CDNS
Cadence Design SystemsNASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-05-08
As of May 8, 2026, CDNS has a composite score of 30.1 and a signal label of "favorable." The high confidence level of 88.4 indicates strong reliability in the analysis. Key drivers include macroeconomic factors such as rates, growth, inflation, and labor, which influence the overall assessment.
Price
Daily closes from AlphaVantage. Earnings/event dots are placed inline.
Factor signals
Read top-to-bottom: thesis (is this a strong company over a 1–3 year hold), watch flags (has something changed worth re-reading), and position context (how violent might the path be). Each pill is a parallel diagnostic — never aggregated into a single score.
Thesis
— is this a strong company over a 1–3 year hold?Why this rank
- Direction share1.00
- Slope (norm)0.16
- Bonus0.00
Why this rank
Trailing four: 2025-Q1, 2025-Q2, 2025-Q3, 2026-Q1
Why this rank
Watch
— has something changed worth re-reading?Why this setup
EPS estimate $1.84 → $2.05 (+11.9% / 30d). 8 raised, 0 cut, 19 covering analysts.
0 upgrades, 0 downgrades / 30d, 9 maintained. 88% of analysts rate Buy.
2 PT revisions / 30d. Avg target 20.3% above current price.
0 positive, 0 negative / 30d.
Market and fundamentals agree — analysts are positioned bullishly on a fundamentally strong name.
F4 · Management deep-dive — recent events, stated priorities, guidance track record
Recent 8-K events
8 material events in the last 24 months — top 5 listed below.
- 2026-02-23CDNS — capital allocation — Unregistered Sales of Equity Securitiesimpact 0.26
- 2025-07-28CDNS — government fundingimpact 0.21
- 2025-03-26CDNS — director transitionimpact 0.19
- 2025-09-04CDNS — capital allocationimpact 0.16
- 2025-09-04CDNS — M&A activity — Entry into a Material Definitive Agreementimpact 0.14
Stated priorities
3 priorityies extracted from earnings transcripts (as of 2026-05-08).
- 1.Increase 2026 revenue outlookgrowthon track87% progress
4/27: “With robust design activity and solid execution, we are raising our 2026 revenue outlook to 17% year-over-year growth.”
Why this status
Stated in 2 of last 2 quarters. Revenue grew from $1,244.2M in 2025-Q1 to $1,474.2M in 2026-Q1, indicating progress towards the 17% growth target. However, the status is marked as 'behind', suggesting challenges in meeting the full-year outlook.
- 2.Maintain non-GAAP operating margincostbehind0% progress
2/17: “Non-GAAP operating margin in the range of 44.75% to 45.75%.”
Why this status
Newly stated in 2025-Q4. The focus on maintaining the non-GAAP operating margin is marked as 'on track', indicating alignment with the guided range. However, specific margin figures for recent quarters are not provided, limiting precise assessment.
- 3.Achieve EPS growth in 2026growthmixed68% progress
4/27: “FY 2026 Outlook GAAP EPS: $4.39 - $4.49.”
Why this status
Newly stated in 2026-Q1. The EPS guidance for 2026 is set between $4.39 and $4.49. Despite the guidance, the status is marked as 'behind', indicating potential challenges in achieving the desired EPS growth.
Guidance track record
Last 8 quarters of EPS guidance with actuals.
Per-quarter detail
| Period | Guidance | Actual | Result |
|---|---|---|---|
| 2019-06-30 | $0.34 – $0.36 | $0.57 | beat |
| 2021-06-30 | $0.44 – $0.48 | $0.86 | beat |
| 2023-03-31 | $0.84 – $0.88 | $1.29 | beat |
| 2023-06-30 | $0.73 – $0.77 | $1.22 | beat |
| 2024-03-31 | $0.74 – $0.78 | $1.17 | beat |
| 2024-06-30 | $0.73 – $0.77 | $1.28 | beat |
| 2025-03-31 | $0.93 – $0.99 | $1.57 | beat |
| 2025-06-30 | $0.89 – $0.95 | $1.65 | beat |
Beat / inside / miss is computed from the guided range when issued; for point-estimate quarters a ±5% tolerance band around the mid is used. surprise_pct_vs_mid is unstable when guided EPS is near zero, so it is not surfaced as a headline.
Position context
— how violent might the path be while I hold it?Why this risk level
Recent vol — 30d annualized 46%; 252d 37%.
Drawdown — Max 1y −29%. Bad day move −3%.
Beta to sector ETF (XLK) — 0.08 over 1y.
Liquidity — score 100/100.
Sub-scores — vol 38/100, drawdown 42/100, beta 8/100, earnings vol —.
via XLK
Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive — historically, headwind regimes have averaged stronger forward returns than tailwind.
Context label only — describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.
Not investment advice. As of 2026-05-08.
What changed
The most important moves since the prior daily snapshot.
- No material changes since the prior snapshot.
No material changes since the prior snapshot.
as of 2026-05-08
Management scorecard
How management runs the business — capital, margins, balance sheet, and how reliably they guide and deliver.
Met or beat guidance 100% of the last 8 guided quarters · 66.3% avg surprise
What management is focused on
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
- #1
Increase 2026 revenue outlook
GrowthNew since 2026-05-04Cadence aims to increase its 2026 revenue outlook to achieve 17% year-over-year growth.
Behind →On trackStated in 2 of last 2 quarters. Revenue grew from $1,244.2M in 2025-Q1 to $1,474.2M in 2026-Q1, indicating progress towards the 17% growth target. However, the status is marked as 'behind', suggesting challenges in meeting the full-year outlook.
Revenue grew from $1,244.2M in 2025-Q1 to $1,474.2M in 2026-Q187%CEO/CFO:“With robust design activity and solid execution, we are raising our 2026 revenue outlook to 17% year-over-year growth.”Multiple sourcesSource dated 2026-04-27Stated 2 of last 8 quartersFirst seen 2026-05-04Show history (2)
- 2026-Q1Multiple sources
“With robust design activity and solid execution, we are raising our 2026 revenue outlook to 17% year-over-year growth.”
- 2025-Q4Multiple sources
“we are raising our full year revenue outlook to ~14% growth year-over-year”
- #2
Maintain non-GAAP operating margin
CostNew since 2026-05-04Cadence is focused on maintaining its non-GAAP operating margin within the guided range.
On track →BehindNewly stated in 2025-Q4. The focus on maintaining the non-GAAP operating margin is marked as 'on track', indicating alignment with the guided range. However, specific margin figures for recent quarters are not provided, limiting precise assessment.
0%CEO/CFO:“Non-GAAP operating margin in the range of 44.75% to 45.75%.”Multiple sourcesSource dated 2026-02-17Stated 1 of last 8 quartersFirst seen 2026-05-04Show history (1)
- 2025-Q4Multiple sources
“Non-GAAP operating margin in the range of 44.75% to 45.75%.”
- #3
Achieve EPS growth in 2026
GrowthNew since 2026-05-04Cadence aims to achieve EPS growth in 2026, with a focus on increasing profitability.
Behind →MixedNewly stated in 2026-Q1. The EPS guidance for 2026 is set between $4.39 and $4.49. Despite the guidance, the status is marked as 'behind', indicating potential challenges in achieving the desired EPS growth.
68%CEO/CFO:“FY 2026 Outlook GAAP EPS: $4.39 - $4.49.”Multiple sourcesSource dated 2026-04-27Stated 1 of last 8 quartersFirst seen 2026-05-04Show history (1)
- 2026-Q1Multiple sources
“FY 2026 Outlook GAAP EPS: $4.39 - $4.49.”
How this stock is priced
Two ways to read price: against peers in the same business, and against the company's own history.
Looks more expensive than peers.
Cheaper than its own typical valuation.
P/E over the last 5 years
71 monthly pointsHow this compares
A side-by-side read on composite, valuation, and risk versus peers.
| Stock | Composite | Valuation | Risk |
|---|---|---|---|
CDNS Cadence Design Systems | +30 | full | elevated |
NVDA NVIDIA Corporation | +20 | full | moderate |
AAPL Apple Inc | +19 | full | moderate |
MSFT Microsoft | +27 | fair | elevated |
AVGO Broadcom | +11 | expensive | elevated |
Risk — how this stock moves
What a normal day looks like, what a bad day looks like, and the worst the last year has thrown at it.
What could change this view
Conditional scenarios — if X happens, the score would shift by about Y points. These are not predictions.
- If information_technology sector trend rises from +0.08 into 'improving' (>= +0.20)+5.0 pts
- If next-quarter guidance is raised (currently NEW as of 2026-04-27)+4.0 pts
- If next-quarter guidance is cut (currently NEW as of 2026-04-27)-8.0 pts
- If rates state reverses from -0.37 (negative) to +0.37 (positive)-7.3 pts
- If information_technology sector trend falls from +0.08 into 'weakening' (<= -0.20)-5.0 pts
Material updates
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
- 2026-04-2711d agoItem 2.02
Results of Operations and Financial Condition. On April 27, 2026 Cadence Design Systems, Inc. (“Cadence”) issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.01 and a copy of the commentary by the Chief Financial Officer of Cadence regarding Cadence's financial results for the quarter ended March 31, 2026 is attached hereto as Exhibit 99.02, and the press release and the commentary are incor…
earnings preannouncementneutralscore 51 - 2026-02-172mo agoItem 2.02
Results of Operations and Financial Condition. On February 17, 2026 Cadence Design Systems, Inc. (“Cadence”) issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.01 and a copy of the commentary by the Chief Financial Officer of Cadence regarding Cadence's financial results for the quarter and fiscal year ended December 31, 2025 is attached hereto as Exhibit 99.02, and the p…
earnings preannouncementneutralscore 10 - 2026-02-232mo agoItem 3.02
Unregistered Sales of Equity Securities. As previously reported, on September 4, 2025, Cadence Design Systems, Inc., a Delaware corporation (“Cadence”), entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Hexagon Smart Solutions AB, a Swedish private limited liability company (“Seller”), to acquire Seller’s design and engineering business (the “Acquisition”). In connection with the consummation of the Acquisition on February 23, 2026, Cadence issued 3,224,473 shares of C…
capital allocationnegativescore 9 - 2025-09-048mo agoItem 1.01
Entry into a Material Definitive Agreement. On September 4, 2025, Cadence Design Systems, Inc., a Delaware corporation (“Cadence”), entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Hexagon Smart Solutions AB, a Swedish private limited liability company (“Seller”), to acquire Seller’s design and engineering business (the “Acquisition”). Pursuant to the Purchase Agreement, upon consummation of the Acquisition (“Closing”), Cadence will pay to Seller aggregate considerati…
mna activitypositivescore 0 - 2025-09-048mo agoItem 3.02
Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of federal securities laws, including statements regarding the Purchase Agreement, the proposed Acquisition, the anticipated transaction timeline and Closing, funding of the cash consideration for the Acquisition and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will” and words of similar import and the negatives thereof. Forward-l…
capital allocationnegativescore 0
Score history
The composite score, snapshot by snapshot. The dotted line at zero separates leaning-positive from leaning-negative.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.