Cadence Design Systems (NASDAQ:CDNS) Releases FY 2025 Earnings Guidance

Key Points

• Cadence Design Systems has updated its FY 2025 earnings guidance, forecasting an EPS of 6.850-6.950 and revenue guidance of $5.2-$5.3 billion, surpassing consensus estimates.
• Several research firms have raised their price targets for Cadence, with Bank of America setting a new target of $350, and JPMorgan upgrading the stock rating from "neutral" to "overweight".
• The company's stock currently has a market cap of $91.13 billion, and its shares recently traded at $333.76 during mid-day trading.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) updated its FY 2025 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of 6.850-6.950 for the period, compared to the consensus estimate of 6.786. The company issued revenue guidance of $5.2 billion-$5.3 billion, compared to the consensus revenue estimate of $5.2 billion. Cadence Design Systems also updated its Q3 2025 guidance to 1.750-1.810 EPS.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on CDNS. Bank of America raised their price target on shares of Cadence Design Systems from $320.00 to $350.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Loop Capital raised their price target on shares of Cadence Design Systems from $340.00 to $370.00 and gave the company a "buy" rating in a research report on Monday, July 14th. Robert W. Baird raised their price target on shares of Cadence Design Systems from $340.00 to $380.00 and gave the company an "outperform" rating in a research report on Monday. Mizuho raised their price target on shares of Cadence Design Systems from $325.00 to $360.00 and gave the company an "outperform" rating in a research report on Tuesday, July 22nd. Finally, JPMorgan Chase & Co. raised shares of Cadence Design Systems from a "neutral" rating to an "overweight" rating and raised their price target for the company from $300.00 to $325.00 in a research report on Thursday, April 24th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $336.50.

Cadence Design Systems Price Performance

NASDAQ:CDNS traded up $1.57 during mid-day 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 business's 50-day moving average price is $309.66 and its 200 day moving average price is $288.77. The company has a market cap of $91.13 billion, a PE ratio of 84.50, a price-to-earnings-growth ratio of 4.62 and a beta of 0.99. Cadence Design Systems has a 12-month low of $221.56 and a 12-month high of $335.16. 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 (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%. During the same quarter in the previous year, the company earned $1.28 earnings per share. The company's quarterly revenue was up 20.2% compared to the same quarter last year. On average, analysts expect that Cadence Design Systems will post 5.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cadence Design Systems news, CEO Anirudh Devgan sold 10,737 shares of the business's stock in a transaction that occurred on Friday, May 2nd. The shares were sold at an average price of $310.00, for a total value of $3,328,470.00. Following the completion of the transaction, the chief executive officer owned 209,548 shares of the company's stock, valued at $64,959,880. The trade was a 4.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Paul Scannell sold 4,710 shares of the business'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 transaction, the vice president directly owned 28,442 shares of the company's stock, valued at approximately $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 worth $6,065,087. 0.37% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cadence Design Systems

An institutional investor recently raised its position in Cadence Design Systems stock. Brighton Jones LLC boosted its position in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 80.2% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,519 shares of the software maker's stock after buying an additional 676 shares during the quarter. Brighton Jones LLC's holdings in Cadence Design Systems were worth $456,000 as of its most recent filing with the Securities & Exchange Commission. 84.85% of the stock is currently owned by institutional investors and hedge funds.

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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