With a market cap of $102.9 billion, Cadence Design Systems, Inc. (CDNS) is a leading electronic design automation (EDA) software company that provides software, hardware, and intellectual property solutions used to design semiconductors, advanced packaging, and complex electronic systems. Its technologies are widely adopted by chipmakers, hyperscale cloud providers, automotive companies, aerospace and defense firms, and consumer electronics manufacturers to accelerate product development and AI-driven chip design. The company is headquartered in San Jose.
The company is expected to report its Q2 2026 earnings soon. Ahead of the event, analysts expect CDNS to deliver a profit of $1.62 per share, up 32.8% from $1.22 per share reported in the year-ago quarter. Moreover, it met or surpassed the consensus EPS estimates in each of the past four quarters.
For the full fiscal 2026, CDNS is expected to report an EPS of $6.23, up 13.7% from $5.48 in 2025. Plus, in fiscal 2027, its earnings are expected to grow 19.7% year-over-year to $7.46 per share.
CDNS stock prices have soared 20% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund’s (XLK) 42.4% gains while almost on par with the S&P 500 Index’s ($SPX) 20.2% returns during the same time frame.
Cadence Design Systems reported first-quarter 2026 results on Apr. 27, posting revenue of $1.5 billion, up 18.7% from the prior-year quarter. On the bottom line, non-GAAP EPS increased 24.8% to $1.96.
Despite reporting better-than-expected first-quarter 2026 results, Cadence Design Systems' stock declined in the immediate aftermath of the earnings release, slumping 3.3% the following day.
Nevertheless, the consensus opinion on CDNS stock is bullish, with an overall “Strong Buy” rating. Out of 22 analysts covering the stock, 17 advise a “Strong Buy” rating, one recommends a “Moderate Buy,” and four suggest a “Hold.”
The average analyst price target for CDNS is $394.67, indicating a potential upside of 5.8% from the current levels.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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