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Cadence Design Systems (CH:CDS)
NASDAQ:CDS

Cadence Design (CDS) Price & Analysis

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CDS Stock Chart & Stats

Currently, no data available
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Bulls Say, Bears Say

Bulls Say
High Margins And Cash ConversionCadence’s exceptionally high gross margins and ~90% conversion of net income to free cash flow create durable cash generation. This supports reinvestment, R&D, buybacks and debt servicing, providing long-term financial resilience even if growth moderates.
Broad-based Revenue Strength And BacklogSustained, diversified growth across IP, EDA and SDA plus an $8B backlog gives multi-quarter revenue visibility and reduces single-market dependence. Durable demand from semiconductor customers supports predictable renewal and upsell opportunities.
Product Leadership And Strategic PartnershipsLeadership in agentic AI and deep partnerships with Intel, Google and NVIDIA embed Cadence into advanced node toolchains and cloud workflows. These structural alliances increase product stickiness, accelerate PDK readiness and raise switching costs over the medium term.
Bears Say
Higher Absolute Debt Post‑M&AThe sizable increase in absolute debt after the Hexagon deal raises reliance on continued strong cash generation to maintain leverage ratios. This reduces financial flexibility for future M&A or cyclical downturns until debt is meaningfully paid down.
Acquisition-related Dilution And Margin DragNear-term EPS dilution and a material margin drag from integration and financing costs mean the acquisition is a short-term headwind. Prolonged integration or slower-than-expected synergies could delay expected accretion and pressure margins into 2027.
Moderating Growth, FCF Momentum And Regional LumpinessSlowing top-line growth and declining free cash flow momentum reduce the cushion that funds investment and debt paydown. Coupled with China exposure and export-control sensitivity, this raises revenue and cash visibility risk across planning horizons.

Cadence Design News

CDS FAQ

What was Cadence Design Systems’s price range in the past 12 months?
Currently, no data Available
What is Cadence Design Systems’s market cap?
Cadence Design Systems’s market cap is CHF86.05B.
    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 16 days.
      How were Cadence Design Systems’s earnings last quarter?
      Cadence Design Systems released its earnings results on Apr 27, 2026. The company reported $1.584 earnings per share for the quarter, beating the consensus estimate of $1.541 by $0.044.
        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 1.66.
            How many shares outstanding does Cadence Design Systems have?
            Currently, no data Available
            What happened to Cadence Design Systems’s price movement after its last earnings report?
            Cadence Design Systems reported an EPS of $1.584 in its last earnings report, beating expectations of $1.541. Following the earnings report the stock price went same N/A.
              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

                Q1 2026
                0:00 / 0:00
                Earnings Call Sentiment|Positive
                The call reflects strong, broad-based operational and financial momentum: double-digit growth across major businesses (IP, EDA, SDA), record backlog, best-ever hardware quarter, major product launches in agentic AI and strategic partnerships. The principal near-term negatives are integration-related dilution and prudence in guidance tied to the Hexagon acquisition, plus leverage and regional lumpiness. These lowlights are manageable in context and management expects acquisition accretion in 2027.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
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                CDS Stock 12 Month Forecast

                Average Price Target

                $308.78
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