Robert W. Baird Increases Cadence Design Systems (NASDAQ:CDNS) Price Target to $385.00

Key Points

• Robert W. Baird raised its price target on Cadence from $381 to $385 and kept an "outperform" rating, implying roughly a 14.3% upside from the current share price.
• Cadence beat Q1 estimates (EPS $1.96 vs. $1.89; revenue $1.47B, +18.6% YoY) and issued strong FY‑2026 guidance (EPS 7.85–7.95; Q2 EPS 2.02–2.08), attributing the momentum to sustained demand for AI‑focused chip‑design tools.
• Offsetting positives, investors face risks from a high valuation (P/E ~83), weaker operating cash flow and cash balances, plus recent insider sales and notable pre‑earnings put activity that may weigh on sentiment.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) had its target price boosted by equities research analysts at Robert W. Baird from $381.00 to $385.00 in a research report issued on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the software maker's stock. Robert W. Baird's target price would indicate a potential upside of 14.33% from the stock's current price.

CDNS has been the subject of a number of other reports. Rosenblatt Securities reiterated a "buy" rating and issued a $360.00 price target on shares of Cadence Design Systems in a research note on Friday. Piper Sandler decreased their price target on Cadence Design Systems from $355.00 to $319.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. Morgan Stanley decreased their price target on Cadence Design Systems from $385.00 to $370.00 and set an "overweight" rating for the company in a research note on Wednesday, February 18th. KeyCorp reiterated an "overweight" rating on shares of Cadence Design Systems in a research note on Tuesday. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Cadence Design Systems in a research note on Monday, December 29th. Fifteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $375.56.

Cadence Design Systems Stock Up 1.2%

Shares of CDNS opened at $336.74 on Tuesday. The company has a current ratio of 2.86, a quick ratio of 2.67 and a debt-to-equity ratio of 0.45. Cadence Design Systems has a 12 month low of $262.75 and a 12 month high of $376.45. The stock's 50 day moving average is $294.47 and its two-hundred day moving average is $309.05. The firm has a market cap of $92.97 billion, a P/E ratio of 82.94, a PEG ratio of 4.00 and a beta of 1.04.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.89 by $0.07. Cadence Design Systems had a return on equity of 29.34% and a net margin of 20.93%.The business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.45 billion. During the same quarter last year, the firm earned $1.57 earnings per share. The business's revenue was up 18.6% on a year-over-year basis. 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. Analysts predict that Cadence Design Systems will post 6.51 earnings per share for the current fiscal year.

Insider Buying and Selling at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $297.78, for a total transaction of $297,780.00. Following the completion of the transaction, the vice president owned 94,137 shares in the company, valued at approximately $28,032,115.86. This represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ita M. Brennan sold 180 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $295.03, for a total transaction of $53,105.40. Following the transaction, the director owned 7,470 shares of the company's stock, valued at $2,203,874.10. This represents a 2.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 24,680 shares of company stock worth $7,579,340 over the last ninety days. Company insiders own 0.49% of the company's stock.

Hedge Funds Weigh In On Cadence Design Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Y.D. More Investments Ltd bought a new position in Cadence Design Systems in the 3rd quarter worth approximately $26,000. Caitlin John LLC bought a new position in Cadence Design Systems in the 3rd quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Cadence Design Systems in the fourth quarter worth approximately $28,000. Imprint Wealth LLC acquired a new stake in Cadence Design Systems in the third quarter worth approximately $31,000. Finally, Swiss RE Ltd. acquired a new stake in Cadence Design Systems in the fourth quarter worth approximately $29,000. 84.85% of the stock is owned by institutional investors.

Cadence Design Systems News Summary

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

• Positive Sentiment: Q1 results beat consensus: EPS $1.96 vs. ~$1.89 and revenue $1.47B (up ~18.6% YoY), showing continued top‑line growth. Cadence Design Systems Tops Q1 Targets, Guides Above Views
• Positive Sentiment: Management raised FY‑2026 and Q2 guidance well above Street expectations (FY EPS guide 7.85–7.95 and revenue guide mid‑$6B; Q2 EPS 2.02–2.08 and revenue ~ $1.6B), driven by sustained demand for AI‑focused chip design tools. This is the primary catalyst for upside. Cadence lifts annual revenue forecast on sustained AI chip-design boom
• Neutral Sentiment: Management commentary and the full Q1 call transcript provide color on AI-related demand, product cadence and customer timing — useful for judging sustainability but not immediately price‑moving relative to the guide. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Cash flow and liquidity mixed: operating cash flow declined (~27% YoY) and cash & equivalents fell markedly (~49% YoY) while total liabilities rose — investors may discount valuation because of weaker cash conversion. Quiver Quantitative: Stock Falls on Q1 2026 Earnings
• Negative Sentiment: Pre‑earnings options and insider activity signalled hedging/selling: unusually large put buying ahead of results and recent insider sell transactions may pressure sentiment despite the strong guide. (Options and insider details reported in market coverage and data feeds.)

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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