CDNS · PEAD → 0

Cadence Design Systems reported Q2 2026 EPS of $1.58 on 2026-07-27 (after market close), missing the $1.62 consensus by $0.04 (-2.5%).

Print-day reaction was +3.8% versus the prior close, a constructive initial response that pushed CDNS above its pre-earnings level despite the EPS miss. The overnight gap reversed course, with the T+0 close-to-T+1 open move registering -1.0%, signalling some after-hours hesitation. Over days one through three the price drifted -3.5%, unwinding a material portion of the print-day gain and setting up a mixed net picture. Cumulative abnormal return of +1.6% versus SPY.US — above the -3% floor but below the +3% threshold — lands this in PEAD neutral territory; conviction is 0 and no directional hold is opened through 2026-10-22.