FY2027 EPS Estimates for CDNS Lowered by Erste Group Bank

Key Points

• Erste Group Bank slightly lowered its FY2027 EPS estimate for Cadence Design Systems to $7.56 from $7.59, while the broader consensus for the current full year stands at $6.23 per share.
• Cadence’s most recent quarterly results topped expectations, with EPS of $1.96 versus $1.91 expected and revenue of $1.47 billion versus $1.46 billion expected. Revenue rose 18.6% year over year, and the company also issued FY2026 EPS guidance of 7.85 to 7.95.
• Wall Street remains generally constructive on the stock, with a Moderate Buy consensus and an average price target of about $393.65. Recent analyst notes included upgrades and higher targets, even as shares faced pressure from concerns about AI-driven disruption in the EDA industry.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Investment analysts at Erste Group Bank lowered their FY2027 earnings estimates for Cadence Design Systems in a research note issued 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 prior estimate of $7.59. The consensus estimate for Cadence Design Systems' current full-year earnings is $6.23 per share.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.91 by $0.05. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a net margin of 21.18% and a return on equity of 28.44%. The company's revenue for the quarter was up 18.6% on a year-over-year basis. During the same period last year, the firm earned $1.57 EPS. 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.

A number of other analysts also recently commented on the company. KeyCorp boosted their target price on Cadence Design Systems from $405.00 to $425.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Benchmark started coverage on Cadence Design Systems in a research note on Wednesday. They set a "buy" rating and a $450.00 price target for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Cadence Design Systems in a research report on Thursday, July 2nd. Citigroup increased their price objective on shares of Cadence Design Systems from $385.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Finally, Stifel Nicolaus raised their target price on shares of Cadence Design Systems from $395.00 to $432.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. One investment 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. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $393.65.

Cadence Design Systems Stock Performance

NASDAQ CDNS opened at $330.11 on Monday. The business has a 50 day moving average price of $376.09 and a 200 day moving average price of $328.65. The company has a market capitalization of $91.05 billion, a P/E ratio of 76.95, a PEG ratio of 3.91 and a beta of 1.15. Cadence Design Systems has a 1-year low of $262.75 and a 1-year high of $416.69. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.47 and a quick ratio of 1.32.

Insider Buying and Selling at Cadence Design Systems

In related news, VP Paul Scannell sold 10,500 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $339.00, for a total transaction of $3,559,500.00. Following the sale, the vice president owned 33,946 shares in the company, valued at approximately $11,507,694. This trade represents a 23.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 Cadence Design Systems stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $391.00, for a total transaction of $782,000.00. Following the completion of the sale, the vice president directly owned 126,586 shares of the company's stock, valued at $49,495,126. The trade was a 1.56% decrease in their ownership of the stock. 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. In the last ninety days, insiders have sold 157,057 shares of company stock valued at $60,272,277. 0.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cadence Design Systems

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of Cadence Design Systems by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 27,231,070 shares of the software maker's stock worth $8,511,888,000 after buying an additional 307,753 shares during the period. State Street Corp grew its position in Cadence Design Systems by 1.1% during the fourth quarter. State Street Corp now owns 12,603,368 shares of the software maker's stock valued at $3,939,561,000 after acquiring an additional 135,206 shares during the period. Geode Capital Management LLC grew its position in Cadence Design Systems by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 7,627,272 shares of the software maker's stock valued at $2,378,707,000 after acquiring an additional 92,152 shares during the period. Norges Bank acquired a new stake in Cadence Design Systems during the fourth quarter worth about $1,352,922,000. Finally, Van ECK Associates Corp increased 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 worth $1,104,714,000 after acquiring an additional 376,654 shares during the last quarter. Institutional investors and hedge funds own 84.85% of the company's stock.

Trending Headlines about Cadence Design Systems

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

• Positive Sentiment: Benchmark upgraded Cadence to Strong Buy, and recent brokerage commentary put the average price target around $387, indicating Wall Street still sees upside from current levels. Zacks.com
• Positive Sentiment: Cadence recently launched new AI products, including the AuraStack AI Super Agent for PCB and advanced packaging design, reinforcing the company’s growth narrative in AI-driven design workflows. Business Wire article
• Positive Sentiment: The company also announced a partnership with Rapidus to advance agentic AI for advanced SoC design, which could support longer-term demand for Cadence’s software tools. Business Wire article
• Neutral Sentiment: Cadence is due to report second-quarter results on July 27, and some of the weakness may reflect investors taking profits or reducing exposure ahead of earnings. MSN article
• Negative Sentiment: Shares are also being hit by broader fears that Moonshot and other AI-driven tools could disrupt the EDA industry, pressuring Cadence and peers like Synopsys on concerns about future pricing power and competition. MSN article

About Cadence Design Systems

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.

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