Zacks Research Has Positive Outlook for CDNS Q2 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Zacks Research raised their Q2 2026 earnings per share estimates for Cadence Design Systems in a report released on Monday, November 17th. Zacks Research analyst Team now expects that the software maker will post earnings of $1.54 per share for the quarter, up from their prior estimate of $1.49. The consensus estimate for Cadence Design Systems’ current full-year earnings is $5.41 per share. Zacks Research also issued estimates for Cadence Design Systems’ Q4 2026 earnings at $1.79 EPS.

Cadence Design Systems (NASDAQ:CDNS) last released its earnings results on Monday, October 27th. The software maker reported $1.93 EPS for the quarter, topping analysts’ consensus estimates of $1.79 by $0.14. The firm had revenue of $1.34 billion for the quarter, compared to analysts’ expectations of $1.32 billion. Cadence Design Systems had a return on equity of 30.13% and a net margin of 20.35%.The company’s quarterly revenue was up 10.1% on a year-over-year basis. During the same period in the prior year, the firm posted $1.64 earnings per share. Cadence Design Systems has set its FY 2025 guidance at 7.020-7.080 EPS. Q4 2025 guidance at 1.880-1.940 EPS.

Several other research analysts also recently issued reports on CDNS. KeyCorp reiterated an “overweight” rating and issued a $405.00 target price on shares of Cadence Design Systems in a research note on Tuesday, October 28th. Robert W. Baird upped their price objective on Cadence Design Systems from $390.00 to $418.00 and gave the company an “outperform” rating in a research report on Tuesday, October 28th. JPMorgan Chase & Co. increased their target price on Cadence Design Systems from $390.00 to $405.00 and gave the company an “overweight” rating in a research note on Tuesday, October 28th. BNP Paribas Exane initiated coverage on Cadence Design Systems in a research note on Thursday, October 2nd. They issued an “outperform” rating and a $400.00 price target for the company. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $385.00 price objective on shares of Cadence Design Systems in a research report on Tuesday, October 28th. Fourteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $376.00.

Cadence Design Systems Stock Performance

Shares of CDNS stock opened at $303.21 on Wednesday. The company has a market capitalization of $82.53 billion, a price-to-earnings ratio of 78.15, a price-to-earnings-growth ratio of 4.55 and a beta of 1.00. The company has a debt-to-equity ratio of 0.48, a quick ratio of 2.67 and a current ratio of 3.05. Cadence Design Systems has a one year low of $221.56 and a one year high of $376.45. The company’s 50-day moving average is $339.25 and its 200 day moving average is $329.89.

Hedge Funds Weigh In On Cadence Design Systems

Several institutional investors have recently made changes to their positions in the business. Costello Asset Management INC bought a new stake in Cadence Design Systems during the first quarter valued at approximately $25,000. Y.D. More Investments Ltd purchased a new position in shares of Cadence Design Systems during the 3rd quarter worth $26,000. Saudi Central Bank bought a new stake in shares of Cadence Design Systems during the 1st quarter valued at $27,000. Caitlin John LLC bought a new stake in shares of Cadence Design Systems during the 3rd quarter valued at $29,000. Finally, Barrett & Company Inc. purchased a new stake in shares of Cadence Design Systems in the 2nd quarter worth $31,000. Institutional investors own 84.85% of the company’s stock.

Insider Transactions at Cadence Design Systems

In other news, Director Ita M. Brennan sold 180 shares of the firm’s stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $334.51, for a total value of $60,211.80. Following the transaction, the director directly owned 7,830 shares in the company, valued at $2,619,213.30. This trade represents a 2.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $343.95, for a total value of $343,950.00. Following the completion of the sale, the vice president directly owned 102,499 shares of the company’s stock, valued at $35,254,531.05. The trade was a 0.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 16,230 shares of company stock valued at $5,530,682 over the last 90 days. 1.99% of the stock is owned by corporate insiders.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.