Where it trades today
trading 13% of the way up its 52-week range
How the price has moved
What to weigh before acting
What Matters Now
- Execution usually depends on product cycles, cloud demand, and how efficiently new AI or software capex converts into durable revenue.
- CDNS trades at 56.2x earnings, well above the technology average of 28.5x, so the market is already pricing in above-consensus execution.
- Recent realized volatility is running around 42.2%, above the sector norm of 28.0%, so position sizing matters more than usual.
- CDNS remains in a bearish short-term trend and sits 32.1% below its high, which raises the bar for any thesis that depends on fast multiple expansion.
Portfolio Use Case
- CDNS is more useful for investors comparing conviction names inside technology than for someone looking for a passive “set and forget” holding.
- The risk profile looks balanced enough for a diversified core-plus portfolio, provided the position size reflects sector concentration.
- It is best monitored alongside valuation discipline, because strong narratives in technology can stay expensive longer than expected.
What Would Change the View
- A reset in earnings expectations or a faster peer catch-up could compress the premium valuation currently embedded in CDNS.
- A recovery in price alone would not be enough to improve the view; the thesis needs confirmation from improving business or valuation signals.
- Volatility is already above the sector norm, so even a correct long-term thesis can be painful if the position size is too aggressive.
Methodology
- Price, market cap, beta, yield, and liquidity fields for CDNS come from Yahoo Finance quote and summary data.
- 30-day volatility is calculated from recent daily returns and annualized using a 252-trading-day convention.
- Sector context uses stored benchmark averages for Technology so each page compares the ticker against a stable peer baseline rather than against the whole market.
- Peer comparisons use the Portfolio Terminal coverage set and highlight nearby listed alternatives such as AAPL, MSFT, NVDA.
Sources
- Yahoo Finance quote dataopen →
Live quote, valuation, beta, yield, and volume fields used for CDNS. Last refresh: Sep 18, 2026, 10:56 PM.
- Portfolio Terminal methodologyopen →
Explains how analytics, refresh cadence, and portfolio interpretation work across the product.
- Peer set and coverage context
Comparative context for this page is anchored around nearby tracked names such as AAPL, MSFT, NVDA.
What Cadence Design Systems does
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual…
What analysts expect
CDNS carries a strong buy consensus from 28 analysts, with an average price target of $402.12 versus $282.90 today (+42.1%). Targets are estimates and can move quickly after earnings.
Consensus aggregated by Yahoo Finance. Targets are estimates, not forecasts.
How the business is doing
CDNS generated $5.84B in trailing revenue (24.2% year over year), with a 23.6% net margin, and $1.61B of free cash flow, against $1.12B of net debt.
The numbers, year by year
| Fiscal year | Revenue | Gross profit | Operating income | Net income | EPS | Free cash flow |
|---|---|---|---|---|---|---|
| 2025 | $5.30B | $4.57B | $1.65B | $1.11B | $4.09 | $1.59B |
| 2024 | $4.64B | $3.99B | $1.38B | $1.06B | $3.89 | $1.12B |
| 2023 | $4.09B | $3.65B | $1.26B | $1.04B | $3.86 | $1.25B |
| 2022 | $3.56B | $3.19B | $1.07B | $848.95M | $3.13 | $1.12B |
When it reports next
Estimates aggregated by Yahoo Finance. Dates move and estimates change until the report lands.
How it sits in technology
High-growth sector driven by innovation, cloud computing, AI, and digital transformation.
The companies it competes with
CDNS beside the technology names it is usually measured against.
What the chart is saying
Cadence Design Systems trades at $282.90, 32.1% below its 52-week high. With a beta of 1.14, it shows about average sensitivity to what the wider market does.
Questions people ask about it
Is CDNS a good buy right now?
Cadence Design Systems trades at 56.2x earnings. This is above market average, reflecting growth expectations. Current risk level is High based on 42.2% volatility.
Does CDNS pay dividends?
Cadence Design Systems does not currently pay a regular dividend. The company may be reinvesting profits for growth.
How volatile is CDNS?
With 30-day annualized volatility of 42.2% and beta of 1.14, CDNS is classified as High risk. Expect larger swings than the broader market during volatile periods.
What is the analyst price target for CDNS?
The average analyst price target for Cadence Design Systems (CDNS) is $402.12 based on 28 analyst estimates, about 42.1% above the current price of $282.90. The published range runs from $300.00 to $470.00.
How much revenue does CDNS generate?
Cadence Design Systems reported $5.84B in trailing twelve-month revenue. Revenue growth is running at 24.2% year over year. Net margin sits at 23.6%. Figures are aggregated from company filings by Yahoo Finance and refresh on an hourly cadence.