CDNS

NASDAQ · Technology

Cadence Design Sys Inc

Q: Who are Cadence Design Sys Inc's main competitors?

Synopsys is Cadence's primary competitor and together the two companies effectively define the high-end EDA market. In specific niches, Siemens EDA (formerly Mentor Graphics) competes in PCB design, electrical simulation, and automotive electronics verification. Ansys, which Synopsys is pursuing an acquisition of, competes with Cadence in computational simulation and system-level analysis for electronics products.

Q: What makes CDNS stock unique?

Cadence's dominance in analog chip design — through its Virtuoso platform — is a specific moat within EDA that Synopsys does not replicate as effectively. Analog design requires highly specialized tools, and Virtuoso has been the industry standard for so long that semiconductor companies have built entire design methodologies around it. This makes it arguably even stickier than digital EDA tools. Cadence has also invested in AI-driven design automation through its Cerebrus tool, positioning it at the intersection of AI and chip design infrastructure.

Q: What is the current share price of CDNS?

CDNS last closed at $284.32, down 2.80% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $221.56 and a high of $376.45. The current price represents 41% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Q: Is CDNS rated a buy or sell by analysts?

Among 32 analysts covering CDNS, the consensus rating is Strong Buy — 26 rate it a buy, 6 hold, and 0 sell. The average price target sits at $118.75, implying 58% downside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Q: What are Cadence Design Sys Inc's earnings?

Cadence Design Sys Inc generated $5.29B in revenue during fiscal year 2026, with $1.11B reaching the bottom line as net income. The net profit margin of 20.9% is strong by most industry standards.

Q: How is CDNS valued compared to earnings?

CDNS trades at a P/E ratio of 73.05 on trailing earnings of $4.06 per share. That's well above the S&P 500 historical average of ~20-25x, which typically signals that investors are pricing in aggressive future growth. Comparing this multiple against Technology sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

S&P 500 Nasdaq 100 Large-Cap Stocks Blue Chip Stocks Semiconductor Stocks

$284.32

-8.20 (-2.80%)

As of Mar 24, 9:33 PM ET ·

Day Range $277.00 — $290.50

52W Range $221.56 — $376.45

Performance

1D —

1W —

1M —

3M -10.84%

6M -18.79%

1Y +5.65%

YTD -8.40%

Open$289.51

Previous Close$292.52

Day High$290.50

Day Low$277.00

52W High$376.45

52W Low$221.56

Volume—

Avg Volume3.00M

Market Cap81.00B

P/E Ratio73.05

EPS$4.06

SectorTechnology

Technical Indicators

Full analysis →

SMA 50 $310.42 Below

SMA 200 $324.25 Below

RSI (14) 47.8 Neutral

Trend Death Cross Bearish

Analyst Ratings

Strong Buy

32 analysts

26 Buy 6 Hold 0 Sell

Price Target -58.2% upside

Current
$284.32

Target
$118.75

$87.74 $118.75 avg $158.45

Key Financials

	FY 2026	FY 2025	FY 2024
Revenue	5.29B	4.63B	21.70B
Net Income	1.11B	872.67M	3.68B
Profit Margin	20.9%	19.9%	17.0%
EBITDA	1.54B	1.28B	6.21B
Free Cash Flow	—	—	2.79B
Rev Growth	+14.1%	+14.1%	+5.5%
Debt/Equity	0.45	0.45	1.31

Recent Insider Activity

All Insiders →

Date	Insider	Type	Shares	Price	Value
Mar 4	GAVRIELOV MOSHE	Buy	1,130	$256.95	$290.4K
Mar 4	GAVRIELOV MOSHE	Sale	1,110	$316.76	$351.6K
Mar 4	GAVRIELOV MOSHE	Sale	1,105	$312.56	$345.4K
Mar 4	Cunningham Paul	Sale	94,137	$297.78	$28.03M
Feb 4	Cunningham Paul	Sale	95,137	$295.09	$28.07M

About Cadence Design Sys Inc

Cadence Design Systems, Inc. is a leading provider of electronic design automation software, hardware, and intellectual property for designing integrated circuits and electronic systems, headquartered in San Jose, California. The company serves semiconductor and electronics companies with tools for chip design, verification, and manufacturing. Cadence is one of the two dominant players in the EDA industry alongside Synopsys. The company's solutions enable the development of advanced semiconductor technologies including processors, memory chips, networking devices, and system-on-chip designs used across industries.

Technology Peers

Symbol	Name	Price	Change	P/E	Mkt Cap
AAPL	Apple Inc	$251.64	+0.06%	30.9	3.64T
MSFT	Microsoft Corp	$372.74	-2.68%	23.9	2.85T
ORCL	Oracle Corporation	$147.09	-4.70%	29.5	454.78B
PLTR	Palantir Technologies	$154.78	-3.77%	197.9	321.65B
IBM	Intl Business Machines Corp	$240.59	-3.16%	22.6	238.92B
CRM	Salesforce Inc	$183.02	-6.23%	24.1	179.61B

CDNS Frequently Asked Questions

What does Cadence Design Sys Inc do?

Cadence provides the software tools that semiconductor engineers use to design, simulate, and verify chips before they are ever manufactured. Its Virtuoso platform is the de facto standard for analog and mixed-signal chip design, while its Verilog simulation and verification tools are used across digital chip development. The company has also expanded into system analysis software for PCB design and computational fluid dynamics, extending its relevance beyond pure chip design into the broader electronics engineering workflow.

Is CDNS stock a good investment?

Cadence operates in an effective duopoly with Synopsys in EDA, a market characterized by extremely high switching costs and decades-long customer relationships. The AI chip design boom has increased the volume and complexity of semiconductor design work, which expands the value of EDA tools proportionally. The stock commands a significant valuation premium reflecting the durability of its competitive position. Geopolitical tensions around semiconductor technology access and any slowdown in chip design investment are the primary risk factors to monitor.

Who are Cadence Design Sys Inc's main competitors?

Synopsys is Cadence's primary competitor and together the two companies effectively define the high-end EDA market. In specific niches, Siemens EDA (formerly Mentor Graphics) competes in PCB design, electrical simulation, and automotive electronics verification. Ansys, which Synopsys is pursuing an acquisition of, competes with Cadence in computational simulation and system-level analysis for electronics products.

What makes CDNS stock unique?

Cadence's dominance in analog chip design — through its Virtuoso platform — is a specific moat within EDA that Synopsys does not replicate as effectively. Analog design requires highly specialized tools, and Virtuoso has been the industry standard for so long that semiconductor companies have built entire design methodologies around it. This makes it arguably even stickier than digital EDA tools. Cadence has also invested in AI-driven design automation through its Cerebrus tool, positioning it at the intersection of AI and chip design infrastructure.

What is the current share price of CDNS?

CDNS last closed at $284.32, down 2.80% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $221.56 and a high of $376.45. The current price represents 41% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Is CDNS rated a buy or sell by analysts?

Among 32 analysts covering CDNS, the consensus rating is Strong Buy — 26 rate it a buy, 6 hold, and 0 sell. The average price target sits at $118.75, implying 58% downside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

What are Cadence Design Sys Inc's earnings?

Cadence Design Sys Inc generated $5.29B in revenue during fiscal year 2026, with $1.11B reaching the bottom line as net income. The net profit margin of 20.9% is strong by most industry standards.

How is CDNS valued compared to earnings?

CDNS trades at a P/E ratio of 73.05 on trailing earnings of $4.06 per share. That's well above the S&P 500 historical average of ~20-25x, which typically signals that investors are pricing in aggressive future growth. Comparing this multiple against Technology sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

What is CDNS's return over the past year?

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: -10.84% (3M), -18.79% (6M), +5.65% (1Y), -8.40% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether CDNS is outperforming or lagging the broader market.