With a market cap of $77.4 billion, Cadence Design Systems, Inc. (CDNS) develops computational and AI-driven software, hardware, and silicon intellectual property solutions for designing and verifying electronic systems and semiconductors. It offers a broad portfolio spanning chip design, system analysis, and advanced simulation, and collaborates strategically with NVIDIA.
The San Jose, California-based company is slated to announce its fiscal Q1 2026 results soon. Ahead of the release, analysts predict CDNA to report EPS of $1.52, an increase of 27.7% from $1.19 in the year-ago quarter. It has exceeded or met Wall Street's earnings expectations in the past four quarters.
For fiscal 2026, analysts expect Cadence Design Systems to report EPS of $6.50, a growth of 18.6% from $5.48 in fiscal 2025.
Shares of Cadence Design Systems have gained nearly 3% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 14.5% return and the State Street Technology Select Sector SPDR ETF's (XLK) 26.3% surge over the same period.
Shares of Cadence Design Systems climbed 7.6% following its Q4 2025 results on Feb. 17, driven by strong quarterly performance with revenue of $1.44 billion (up from $1.36 billion year-over-year) and adjusted EPS of $1.99 (up from $1.88). Investor sentiment was further lifted by a record $7.8 billion backlog and $3.8 billion in near-term revenue visibility, as well as strong business momentum with its IP segment growing nearly 25% and core EDA business rising 13% in 2025.
The rally was also supported by upbeat 2026 guidance, with expected revenue of $5.9 billion - $6 billion and adjusted EPS of $8.05 - $8.15, reflecting continued demand for its AI-driven products and expanding adoption across hyperscalers.
Analysts' consensus view on CDNS stock remains bullish, with a "Strong Buy" rating overall. Out of 23 analysts covering the stock, 18 recommend a "Strong Buy," one "Moderate Buy," and four "Holds." The average analyst price target is $374.95, indicating a potential upside of 37.1% from the current levels.
On the date of publication, Sohini Mondal 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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