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Cadence Design Systems (MX:CDNS)
:CDNS

Cadence Design (CDNS) Price & Analysis

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CDNS Stock Chart & Stats

$5574.50
-$4.40(-0.08%)
At close: 4:00 PM EDT
$5574.50
-$4.40(-0.08%)

Bulls Say, Bears Say

Bulls Say
Recurring Revenue And Switching CostsCadence’s subscription-oriented licensing, maintenance, and support model creates recurring revenue and improves visibility. Its broad, embedded workflows also raise switching costs, supporting renewals and cross-selling as customers add engineers, capacity, and design tools.
High Margins And Cash GenerationVery high gross margins and solid operating profitability indicate a scalable software model with pricing power. Strong free-cash-flow conversion provides internal funding for research, strategic investments, repurchases, and customer support without relying heavily on external capital.
Demand, Backlog, And Ecosystem ExpansionRecord backlog and broad strategic engagement with leading semiconductor ecosystems support durable demand for Cadence’s design tools and IP. These relationships can deepen technology qualification, improve production adoption, and expand the company’s addressable market over multiple years.
Bears Say
Higher LeverageThe sharp increase in leverage reduces financial flexibility compared with Cadence’s earlier balance-sheet position. Although profitability remains strong, higher debt can constrain capital allocation and leave less capacity to absorb weaker growth, integration costs, or other business pressures.
Slowing Growth And Margin PressureDecelerating revenue growth and a lower net margin indicate that the company’s exceptional expansion and profitability are not advancing at their earlier pace. Continued investment, expense growth, or unfavorable mix could limit operating leverage even as core margins remain healthy.
Export-control SensitivityCadence’s outlook depends partly on a stable export-control framework, making regulatory changes a material earnings risk. Tighter restrictions could affect customer access, deal timing, or regional demand, potentially reducing revenue visibility and complicating long-term planning.

Cadence Design News

CDNS FAQ

What was Cadence Design Systems’s price range in the past 12 months?
Cadence Design Systems lowest stock price was $4520.11 and its highest was $7466.00 in the past 12 months.
    What is Cadence Design Systems’s market cap?
    Cadence Design Systems’s market cap is $1.36T.
      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 47 days.
        How were Cadence Design Systems’s earnings last quarter?
        Cadence Design Systems released its earnings results on Jul 27, 2026. The company reported $35.819 earnings per share for the quarter, beating the consensus estimate of $34.869 by $0.951.
          Is Cadence Design Systems overvalued?
          According to Wall Street analysts Cadence Design Systems’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            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 34.7.
              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 $35.819 in its last earnings report, beating expectations of $34.869. Following the earnings report the stock price went same 0%.
                  Which hedge fund is a major shareholder of Cadence Design Systems?
                  Currently, no hedge funds are holding shares in MX:CDNS
                  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

                    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.

                    Cadence Design (CDNS) Earnings & Revenues

                    CDNS 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 MX:CDNS earnings summaries

                    CDNS Revenue Breakdown

                    70.00%70.00%14.00%16.00%
                    70.00% Core EDA
                    14.00% IP
                    16.00% System Design and Analysis
                    tipranks

                    CDNS Stock 12 Month Forecast

                    Average Price Target

                    $6,989.55
                    ▲(25.38% Upside)
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6,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 1, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":5160.5,"date":1769904000000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 19,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 5, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":5260,"date":1772323200000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 16,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 4, \t&nbsp;</span>\n     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