DailyIQ
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Sector:TechnologyAll sectors
Last updated 2 minutes ago

CDNS·Cadence Design Systems, Inc.

$.
-. (-.%)
After Hours
High
$389.50
Open
$387.09
Market Cap
103.17B
52W High
$416.69
Low
$380.21
P. Close
$384.43
P/E
88.11
52W Low
$262.75
Fwd P/E
40.88
DailyIQ Est.
$408.90
Technical Score (1D)
86
BUY
News Sentiment
82
BULLISH
Cadence recently expanded its partnership with Hewlett Packard Enterprise, embedding its Reality Digital Twin Platform into HPE’s AI‑centric modular data centers. This integration will allow customers to simulate and optimize AI workloads before deployment, improving energy efficiency and reducing capital risk. By targeting tokens‑per‑watt metrics, Cadence aims to unlock stranded capacity through predictive power and cooling models, positioning itself as a key enabler of AI data‑center modernization. The deal could drive demand for Cadence’s design and simulation tools, potentially boosting its revenue streams over the next 1–10 trading days. Investors should monitor the rollout timeline, as early deployment could accelerate revenue recognition. Watch for any subsequent partnership announcements that might expand Cadence’s footprint in the growing AI infrastructure market. The collaboration also signals HPE’s commitment to AI‑focused modular data centers, which could increase demand for Cadence’s solutions. Keep an eye on HPE’s AI strategy updates, as they may influence the pace of adoption. Finally, monitor any regulatory or supply‑chain developments that could impact the deployment of modular data centers.
Earnings Summary
Cadence Design Systems, Inc. is a global provider of electronic design automation software and related services that accelerate semiconductor development, serving customers across consumer electronics, automotive, and aerospace sectors. The company’s comprehensive suite of verification, digital IC design, and IP tools positions it as a key partner for advanced chip design, anchoring Cadence firmly within the technology software industry. In the most recent quarters, Cadence consistently beat earnings estimates, reporting EPS of $1.88 in Q4 2024 versus the $1.82234 consensus, $1.57 in Q1 2025 versus $1.49884, $1.65 in Q2 2025 versus $1.55654, $1.93 in Q3 2025 versus $1.78953, $1.99 in Q4 2025 versus $1.9513, and $1.96 in Q1 2026 versus $1.88506; revenue mirrored this trend, rising from $1.356 billion in Q4 2024 to $1.474 billion in Q1 2026, with a slight dip in Q4 2025 where actual $1.440 billion fell marginally below the $1.452 billion estimate. Historically, Cadence has maintained a steady YoY revenue expansion of roughly 8.7 % over the same period, while EPS has grown about 4.3 %, underscoring a consistent pattern of earnings outperformance even as the company navigates competitive pressures. Recent corporate developments include a high‑profile partnership with Hewlett Packard Enterprise that embeds Cadence’s Reality Digital Twin Platform into HPE’s AI‑centric modular data centers, potentially expanding demand for its simulation tools, and an Argus Research downgrade that cut the price target to $417 amid concerns over weaker‑than‑expected guidance, reflecting heightened competitive scrutiny. Investors should watch the upcoming Q2 2026 earnings call for guidance on the HPE integration’s revenue impact, any adjustments to revenue projections, and the company’s stance on capital allocation, while monitoring how the Argus downgrade influences short‑term sentiment and whether Cadence can sustain its earnings beat trajectory amid evolving AI infrastructure demand.

EPS

EstBeatMiss
$1.42$1.60$1.78$1.96$2.14Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.06 - -
Q1'26$1.89$1.96+4.0%
Q4'25$1.95$1.99+2.0%
Q3'25$1.79$1.93+7.8%
Q2'25$1.56$1.65+6.0%
Q1'25$1.50$1.57+4.7%

Revenue

EstBeatMiss
$1.2B$1.3B$1.4B$1.5B$1.7BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.6B - -
Q1'26$1.5B$1.5B+1.2%
Q4'25$1.5B$1.4B-0.8%
Q3'25 - $1.3B -
Q2'25 - $1.3B -
Q1'25 - $1.2B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

CDNS Stock Snapshot

CDNS is currently trading at $384.17, giving Cadence Design Systems, Inc. a market cap of 103.17B and a P/E ratio of 88.1. Today's range spans $380.21–$389.50, with shares opening at $387.09 and moving down $0.26 (0.1%) from the prior close. DailyIQ's technical score sits at 86/100 (BUY) with a news sentiment reading of 82/100.

Over the past year CDNS has traded between $262.75 and $416.69 - the current price is +46.2% off the 52-week low and -7.8% from the high. 33 analysts cover the stock with a Buy consensus and a mean 12-month target of $388.78 (range $275.00–$450.00), implying upside of +1.2%.

Cross-asset context supports the bullish read on CDNS: when Technology sector conditions are favorable, large-cap names with 86/100 technical scores (BUY) and bullish sentiment (82/100) outperform on a risk-adjusted basis. Price: $384.17 (in the upper portion of its 52-week range). (P/E: 88.1) The 52-week context of $262.75–$416.69 shows the full trading history - and the current setup is one of the stronger entries within that range. At 103.17B in market cap, position sizing is the key variable, not the direction.

What makes CDNS's BUY setup (86/100) particularly actionable at 103.17B in Technology capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $384.17 (in the upper portion of its 52-week range in $262.75–$416.69), with sentiment running bullish at 82/100, the setup rewards conviction-sized positioning more than it does speculative small bets.