CDS Stock Chart & Stats
€287.15
-€6.60(-2.14%)
At close: 4:00 PM EDT
€287.15
-€6.60(-2.14%)
Day’s Range― - ―
52-Week Range€220.00 - €359.70
Previous CloseN/A
Volume413.00
Average Volume (3M)260.00
Market Cap
€65.83B
Enterprise Value€104.60K
Total Cash (Recent Filing)€1.44B
Total Debt (Recent Filing)€2.48B
Price to Earnings (P/E)55.3
Beta0.59
Next Earnings
Oct 26, 2026EPS Estimate
1.76Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)5.06
Shares Outstanding275,393,000
10 Day Avg. Volume535
30 Day Avg. Volume260
Financial Highlights & Ratios
PEG Ratio14.86
Price to Book (P/B)15.49
Price to Sales (P/S)16.01
P/FCF Ratio53.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€355.04Price Target Upside23.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)7.01
Revenue Forecast (FY)€5.45B
Bulls Say, Bears Say
Bulls Say
Recurring Software Model And Switching CostsCadence’s time-based licensing, maintenance, and support model creates recurring revenue tied to an embedded customer installed base. Broad tool coverage and high workflow switching costs can support renewals, portfolio expansion, and durable customer relationships across design cycles.
High-margin Cash-generative OperationsVery high gross margins and solid operating profitability indicate strong software economics and pricing power. Free cash flow generally tracks earnings and has grown strongly, giving Cadence resources to fund product investment, strategic initiatives, and shareholder returns.
Strong Demand And Expanding EDA OpportunityBroad-based revenue growth, record backlog, and raised annual guidance point to substantial customer demand and improved forward visibility. Momentum across core EDA, IP, SDA, advanced packaging, and AI-related tools supports Cadence’s position in expanding design complexity.
Bears Say
Higher Leverage Reduces Financial FlexibilityCadence remains profitable, but the sharp increase in leverage reduces balance-sheet flexibility compared with earlier periods. Higher debt can constrain capital allocation and make the company more sensitive to weaker growth, elevated financing costs, or execution setbacks.
Revenue Growth And Margin Trends Have ModeratedAlthough profitability remains strong, slower TTM revenue growth and a lower net margin suggest that prior expansion rates are not being sustained evenly. Continued moderation could make future earnings increasingly dependent on new products, mix improvement, and disciplined spending.
Exposure To Export-control ChangesManagement’s guidance depends on regulatory conditions remaining broadly unchanged, creating exposure to policy changes that could affect customer access, licensing activity, or regional demand. This external sensitivity adds uncertainty to otherwise strong forward revenue expectations.
CDS FAQ
What was Cadence Design Systems’s price range in the past 12 months?
Cadence Design Systems lowest stock price was €220.00 and its highest was €359.70 in the past 12 months.
What is Cadence Design Systems’s market cap?
Cadence Design Systems’s market cap is €65.83B.
When is Cadence Design Systems’s upcoming earnings report date?
Cadence Design Systems’s upcoming earnings report date is Oct 26, 2026 which is in 38 days.
How were Cadence Design Systems’s earnings last quarter?
Cadence Design Systems released its earnings results on Jul 27, 2026. The company reported €1.817 earnings per share for the quarter, beating the consensus estimate of €1.769 by €0.048.
Is Cadence Design Systems overvalued?
According to Wall Street analysts Cadence Design Systems’s price is currently Undervalued.
Does Cadence Design Systems pay dividends?
Cadence Design Systems does not currently pay dividends.
What is Cadence Design Systems’s EPS estimate?
Cadence Design Systems’s EPS estimate is 1.76.
How many shares outstanding does Cadence Design Systems have?
Cadence Design Systems has 275,393,000 shares outstanding.
What happened to Cadence Design Systems’s price movement after its last earnings report?
Cadence Design Systems reported an EPS of €1.817 in its last earnings report, beating expectations of €1.769. Following the earnings report the stock price went up 3.433%.
Which hedge fund is a major shareholder of Cadence Design Systems?
Currently, no hedge funds are holding shares in DE:CDS
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Cadence Design Stock Smart Score
Outperform
1
2
3
4
5
6
7
8
9
10
Analyst Consensus
Strong Buy
Average Price Target:
€355.04 (23.64% Upside)
€355.04 (23.64% Upside)
Blogger Sentiment
Bullish
DE:CDS Sentiment 74%
Sector Average 61%
Sector Average 61%
News Sentiment
Very Bullish
Bullish news 100%
Bearish news 0%
Bearish news 0%
Technicals
SMA
Negative
20 days / 200 days
Momentum
-19.80%
12-Months-Change
Fundamentals
Return on Equity
―
Trailing 12-Months
Asset Growth
27.04%
Trailing 12-Months
Learn more about TipRanks Smart Score
Company Description
Cadence Design Systems
Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. is headquartered in San Jose, California.
CDS Earnings Call
Q2 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call conveyed strong, broad-based operational and financial momentum: 24% Q2 revenue growth, record backlog ($8.1B), robust margins (45.5% non-GAAP in Q2), and notable early traction for agentic AI products and strategic partnerships (Intel, Samsung, TSMC). Management raised full-year guidance to ~19% revenue growth and reiterated confidence in multi-year TAM expansion from agentic AI. Near-term headwinds include deliberate investment spending in H2 (Hexagon integration, Intel engagement), hardware supply constraints, regulatory sensitivity around export controls, and the early-stage nature of agentic AI monetization, but these were framed as strategic investments to drive future growth.View all DE:CDS earnings summariesCDS Revenue Breakdown
70.00% Core EDA
14.00% IP
16.00% System Design and Analysis

CDS Stock 12 Month Forecast
Average Price Target
€355.04
▲(23.64% Upside)










