Cadence Design Systems (NASDAQ:CDNS) Issues Q3 2025 Earnings Guidance

Key Points

• Cadence Design Systems has issued Q3 2025 EPS guidance of 1.750-1.810, surpassing the consensus estimate of 1.724.
• The company's updated fiscal year 2025 EPS guidance stands at 6.850-6.950, indicating a positive outlook.
• Shares of Cadence Design Systems traded up 0.5% to $333.76, with recent analyst ratings showing a consensus of "Moderate Buy" and price targets ranging from $300.00 to $380.00.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Monday morning. The company provided EPS guidance of 1.750-1.810 for the period, compared to the consensus EPS estimate of 1.724. The company issued revenue guidance of -. Cadence Design Systems also updated its FY 2025 guidance to 6.850-6.950 EPS.

Cadence Design Systems Trading Up 0.5%

Shares of NASDAQ:CDNS traded up $1.57 during midday trading on Monday, hitting $333.76. 2,645,427 shares of the stock traded hands, compared to its average volume of 1,492,241. The stock has a market capitalization of $91.13 billion, a PE ratio of 84.50, a P/E/G ratio of 4.62 and a beta of 0.99. The business's 50 day moving average is $309.66 and its two-hundred day moving average is $288.77. The company has a quick ratio of 2.90, a current ratio of 3.07 and a debt-to-equity ratio of 0.52. Cadence Design Systems has a one year low of $221.56 and a one year high of $335.16.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, beating the consensus estimate of $1.56 by $0.09. Cadence Design Systems had a net margin of 22.18% and a return on equity of 29.36%. The company's revenue was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.28 earnings per share. As a group, research analysts forecast that Cadence Design Systems will post 5.41 earnings per share for the current year.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Rosenblatt Securities reissued a "neutral" rating and issued a $300.00 price target on shares of Cadence Design Systems in a research note on Friday. JPMorgan Chase & Co. raised shares of Cadence Design Systems from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $300.00 to $325.00 in a research note on Thursday, April 24th. Needham & Company LLC reissued a "buy" rating and issued a $325.00 price target on shares of Cadence Design Systems in a research note on Tuesday, May 13th. Bank of America increased their price target on shares of Cadence Design Systems from $320.00 to $350.00 and gave the stock a "buy" rating in a research note on Tuesday, April 29th. Finally, Robert W. Baird increased their price target on shares of Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a research note on Monday. One investment analyst has rated the stock with a sell rating, two have given a hold rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $336.50.

Insider Activity

In other news, Director James D. Plummer sold 868 shares of the stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $319.95, for a total transaction of $277,716.60. Following the sale, the director owned 23,996 shares in the company, valued at $7,677,520.20. This represents a 3.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Paul Scannell sold 4,710 shares of the firm's stock in a transaction that occurred on Tuesday, April 29th. The stock was sold at an average price of $300.00, for a total transaction of $1,413,000.00. Following the completion of the sale, the vice president owned 28,442 shares in the company, valued at $8,532,600. This represents a 14.21% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 19,795 shares of company stock valued at $6,065,087. Company insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

An institutional investor recently raised its position in Cadence Design Systems stock. Integrated Wealth Concepts LLC increased its stake in Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 3.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,203 shares of the software maker's stock after purchasing an additional 80 shares during the quarter. Integrated Wealth Concepts LLC's holdings in Cadence Design Systems were worth $560,000 at the end of the most recent quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

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.

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