Cadence Design (0HS2) Share Price & Analysis
0HS2 Stock Chart & Stats
- Day’s Range
- $322.13 - $340.41
- 52-Week Range
- $262.51 - $420.00
- Previous Close
- $341.71
- Volume
- 12.48K
- Average Volume (3M)
- 3,872
- Market Cap
- $89.97B
- Enterprise Value
- $92.16B
- Total Cash (Recent Filing)
- $1.45B
- Total Debt (Recent Filing)
- $2.81B
- Price to Earnings (P/E)
- 64.8
- Beta
- 0.23
- Next Earnings
- Feb 23, 2027 (Est.)
- EPS Estimate
- 2.23
- Last Dividend Ex-Date
- Mar 15, 2022
- 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
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Cadence Design Stock Smart Score
Company Description
Cadence Design
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.
- Sector
- General
- Industry
- Software - Application
- CEO
- Anirudh Devgan
- Employees
- 13,800
- Website
- www.cadence.com
- Address
- Building 5, San Jose, CA, 95134, US
Cadence Design (0HS2) Earnings & Revenues
0HS2 Earnings Call
Earnings Call SentimentPositive
The call was strongly positive, with record backlog, 22% Q3 revenue growth, raised 2026 guidance, broad-based product growth, accelerating Agentic AI adoption, and strong customer and hardware momentum. The main caveats were the sequential moderation in recurring revenue growth, higher hardware inventory, hardware quarter-to-quarter lumpiness, the near-term margin effect of the Hexagon D&E integration, and the outlook's export-control assumption.
View all GB:0HS2 earnings summaries0HS2 Net sales Breakdown
- 70.00% Core EDA
- 14.00% IP
- 16.00% System Design and Analysis
0HS2 Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 5 | 6 | 11 |
| Technical Analysis | 3 | 6 | 1 |
| Moving Averages | 2 | 0 | 10 |











