Equities Analysts Set Expectations for CDNS FY2027 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Research analysts at Erste Group Bank cut their FY2027 EPS estimates for Cadence Design Systems in a note issued to investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the software maker will post earnings per share of $7.56 for the year, down from their previous forecast of $7.59. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.23 per share.

Several other research firms have also commented on CDNS. Rosenblatt Securities raised their target price on Cadence Design Systems from $375.00 to $410.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. Piper Sandler boosted their price target on Cadence Design Systems from $319.00 to $325.00 and gave the company a “neutral” rating in a report on Tuesday, April 28th. Wells Fargo & Company upped their price objective on Cadence Design Systems from $400.00 to $425.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 26th. Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price objective on shares of Cadence Design Systems in a research note on Tuesday, April 28th. Finally, KeyCorp lifted their target price on shares of Cadence Design Systems from $405.00 to $425.00 and gave the company an “overweight” rating in a report on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $393.65.

Cadence Design Systems Stock Performance

Shares of CDNS stock opened at $344.64 on Monday. Cadence Design Systems has a 52-week low of $262.75 and a 52-week high of $416.69. The company has a quick ratio of 1.32, a current ratio of 1.47 and a debt-to-equity ratio of 0.38. The stock has a market cap of $95.06 billion, a PE ratio of 80.34, a price-to-earnings-growth ratio of 3.91 and a beta of 1.15. The business has a 50-day simple moving average of $375.14 and a 200-day simple moving average of $328.98.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 EPS for the quarter, beating the consensus estimate of $1.91 by $0.05. The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The firm’s revenue was up 18.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.57 earnings per share. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Pinnacle Wealth Management Advisory Group LLC boosted its position in shares of Cadence Design Systems by 3.1% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,033 shares of the software maker’s stock worth $287,000 after buying an additional 31 shares in the last quarter. Westfuller Advisors LLC grew its stake in Cadence Design Systems by 8.2% in the 1st quarter. Westfuller Advisors LLC now owns 408 shares of the software maker’s stock valued at $113,000 after acquiring an additional 31 shares during the last quarter. Spirepoint Private Client LLC increased its holdings in Cadence Design Systems by 4.6% during the 4th quarter. Spirepoint Private Client LLC now owns 722 shares of the software maker’s stock valued at $226,000 after acquiring an additional 32 shares in the last quarter. Cornerstone Planning Group LLC raised its position in Cadence Design Systems by 32.0% during the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the software maker’s stock worth $37,000 after acquiring an additional 32 shares during the last quarter. Finally, KCM Investment Advisors LLC raised its position in Cadence Design Systems by 0.4% during the first quarter. KCM Investment Advisors LLC now owns 8,013 shares of the software maker’s stock worth $2,227,000 after acquiring an additional 32 shares during the last quarter. Hedge funds and other institutional investors own 84.85% of the company’s stock.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Scannell sold 10,500 shares of the company’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $339.00, for a total value of $3,559,500.00. Following the completion of the transaction, the vice president owned 33,946 shares of the company’s stock, valued at approximately $11,507,694. This represents a 23.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 2,000 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $391.00, for a total value of $782,000.00. Following the transaction, the vice president owned 126,586 shares in the company, valued at $49,495,126. This represents a 1.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 157,057 shares of company stock worth $60,272,277 over the last quarter. Company insiders own 0.49% of the company’s stock.

More Cadence Design Systems News

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Needham turned bullish on Cadence and Synopsys, saying agentic AI should support EDA license growth as chip design demand increases. Cadence, Synopsys see bullish views at Needham on agentic AI boosting EDA license growth
• Positive Sentiment: Several recent analysis pieces say fears that Kimi K3 threatens Cadence’s competitive moat are overblown, suggesting the selloff may have been excessive and the stock could recover if fundamentals remain intact. Market Thinks Cadence’s (CDNS) Moat Is at Risk Due To Kimi K3. We Think it’s Not, Here’s Why
• Neutral Sentiment: Cadence was also the subject of valuation and “buy-the-dip” commentary, indicating investors are debating whether the recent pullback is an opportunity or a warning sign rather than reacting to new operating news. Does This Dip In Cadence Design Systems Stock Signal An Opening?
• Neutral Sentiment: Analysts and media are focused on Cadence’s upcoming earnings and forward guidance, which keeps attention on whether the company can sustain growth after a strong quarter. Cadence Design Systems (CDNS) Expected to Post Quarterly Earnings on Monday
• Negative Sentiment: One note pointed to weaker FY2027 earnings expectations from Erste Group Bank, which could weigh on sentiment by implying slower longer-term growth. Erste Group Bank Has Weak Forecast for CDNS FY2027 Earnings

Cadence Design Systems Company Profile

Cadence Design Systems, Inc (NASDAQ: CDNS) is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company’s offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.