Cadence Design Systems

CDNS · NASDAQ

$319.87−$5.99 (−1.84%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $325.86

CDNS analyst rating

BuyConsensus of 13 analysts over the last 12 months. 85% rate it a buy.

Strong buy0
Buy11
Hold1
Underperform1
Sell0

12-month price target · 28 analysts

Average $412.75 (+29.0% upside)

Low: $303.00
Now: $319.87
High: $493.50

Upgrades and downgrades

The latest rating actions, newest first

CDNS analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
B of A Securities	Jul 28, 2026	Maintains	Buy	$400.00 → $420.00	68%
Rosenblatt	Jul 28, 2026	Maintains	Buy	$410.00 → $420.00	61%
Citigroup	Jul 28, 2026	Maintains	Buy	$400.00 → $420.00	67%
Baird	Jul 28, 2026	Maintains	Outperform	$415.00 → $420.00	53%
Needham	Jul 28, 2026	Maintains	Buy	$400.00	58%
Piper Sandler	Jul 28, 2026	Maintains	Neutral	$325.00 → $349.00	41%
Benchmark	Jul 16, 2026	Initiates	Buy	$450.00	60%
Rosenblatt	Jul 14, 2026	Maintains	Buy	$375.00 → $410.00	61%
Stifel	Jun 9, 2026	Maintains	Buy	$395.00 → $432.00	73%
Wells Fargo	May 26, 2026	Maintains	Overweight	$400.00 → $425.00	54%

The case for and against

Updated Oct 14, 2026

Bull case

Cadence Design Systems is well positioned to capture a growing share of semiconductor and system-design R&D spending because its EDA, IP, and simulation tools sit at the center of a duopoly with high barriers to entry, strong pricing power, and a growing need for computationally intensive design workflows. The company’s outlook is further supported by market-share gains, a largely complete product roadmap, and AI-driven productivity gains from new agents that can accelerate design cycles, reduce engineering labor, and expand consumption of its software and hardware verification offerings. Financially, Cadence is expected to generate about $6.196b in revenue in FY26, grow operating cash flow to roughly $1.9b, and benefit from strong backlog, improving margins, and acquisition-led expansion in simulation and IP.

Bear case

Cadence Design Systems is exposed to several fundamental pressures that justify a negative outlook, including intense competition from Synopsys, Siemens, and Chinese vendors, as well as customer concentration that can quickly amplify any loss of share in EDA, IP, or simulation software. Its growth story is also vulnerable to execution risk in non-EDA initiatives, acquisition-related dilution or integration missteps, and a serious security breach, any of which could hurt revenue, earnings, and valuation multiple. Even with a strong market position, the company remains tied to cyclical semiconductor and electronics demand, while valuation risk, regulatory constraints, and broader AI-related software sentiment add further downside.

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