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Cadence Design Systems (CDNS)
NASDAQ:CDNS
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Cadence Design (CDNS) Price & Analysis

3,930 Followers

CDNS Stock Chart & Stats

$311.03
$1.53(0.51%)
At close: 4:00 PM EST
$311.03
$1.53(0.51%)

Bulls Say, Bears Say

Bulls Say
Margin And Cash ConversionCadence’s exceptionally high gross and operating margins and near-parallel free cash flow conversion indicate a structurally profitable SaaS/IP business with strong pricing power. High cash conversion supports R&D reinvestment, buybacks and debt service, making earnings quality durable across cycles.
Raised Guidance & Record BacklogManagement’s higher 2026 revenue guidance together with an $8B record backlog provide multi-quarter revenue visibility. Strong bookings reduce near-term demand risk and support sustained revenue growth as product adoption and recurring license renewals drive predictable top-line momentum.
Product Leadership And EcosystemsNew agentic AI design stacks and continuous enhancements to EDA, IP and hardware deepen Cadence’s technical moat. Platform-level offerings and integrations (AI tooling, verification hardware) increase wallet share per customer and create higher switching costs over time.
Bears Say
Acquisition Dilution & Margin DragThe Hexagon purchase is expected to be dilutive in the near term due to cash financing and integration costs, creating a measurable margin and EPS headwind in 2026. This reduces near-term profitability and requires successful integration to realize promised accretion in 2027.
Higher Absolute Leverage Post-M&AThe sizeable jump in absolute debt following the largely cash-funded acquisition increases reliance on sustained free cash flow to manage leverage. While current debt/equity remains manageable, elevated debt raises sensitivity to weaker operating performance or integration slippage.
Slowing Growth And Cash MomentumAlthough levels remain healthy, recent negative TTM free cash flow growth and decelerating revenue versus the 2022–2024 pace suggest moderating top-line expansion. Persistent slowing could pressure R&D investment, margin leverage, and the company’s ability to sustain elevated capital returns.

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 $262.75 and its highest was $416.69 in the past 12 months.
    What is Cadence Design Systems’s market cap?
    Cadence Design Systems’s market cap is $100.58B.
      When is Cadence Design Systems’s upcoming earnings report date?
      Cadence Design Systems’s upcoming earnings report date is Jul 27, 2026 which is in 8 days.
        How were Cadence Design Systems’s earnings last quarter?
        Cadence Design Systems released its earnings results on Apr 27, 2026. The company reported $1.96 earnings per share for the quarter, beating the consensus estimate of $1.906 by $0.054.
          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 2.05.
              How many shares outstanding does Cadence Design Systems have?
              Cadence Design Systems has 275,816,000 shares outstanding.
                What happened to Cadence Design Systems’s price movement after its last earnings report?
                Cadence Design Systems reported an EPS of $1.96 in its last earnings report, beating expectations of $1.906. Following the earnings report the stock price went down -3.337%.
                  Which hedge fund is a major shareholder of Cadence Design Systems?
                  Currently, no hedge funds are holding shares in 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 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

                    $398.23
                    ▲(28.04% Upside)
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                    Ownership Overview

                    0.29%24.32%0.32%44.52%
                    0.32% Other Institutional Investors
                    44.52% Public Companies and Individual Investors
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