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Hexagon $2.7B Acquisition Adds $160M Revenue → Q1 EPS Beats Estimates at $1.99

Cadence Design Systems completed its acquisition of Hexagon's Design and Engineering business for approximately $2.7 billion (70% cash, 30% Cadence stock), with the deal expected to add $160 million to 2026 revenue and deepen Cadence's system-aware engineering capabilities. Q1 FY2026 results showed EPS of $1.99, topping the $1.91 consensus estimate, with revenue of $1.44 billion versus $1.42 billion expected. The stock trades at $287 with 88% positive analyst ratings and a consensus price target of $380, though Light Street Capital reduced its position by 59.5% while MIRAE ASSET ETFs purchased a new $128.8 million stake.