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 $97.3 billion, the company offers products and tools that help customers 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.
CDNS is expected to release its Q3 2026 earnings soon. Ahead of this event, analysts anticipate the company will generate earnings of $1.60 per share, representing an increase of 6% from $1.51 per share reported in the same quarter last year. The company has met or surpassed the Street’s bottom-line estimates in three of the past four quarters, while missing on one occasion.
For fiscal 2026, analysts expect the company to report an EPS of $6.40, indicating a 16.8% rise from $5.48 reported in fiscal 2025. Moreover, its EPS is expected to rise nearly 18.1% year over year (YoY) to $7.56 in fiscal 2027.
CDNS stock has grown 1.8% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 15.8% rise and the State Street Technology Select Sector SPDR ETF’s (XLK) 41.1% rise during the same time frame.
Despite underperforming over the past year, CDNS stock has showcased impressive results in its last announced quarter. On July 27, the company’s shares rose 3.8% following the announcement of its Q2 2026 earnings. Its revenue for the quarter amounted to $1.6 billion, matching the Street’s estimates. Moreover, its adjusted EPS for the period came in at $2.11, which successfully topped the consensus estimates. CDNS expects its revenue and EPS to be in the range of $6.26 billion to $6.34 billion and $8.05 to $8.15, respectively, for the full year.
Analysts are highly bullish on CDNS, with the stock having a “Strong Buy” rating overall. Among the 23 analysts covering the stock, 19 are recommending a “Strong Buy,” one recommends a “Moderate Buy,” and three suggest a “Hold” for the stock. CDNS’ average analyst price target is $409.23, indicating an upside of 15.8% from the current level.
On the date of publication, Aritra Gangopadhyay 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.