Cadence Design Systems (CDNS)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$292.70-4.00%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
QuarterlyIQ Insights · CDNS
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is still in the top half of its industry but slipped notably this past month — worth watching.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 37.7% |
| Our one-year growth estimate | diamond | 16.9% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
A larger daily loss that occurred about once in every 20 trading days.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 20.8 percentage points more one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 119 industry peers
CDNS — earnings miss
Dated 2026-07-27
Results of Operations and Financial Condition. On July 27, 2026 Cadence Design Systems, Inc. (“Cadence”) issued a press release announcing its financial results for the quarter ended June 30, 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 June 30, 2026 is attached hereto as Exhibit 99.02, and the press release and the commentary are incorpor…
Why it matters: Strong adoption of AI products drives revenue and market position.
Supportive ifCadence reports big wins or growth in AI products.
Worry ifCadence reports no growth or a drop in AI product adoption.
Why it matters: Updates on AI products show how Cadence meets market demand. They also face competition.
Supportive ifManagement announces new AI Super Agents or big customer wins in AI.
Worry ifNo new product announcements or customer wins in AI for the next quarter.
Why it matters: Backlog growth is a key sign of future revenue and demand for Cadence's products.
Supportive ifBacklog grows faster than 5% each quarter.
Worry ifBacklog growth slows to less than 2% quarter-over-quarter.
Why it matters: A high operating margin shows how well Cadence makes money. This is important in a tough market.
Supportive ifNon-GAAP operating margin stays above 44.25% for Q3.
Worry ifNon-GAAP operating margin falls below 43.75% for Q3.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$132 on $10,000 · ±1.3% | How much price usually moves either way. |
| Bad day | $378 loss on $10,000 · 3.8% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $2,971 loss on $10,000 · 29.7% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: If Cadence changes its revenue guidance, it shows how well it is growing.
Watch forManagement raises the 2026 revenue outlook. They expect over 19% growth from last year.
Also watch forManagement lowers the 2026 revenue outlook. They expect less than 17% growth from last year.
Why it matters: A growing backlog shows strong future revenue and customer loyalty.
Supportive ifBacklog was reported above $8.0 billion.
Worry ifBacklog was reported below $7.5 billion.
Why it matters: Strong sales in AI products show the market is adopting them. There is growth potential.
Supportive ifAI-driven product sales grow by over 20% YoY.
Worry ifAI-driven product sales growth falls below 10% YoY.
Why it matters: Updates on this acquisition will show how Cadence is growing. A good integration could boost growth.
Watch forConfirmation that the acquisition is on track to close by the end of Q2 2026.
Also watch forThere are delays or problems with the acquisition.
Why it matters: Meeting this EPS target shows strong profits and helps investor trust.
Supportive ifGAAP EPS reported between $4.39 and $4.49.
Worry ifGAAP EPS reported below $4.39.
Why it matters: Earnings per share growth is key for investor confidence. Meeting this target shows strong profitability.
Supportive ifQ2 GAAP EPS of $1.23 or higher.
Worry ifQ2 GAAP EPS below $1.20.
Why it matters: Hitting this target shows strong demand. It also shows good execution by management.
Supportive ifQ3 revenue growth reaches or exceeds 19% year over year.
Worry ifQ3 revenue growth falls below 17% year over year.
Why it matters: EPS growth shows the company can turn revenue into profit. This shows operational success.
Supportive ifQ3 non-GAAP EPS reaches or exceeds $8.10.
Worry ifQ3 non-GAAP EPS falls below $7.85.
Why it matters: Strong adoption metrics confirm the success of Cadence's AI strategy. It shows market demand for their innovations.
Watch forManagement says they have many new customers for AI products.
Also watch forManagement says AI products are not being adopted well.