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TickerTalks›$CDNS
CDCDNS

Cadence Design Systems, Inc.

Strong FundamentalsStrong FundamentalsRevenue growing 19% YoY at strong marginsStreet coverage with positive forward estimatesQuiet on X (66 mentions/wk)
$CDNS·$93B·Software - Application·Technology
$338.78-0.5%YTD+7.9%1Y-1.2%
Mentions · last 7 days
2026-08-21: 8 posts2026-08-22: 4 posts2026-08-23: 0 posts2026-08-24: 34 posts66+9%
Price updated 2h ago·X counts updated 7d ago
CDCDNS
$CDNSCadence Design Systems, Inc.
$338.78-0.47%66 posts+9%
AI analysisFundamentalsVoices on X
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AI verdict & sentimentAI analysisGenerated by AI from underlying data

Top X posts

Today's AI verdict on what's driving $CDNS, plus how loud the X conversation is and which way it's leaning.

AI analysis

TickerTalks’ read on the fundamentals and what’s driving the move.

Proven numbersWinding up for a moveAI verdict · as of 2026-08-25

Trading in a tight range and building pressure — a move looks likely soon, but the direction isn't clear yet.

Chip-design software leader with 19% revenue growth and NVIDIA's public shout-out at NVLink Fusion — but down 8% over twelve months and off 10% from its 50-day.

Cadence Design Systems is one of two Electronic Design Automation (EDA) leaders (with Synopsys) — the software that engineers use to design semiconductors before they're taped out. That puts CDNS at the base of the AI chip-design cycle: any new custom silicon or GPU family goes through their tools.

  • Q1 2026 revenue was $1.47B (up 19% year-over-year) with 88% gross margin and 29% operating margin — the earnings profile of a high-quality software business, and the last four earnings surprises are all positive (+8%, +4%, +3%, +3%)
  • NVIDIA publicly listed Cadence as a partner in the NVLink Fusion Ecosystem (alongside Synopsys) — Jensen Huang mentioned Cadence three times in his AI-chip-design demand pitch, which is the kind of narrative amplification that matters
  • Analyst 2026 revenue estimate is $6.31B on $8.13 EPS; 2027 $7.15B / $9.51 EPS; 2028 $8.10B / $11.12 EPS — the stock at $316 is 38.9x forward, expensive but consistent with the high-quality growth
  • Free cash flow yield is only 1.4% at the current $93B market cap — capital-return capacity is limited relative to the multiple; investors pay for growth here, not yield
  • The stock is 10% below its 50-day moving average and 3% below its 200-day — a technical pullback in a name that had led
  • Insider signal is small negative: officer Paul Cunningham exercised 2,000 options at $138 and sold at $323 on August 17 — nothing structural, just capitalizing on the appreciation

Semiconductor stocks are broadly weaker into NVIDIA earnings tonight — the sector overhang explains a chunk of the near-term action.

Agrees with X sentimentX is bullish on the NVIDIA partner-mention and ASIC-chip-design 10x thesis. Fair — the fundamentals support the setup, and the NVLink Fusion mention is a real signal about design-tool demand from the AI silicon build-out.

What to watch: The Q3 print on October 26 needs revenue growth staying above 15% year-over-year — the AI-chip-design tailwind should be visible in bookings; anything below 15% and the multiple compresses fast.

On the calendar: 2026-10-26 — Q3 earnings

X sentiment

What the X crowd is saying right now — descriptive, summarised from the day’s posts.

Bullish sentiment9 posts analyzed · as of 2026-08-14

Cadence is bullish. Listed as a technology partner in NVIDIA's NVLink Fusion Ecosystem alongside SNPS, Jensen calling out 'cadence, cadence, cadence' in AI-chip-design demand, and the ASIC-chip-design 10x thesis. Traders adding 1800-share positions and calling for higher moves in August in chip-design software.

Read the AI verdict + X sentiment for $CDNS

  • One-line verdict on what's driving the move — fundamentals, momentum, both, or an event
  • Next dated catalyst when there is one (earnings, deal closing, activist clock)
  • X crowd read with bullish/bearish call + post volume
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What it does

Plain-English summary of the business — what they sell and how they make money.

Makes EDA software for IC design and verification plus hardware emulation systems used by every major chip designer.

Industry overviewAI analysisGenerated by AI from underlying data

Where Software - Application sits in its cycle right now — and what that implies for $CDNS.

Software - Application · Technology

SaaS multiples remain compressed as rate-sensitive valuations weigh on pure-play software; customers are lengthening deal cycles outside of AI-native workloads. AI co-pilot upsell is the only clear near-term catalyst — companies without it are treading water.

What this means for $CDNS

Direct beneficiary — semiconductor products are directly in the AI capex supply chain; Cadence Design Systems, Inc.

Top industry ETF

$IGViShares Expanded Tech-Software Sector ETF
-4.2%YTD
+2.5%1Y

Fundamentals & catalyst

Profitability, valuation, and the next earnings event — at a glance, with rule-of-thumb signals.

Key ratios

P/E
87.4How much investors are paying per dollar of profit the company actually earned in the last 12 months. Lower means the stock looks cheaper relative to earnings.~15–25 is typical for the S&P 500; high-growth names trade 30+; hyper-growth or speculative can be 100+ or negative.
ROIC
12.2%What percentage return the business earns on every dollar of capital (equity + debt) deployed in operations. The cleanest measure of business quality.Above ~15% is high-quality; consistently above 25% suggests a real moat. Below the company's cost of capital is value-destroying.
Op margin
31.1%Operating profit (after sales, marketing, R&D, and overhead but before interest and taxes) as a percentage of revenue. The clearest view of how well the underlying business is run.Mature business above 20% is healthy; software businesses can run 30%+; commodity / retail businesses operate in single digits.
FCF yield
1.4%Free cash flow (operating cash flow minus capex) divided by the company's market cap. The cash-on-cash return you'd get owning the whole business at today's price.Above ~5% is attractive; below ~2% means you're paying up for growth. Capital-light businesses (software) run higher than capital-heavy ones (utilities).
P/S
18.8Same idea as P/E but per dollar of revenue. Useful for companies that aren't profitable yet, where P/E is meaningless.Under ~2 is cheap; software / SaaS often runs 8–15; well above 20 implies the market is pricing in very high future growth.
ROE
21.1%Net income as a percentage of shareholders' equity. Similar to ROIC but counts only the equity side.Above 20% is strong, but can be inflated by leverage — a heavily indebted company can show high ROE with weak underlying ROIC.
Gross margin
88.9%Revenue minus the direct cost of producing what was sold, as a percentage of revenue. The first read on whether the product is structurally profitable.Software / SaaS is typically 70%+; consumer goods 30–50%; commodity / hardware businesses can be under 20%.
D/E
0.5Total debt divided by shareholders' equity. Measures how much the business runs on borrowed money versus owner capital.Under 1 is conservative; 1–2 is typical for mature businesses; over 2 is leveraged and more sensitive to interest rates.

Past earnings

QuarterReportedActualEstimateSurprise
Q2 2026Jul 27, 2026$2.11$2.05+2.9%
Q1 2026Apr 27, 2026$1.96$1.91+2.6%
Q4 2025Feb 17, 2026$1.99$1.91+4.2%
Q3 2025Oct 27, 2025$1.93$1.79+7.8%
Next earningsMon, Oct 26·consensus EPS $2.04

Quarterly trend

QuarterRevenueYoYGrossOpEPSFCF
Q1 FY26$1.5B+18.7%95.8%29.3%$1.23$307.0M
Q4 FY25$1.4B+6.2%86.9%32.3%$1.43$512.5M
Q3 FY25$1.3B+10.1%86.4%33.8%$1.06$277.0M
Q2 FY25$1.3B+20.2%85.6%29.0%$0.59$333.5M

Forward consensus

5-year forecast · up to 20 analysts
FYRevenueRangeEPSRangeAnalysts
FY26$6.3B$6.2B – $6.3B$8.13$8.02 – $8.2416
FY27$7.2B$7.0B – $7.4B$9.51$8.90 – $10.0620
FY28$8.1B$7.5B – $8.6B$11.12$8.98 – $14.4414
FY29$8.6B$8.3B – $8.8B$11.26$10.84 – $11.699
FY30$8.9B$8.7B – $9.2B$10.93$10.53 – $11.3513

Setup & momentum

Volume, range, and moving-average position — the technical setup driving short-term moves.

Right now

Vol vs 30dToday's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.0.7×Today's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.
52w rangeWhere the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.50%Where the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.
vs 50d MALatest close vs the 50-day simple moving average. Positive = short-term trend is up.-2.3%Latest close vs the 50-day simple moving average. Positive = short-term trend is up.
vs 200d MALatest close vs the 200-day simple moving average. Positive = long-term trend is up.+4.0%Latest close vs the 200-day simple moving average. Positive = long-term trend is up.

Float & profile

FloatHigh float · 274.2M shFree-float shares — the slice of issued stock actually available to trade. Lower buckets squeeze harder on a catalyst.Traded today0.7% of floatToday's volume as a percent of the free float. Above 5% on a single day is unusually high turnover for the available share count.β1.145-year weekly beta vs the S&P 500. Above 1.5 means the stock typically moves more than the index; below 0.8 moves less.

Insider activity

Recent open-market buys and sells by officers and directors — flagged when multiple insiders cluster.

Recent transactions

SellAug 26Paul ScannellPresident280 sh$95KSellAug 25Sangiovanni Vincentelli AlbertoDirector1.3K sh$401KSellAug 21Chin-chi TengPresident4.7K sh$1.5MSellAug 17Paul CunninghamPresident2.0K sh$647KSellJul 22Chin-chi TengPresident4.5K sh$1.5MSellJul 15Paul CunninghamPresident2.0K sh$767KSellJun 22Chin-chi TengPresident4.5K sh$1.7MSellJun 15Paul CunninghamPresident2.0K sh$782KSellJun 11James D PlummerDirector1.5K sh$576KSellJun 10Ita M BrennanDirector122 sh$47K
1–10 of 21
+ 46 other (18 awards · 13 inkinds · 10 exempts · 5 gifts) in window

See when $CDNS insiders are putting their own money in

  • Real-time open-market buys and sells from Form 4 filings
  • Cluster-buy detection when multiple insiders pile in at once
  • 30 / 60 / 180-day windows so you can spot building conviction
Free, forever. No credit card.

SEC filings

Material 8-K, 13D, S-3, and 424B5 events from the last 180 days — the filings that actually move the price.

Recent material filings

8-KOfficer or director changeMay 128-K — Item 5.02: Officer or director change · Item 5.07: Shareholder vote
AI summary

CDNS disclosed a personnel change (8-K Item 5.02, dated 2026-05-12). An executive departure and a new appointment are both reported. Personnel changes are generally administrative; materiality depends on seniority and circumstances.

8-K/AOfficer or director change (amended)May 128-K/A — Item 5.02: Officer or director change
AI summary

CDNS disclosed a personnel change (8-K Item 5.02, dated 2026-05-12). An executive departure and a new appointment are both reported. Personnel changes are generally administrative; materiality depends on seniority and circumstances.

3/ANew insider — initial holdingsMar 43/A
+ 10 other (2 10-Qs · 2 earnings 8-Ks · 2 13Gs · 2 proxys) in window

Recent news

Latest headlines from major outlets, sourced and timestamped — context for whatever just moved.

Cadence Design Systems, Inc. (CDNS) Presents at Deutsche Bank 2026 Technology Conference Transcriptseekingalpha.com·5d agoCadence Design Systems Sees AI Agents Driving Chip Design Boom and Growthmarketbeat.com·5d agoWhy Is Cadence (CDNS) Down 3.7% Since Last Earnings Report?zacks.com·5d agoCadence Design Systems SVP Chin-Chi Teng Sells 4,732 Shares for $1.5 Millionfool.com·5d agoCan Cadence Sustain Growth With Accelerating Agentic AI Demand?zacks.com·6d ago

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TickerTalks is a research tool, not financial advice. We surface social-attention data; we do not make stock recommendations. Past attention is not predictive of future price movements.

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