Zacks Research Has Bullish Forecast for CDNS Q3 Earnings

Key Points

• Zacks Research has revised its Q3 2025 earnings per share (EPS) estimate for Cadence Design Systems from $1.39 to $1.41, indicating an optimistic outlook for the software maker.
• Cadence Design Systems reported $1.65 EPS for its latest quarter, surpassing the consensus estimate of $1.56, and recorded a 20.2% year-over-year revenue growth.
• Analysts are divided on the stock's future, with twelve rating it as a Buy, while others have issued a Hold and one a Sell rating.

Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) - Analysts at Zacks Research increased their Q3 2025 EPS estimates for shares of Cadence Design Systems in a report released on Monday, August 18th. Zacks Research analyst Team now expects that the software maker will post earnings of $1.41 per share for the quarter, up from their prior estimate of $1.39. 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' FY2025 earnings at $5.48 EPS, Q1 2026 earnings at $1.38 EPS, Q2 2026 earnings at $1.49 EPS, Q3 2026 earnings at $1.57 EPS, Q4 2026 earnings at $1.67 EPS, Q1 2027 earnings at $1.56 EPS, Q2 2027 earnings at $1.63 EPS and FY2027 earnings at $6.63 EPS.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, July 28th. The software maker reported $1.65 EPS for the quarter, beating 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 business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.25 billion. During the same quarter last year, the business earned $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.

A number of other analysts also recently commented on the company. Berenberg Bank set a $400.00 price objective on Cadence Design Systems in a report on Wednesday, July 30th. Robert W. Baird lifted their target price on Cadence Design Systems from $340.00 to $380.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Wall Street Zen downgraded shares of Cadence Design Systems from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Mizuho raised their price objective on shares of Cadence Design Systems from $360.00 to $375.00 and gave the company an "outperform" rating in a research report on Tuesday, July 29th. Finally, Loop Capital boosted their target price 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. Twelve analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $364.33.

Cadence Design Systems Stock Performance

Shares of NASDAQ CDNS opened at $345.45 on Thursday. Cadence Design Systems has a 1 year low of $221.56 and a 1 year high of $376.45. The firm has a market cap of $94.13 billion, a P/E ratio of 93.37, a PEG ratio of 4.55 and a beta of 0.97. The stock has a fifty day moving average price of $327.57 and a two-hundred day moving average price of $295.14. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.67 and a current ratio of 2.82.

Institutional Investors Weigh In On Cadence Design Systems

Several hedge funds have recently bought and sold shares of CDNS. Smallwood Wealth Investment Management LLC acquired a new position in shares of Cadence Design Systems in the 1st quarter valued at about $25,000. Costello Asset Management INC purchased a new position in Cadence Design Systems during the first quarter valued at approximately $25,000. Saudi Central Bank purchased a new position in Cadence Design Systems during the first quarter valued at approximately $27,000. Valley National Advisers Inc. increased its stake in Cadence Design Systems by 707.1% in the 1st quarter. Valley National Advisers Inc. now owns 113 shares of the software maker's stock valued at $28,000 after buying an additional 99 shares during the period. Finally, Barrett & Company Inc. purchased a new stake in Cadence Design Systems in the 2nd quarter worth approximately $31,000. 84.85% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Cadence Design Systems

In other news, VP Paul Cunningham sold 1,000 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $358.72, for a total value of $358,720.00. Following the completion of the sale, the vice president owned 104,499 shares in the company, valued at $37,485,881.28. This represents a 0.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Ita M. Brennan sold 180 shares of the firm's stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $304.00, for a total value of $54,720.00. Following the completion of the sale, the director directly owned 8,010 shares of the company's stock, valued at approximately $2,435,040. This trade represents a 2.20% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 3,830 shares of company stock valued at $1,207,671. 1.99% of the stock is owned by insiders.

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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