San Jose, California-based Cadence Design Systems, Inc. (CDNS) develops computational, AI-driven software, hardware, and silicon intellectual property (IP) products and solutions. Valued at a market cap of $81.1 billion, the company offers products and tools that help customers to design electronic products through the System Design Enablement (SDE) strategy. The company also offers software, hardware, services and reusable IC design blocks to electronic systems and semiconductor customers.
Companies with a market capitalization of $10 billion or more are typically referred to as "large-cap stocks." CDNS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the Software - Application industry.
However, the stock has retreated 20.9% from its 52-week high of $376.45 touched on Jul. 31, 2025. Shares of CDNS have declined 2.9% over the past three months, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 4.4% climb over the same time frame.
CDNS stock has declined 4.8% on a YTD basis, also underperforming the Dow’s 3% increase. However, in the longer term, shares of CDNS rose 17.2% over the past year, outperforming DOWI’s 14% returns over the same period.
The company has been trading below its 200-day and 50-day moving averages since January, with a few fluctuations.
On Feb. 18, CDNS shares grew 7.6% following the release of its Q4 2025 earnings. The company’s revenue increased 6.2% year-over-year to $1.4 billion and surpassed the Street’s estimates. Moreover, its adjusted EPS for the quarter amounted to $1.99, also beating Wall Street estimates. CDNS expects full-year earnings in the range of $8.05 to $8.15 per share, with revenue ranging from $5.9 billion to $6 billion.
Its rival, Automatic Data Processing, Inc. (ADP), has declined 29.9% over the past year, underperforming CDNS.
Among the 23 analysts covering the CDNS stock, the consensus rating is a “Strong Buy.” Its mean price target of $374.95 suggests a 26% upside potential from current price levels.
On the date of publication, Anushka Mukherjee 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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