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Cadence Design Systems, Inc. (CDNS)

321.63 -7.88 (-2.39%)
As of 11:45:00 AM EST. Market Open.
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12m ago
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Cadence reported a strong third quarter, with revenue up 22% year over yearand a record $8.2 billion backlog. Management raised 2026 guidance, but investors are weighing AI-driven growth against lower operating margins, acquisition costs, debt, and a premium valuation.

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  • Previous Close 329.51
  • Open 322.57
  • Bid 343.08 x 100
  • Ask 326.07 x 100
  • Day's Range 310.01 - 323.01
  • 52 Week Range 262.75 - 416.69
  • Volume 965,558
  • Avg. Volume 2,400,676
  • Market Cap (intraday) 88.249B
  • Beta (5Y Monthly) 1.10
  • PE Ratio (TTM) 63.94
  • EPS (TTM) 5.03
  • Earnings Date Oct 26, 2026
  • Forward Dividend & Yield -- (0.00%)
  • 1y Target Est 411.76
  • Morningstar Rating Rating available with Stock Picks access

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 Innovus 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 Tensilica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

www.cadence.com

13,800

Full Time Employees

December 31

Fiscal Year Ends

Technology

Sector

Recent News

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Performance Overview

Trailing total returns as of 11/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC) .

YTD Return

CDNS
2.89%
S&P 500 (^GSPC)
10.61%

1-Year Return

CDNS
4.11%
S&P 500 (^GSPC)
10.50%

3-Year Return

CDNS
28.89%
S&P 500 (^GSPC)
73.73%

5-Year Return

CDNS
85.94%
S&P 500 (^GSPC)
62.46%

Earnings Trends

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Earnings Per Share

GAAP
Normalized
GAAP
Normalized

Revenue vs. Earnings

Annual
Quarterly
Annual
Quarterly
Q3 FY26
Revenue 1.63B
Earnings 289.75M
Profit Margin 17.74%

Q4

FY25

Q1

FY26

Q2

FY26

Q3

FY26

0
500M
1B
2B
18.0%
20.0%
22.0%
24.0%
26.0%

Analyst Insights

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Analyst Price Targets

300.00
411.76 Average
321.63 Current
470.00 High

Analyst Recommendations

  • Strong Buy
  • Buy
  • Hold
  • Underperform
  • Sell

Latest Rating

Date 10/27/2026
Analyst Rosenblatt
Rating Action Maintains
Rating Buy
Price Action Raises
Price Target 420 -> 425

Statistics

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Valuation Measures

Annual
  • Market Cap

  • Enterprise Value

  • Trailing P/E

  • Forward P/E

  • PEG Ratio (current)

  • Price/Sales (ttm)

  • Price/Book (mrq)

  • Enterprise Value/Revenue

  • Enterprise Value/EBITDA

Financial Highlights

Profitability and Income Statement

  • Profit Margin

    22.51%

  • Return on Assets (ttm)

    10.52%

  • Return on Equity (ttm)

    22.87%

  • Revenue (ttm)

    6.13B

  • Net Income Avi to Common (ttm)

    1.38B

  • Diluted EPS (ttm)

    5.03

Balance Sheet and Cash Flow

  • Total Cash (mrq)

    1.54B

  • Total Debt/Equity (mrq)

    40.91%

  • Levered Free Cash Flow (ttm)

    1.75B

Company Insights

Research Reports

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