Cadence Design Systems Surpasses Expectations, Stock Rises
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CDNS?
Source: seekingalpha
- Strong Performance: Cadence Design Systems (CDNS) saw its stock rise nearly 7% in premarket trading following Wall Street's praise for its stronger-than-expected results, indicating robust growth potential in the electronic design automation sector.
- Market Share Gains: Bank of America analyst Vivek Arya highlighted that CDNS is gaining market share across all segments, particularly with its ASIC hardware platform and strong ties to the TSMC ecosystem, positioning the company favorably against competitors.
- Optimistic 2026 Guidance: Wells Fargo analyst Joe Quatrochi noted that CDNS's initial 2026 guidance of $5.9B-$6B implies a 12.3% year-over-year growth, reflecting confidence in future growth despite a slight price target reduction to $375.
- Cautious Long-Term Outlook: Oppenheimer analyst Edward Yang expressed caution regarding the 1% revenue beat in Q4, suggesting that an 11% year-over-year decline could impact long-term AI market expectations, maintaining a price target of $275, indicating uncertainty about future growth.
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Analyst Views on CDNS
Wall Street analysts forecast CDNS stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 283.460
Low
275.00
Averages
350.00
High
390.00
Current: 283.460
Low
275.00
Averages
350.00
High
390.00
About CDNS
Cadence Design Systems, Inc. is an electronic systems designing company. The Company applies its Intelligent System Design strategy to deliver software, hardware and intellectual property (IP) that turn design concepts into reality. Its product categories include Core Electronic Design Automation (EDA), Semiconductor IP, and System Design and Analysis (SD&A). Core EDA includes software, hardware, and services used to design and verify a wide variety of semiconductors. The semiconductor IP portfolio includes silicon subsystems, software, and services that are used in semiconductor design. The SD&A category includes the software and services used to design and verify a wide variety of physical electronic systems. Its semiconductors are used in various industries, including automotive, aerospace, biotech, hyperscale and cloud computing, data centers, telecommunications, medical technology, industrial Internet of things (IIoT), and artificial intelligence (AI).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cadence Design Systems Reports 14% Revenue Growth in 2025 Earnings Call
- Significant Revenue Growth: Cadence Design Systems achieved a 14% revenue growth in 2025, with total revenue reaching $5.297 billion, reflecting strong demand for its AI solutions and engineering software, further solidifying its market leadership.
- Innovative Product Launch: The introduction of ChipsTech AI SuperAgent, the world's first agentic AI solution for automating chip design and verification, is expected to provide customers with up to 10x productivity improvement, significantly enhancing Cadence's competitive edge in the chip design market.
- Robust Backlog: Cadence finished 2025 with a record backlog of $7.8 billion, well above expectations, indicating strong customer demand for its products and services and suggesting sustained growth potential in the coming years.
- Deepened Strategic Partnerships: Strengthened collaborations with industry leaders like Broadcom to drive the development of next-generation AI designs, highlighting Cadence's pivotal role in advancing industry innovation and technological progress.
See More
Cadence Reports Strong Q4 Results, Stock Surges
- Strong Earnings Report: Cadence's Q4 adjusted earnings per share reached $1.99, surpassing the consensus estimate of $1.91, while revenue hit $1.44 billion, exceeding expectations of $1.42 billion, indicating robust financial performance.
- Significant Year-over-Year Growth: Revenue increased by 14% compared to $1.356 billion in the same quarter last year, reflecting Cadence's competitive strength and sustained customer demand, enhancing its position in the AI-driven product portfolio.
- Record Backlog: The year-end backlog reached a record $7.8 billion, with $3.8 billion expected to be recognized over the next 12 months, indicating a strong foundation for future revenue and reinforcing financial stability.
- Optimistic Outlook: The company expects fiscal year adjusted earnings per share between $8.05 and $8.15, and revenue between $5.90 billion and $6.00 billion, both above market expectations, demonstrating confidence in future growth.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives that could influence investor decisions.
- Market Dynamics Overview: While specific stock names are not mentioned, analyst rating changes typically have a direct impact on the stock prices of the affected companies, prompting investors to closely monitor these shifts to optimize their portfolios.
- Impact of Rating Changes: Adjustments in analyst ratings can lead to fluctuations in market sentiment, particularly when investor expectations shift regarding certain stocks, thereby affecting trading activity in the short term.
- Investor Focus: Investors are encouraged to visit the analyst ratings page for a comprehensive view of rating changes, aiding them in making more informed investment decisions.
See More
Wall Street Analysts Adjust Ratings on Key Stocks
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, reflecting varying market perspectives on these companies' futures, which could influence investor decisions and market trends.
- Upgrades and Downgrades: Specific rating changes include both upgrades and downgrades for certain stocks, which may lead to short-term volatility in the respective stocks, prompting investors to pay close attention.
- Market Reaction Expectations: Analyst rating adjustments typically trigger immediate market reactions, as investors may reassess their portfolios based on this information, thereby impacting overall market sentiment.
- Further Information Access: For a complete view of all analyst rating changes, including upgrades and downgrades, it is recommended to visit our analyst ratings page to stay updated on the latest market dynamics and professional insights.
See More
Cadence Design Systems Surpasses Expectations, Stock Rises
- Strong Performance: Cadence Design Systems (CDNS) saw its stock rise nearly 7% in premarket trading following Wall Street's praise for its stronger-than-expected results, indicating robust growth potential in the electronic design automation sector.
- Market Share Gains: Bank of America analyst Vivek Arya highlighted that CDNS is gaining market share across all segments, particularly with its ASIC hardware platform and strong ties to the TSMC ecosystem, positioning the company favorably against competitors.
- Optimistic 2026 Guidance: Wells Fargo analyst Joe Quatrochi noted that CDNS's initial 2026 guidance of $5.9B-$6B implies a 12.3% year-over-year growth, reflecting confidence in future growth despite a slight price target reduction to $375.
- Cautious Long-Term Outlook: Oppenheimer analyst Edward Yang expressed caution regarding the 1% revenue beat in Q4, suggesting that an 11% year-over-year decline could impact long-term AI market expectations, maintaining a price target of $275, indicating uncertainty about future growth.
See More
Latest Ratings and Outlook from Wall Street
- Amazon Remains a Top Pick: Morgan Stanley reiterates Amazon as overweight, highlighting its underappreciated potential in AWS and retail, with expectations for AWS to grow over 30% in 2026/27, showcasing strong market competitiveness.
- Weak Demand for Crocs: Williams Trading downgrades Crocs from hold to sell, raising the price target to $84, reflecting ongoing declines in U.S. demand and challenges in expanding its global DTC business.
- Rush Street Interactive Upgrade: Citizens upgrades Rush Street Interactive to market outperform, citing its durable business model in online gaming, which indicates strong growth potential driven by favorable market conditions.
- Optimistic Outlook for Nvidia: Wells Fargo reiterates Nvidia as overweight, advising investors to buy ahead of next week's earnings report, anticipating strong demand and GPU spending dominance to drive stock price increases.
See More
Cadence Design Systems Reports 14% Revenue Growth in 2025 Earnings Call
- Significant Revenue Growth: Cadence Design Systems achieved a 14% revenue growth in 2025, with total revenue reaching $5.297 billion, reflecting strong demand for its AI solutions and engineering software, further solidifying its market leadership.
- Innovative Product Launch: The introduction of ChipsTech AI SuperAgent, the world's first agentic AI solution for automating chip design and verification, is expected to provide customers with up to 10x productivity improvement, significantly enhancing Cadence's competitive edge in the chip design market.
- Robust Backlog: Cadence finished 2025 with a record backlog of $7.8 billion, well above expectations, indicating strong customer demand for its products and services and suggesting sustained growth potential in the coming years.
- Deepened Strategic Partnerships: Strengthened collaborations with industry leaders like Broadcom to drive the development of next-generation AI designs, highlighting Cadence's pivotal role in advancing industry innovation and technological progress.
See More
Cadence Reports Strong Q4 Results, Stock Surges
- Strong Earnings Report: Cadence's Q4 adjusted earnings per share reached $1.99, surpassing the consensus estimate of $1.91, while revenue hit $1.44 billion, exceeding expectations of $1.42 billion, indicating robust financial performance.
- Significant Year-over-Year Growth: Revenue increased by 14% compared to $1.356 billion in the same quarter last year, reflecting Cadence's competitive strength and sustained customer demand, enhancing its position in the AI-driven product portfolio.
- Record Backlog: The year-end backlog reached a record $7.8 billion, with $3.8 billion expected to be recognized over the next 12 months, indicating a strong foundation for future revenue and reinforcing financial stability.
- Optimistic Outlook: The company expects fiscal year adjusted earnings per share between $8.05 and $8.15, and revenue between $5.90 billion and $6.00 billion, both above market expectations, demonstrating confidence in future growth.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives that could influence investor decisions.
- Market Dynamics Overview: While specific stock names are not mentioned, analyst rating changes typically have a direct impact on the stock prices of the affected companies, prompting investors to closely monitor these shifts to optimize their portfolios.
- Impact of Rating Changes: Adjustments in analyst ratings can lead to fluctuations in market sentiment, particularly when investor expectations shift regarding certain stocks, thereby affecting trading activity in the short term.
- Investor Focus: Investors are encouraged to visit the analyst ratings page for a comprehensive view of rating changes, aiding them in making more informed investment decisions.
See More
Wall Street Analysts Adjust Ratings on Key Stocks
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, reflecting varying market perspectives on these companies' futures, which could influence investor decisions and market trends.
- Upgrades and Downgrades: Specific rating changes include both upgrades and downgrades for certain stocks, which may lead to short-term volatility in the respective stocks, prompting investors to pay close attention.
- Market Reaction Expectations: Analyst rating adjustments typically trigger immediate market reactions, as investors may reassess their portfolios based on this information, thereby impacting overall market sentiment.
- Further Information Access: For a complete view of all analyst rating changes, including upgrades and downgrades, it is recommended to visit our analyst ratings page to stay updated on the latest market dynamics and professional insights.
See More
Cadence Design Systems Surpasses Expectations, Stock Rises
- Strong Performance: Cadence Design Systems (CDNS) saw its stock rise nearly 7% in premarket trading following Wall Street's praise for its stronger-than-expected results, indicating robust growth potential in the electronic design automation sector.
- Market Share Gains: Bank of America analyst Vivek Arya highlighted that CDNS is gaining market share across all segments, particularly with its ASIC hardware platform and strong ties to the TSMC ecosystem, positioning the company favorably against competitors.
- Optimistic 2026 Guidance: Wells Fargo analyst Joe Quatrochi noted that CDNS's initial 2026 guidance of $5.9B-$6B implies a 12.3% year-over-year growth, reflecting confidence in future growth despite a slight price target reduction to $375.
- Cautious Long-Term Outlook: Oppenheimer analyst Edward Yang expressed caution regarding the 1% revenue beat in Q4, suggesting that an 11% year-over-year decline could impact long-term AI market expectations, maintaining a price target of $275, indicating uncertainty about future growth.
See More
Latest Ratings and Outlook from Wall Street
- Amazon Remains a Top Pick: Morgan Stanley reiterates Amazon as overweight, highlighting its underappreciated potential in AWS and retail, with expectations for AWS to grow over 30% in 2026/27, showcasing strong market competitiveness.
- Weak Demand for Crocs: Williams Trading downgrades Crocs from hold to sell, raising the price target to $84, reflecting ongoing declines in U.S. demand and challenges in expanding its global DTC business.
- Rush Street Interactive Upgrade: Citizens upgrades Rush Street Interactive to market outperform, citing its durable business model in online gaming, which indicates strong growth potential driven by favorable market conditions.
- Optimistic Outlook for Nvidia: Wells Fargo reiterates Nvidia as overweight, advising investors to buy ahead of next week's earnings report, anticipating strong demand and GPU spending dominance to drive stock price increases.
See More
