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Cadence Design Systems (CH:CDS)
:CDS

Cadence Design (CDS) Price & Analysis

2 Followers

CDS Stock Chart & Stats

CHF271.93
CHF0.00(0.00%)
At close: 4:00 PM EDT
CHF271.93
CHF0.00(0.00%)

Bulls Say, Bears Say

Bulls Say
Recurring Software RevenueRecurring term licenses, maintenance, and embedded workflows support visibility because customers renew and often expand across users, capacity, and tool suites. High switching costs from integrated EDA flows can reinforce retention and deepen Cadence's position over the next several quarters.
Profitability And Cash GenerationVery high gross margins of roughly 86–90%, operating margins around 30%, and free cash flow near 0.90x net income show a scalable software model that converts earnings into cash. Strong TTM free-cash-flow growth further supports reinvestment and financial resilience.
Demand VisibilityRecord $8.1 billion backlog and 24% Q2 revenue growth, alongside raised 2026 revenue guidance implying about 19% growth, indicate strong customer demand and forward visibility. This supports execution over multiple quarters and provides a substantial base for continued expansion.
Bears Say
Slowing Growth And Margin PressureTTM revenue growth has slowed to about 5.6% from prior low-to-high teen rates, while net margin has eased from its 2023 peak. Slower expansion and modest mix or expense pressure could reduce operating leverage and make sustained high growth more dependent on new product adoption.
Higher LeverageDebt-to-equity rose from about 0.22 in 2023 to 0.45–0.47 in 2025–TTM, despite solid profitability. Higher leverage reduces flexibility to fund initiatives or absorb weaker conditions, and increases the importance of continued cash generation and disciplined capital allocation.
Export-Control Exposure2026 guidance depends on export-control rules remaining substantially similar, leaving results exposed to regulatory changes. Management states that a material change could affect the outlook, creating an external constraint on Cadence's ability to sustain currently planned growth.

Cadence Design News

CDS FAQ

What was Cadence Design Systems’s price range in the past 12 months?
Cadence Design Systems lowest stock price was CHF225.69 and its highest was CHF300.41 in the past 12 months.
    What is Cadence Design Systems’s market cap?
    Cadence Design Systems’s market cap is CHF80.62B.
      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 15 days.
        How were Cadence Design Systems’s earnings last quarter?
        Cadence Design Systems released its earnings results on Jul 27, 2026. The company reported CHF1.751 earnings per share for the quarter, beating the consensus estimate of CHF1.704 by CHF0.046.
          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 1.7.
              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 CHF1.751 in its last earnings report, beating expectations of CHF1.704. 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 CH: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

                    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 (CDS) Earnings & Revenues

                    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 CH:CDS earnings summaries

                    CDS Revenue Breakdown

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

                    CDS Stock 12 Month Forecast

                    Average Price Target

                    CHF340.64
                    ▲(25.27% Upside)
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<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 17,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 3, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 1</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":271.932,"date":1761955200000,"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 3, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 1</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":271.932,"date":1764547200000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n       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