Erste Group Bank Has Strong Outlook for CDNS FY2026 Earnings

Cadence Design Systems, Inc. (NASDAQ:CDNS) – Equities research analysts at Erste Group Bank increased their FY2026 earnings estimates for Cadence Design Systems in a research report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now anticipates that the software maker will post earnings of $6.39 per share for the year, up from their prior forecast of $6.20. The consensus estimate for Cadence Design Systems’ current full-year earnings is $6.40 per share.

Cadence Design Systems (NASDAQ:CDNS) last posted its quarterly earnings data on Monday, July 27th. The software maker reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $2.05 by $0.06. Cadence Design Systems had a net margin of 23.60% and a return on equity of 27.98%. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same quarter last year, the business posted $1.65 EPS. The company’s revenue was up 24.2% on a year-over-year basis. Cadence Design Systems has set its FY 2026 guidance at 8.050-8.150 EPS and its Q3 2026 guidance at 2.010-2.070 EPS.

Several other analysts have also recently commented on the company. Stifel Nicolaus raised their target price on Cadence Design Systems from $395.00 to $432.00 and gave the stock a “buy” rating in a research report on Tuesday, June 9th. Rosenblatt Securities upped their price target on Cadence Design Systems from $410.00 to $420.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. Wall Street Zen raised Cadence Design Systems from a “hold” rating to a “buy” rating in a research note on Saturday, August 1st. Bank of America raised their price objective on Cadence Design Systems from $400.00 to $420.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Finally, Oppenheimer reaffirmed a “market perform” rating and set a $300.00 target price on shares of Cadence Design Systems in a research note on Tuesday, July 28th. Thirteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Cadence Design Systems presently has a consensus rating of “Moderate Buy” and an average target price of $405.69.

Cadence Design Systems Price Performance

Shares of NASDAQ:CDNS opened at $327.53 on Monday. The company’s fifty day moving average is $365.21 and its two-hundred day moving average is $331.02. The company has a market cap of $90.20 billion, a P/E ratio of 65.12, a price-to-earnings-growth ratio of 3.56 and a beta of 1.15. Cadence Design Systems has a 12-month low of $262.75 and a 12-month high of $416.69. The company has a quick ratio of 1.53, a current ratio of 1.74 and a debt-to-equity ratio of 0.36.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new position in Cadence Design Systems during the fourth quarter worth $1,352,922,000. J. Stern & Co. LLP boosted its stake in shares of Cadence Design Systems by 10,159.3% during the 4th quarter. J. Stern & Co. LLP now owns 2,953,256 shares of the software maker’s stock worth $923,129,000 after acquiring an additional 2,924,470 shares in the last quarter. Wellington Management Group LLP boosted its stake in shares of Cadence Design Systems by 218.6% during the 4th quarter. Wellington Management Group LLP now owns 2,553,225 shares of the software maker’s stock worth $798,087,000 after acquiring an additional 1,751,927 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Cadence Design Systems during the 2nd quarter valued at about $607,350,000. Finally, Deutsche Bank AG acquired a new position in shares of Cadence Design Systems during the 2nd quarter valued at about $532,338,000. 84.85% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Cadence Design Systems

In other Cadence Design Systems news, Director Ita M. Brennan sold 180 shares of Cadence Design Systems stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $387.45, for a total transaction of $69,741.00. Following the completion of the sale, the director owned 8,004 shares of the company’s stock, valued at $3,101,149.80. This trade represents a 2.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Scannell sold 7,081 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total transaction of $2,789,276.71. Following the completion of the transaction, the vice president directly owned 32,181 shares in the company, valued at $12,676,417.71. This trade represents a 18.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 140,557 shares of company stock worth $54,631,737. 0.49% of the stock is currently owned by company insiders.

Cadence Design Systems Company Profile

Cadence Design Systems, Inc (NASDAQ: CDNS) is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company’s offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.