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CDNSCDNS

$299

+8.00
arrow_drop_up2.75%
Market closed·update10 Feb 2026 21:00

$301

+2.00
arrow_drop_up0.67%
Post-market·update10 Feb 2026 22:31
Day's Range
293-301.07
52-week Range
221.56-376.45

Chart

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Performance

Key Stats

Next Earnings Date2026-02-17
Next Earnings TimeAfter Market Close
Volume2.81M
Average Volume 30d1.89M

AI CDNS Summary

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82.19
Valuation (P/E Ratio)
Above industry average, potentially overvalued
📈
0.152
EPS Growth (YoY)
Positive earnings growth in recent quarters
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AI Scoreboard

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Overall Analysis

Buy
77

Cadence Design Systems shows strong fundamental performance, particularly in profitability and growth, aligning well with secular themes in semiconductor design. While technical indicators suggest current price levels may be somewhat extended, the overall outlook remains positive.

Very Strong

Thematic

85

Cadence is a key enabler of advanced semiconductor design, benefiting from long-term trends in AI, high-performance computing, automotive, and 5G. Its software and IP are critical for the development of next-generation chips.

Strong

Fundamental

83

Cadence exhibits strong financial health, consistent revenue and earnings growth, and a solid balance sheet with ample cash. Its profitability metrics are impressive, though valuation is on the higher side.

Neutral to Slightly Bullish

Technical

65

The stock has shown strong upward momentum, trading above key moving averages. However, several short-term indicators suggest it might be approaching overbought levels, indicating potential for a pause or minor retracement.

FactorScore
Semiconductor Industry Growth90
AI and Machine Learning Enablement95
Digital Transformation85
Automotive and IoT Expansion80
Supply Chain Resilience & Geopolitics70
FactorScore
Valuation50
Profitability85
Growth88
Balance Sheet Health75
Cash Flow85
Earnings Consistency90
FactorScore
Trend Analysis80
Momentum60
Volume Confirmation70
Support & Resistance65
Short-term Oscillators50

AI Investing Checklist

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Bullish Points (6)

Earnings Performance chevron_right

Consistent EPS Beat

The company has a strong track record of exceeding earnings per share (EPS) estimates, with 11 out of the last 12 quarters showing positive surprises. The latest quarter's EPS was $1.57, beating the estimate of $1.49 by 5.35%.

Valuation chevron_right

Reasonable P/E Ratio

The trailing Price-to-Earnings (P/E) ratio of 82.19, while seemingly high, is supported by strong historical growth and a forward P/E that suggests future earnings growth might justify the current valuation, especially considering the industry average.

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Bearish Points (8)

Valuation chevron_right

High Forward P/E

Quarterly P/E ratios, particularly for Q1 2025 (253.8) and Q4 2024 (241.1), indicate a very high valuation relative to current earnings, suggesting significant growth expectations are already priced in.

Earnings Performance chevron_right

Slowing Revenue Growth

While EPS has been strong, the revenue growth has shown a decelerating trend from Q4 2023 ($4.09B) to Q4 2024 ($4.64B), with a notable dip in Q4 2024 revenue compared to Q3 2024. The Q4 2024 revenue of $1.35B was lower than Q1 2025's projected $1.24B, indicating potential near-term softness.

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Calendar

July 2025

29

Next Earnings Date

EPS Est.
Revenue Est.

H: $1.60

A: $1.56

L: $1.44

H: 1.27B

A: 1.25B

L: 1.20B

Profile

Employees (FY)12.8K
ISINUS1273871087
FIGI-

Cadence Design Systems, Inc. provides software, hardware, and other services worldwide. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. It also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and performing sign-off checks for manufacturing; and Innovus implementation system, a digital IC design and signoff solution. In addition, the company offers custom IC design and simulation, such as Virtuoso Studio, a solution platform for custom, analog, mixed-signal, photonics, and RF semiconductors; and system design and analysis products, a Multiphysics platform that helps in design and simulate electronics and entire systems in electromagnetic, thermal, structure, computational fluid dynamics, molecular, PCB and packaging, mechanical, and structural analysis. Further, it provides semiconductor IP product for design architectures; Functional Verification; digital ic design and signoff; EDA product that addresses the design and verification for semiconductor chips and manufacturing process technologies; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. It serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.

Seasonals

2025
2024
2023
2022
2021

Price Target

329.77 USD

The 39 analysts offering 1 year price forecasts for CDNS have a max estimate of 380.00 and a min estimate of 200.00.

Debt Level and Coverage

Debt
Free cash flow
Cash & equivalents

Financial Position Analysis

Assets
Liabilities

Ownership

Free Float shares
272M (99.63%)
Closely held shares
1.02M (0.37%)
273M
Free Float shares
272M (99.63%)
Closely held shares
1.02M (0.37%)

Capital Structure

Market cap
88.64B
Debt
2.59B
Minority interest
0.00
Cash & equivalents
2.64B
Enterprise value
88.58B

Valuation - Summary

Market Cap
88.6B
Net income
852M(0.96%)
Revenue
3.81B(4.30%)
88.6B
Market Cap
88.6B
Net income
852M(0.96%)
Revenue
3.81B(4.30%)
Price to earning ratio (P/E)104.10x
Price to sales ratio (P/S)23.20x

Valuation - Ratios

P/E
P/S

Revenue to Profit Conversion

Revenue
4.64B
COGS
647.5M
Gross Profit
3.99B
OpEx
2.62B
Operating Income
1.37B
Other & Taxes
319.04M
Net Income
1.06B

Balance Sheet

Total assets
Total liabilities
Liabilities to assets %

Income Statement

Revenue
Net Income
Net Margin

Cash Flow

Operating Cash Flow
Investing Cash Flow
Financing Cash Flow
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