Cadence Design Systems Inc CDNS

What the company does

Cadence Design Systems Inc is a large-cap company in the Technology sector (Software - Application), with a market value of $87.3B, based in the USA.

It employs about 15,445 people and has been listed since Jun 10, 1987.

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.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 62.9 versus 38.7 for the median of the Technology sector in our universe (65 companies) — relatively expensive.

Revenue is growing 24% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 31.5 — they expect higher earnings.

The average analyst price target is 406.24, 28% above the current price (their view, not ours).

The stock sits at 35% of its one-year range (0% = the low, 100% = the high).

The risks

• • Quarterly report in 1 days (2026-10-26) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 23 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ Most analysts rate it buy (23 vs 0).
• ✅ Revenue is growing 24% a year.

What changed this week

Over the past week the stock fell 0.9% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

This week's news

• Cadence Design Systems (CDNS) to report earnings tomorrow: here is what to expect finance.yahoo.com · 2026-10-25
  What the article says

  Cadence Design Systems (CDNS) to report earnings tomorrow: here is what to expect Electronic design automation company Cadence Design Systems (NASDAQ:CDNS) will be reporting earnings this Monday after the bell. Here's what investors should know. Cadence Design Systems beat analysts' revenue expectations last quarter,… source ↗

• Cadence Design Systems (CDNS) Stock Looks Fully Valued Despite AI Hopes finance.yahoo.com · 2026-10-24
  What the article says

  Cadence Design Systems has ridden a powerful multi year upswing, yet with the stock at US$316.49 and attention squarely on its role in AI chip design, the real question for you is whether that price is properly grounded in the earnings the business is generating. Over the past 5 years, Cadence Design Systems has… source ↗

• Cadence Design Systems (CDNS) After AI Data Center Launch And Nokia Win Looks Undervalued finance.yahoo.com · 2026-10-24
  What the article says

  Cadence Design Systems (CDNS) has moved deeper into AI infrastructure with the launch of a sovereign AI data center in Munich, followed by a fresh deployment win with Nokia on its Millennium M2000 platform. Despite the AI data center launch and Nokia win, Cadence Design Systems' recent share price performance has been… source ↗

• Cadence Design Systems (CDNS) Debuts Europe’s First Sovereign AI Platform finance.yahoo.com · 2026-10-24
  What the article says

  Cadence Design Systems (NasdaqGS:CDNS) launched what it describes as Europe's first sovereign AI platform for semiconductor and system design in Munich, in partnership with NVIDIA. The Munich sovereign AI data center is built on Cadence's AuraStack AI platform and is focused on European semiconductor and system design… source ↗

• 3 software stocks with competitive advantages finance.yahoo.com · 2026-10-23
  What the article says

  3 software stocks with competitive advantages Software is rapidly reducing operating expenses for businesses. This secular theme has materialized in superior earnings growth and stock price performance for most SaaS companies, and over the last six months, the industry's 54.6% return has topped the S&P 500 by 45.5… source ↗

• CoStar Group to Report Q3 Earnings: What's in Store for the Stock? finance.yahoo.com · 2026-10-23
  What the article says

  CoStar Group CSGP is slated to report third-quarter 2026 results on Oct. 27. For the third quarter of 2026, CoStar Group expects revenues to be between $935 million and $945 million, representing a 13% year-over-year increase at the midpoint, and adjusted earnings of 31-34 cents per share. The Zacks Consensus Estimate… source ↗

What changed since last week

No material change: same valuation verdict, same risk flags, price moved less than 3%.