Cadence Design Systems Inc CDNS
Stock research in plain language · As of Oct 04, 2026 · updated once a week, after the trading week closes
What the company does
Cadence Design Systems Inc is a large-cap company in the Technology sector (Software - Application), with a market value of $96.8B, 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 In novus 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 70.0 versus 41.5 for the median of the Technology sector in our universe (46 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 405.47, 15% above the current price (their view, not ours).
The stock sits at 58% of its one-year range (0% = the low, 100% = the high).
The risks
- No risk flags were detected from the data we have.
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 rose 7.7% (for comparison: S&P 500 -0.2%, sector ETF XLK +1.8%).
This week's news
- Salesforce (CRM) Is Buying Back $50 Billion of Stock. What Does That Say About Growth? finance.yahoo.com · 2026-10-04
- Nokia (NOK) Has Doubled in a Year. Is the Turnaround Real or Just a Rerating? finance.yahoo.com · 2026-10-04
- Synopsys (SNPS) Has a Strong Design Business. Is Its Growth Worth the Premium? finance.yahoo.com · 2026-10-04
- Here is Why Growth Investors Should Buy Cadence (CDNS) Now finance.yahoo.com · 2026-10-02
- RingCentral, Sprout Social, BlackLine, Sprinklr, and Cadence Design Systems Shares Are Soaring, What You Need To Know finance.yahoo.com · 2026-10-01
- Stock Market Today: S&P Climbs To Start October, Micron Gains; Barbie Maker Soars On Deal News finance.yahoo.com · 2026-10-01
A description of facts from the filings and the market — not investment advice or a recommendation. "Cheap" and "expensive" are always relative to the comparison group.