Cadence Design Systems’ (CDNS) “Buy” Rating Reiterated at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Cadence Design Systems (NASDAQ:CDNS) in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has a $400.00 target price on the software maker’s stock.

A number of other research analysts have also issued reports on CDNS. Wells Fargo & Company boosted their price target 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. Benchmark began coverage on Cadence Design Systems in a report on Wednesday, July 15th. They set a “buy” rating and a $450.00 price target on the stock. Citigroup lifted their price objective on shares of Cadence Design Systems from $400.00 to $420.00 and gave the company a “buy” rating in a research note on Tuesday. Robert W. Baird upped their price objective on shares of Cadence Design Systems from $415.00 to $420.00 and gave the stock an “outperform” rating in a report on Tuesday. Finally, Stifel Nicolaus increased their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Thirteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $405.69.

Cadence Design Systems Stock Performance

CDNS opened at $332.82 on Tuesday. The company has a current ratio of 1.74, a quick ratio of 1.32 and a debt-to-equity ratio of 0.36. The business’s 50 day moving average is $373.04 and its 200-day moving average is $329.95. The stock has a market cap of $91.80 billion, a PE ratio of 66.17, a price-to-earnings-growth ratio of 3.79 and a beta of 1.15. Cadence Design Systems has a twelve month low of $262.75 and a twelve month high of $416.69.

Cadence Design Systems (NASDAQ:CDNS) last issued its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a return on equity of 27.98% and a net margin of 23.60%.The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same period in the prior year, the company posted $1.65 EPS. The business’s revenue for the quarter was up 24.2% compared to the same quarter last year. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS. On average, analysts predict that Cadence Design Systems will post 6.39 earnings per share for the current year.

Insider Activity

In other news, VP Paul Scannell sold 7,081 shares of the business’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president owned 32,181 shares of the company’s stock, valued at approximately $12,676,417.71. The trade was a 18.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Wall sold 5,000 shares of the company’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $348.71, for a total value of $1,743,550.00. Following the completion of the sale, the chief financial officer owned 81,875 shares of the company’s stock, valued at approximately $28,550,631.25. This trade represents a 5.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 145,557 shares of company stock worth $56,375,287 in the last quarter. 0.49% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CDNS. Vanguard Group Inc. boosted its position in shares of Cadence Design Systems by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker’s stock valued at $8,511,888,000 after purchasing an additional 307,753 shares in the last quarter. State Street Corp raised its holdings in shares of Cadence Design Systems by 1.1% in the 4th quarter. State Street Corp now owns 12,603,368 shares of the software maker’s stock worth $3,939,561,000 after purchasing an additional 135,206 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Cadence Design Systems by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker’s stock worth $2,378,707,000 after purchasing an additional 92,152 shares in the last quarter. Norges Bank acquired a new stake in Cadence Design Systems during the fourth quarter valued at approximately $1,352,922,000. Finally, Van ECK Associates Corp lifted its stake in Cadence Design Systems by 11.9% during the fourth quarter. Van ECK Associates Corp now owns 3,534,180 shares of the software maker’s stock valued at $1,104,714,000 after purchasing an additional 376,654 shares during the last quarter. 84.85% of the stock is owned by institutional investors and hedge funds.

Cadence Design Systems News Roundup

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

• Positive Sentiment: Cadence exceeded second-quarter 2026 earnings expectations, reporting $2.11 in adjusted EPS versus the $2.05 consensus estimate. Revenue increased 24.2% year over year to $1.58 billion, supported by demand for AI and advanced-chip design tools. Cadence Q2 Earnings Top Estimates on AI Demand, Backlog Hits $8.1B
• Positive Sentiment: Record backlog of approximately $8.1 billion provides visibility into future sales and was cited by analysts as evidence that agentic AI and broader semiconductor investment can extend Cadence’s growth. Cadence rises after Q2 beat as analysts highlight record backlog
• Positive Sentiment: Management raised its full-year 2026 outlook to $8.05–$8.15 in EPS and issued third-quarter guidance of $2.01–$2.07, reinforcing confidence in continued demand.
• Positive Sentiment: Several Wall Street firms remain constructive: Needham reiterated a Buy rating, while Rosenblatt raised its price target to $420. Baird, Bank of America and Piper Sandler analysts also anticipate further appreciation. Rosenblatt raises Cadence price target
• Neutral Sentiment: The earnings call and related research suggest growth is broadening beyond AI, potentially supporting another earnings-driven advance if Cadence converts its backlog into revenue. Cadence earnings call signals AI-driven surge
• Negative Sentiment: At roughly 54 times earnings, CDNS remains expensive, and some commentary warns that the share price already discounts years of strong execution. This rich valuation could limit upside or amplify pressure if growth slows. Cadence keeps winning, but the share price is years ahead

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.