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Cadence Design (CDS) Stock Price & Analysis

CDS Stock Chart & Stats

€294.90€1.55(0.53%)
At close: 5:13 PM GMT+1
€250€275€3003 Aug17 Aug31 Aug14 Sep28 Sep12 Oct26 Oct
Day’s Range
EUR 294.60 - EUR 303.10
52-Week Range
EUR 220.00 - EUR 359.70
Previous Close
EUR 307.80
Volume
N/A
Average Volume (3M)
213
Market Cap
EUR 80.56B
Enterprise Value
EUR 92.16B
Total Cash (Recent Filing)
EUR 1.45B
Total Debt (Recent Filing)
EUR 2.81B
Price to Earnings (P/E)
64.8
Beta
0.57
Next Earnings
Feb 23, 2027 (Est.)
EPS Estimate
2
Next Dividend Ex-Date
N/A
Dividend Yield
N/A

Bulls Say, Bears Say

Bulls Say

Recurring Platform Model

Cadence’s subscription, maintenance, and support model provides recurring revenue and better visibility than purely transactional software sales. Deep integration across design, verification, signoff, and packaging workflows also raises switching costs, supporting renewals and customer expansion.

Demand And Growth

Strong bookings, record backlog, and broad product demand indicate that growth is supported by customer design activity rather than a single product or end market. Continued expansion across EDA, IP, system analysis, and AI solutions can sustain revenue momentum over coming quarters.

Profitability And Cash Generation

Very high gross margins and substantial free cash flow demonstrate an asset-light model with strong economics and capacity to fund research, product expansion, and capital returns. Moderate leverage and growing equity further support financial flexibility as Cadence invests for growth.

Bears Say

Export-control Exposure

Cadence’s financial outlook depends partly on export-control rules remaining broadly unchanged, making international customer access and revenue assumptions vulnerable to regulatory shifts. A materially tighter regime could reduce demand, delay transactions, or complicate serving affected customers.

Integration Margin Pressure

The Hexagon D&E integration is currently diluting incremental profitability, showing that acquired operations may require time and investment before reaching Cadence’s normal margin profile. Persistent dilution could constrain operating leverage and reduce the earnings benefit of otherwise strong revenue growth.

Cash Conversion Weakness

Although free cash flow remains strong, operating cash flow below net income signals weaker cash conversion than the prior year, potentially reflecting working-capital or timing effects. If sustained, this could reduce internally generated funding available for investment and capital returns.

Cadence Design News

CDS FAQ

What was Cadence Design’s price range in the past 12 months?
Cadence Design lowest stock price was €220.00 and its highest was €359.70 in the past 12 months.
What is Cadence Design’s market cap?
Cadence Design’s market cap is €80.56B.
When is Cadence Design’s upcoming earnings report date?
Cadence Design’s next earnings report is estimated for Feb 23, 2027 (not yet confirmed), which is in 113 days.
How were Cadence Design’s earnings last quarter?
Cadence Design released its earnings results on Oct 26, 2026. The company reported €1.892 earnings per share for the quarter, beating the consensus estimate of €1.835 by €0.057.
Is Cadence Design overvalued?
According to Wall Street analysts Cadence Design’s price is currently Undervalued.
Does Cadence Design pay dividends?
Cadence Design does not currently pay dividends.
What is Cadence Design’s EPS estimate?
Cadence Design’s EPS estimate is 2.00.
How many shares outstanding does Cadence Design have?
Cadence Design has 274,379,000 shares outstanding.
What happened to Cadence Design’s price movement after its last earnings report?
Cadence Design reported an EPS of €1.892 in its last earnings report, beating expectations of €1.835. Following the earnings report the stock price went up 5.325%.
Which hedge fund is a major shareholder of Cadence Design?
Hedge funds hold Cadence Design shares: the largest hedge-fund position in Cadence Design is 472,392,954 shares, and hedge funds increased their holdings by 108.6K shares last quarter.
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