CDNS stock forecast, quote, news & analysis
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products... Show more
Why Cadence Design Systems (CDNS) Is Up +26.5% in the Last 30 Days
Key Takeaways
- CDNS stock surged +26.5% over the past 30 days, driven primarily by strong Q1 2026 earnings that beat estimates on revenue and EPS, fueled by AI demand.
- Over the past quarter, the stock rose +24.7%, reflecting sustained AI-driven growth in electronic design automation (EDA) and a record backlog.
- Key catalysts include robust demand for AI chip design tools, analyst price target increases post-earnings, and raised full-year revenue guidance to ~17% growth.
- Core EDA, IP, and hardware segments all showed double-digit growth, with a record $8.0 billion backlog underscoring future revenue visibility.
- Positive market sentiment in the semiconductor and AI sectors supported the upward price movement amid broader tech trends.
Cadence Design Systems (CDNS) Company Overview and Market Position
Cadence Design Systems, Inc. (CDNS) is a leading provider of electronic design automation (EDA) software, semiconductor intellectual property (IP), and engineering services. The company enables the design and verification of complex integrated circuits (ICs) and electronic systems used in high-performance computing, AI, automotive, and consumer electronics. Its core business model revolves around subscription-based licensing of EDA tools, IP blocks, and hardware emulation platforms, generating recurring revenue from a subscription model that now dominates its topline.
In the competitive EDA industry, Cadence holds a strong position alongside peers like SNPS, benefiting from high barriers to entry due to technological complexity and customer stickiness. Its exposure to AI infrastructure demand—through tools like Cerebrus AI and Verisium SimAI—directly explains recent stock strength, as chipmakers ramp up designs for advanced nodes and AI accelerators. Solid fundamentals, including high margins (~45% non-GAAP operating) and a growing backlog, reinforce resilience amid market volatility.
Cadence Design Systems (CDNS) Stock Price Performance: Last 30 Days vs. Quarter
Over the last 30 days, CDNS stock climbed +26.5%, from a close of approximately $279 on April 7, 2026, to around $354 currently. The movement was trend-driven and volatile, with a sharp acceleration post-Q1 earnings on April 27, marked by high trading volume on announcement days.
For the past quarter, the stock advanced +24.7%, from roughly $284 around early February to $354 today. Performance was range-bound earlier due to market weakness but turned steadily upward on AI momentum and earnings beats, outperforming broader indices amid semiconductor sector rotation.
What Drove CDNS Stock Price in the Last 30 Days
The primary catalyst was Cadence's Q1 2026 earnings release on April 27, reporting revenue of $1.474 billion (up 18.7% YoY, beating estimates by $10 million) and non-GAAP EPS of $1.96 (beating by $0.07). A record $8.0 billion backlog and raised FY2026 revenue guidance to $6.125-$6.225 billion (~17% growth) signaled strong AI demand visibility.
Core EDA revenue grew 18% on adoption of AI-driven solutions for advanced digital implementation, custom design, and verification at AI infrastructure leaders. Hardware hit a record quarter from AI and high-performance computing demand. Following the beat, analysts raised price targets—e.g., Citi to $400, Wells Fargo and KeyBanc to $400 and $425—fueling a post-earnings rally. Sector sentiment in AI and semiconductors amplified the move, with shares jumping over 7% immediately after the report.
What Drove CDNS Stock Performance Over the Last Quarter
The quarter's +24.7% gain built on Q4 2025 results (February 17), with $1.44 billion revenue (up 6.2% YoY, beat) and $1.99 non-GAAP EPS, plus a then-record $7.8 billion backlog. Sustained AI chip design demand drove double-digit growth across EDA (71% of revenue), IP (14%), and System Design & Analysis (15%).
Macro trends like AI infrastructure buildout and hyperscaler capex boosted EDA needs for complex chips. Competitive positioning strengthened via IP wins in HBM4 and PCIe, plus partnerships. Institutional buying and positive analyst sentiment amid tech recovery had cumulative impact, though early-quarter dips reflected broader market pullbacks before AI catalysts reasserted dominance.
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CDNS Stock Forecast Drivers: What Investors Should Watch Next
Investors should monitor Q2 2026 earnings for updates on backlog conversion and AI adoption metrics. Ongoing industry trends in AI chip complexity and advanced packaging will influence demand for EDA tools. Macro factors like interest rates, semiconductor capex from hyperscalers, and U.S.-China trade dynamics could sway sentiment. Strategic developments, including Hexagon acquisition integration (adding Physical AI capabilities) and new AI platforms like AgentStack, merit attention. Risks include acquisition-related costs impacting margins, while catalysts like further IP wins or hardware deals could drive upside.
Disclaimer
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CDNS sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for CDNS moved above the 200-day moving average on June 01, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 21, 2026. You may want to consider a long position or call options on CDNS as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CDNS just turned positive on May 26, 2026. Looking at past instances where CDNS's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where CDNS advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 238 cases where CDNS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CDNS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CDNS broke above its upper Bollinger Band on June 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. CDNS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (17.153) is normal, around the industry mean (26.095). P/E Ratio (95.105) is within average values for comparable stocks, (76.465). CDNS's Projected Growth (PEG Ratio) (3.873) is slightly higher than the industry average of (1.639). Dividend Yield (0.000) settles around the average of (0.046) among similar stocks. P/S Ratio (20.161) is also within normal values, averaging (52.705).
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General Information
a developer of integrated circuits and electronic devices and provides software services
Industry PackagedSoftware