DailyIQ
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Sector:TechnologyAll sectors
Last updated 5 minutes ago

CDNS·Cadence Design Systems, Inc.

$.
-. (-.%)
Pre-Market
High
$369.73
Open
$369.73
Market Cap
100.12B
52W High
$416.69
Low
$345.00
P. Close
$364.75
P/E
85.50
52W Low
$262.75
Fwd P/E
181.94
DailyIQ Est.
$417.21
Technical Score (1D)
36
SELL
News Sentiment
81
BULLISH
Analysts view Cadence’s current price as roughly 3 % below its last close, implying a modest upside if the July 27 earnings confirm its growth trajectory. Cadence’s unveiling of the AuraStack AI Super Agent—its first agentic AI platform for PCB and advanced packaging—promises up to 2× faster time‑to‑market and 15× higher productivity, positioning the firm to capture a larger share of the design‑automation market. Despite strong AI‑chip demand, the company’s high current multiples raise the possibility of a valuation correction if market enthusiasm wanes, so investors should monitor the quarterly earnings guidance and shifts in semiconductor‑design‑software sector valuations. Cadence’s expanded 2 nm design‑tool partnerships with leading foundries and its raised full‑year outlook reinforce its proximity to next‑generation chip production, potentially boosting recurring revenue from design services. Zacks users have flagged Cadence as a top watchlist candidate, reflecting heightened investor attention to recent product releases and the firm’s market positioning. The upcoming earnings report will be the primary catalyst for the next 1–10 trading days, as it will confirm whether the company’s AI‑chip and 2 nm initiatives translate into revenue growth. Traders should watch for the pace of new tool releases and the adoption rate of Cadence solutions by major fab partners, as well as any updates on the company’s IP portfolio that could influence its competitive moat. Finally, early adoption among PCB designers and the speed of NVIDIA integration updates will signal whether the AuraStack platform delivers on its promised productivity gains, further shaping Cadence’s near‑term valuation narrative.
Earnings Summary
Cadence Design Systems, Inc. is a global provider of electronic design automation (EDA) software, hardware, and related services that accelerate semiconductor design and validation across consumer electronics, automotive, and aerospace sectors, positioning it as a key partner for advanced chip development. In the most recent two quarters, Cadence reported revenue of $1.440 billion in Q4 2025 and $1.474 billion in Q1 2026, a modest 2.4% increase versus the 4.8% rise seen in Q2 and Q3 2025, indicating a deceleration in top‑line growth. Earnings per share rose from $1.99 in Q4 2025 to $1.96 in Q1 2026, a slight 1.6% decline after a 17.6% jump in the preceding two quarters, yet Cadence consistently beat analyst expectations—six of the last seven quarters saw EPS above estimates, with revenue beating guidance in Q1 2026 and only a marginal miss in Q4 2025. Historically, Cadence has maintained a trajectory of incremental revenue growth and frequent EPS beats, underscoring a resilient business model that has managed to sustain profitability even as market dynamics shift. Recent news highlights Cadence’s unveiling of the AuraStack AI Super Agent, promising up to 2× faster time‑to‑market and 15× higher productivity, and its deepened 2 nm design‑tool partnerships with leading foundries, both of which could accelerate recurring revenue from design‑automation contracts; analysts have lifted guidance and price targets in response to these developments, suggesting confidence in the firm’s product pipeline. Investors should watch for the next earnings release to confirm whether the guidance hike is supported by actual cash flow, monitor the adoption rate of Cadence’s AI and 2 nm tools among major fab partners, and assess any updates on margin trends or IP portfolio expansions that could influence the company’s competitive moat and valuation narrative.

EPS

EstBeatMiss
$1.42$1.60$1.78$1.96$2.14Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.05 - -
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$1.6BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
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 $347.86, giving Cadence Design Systems, Inc. a market cap of 100.12B and a P/E ratio of 85.5. Today's range spans $345.00–$369.73, with shares opening at $369.73 and moving down $16.89 (4.6%) from the prior close. DailyIQ's technical score sits at 36/100 (HOLD) with a news sentiment reading of 81/100.

Over the past year CDNS has traded between $262.75 and $416.69 - the current price is +32.4% off the 52-week low and -16.5% from the high. 33 analysts cover the stock with a Buy consensus and a mean 12-month target of $394.79 (range $275.00–$470.00), implying upside of +13.5%.

The technical picture for CDNS is mixed - score 36/100, HOLD, with the stock at $347.86 (in the middle of its 52-week range) and sentiment bullish at 81/100. For a large-cap in Technology with 100.12B in capitalization The current P/E ratio stands at 85.5., this is a fairly common pre-earnings or pre-macro-event posture. Annual range: $262.75–$416.69. Neutral signals at this size often resolve sharply once a catalyst provides directional conviction.

In neutral phases, large-cap Technology names like CDNS are often where sector rotation debates play out quietly — at 100.12B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 36/100 (HOLD) and bullish sentiment (81/100) at $347.86 (in the middle of its 52-week range) describe a stock that is being considered rather than avoided.