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Cadence Design Systems (MX:CDNS)
:CDNS

Cadence Design (CDNS) Price & Analysis

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CDNS Stock Chart & Stats

$5574.50
-$4.40(-0.08%)
At close: 4:00 PM EDT
$5574.50
-$4.40(-0.08%)

Bulls Say, Bears Say

Bulls Say
Recurring Platform ModelCadence’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 GrowthStrong 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 GenerationVery 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 ExposureCadence’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 PressureThe 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 WeaknessAlthough 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

CDNS FAQ

What was Cadence Design Systems’s price range in the past 12 months?
Cadence Design Systems lowest stock price was $4520.11 and its highest was $7259.97 in the past 12 months.
    What is Cadence Design Systems’s market cap?
    Cadence Design Systems’s market cap is $1.65T.
      When is Cadence Design Systems’s upcoming earnings report date?
      Cadence Design Systems’s upcoming earnings report date is Feb 23, 2027 which is in 119 days.
        How were Cadence Design Systems’s earnings last quarter?
        Cadence Design Systems released its earnings results on Oct 26, 2026. The company reported $39.15 earnings per share for the quarter, beating the consensus estimate of $37.963 by $1.187.
          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 41.25.
              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 $39.15 in its last earnings report, beating expectations of $37.963. 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 MX: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 Earnings Call

                    Q3 2026
                    0:00 / 0:00
                    Earnings Call Sentiment|Positive
                    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 MX:CDNS earnings summaries

                    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

                    $7,684.88
                    ▲(37.86% Upside)
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19,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 5, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":5260,"date":1772323200000,"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 4, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":5004,"date":1775001600000,"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 29,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 6, \t&nbsp;</span>\n      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