Stocks · Technology · Software - Application
Cadence Design Systems, Inc. CDNS
$351.35 +0.18% Close, Oct 2, 2026 · NASDAQ · Market cap $96.76B
High qualityLow risk
Next earnings report: Oct 26, 2026
Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.
Three things to know
- Earnings beat analyst estimates in each of the last 14 quarters (average surprise over the last four: +4.4%).
- Diluted EPS over the last four quarters was $5.03, up 35.9% year over year.
- Revenue over the last four quarters was $5.84B, up 14.7% from a year earlier.
PromtFinance scores
Each score is a percentile within the Technology sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.
How fast revenue, earnings and cash flow are growing.
- Revenue growth (TTM, YoY)Top 44%
- EPS growth (TTM, YoY)Top 35%
- FCF growth (TTM, YoY)Bottom 36%
- Revenue growth, 3-year CAGRTop 30%
- Revenue growth accelerationTop 42%
Returns on capital, margins, earnings quality and balance-sheet strength.
- Return on invested capitalTop 17%
- Gross marginTop 1%
- Operating marginTop 7%
- Cash conversion (OCF / net income)Bottom 34%
- Accruals (lower is better)Bottom 32%
- Net debt / EBITDA (lower is better)Bottom 48%
- Interest coverTop 22%
How cheap the shares are relative to earnings, cash flow and their own history.
- Earnings yieldTop 47%
- Free-cash-flow yieldBottom 40%
- EBITDA / enterprise valueBottom 44%
- Sales / enterprise valueBottom 14%
- P/E vs own 5-year history (lower is better)Top 49%
Strength and persistence of the price trend, including versus the S&P 500.
- 12-month return excluding last monthBottom 37%
- 6-month returnTop 49%
- 1-year return vs S&P 500Bottom 46%
- Distance from 52-week highTop 28%
- Trend checklist (0–4)Top 44%
Earnings surprises and analyst sentiment (estimate-revision history is being collected).
- Average EPS surprise, last 4 quartersBottom 34%
- Consecutive EPS beatsTop 9%
- Share of analysts rating BuyTop 20%
- Upside to consensus price targetBottom 36%
Low volatility, shallow drawdowns, low market sensitivity and modest leverage.
- Volatility, 60 days (lower is better)Top 23%
- Maximum drawdown, 3 yearsTop 5%
- Beta vs S&P 500 (lower is better)Top 42%
- Net debt / EBITDA (lower is better)Bottom 48%
What changed
Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).
| Measure | Before | Now | |
|---|---|---|---|
| Revenue growth (YoY) | 13.4% | 14.7% | ↑ |
| EPS growth (YoY) | 8.6% | 35.9% | ↑ |
| Gross margin | 85.6% | 88.5% | ↑ |
| Operating margin | 30.2% | 30.8% | ↑ |
| FCF margin | 31.1% | 28.8% | ↓ |
Fundamental momentum
| Measure | Now (TTM) | Year / quarter before | Sector rank | |
|---|---|---|---|---|
| Revenue growth (TTM, YoY) | 14.7% | 13.4% | ↑ | Top 44% |
| EPS growth (TTM, YoY) | 35.9% | 8.6% | ↑ | Top 35% |
| Gross margin | 88.5% | 85.6% | ↑ | Top 1% |
| Operating margin | 30.8% | 30.2% | ↑ | Top 7% |
| Net margin | 23.6% | 19.9% | ↑ | — |
| Free-cash-flow margin | 28.8% | 31.1% | ↓ | — |
| Return on invested capital | 13.3% | — | Top 17% | |
| Revenue growth, 3-year CAGR | 14.1% | — | Top 30% |
Quality of earnings and balance sheet
- Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
- 1.35×
- Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
- -3.9%
- Stock-based compensation / revenueA cost to shareholders through dilution.
- 8.8%
- Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
- +44.2 pp
- Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
- 0.48×
- Interest cover (operating income / interest)How many times operating profit covers interest.
- 14.4×
Shareholder returns
- Dividend yield (dividends paid, TTM)
- 0.00%
- Net buyback yield (TTM)
- 0.67%
- Shareholder yield
- 0.67%
- Share count change, 1 year
- +0.8%
- Share count change, 3-year CAGR
- +0.2%
Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.
Based on the four quarters through Jun 30, 2026 (filed Jul 29, 2026).
Earnings and expectations
Earnings momentum
- Consecutive EPS beats
- 14
- Beats in the last 8 reports
- 8 of 8
- Average EPS surprise, last 4
- +4.4%
- Average 2-day reaction, last 8
- +0.1%
- Positive 20 days after report
- 4 of 8
Analysts
- Consensus price target
- $401.60
- Target vs current price
- +14.3%
- Analysts with a rating
- 31
- Share rating Buy or Strong Buy
- 84%
- Consensus rating
- Buy
How the stock reacted to recent reports
| Report date | EPS surprise | 2 days | 5 days | 20 days | 60 days |
|---|---|---|---|---|---|
| Jul 27, 2026 | +2.9% | +3.8% | +4.2% | -2.2% | — |
| Apr 27, 2026 | +2.6% | +1.1% | +2.4% | +12.2% | +1.2% |
| Feb 17, 2026 | +4.2% | -5.3% | -6.6% | -2.3% | +19.6% |
| Oct 27, 2025 | +7.8% | +1.8% | -1.9% | -12.9% | -8.1% |
| Jul 28, 2025 | +5.8% | +0.5% | +7.5% | +5.3% | -0.8% |
| Apr 28, 2025 | +5.4% | -1.3% | +6.4% | +8.9% | +12.7% |
| Feb 18, 2025 | +3.3% | +1.8% | -14.3% | -13.6% | +8.0% |
| Oct 28, 2024 | +12.3% | -1.8% | +9.6% | +21.2% | +24.6% |
Returns from the close before each report. Past reactions do not determine future ones.
Earnings history
| Report date | EPS | Estimate | Surprise | Revenue |
|---|---|---|---|---|
| Jul 27, 2026 | $2.11 | $2.05 | +2.9% | $1.58B |
| Apr 27, 2026 | $1.96 | $1.91 | +2.6% | $1.47B |
| Feb 17, 2026 | $1.99 | $1.91 | +4.2% | $1.44B |
| Oct 27, 2025 | $1.93 | $1.79 | +7.8% | $1.34B |
| Jul 28, 2025 | $1.65 | $1.56 | +5.8% | $1.28B |
| Apr 28, 2025 | $1.57 | $1.49 | +5.4% | $1.24B |
| Feb 18, 2025 | $1.88 | $1.82 | +3.3% | $1.36B |
| Oct 28, 2024 | $1.64 | $1.46 | +12.3% | $1.22B |
Valuation in context
| Multiple | Now | 5-year median | 5-year percentile | Sector rank (cheapness) |
|---|---|---|---|---|
| P/E (trailing) | 69.9× | 68.3× | 57th | Top 47% |
| P/E (forward) | 43.1× | — | — | — |
| EV / EBITDA | 44.8× | — | — | Bottom 44% |
| EV / Sales | 16.75× | — | — | Bottom 14% |
| Free-cash-flow yield | 1.73% | — | — | Bottom 40% |
| Earnings yield | 1.43% | — | — | Top 47% |
P/E over the past five years
Range 54.3× – 100.3× since Jul 3, 2021. Each point: price on the filing date divided by trailing-twelve-month EPS known then.
What moved the stock over the past year
- Price return, 1 year
- -0.2%
- Earnings per share growth (TTM)
- +35.9%
- Change in P/E multiple
- -34.0%
Most of the move came from a change in the valuation multiple.
Technical state
Trend checklist
- ✓ Price above 20-day average
- ✓ Price above 50-day average
- ✓ Price above 200-day average
- ✗ 50-day average above 200-day
- ✓ MACD histogram positive
Trend quality
- Days above the 50-day average
- 7
- Days above the 200-day average
- 3
- 50-day average slope (20 days)
- -7.2%
- 200-day average slope (20 days)
- -0.5%
- Distance from 50-day average
- +10.3%
- Distance from 200-day average
- +7.9%
- RSI (14)
- 70.8
- Relative volume
- 0.75×
Risk and drawdowns
- Volatility, 60 days (annualized)
- 43.3%
- Volatility vs own 5-year history
- 79th percentile · Normal for this stock
- Beta vs S&P 500 (2 years, weekly)
- 1.30
- Correlation with S&P 500
- 0.49
- Current drawdown from 1-year high
- -15.6%
- Maximum drawdown, 3 years
- -34.2%
Largest declines in the past six years
| From peak | To low | Decline | Length | Recovery |
|---|---|---|---|---|
| Jun 2, 2026 | Sep 15, 2026 | -34.2% | 72 days | Not yet recovered |
| Dec 27, 2021 | Feb 18, 2022 | -29.6% | 38 days | 121 days (Aug 15, 2022) |
| Jun 18, 2024 | Apr 8, 2025 | -29.0% | 201 days | 59 days (Jul 3, 2025) |
| Sep 22, 2025 | Apr 10, 2026 | -28.8% | 138 days | 30 days (May 22, 2026) |
| Aug 15, 2022 | Nov 4, 2022 | -26.3% | 58 days | 68 days (Feb 14, 2023) |
Declines of 10% or more from a closing high, measured on daily closes.
Financial statements
- Market cap
- $96.76B
- P/E (TTM)
- 69.9
- EPS, diluted (TTM)
- $5.03
- Revenue (TTM)
- $5.84B
- 52-week range
- $262.75 – $416.69
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Revenue | $2.99B | $3.56B | $4.09B | $4.64B | $5.30B |
| Gross profit | $2.68B | $3.19B | $3.65B | $3.99B | $4.57B |
| Operating income | $779.1M | $1.07B | $1.25B | $1.35B | $1.65B |
| Net income | $696.0M | $849.0M | $1.04B | $1.06B | $1.11B |
| EPS (diluted) | $2.50 | $3.09 | $3.82 | $3.85 | $4.06 |
| Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.22B | $1.36B | $1.24B | $1.28B | $1.34B | $1.44B | $1.47B | $1.58B |
| Net income | $238.1M | $340.2M | $273.6M | $160.1M | $287.1M | $388.1M | $335.7M | $367.1M |
| EPS (diluted) | $0.87 | $1.24 | $1.00 | $0.59 | $1.05 | $1.42 | $1.23 | $1.33 |
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Operating cash flow | $1.10B | $1.24B | $1.35B | $1.26B | $1.73B |
| Capital expenditure | -$66.9M | -$124.2M | -$102.5M | -$142.5M | -$141.9M |
| Free cash flow | $1.03B | $1.12B | $1.25B | $1.12B | $1.59B |
| Dividends paid | $0 | $0 | $0 | $0 | $0 |
| Net share buybacks | -$642.5M | -$1.06B | -$567.2M | -$583.5M | -$779.1M |
Cash outflows are shown as negative numbers.
- Cash and short-term investments
- $1.44B
- Total assets
- $12.08B
- Total liabilities
- $5.22B
- Total debt
- $2.48B
- Net debt
- $1.04B
- Shareholders’ equity
- $6.86B
As of Jun 30, 2026 (filed Jul 29, 2026).
Short interest
- Shares sold short
- 4,347,608
- Days to cover
- 1.62
- Change vs previous report
- -25.2%
FINRA short interest, settlement date Sep 15, 2026.
Stock splits
- Nov 17, 1997
- 2-for-1
- Jun 3, 1996
- 3-for-2
- Oct 31, 1995
- 3-for-2
- May 24, 1988
- 543-for-500