, indicating growth from $2.65 in the year-earlier quarter. Our proven model does not predict an earnings beat for IBM for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. IBM currently has an ESP of -0.63% with a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. International Business Machines Corporation price-eps-surprise | International Business Machines Corporation Quote Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season: Monolithic Power Systems, Inc. MPWR is set to release quarterly numbers on Oct. 29. It has an Earnings ESP of +1.60% and carries a Zacks Rank #2. The Earnings ESP for InterDigital, Inc. IDCC is +1.27% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Oct. 29. The Earnings ESP for Cadence Design Systems, Inc. CDNS is +0.56% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct. 26. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

International Business Machines Corporation IBM is scheduled to report third-quarter 2026 earnings after the closing bell on Oct. 21. In the quarter, the company is likely to have recorded higher revenues from the Software segment with a strong focus on product innovation and the growing clout of watsonx.ai across various sectors. The Software segment includes Hybrid Cloud, Automation and Data and Transaction Processing. During the third quarter, IBM entered into a multi-year, $240 million agreement with Together AI to support the growing demand for enterprise artificial intelligence (AI) inference. The partnership will enable IBM to expand its cloud infrastructure offerings for open-source AI workloads and strengthen its position in the rapidly growing AI infrastructure market. Under the agreement, the company plans to deploy a large cluster of NVIDIA's HGX B300 systems on IBM Cloud and provide Together AI with enterprise-grade cloud infrastructure powered by NVIDIA's advanced computing and Spectrum-X Ethernet networking technologies. The deployment is designed to support high-performance AI inference and make large-scale workloads more cost-effective. The collaboration also expands IBM's broader relationship with NVIDIA across AI infrastructure and software. The companies are advancing solutions in GPU-accelerated data analytics, unstructured data processing, hybrid cloud infrastructure and consulting services. These capabilities are expected to help enterprises deploy AI workloads across cloud and on-premises environments with greater performance, flexibility and scalability. IBM also introduced a new set of AI-powered experiences for the 2026 U.S. Open to make live tennis more personalized, informative and interactive for millions of fans worldwide. By turning complex court-level data into accessible insights, the company helped fans better understand the game through advanced technology. Such investments in innovation and collaborations will likely boost IBM's commercial prospects and are likely to have generated incremental revenues for the Software segment. In the to-be-reported quarter, IBM collaborated with LTM to strengthen enterprise software supply chain security through AI-driven vulnerability remediation. The partnership aims to help enterprises identify and address vulnerabilities in open-source software while minimizing disruptions to business-critical applications. Per the collaboration, LTM will leverage Lightwell's AI-powered remediation capabilities to help enterprises implement validated software fixes at scale. Building on its long-standing relationship as an IBM Platinum Partner, LTM plans to offer services spanning dependency analysis, risk-based prioritization, DevSecOps integration, testing, validation and large-scale deployment support. The initiative combines Lightwell's software remediation capabilities with LTM's expertise in application modernization, cybersecurity and cloud technologies. The deal is expected to strengthen IBM's position in the enterprise software security market as organizations increasingly prioritize cybersecurity and software supply chain resilience. The Zacks Consensus Estimate for Software revenues is pegged at $7.62 billion, indicating an improvement from $7.21 billion recorded in the year-ago quarter. The Zacks Consensus Estimate for total revenues for the company is pegged at $16.84 billion. It generated revenues of $16.33 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $2.87 per share, indicating growth from $2.65 in the year-earlier quarter. Our proven model does not predict an earnings beat for IBM for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. IBM currently has an ESP of -0.63% with a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. International Business Machines Corporation price-eps-surprise | International Business Machines Corporation Quote Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season: Monolithic Power Systems, Inc. MPWR is set to release quarterly numbers on Oct. 29. It has an Earnings ESP of +1.60% and carries a Zacks Rank #2. The Earnings ESP for InterDigital, Inc. IDCC is +1.27% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Oct. 29. The Earnings ESP for Cadence Design Systems, Inc. CDNS is +0.56% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct. 26. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cadence Design Systems (CDNS), which belongs to the Zacks Computer - Software industry, could be a great candidate to consider. This maker of hardware and software products for validating chip designs has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 3.59%. For the most recent quarter, Cadence was expected to post earnings of $2.05 per share, but it reported $2.11 per share instead, representing a surprise of 2.93%. For the previous quarter, the consensus estimate was $1.88 per share, while it actually produced $1.96 per share, a surprise of 4.26%. For Cadence, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Cadence has an Earnings ESP of +0.56% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 26, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

San Jose, California-based Cadence Design Systems, Inc. (CDNS) develops computational, AI-driven software, hardware, and silicon intellectual property (IP) products and solutions. Valued at a market cap of $97.3 billion, the company offers products and tools that help customers design electronic products through the System Design Enablement (SDE) strategy. The company also offers software, hardware, services, and reusable IC design blocks to electronic systems and semiconductor customers. CDNS is expected to release its Q3 2026 earnings soon. Ahead of this event, analysts anticipate the company will generate earnings of $1.60 per share, representing an increase of 6% from $1.51 per share reported in the same quarter last year. The company has met or surpassed the Street's bottom-line estimates in three of the past four quarters, while missing on one occasion. - Why It's Time to Load Up on Broadcom Stock Before It Touches $523 - NVO vs. LLY: Novo's CEO Says Confidence Is Gone. Lilly Is Winning 7 in 10 New Seniors. - ZS Stock Alert: What to Know as Zscaler Unveils Partnership With IBM - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts expect the company to report an EPS of $6.40, indicating a 16.8% rise from $5.48 reported in fiscal 2025. Moreover, its EPS is expected to rise nearly 18.1% year over year (YoY) to $7.56 in fiscal 2027. CDNS stock has grown 1.8% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 15.8% rise and the State Street Technology Select Sector SPDR ETF's (XLK) 41.1% rise during the same time frame. Despite underperforming over the past year, CDNS stock has showcased impressive results in its last announced quarter. On July 27, the company's shares rose 3.8% following the announcement of its Q2 2026 earnings. Its revenue for the quarter amounted to $1.6 billion, matching the Street's estimates. Moreover, its adjusted EPS for the period came in at $2.11, which successfully topped the consensus estimates. CDNS expects its revenue and EPS to be in the range of $6.26 billion to $6.34 billion and $8.05 to $8.15, respectively, for the full year. Analysts are highly bullish on CDNS, with the stock having a "Strong Buy" rating overall. Among the 23 analysts covering the stock, 19 are recommending a "Strong Buy," one recommends a "Moderate Buy," and three suggest a "Hold" for the stock. CDNS' average analyst price target is $409.23, indicating an upside of 15.8% from the current level. On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com