CDNS logo

CADENCE DESIGN SYS INC

CDNSNASDAQ
πŸ† #169 by market capUS Equity
$352.01β–² $20.49 (+5.82%)
Simulated price
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🏦Market Cap
$89.97B
Mid Cap
πŸ“ˆRevenue Growth (YoY)
+14.7%
Healthy
πŸ“ŠGross Margin
85.9%
High
πŸ’΅FCF Margin
28.6%
Strong
βš–οΈP/S Ratio
15.3x
Expensive
Otter Score
76
Good
No chart data available for CDNS.

Trading Snapshot

Day Range
$350.89 – $355.06
52-Week Range
$262.75 – $416.69
Volume
$4.98B
Avg Volume
$3.89B
Shares Outstanding
275.4M
Next Earnings
Dec 8, 2026

Fundamentals Snapshot

Annual Revenue
$5.30B
Last Q Revenue
$1.58B
P/E Ratio
64.7
P/S Ratio
15.3x
EPS (TTM)
$5.03
Dividend Yield
β€”
Dilution (1yr)
βˆ’0.5%

Why Investors Own CDNS

  • βœ“High-growth profile β€” revenue up +58.3% YoY with expanding US Equity exposure.
  • βœ“Healthy economics β€” 31% gross margin and 28% free-cash-flow margin.
  • βœ“New products and segments could unlock additional revenue streams.
⚠️ Key Risks

Execution delays, intensifying competition, and valuation compression if growth decelerates.

CDNS logo

CADENCE DESIGN SYS INC

CDNS
Financial Trends
RevenueThe total money the company brought in from sales, before subtracting any costs.
$5.3Bβ–² +14.1% YoY
Gross MarginOf every $1 of sales, how much is left after the direct cost of making the product/service. Higher = more efficient.
86.4%β–² +0.4% YoY
Operating IncomeProfit from the core business after operating costs, but before interest and taxes. Negative means the core business isn’t profitable yet.
$1.6Bβ–² +22.1% YoY
Free Cash FlowCash left over after running the business and paying for equipment/capex. Negative means the company is burning cash.
$1.6Bβ–² +41.9% YoY
Shares OutstandingHow many shares exist. Rising means the company is issuing more shares, which dilutes (shrinks) each existing owner’s slice.
272.9Mβ–Ό βˆ’0.5% YoY
Net CashCash minus total debt. Positive = more cash than debt (financially strong); negative = more debt than cash (net debt).
$521Mβ–² +$462M YoY
StockOtter Β· stockotter.space

About CADENCE DESIGN SYS INC

Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. is headquartered in San Jose, California.

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Otter Score Breakdown

How it's scoredFive components, each rated 1–5β˜… and equally weighted (20%), averaged to a 0–100 score:πŸ’Ž Quality β€” gross marginπŸš€ Growth β€” revenue YoYβš–οΈ Valuation β€” P/S ratio⚑ Momentum β€” 30-day price changeπŸ’§ Dilution β€” 1-yr share issuance (buybacks score higher)
πŸ’ŽQualityβ˜…β˜…β˜…β˜…β˜…
πŸš€Growthβ˜…β˜…β˜…β˜…β˜…
βš–οΈValuationβ˜…β˜…β˜…β˜…β˜…
⚑Momentumβ˜…β˜…β˜…β˜…β˜…
πŸ’§Dilutionβ˜…β˜…β˜…β˜…β˜…
Overall Score
Good
76/100

Analyst Price Target

β“˜
Average Target
$423.28
β–² +20.2% Upside
High Target$508.05
Low Target$331.65
Based on 29 analysts

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