Equities Analysts Offer Predictions for CDNS Q4 Earnings

Key Points

• Zacks Research has raised its earnings estimate for Cadence Design Systems for Q4 2025, now expecting $1.53 per share compared to the previous estimate of $1.52.
• The company's recent earnings report showed a revenue of $1.28 billion, exceeding expectations and marking a 20.2% year-over-year increase.
• Analysts have issued positive ratings, with target prices for Cadence Design Systems ranging from $300.00 to $400.00, and a current consensus target price of $364.33.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Equities researchers at Zacks Research increased their Q4 2025 earnings estimates for Cadence Design Systems in a research report issued to clients and investors on Monday, August 18th. Zacks Research analyst Team now forecasts that the software maker will post earnings of $1.53 per share for the quarter, up from their prior forecast of $1.52. The consensus estimate for Cadence Design Systems' current full-year earnings is $5.41 per share. Zacks Research also issued estimates for Cadence Design Systems' FY2026 earnings at $6.11 EPS.

CDNS has been the topic of a number of other research reports. Wells Fargo & Company raised their price objective on shares of Cadence Design Systems from $365.00 to $405.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Loop Capital raised their price objective on shares of Cadence Design Systems from $370.00 to $390.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Mizuho raised their price objective on shares of Cadence Design Systems from $360.00 to $375.00 and gave the stock an "outperform" rating in a report on Tuesday, July 29th. Wall Street Zen raised shares of Cadence Design Systems from a "hold" rating to a "buy" rating in a report on Saturday. Finally, Rosenblatt Securities reissued a "neutral" rating and issued a $300.00 price objective on shares of Cadence Design Systems in a report on Friday, July 25th. Twelve equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Cadence Design Systems presently has an average rating of "Moderate Buy" and an average price target of $364.33.

Cadence Design Systems Stock Performance

Shares of CDNS stock traded up $2.06 during trading hours on Wednesday, reaching $349.63. The company had a trading volume of 1,198,287 shares, compared to its average volume of 1,977,598. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82. The firm has a market cap of $95.27 billion, a PE ratio of 94.49, a price-to-earnings-growth ratio of 4.59 and a beta of 0.97. The business has a fifty day moving average price of $329.35 and a 200-day moving average price of $295.78. Cadence Design Systems has a one year low of $221.56 and a one year high of $376.45.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, topping analysts' consensus estimates of $1.56 by $0.09. Cadence Design Systems had a net margin of 19.88% and a return on equity of 29.65%. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. During the same period in the previous year, the business posted $1.28 earnings per share. The business's revenue for the quarter was up 20.2% on a year-over-year basis. Cadence Design Systems has set its Q3 2025 guidance at 1.750-1.810 EPS. FY 2025 guidance at 6.850-6.950 EPS.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $304.00, for a total transaction of $54,720.00. Following the transaction, the director owned 8,010 shares of the company's stock, valued at $2,435,040. The trade was a 2.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Paul Cunningham sold 1,000 shares of Cadence Design Systems stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $358.72, for a total transaction of $358,720.00. Following the transaction, the vice president directly owned 104,499 shares in the company, valued at $37,485,881.28. This represents a 0.95% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 3,830 shares of company stock worth $1,207,671 in the last ninety days. Insiders own 1.99% of the company's stock.

Institutional Investors Weigh In On Cadence Design Systems

Several institutional investors and hedge funds have recently modified their holdings of the stock. Stance Capital LLC bought a new stake in shares of Cadence Design Systems during the second quarter valued at approximately $1,336,000. North Dallas Bank & Trust Co. bought a new stake in shares of Cadence Design Systems during the second quarter valued at approximately $1,749,000. Forefront Wealth Partners LLC raised its position in shares of Cadence Design Systems by 3.8% during the second quarter. Forefront Wealth Partners LLC now owns 1,738 shares of the software maker's stock valued at $522,000 after buying an additional 64 shares during the last quarter. Coppell Advisory Solutions LLC raised its position in shares of Cadence Design Systems by 104.0% during the second quarter. Coppell Advisory Solutions LLC now owns 4,399 shares of the software maker's stock valued at $1,343,000 after buying an additional 2,243 shares during the last quarter. Finally, B. Riley Wealth Advisors Inc. bought a new stake in shares of Cadence Design Systems during the second quarter valued at approximately $534,000. Institutional investors own 84.85% of the company's stock.

About Cadence Design Systems

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.