Cadence Design Systems (CDNS) Stock Overview
Develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. More details
| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
No risks detected for CDNS from our risk checks.
CDNS Community Fair Values
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Analyst Price Targets
Top Community Narratives
US$344.64
FV
4.3% undervalued intrinsic discount11.10%
Revenue growth p.a.
97
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Cadence Design Systems, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$329.93 |
| 52 Week High | US$416.69 |
| 52 Week Low | US$262.75 |
| Beta | 1.15 |
| 1 Month Change | -14.83% |
| 3 Month Change | 1.26% |
| 1 Year Change | 4.30% |
| 3 Year Change | 36.75% |
| 5 Year Change | 127.59% |
| Change since IPO | 7,323.43% |
Recent News & Updates
Seeking Alpha • 21h
Cadence: Fears About Kimi Are Overblown, But Uncertainty Has Increased
Summary Cadence Design Systems remains fundamentally strong, with its moat intact despite recent sell-off concerns tied to Kimi K3 and open-source EDA tools. Kimi K3's capabilities are limited to outdated 45nm nodes, while CDNS operates at advanced 3nm and 2nm levels, maintaining a significant technological lead. CDNS's AI-driven ChipStack Super Agent has demonstrated verification cycle reductions from five weeks to less than a day, likely to be a key earnings call topic. Strong HBM memory demand is fueling >20% YoY growth in the IP segment, and Q2 comparisons will benefit from last year's China export restrictions. Read the full article on Seeking Alpha
Narrative Update • Jul 16
CDNS: AI Design Tools And Digital Twins Will Drive Balanced Future Outlook
Cadence Design Systems' analyst fair value estimate has been raised by about $10 to $394.79, as analysts highlight supportive trends in electronic design automation, strong pricing power, and opportunities tied to AI powered tools and industrial digital twins, which are reflected in higher Street price targets across multiple firms. Analyst Commentary Recent Street research around Cadence Design Systems points to a cluster of higher fair value views, with analysts framing their arguments around growth in electronic design automation, pricing power, and new AI driven opportunities in tools and industrial digital twins.Recent updates
Seeking Alpha • 21h
Cadence: Fears About Kimi Are Overblown, But Uncertainty Has Increased
Summary Cadence Design Systems remains fundamentally strong, with its moat intact despite recent sell-off concerns tied to Kimi K3 and open-source EDA tools. Kimi K3's capabilities are limited to outdated 45nm nodes, while CDNS operates at advanced 3nm and 2nm levels, maintaining a significant technological lead. CDNS's AI-driven ChipStack Super Agent has demonstrated verification cycle reductions from five weeks to less than a day, likely to be a key earnings call topic. Strong HBM memory demand is fueling >20% YoY growth in the IP segment, and Q2 comparisons will benefit from last year's China export restrictions. Read the full article on Seeking AlphaNarrative Update • Jul 16
CDNS: AI Design Tools And Digital Twins Will Drive Balanced Future Outlook
Cadence Design Systems' analyst fair value estimate has been raised by about $10 to $394.79, as analysts highlight supportive trends in electronic design automation, strong pricing power, and opportunities tied to AI powered tools and industrial digital twins, which are reflected in higher Street price targets across multiple firms. Analyst Commentary Recent Street research around Cadence Design Systems points to a cluster of higher fair value views, with analysts framing their arguments around growth in electronic design automation, pricing power, and new AI driven opportunities in tools and industrial digital twins.
Narrative Update • Jul 01
CDNS: Agentic AI Virtual Engineer May Drive Future Upside
The analyst price target for Cadence Design Systems has been revised up by $10 to $450, with analysts pointing to AI powered industrial digital twin opportunities and early traction in Agentic AI tools as key drivers behind the updated assumptions on growth, profitability, and future P/E. Analyst Commentary Recent research on Cadence Design Systems points to a cluster of upward price target revisions, with bullish analysts highlighting AI powered industrial digital twins and Agentic AI tools as central themes in their updated work.Narrative Update • Jun 17
CDNS: Agentic AI And Digital Twins Will Drive Future Upside
Analysts have raised their fair value estimate for Cadence Design Systems to $440 from $418, citing higher assumed revenue growth, slightly stronger profit margins, and ongoing enthusiasm for the company's AI driven tools and digital twin opportunity, as reflected in recent Street price target increases. Analyst Commentary Recent research on Cadence Design Systems highlights a cluster of bullish analysts raising price targets, pointing to what they view as a supportive backdrop for valuation as the company leans into AI powered tools and industrial digital twins.Analysis Article • Jun 17
Cadence Design Systems (CDNS) Stock Could Be 12.5% Overvalued After Intel Foundry Deal
Why the Intel Foundry deal matters for Cadence Design Systems stock Cadence Design Systems (CDNS) has drawn fresh attention after announcing a multi-year Design Technology Co Optimization partnership with Intel Foundry, along with the launch of an autonomous virtual engineer for semiconductor development using NVIDIA technology. The Intel collaboration targets next generation process technologies starting with Intel 14A. It combines Cadence’s agentic AI driven EDA and Design IP with Intel’s...Narrative Update • Jun 03
CDNS: AI Digital Twins And Agentic Tools Will Shape Future Returns
Analysts have lifted the fair value estimate for Cadence Design Systems to $383.94 from $371.68, pointing to higher Street price targets centered on opportunities in AI powered industrial digital twins and new Agentic AI tools. Analyst Commentary Recent Street research skews positive on Cadence Design Systems, with several bullish analysts raising price targets and tying their views to AI related growth opportunities in industrial digital twins and Agentic AI tools.
Narrative Update • May 13
CDNS: AI Software Multiple Pressure Will Dominate Forward Return Expectations
Cadence Design Systems' analyst price targets have moved higher by up to $25, with analysts pointing to solid recent results, updated longer term earnings estimates, and ongoing AI related demand as key drivers behind the shift. Analyst Commentary Recent Street research on Cadence Design Systems shows a mix of enthusiasm around AI related demand and updated long term earnings estimates, alongside some caution around valuation and the pace of growth into 2026.Narrative Update • Apr 29
CDNS: AI Partnerships And Software Multiples Will Shape Forward Returns
The analyst price target for Cadence Design Systems has been raised by $4.31 to $316.06. Analysts cite recent target revisions across the Street that balance higher long term earnings estimates with a more conservative P/E multiple amid software sector volatility and AI related demand expectations.Narrative Update • Apr 15
CDNS: AI Demand And Software Multiple Compression Will Shape Forward Returns
Analysts have modestly adjusted their fair value estimate for Cadence Design Systems to $311.75. This reflects updated expectations for slightly stronger revenue growth, higher profit margins and a lower assumed discount rate, even as price targets across the Street pull back on compressed software multiples and more cautious 2026 assumptions.Narrative Update • Apr 01
CDNS: AI Software Demand And NVIDIA Partnership Will Drive Shares Higher
Analysts have trimmed the blended price target on Cadence Design Systems by about $12 to reflect lower applied P/E multiples amid broader software volatility, even as they highlight solid Q4 results, raised long term EPS estimates, and ongoing AI related demand as key supports for the updated outlook. Analyst Commentary Recent research points to a mixed but generally constructive view on Cadence Design Systems, with analysts adjusting price targets to account for software sector volatility while still pointing to execution on earnings and demand as support for the equity story.Narrative Update • Mar 17
CDNS: AI Software Demand And Multiple Compression Will Shape Future Returns
Analyst price targets for Cadence Design Systems have been trimmed by about $25 to $35 per share as analysts factor in lower valuation multiples after recent software volatility. They still point to solid Q4 results, raised longer term EPS estimates, and AI driven recurring software demand as key supports for the updated views.Narrative Update • Mar 03
CDNS: AI Demand And Software Volatility Will Shape Future Pricing
Analysts trimmed their fair value estimate for Cadence Design Systems from about $317.59 to $310.77, reflecting lower valuation multiples even as they factor in higher revenue growth, stronger profit margins and updated P/E assumptions supported by recent earnings beats, longer term guidance and continued AI related demand. Analyst Commentary Recent Street research on Cadence Design Systems points to a mixed setup for investors, with several bearish analysts trimming price targets even as they acknowledge solid execution and AI related demand.Narrative Update • Feb 17
CDNS: AI Design And Chiplet Advances Will Support Measured Future Pricing
Analysts have modestly lifted their price target on Cadence Design Systems, citing updated assumptions for revenue growth of 10.54%, profit margin of 20.81%, and a future P/E of 74.42. These factors collectively support a fair value estimate near $317.59.Narrative Update • Feb 03
CDNS: AI Design And Chiplet Ecosystem Progress Will Shape Fair Pricing
Narrative Update on Cadence Design Systems Analysts now see fair value for Cadence Design Systems at about US$318, roughly US$4 below the prior estimate, reflecting slightly adjusted assumptions on discount rate, revenue growth, profit margin, and future P/E. What's in the News Private equity investor Orlando Bravo highlighted the recent software selloff as creating what he called a "huge buying opportunity," which may shape sentiment around software names that, like Cadence, are tied to critical design and infrastructure tools (Financial Times interview, as cited in periodical).Narrative Update • Jan 20
CDNS: AI Design Demand And Chiplet Progress Will Test Fair Valuation
Narrative Update on Cadence Design Systems Analysts have lifted their fair value estimate for Cadence Design Systems from US$278.62 to US$321.36, citing recent price target increases such as the move to US$405, as well as continued confidence in strong chip design demand in artificial intelligence and high performance compute applications. Analyst Commentary Recent commentary around Cadence Design Systems has centered on how current expectations line up with the company’s execution in chip design tools for artificial intelligence and high performance compute.Narrative Update • Jan 06
CDNS: AI And High Performance Compute Demand Will Drive Future Upside
Analysts have raised their fair value estimate for Cadence Design Systems by $8 to $418, citing stronger recent Q3 results, firm forward growth guidance, and continued demand for the company's tools in artificial intelligence and high performance computing as the main reasons for the higher target. Analyst Commentary Analysts reacting to the recent Q3 report are highlighting what they see as solid execution and a supportive demand backdrop for Cadence Design Systems, especially in artificial intelligence and high performance computing workloads.Analysis Article • Dec 31
Is There Now An Opportunity In Cadence Design Systems, Inc. (NASDAQ:CDNS)?
Cadence Design Systems, Inc. ( NASDAQ:CDNS ) received a lot of attention from a substantial price movement on the...Narrative Update • Dec 14
CDNS: AI And HPC Design Demand Will Drive Shares Higher
Analysts have nudged their price target on Cadence Design Systems higher by $2 to approximately $384 per share, citing sustained strength in advanced chip design activity for artificial intelligence and high performance computing, as well as solid near term growth guidance. Analyst Commentary JPMorgan lifted its price target on Cadence Design Systems to $405 from $390 and reiterated an Overweight rating following a strong Q3 print and guidance for another quarter of solid growth.Narrative Update • Nov 29
CDNS: Advanced Chip Designs in AI Will Drive Share Performance Higher
Analysts have raised their price target for Cadence Design Systems from $390 to $405, citing strong Q3 results and continued growth in advanced chip design activities, particularly in artificial intelligence and high performance computing. Analyst Commentary Bullish Takeaways Bullish analysts point to Cadence's consistently strong earnings performance, highlighting impressive Q3 results and positive forward guidance.Narrative Update • Nov 15
CDNS: Advanced Chip Design Demand Will Drive Stronger Share Performance
The analyst price target for Cadence Design Systems has been increased by $3 to $381.64, as analysts cite continued strong demand in advanced chip design as well as a positive growth outlook following robust quarterly results. Analyst Commentary Recent updates from major analysts have highlighted both strengths and risks facing Cadence Design Systems.Narrative Update • Nov 01
CDNS: Advanced AI Chip Designs Will Drive Continued Market Leadership
Analysts raised their fair value estimate for Cadence Design Systems to $378.26 from $370.84. They cited improved revenue growth expectations and ongoing strength in demand for advanced chip design, particularly in artificial intelligence and high-performance computing sectors.Narrative Update • Oct 17
AI Design And Chiplet Architecture Will Drive Future Success
Analysts have recently raised their price target for Cadence Design Systems to $400, up from previous targets around $350. They cite robust earnings, upward guidance revisions, and expectations for continued growth, driven by strength in hardware and AI-related demand.Narrative Update • Oct 03
AI Design And Chiplet Architecture Will Drive Future Success
The analyst price target for Cadence Design Systems has been slightly raised to $370.84. This reflects ongoing confidence in the company's growth prospects and robust demand, according to recent analyst commentary.Analysis Article • Aug 06
Investors Can Find Comfort In Cadence Design Systems' (NASDAQ:CDNS) Earnings Quality
NasdaqGS:CDNS 1 Year Share Price vs Fair Value Explore Cadence Design Systems's Fair Values from the Community and...Seeking Alpha • Apr 27
Cadence Design Systems: Gaining Ground To Synopsys
Summary Cadence Design Systems has a strong product portfolio, robust R&D investment, and market share gains despite Synopsys' lead. Cadence's market share rose to 35.1% in 2024, narrowing the gap with Synopsys, driven by functional verification platforms like Palladium Z3 and Protium X3. Synopsys' aggressive acquisition strategy and larger R&D spending support its market leadership, but Cadence's partnerships and geographic growth in the US and Asia remain strong. Despite challenges in China, Cadence's projected 5-year average revenue growth of 12.8% and FCF margins of 24.5% indicate significant upside potential. Read the full article on Seeking AlphaSeeking Alpha • Feb 24
Cadence Design Systems: Strong Compounder But Lacks The Growth I Desire
Summary Cadence Design Systems stock is fairly valued with limited downside, in the long run, due to its stable, recurring business and strong position in analog semiconductor design. Despite its strengths, Cadence's growth is slower than desired, leading to a hold rating. Cadence's investment in AI tools and R&D enhances productivity and ARPU, offering long-term growth potential. Financially, Cadence outperforms Synopsys in gross margins and FCF/EC, but faces risks from decreasing margins and competition from Chinese EDA companies. Read the full article on Seeking AlphaShareholder Returns
| CDNS | US Software | US Market | |
|---|---|---|---|
| 7D | -12.7% | 1.1% | -1.4% |
| 1Y | 4.3% | -21.7% | 17.1% |
Return vs Industry: CDNS exceeded the US Software industry which returned -21.7% over the past year.
Return vs Market: CDNS underperformed the US Market which returned 17.1% over the past year.
Price Volatility
| CDNS volatility | |
|---|---|
| CDNS Average Weekly Movement | 6.5% |
| Software Industry Average Movement | 9.8% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.4% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: CDNS has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: CDNS's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | 13,800 | Anirudh Devgan | www.cadence.com |
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor.
Cadence Design Systems, Inc. Fundamentals Summary
| CDNS fundamental statistics | |
|---|---|
| Market cap | US$91.05b |
| Earnings (TTM) | US$1.17b |
| Revenue (TTM) | US$5.53b |
77.7x
P/E Ratio16.5x
P/S RatioIs CDNS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CDNS income statement (TTM) | |
|---|---|
| Revenue | US$5.53b |
| Cost of Revenue | US$769.66m |
| Gross Profit | US$4.76b |
| Other Expenses | US$3.59b |
| Earnings | US$1.17b |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
Jul 27, 2026
| Earnings per share (EPS) | 4.25 |
| Gross Margin | 86.08% |
| Net Profit Margin | 21.18% |
| Debt/Equity Ratio | 44.3% |
How did CDNS perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/20 11:51 |
| End of Day Share Price | 2026/07/20 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Cadence Design Systems, Inc. is covered by 37 analysts. 25 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Joseph Vruwink | Baird |
| Gary Mobley | Benchmark Company |
| Gustav Froberg | Berenberg |