Cadence Design Systems Inc. (CDNS) is an American multinational electronic design automation (EDA) software and engineering services company founded in 1988. Technology giant Cadence is the second-largest” provider of EDA and engineering services worldwide. It is best known for its design, verification, and integrated circuit design tools, as well as system and semiconductor IP, which are used by semiconductor and electronics systems companies globally.
Headquartered in San Jose, California, Cadence has a presence across North America, Europe, Japan, Asia, and India providing innovative solutions and collaborating with a variety of companies in the field of semiconductors, system OEMs, design services, and other technology companies. The company mainly operates through two segments, Product & Maintenance, and Services.
Some of its many products include a suite of integrated circuit layout tools, digital/analog/mixed-signal IC design tools, and verification tools such as Palladium Z1 and Protium S1, which are dynamically reconfigurable software-driven hardware accelerators. Cadence is also a top provider of high-speed Serdes and DDR design IP (intellectual property).
The company’s design tools are widely used to automate critical design tasks such as full custom analog, mixed-signal, digital, custom digital, RF, and system on chip (SoC) designs. Cadence’s integrated circuit software design tools are crucial in reducing the time needed to design complex integrated circuits and electronic systems, thus playing a significant role in the physical design of semiconductors and electronics products.
Over the years, Cadence has acquired several other software design companies to augment its services, broadening its customer base, and achieve its goal of enabling seamless design innovation among its customers. Some of these acquisitions include Sigrity, a signal and power integrity solutions provider, Denali Software, a supplier of electronic design automation software and intellectual property, and AWR Corporation, a leader in high-frequency RF EDA.
By offering software, hardware, services, and reusable IC design blocks worldwide, Cadence continues to expand its footprint in the semiconductor design industry, serving both small startups and large multinational corporations alike. The company's dedication to innovation, quality service, and constant technological development has solidified its position as a trailblazer in the electronic design automation field.
Overall, Cadence Design Systems Inc. plays a leading role in creating the electronic devices that are used across a myriad of industries and everyday life around the world, fueling the technological advances that are transforming the digital landscape.
Income statement
Balance sheet statement
Cash flow statement
Current assets / Current liabilities
Equity / Debt / Cash
Dividends
The Morningstar US Total Market Index rose 1.09% for the trading week ending Sept. 25, driven by strong performance in technology and healthcare sectors, while energy and utilities declined. Moderna, Datadog, Cadence Design Systems, Perrigo Company, and Qualcomm were among the top stock gainers. Conversely, Gen Digital, Cogent Communications Holdings, MGM Resorts International, Jersey Mike’s Subs, and Paychex were the week's biggest losers.
Cadence Design Systems (CDNS) recently closed at $326.03, showing a 1.25% gain, outperforming the S&P 500. The company is expected to report an EPS of $2.04, a 5.7% increase, and revenue of $1.61 billion, a 20.23% escalation for its upcoming earnings report. Currently, CDNS holds a Zacks Rank of #3 (Hold) and is trading at a premium with a Forward P/E of 39.65 compared to its industry average of 16.25.
HSBC has upgraded Synopsys (NASDAQ: SNPS) to a "Buy" rating, increasing its price target to $700 from $490, significantly above the Wall Street consensus. Analyst Frank Lee believes a shift in Synopsys's business model to include a design intellectual property royalty model will accelerate annual earnings growth from 7% to 28% through 2028. This upgrade re-frames Synopsys as a high-growth AI beneficiary, with the company recently sealing an AI partnership with TSMC and reporting strong revenue growth and a substantial backlog.
Cadence Design Systems (CDNS) has launched its RTL Generation Agent, an extension of its ChipStack AI Super Agent platform, to automate front-end digital design and verification. This new AI tool converts natural language prompts into optimized RTL code, demonstrating significant productivity gains in early evaluations, including collaboration with Honda. The release reinforces Cadence's strategy of integrating AI into chip design workflows, aiming to deepen its engagement with customers throughout the design cycle.
Seventeen brokerages have given Cadence Design Systems (NASDAQ:CDNS) an average "Moderate Buy" rating, with a 12-month average price target of $403.88, significantly above its current trading price of $322. The company's growth is driven by its expanded partnership with TSMC for advanced chipmaking processes and its development of AI-driven design agents, contributing to 24.2% year-over-year revenue growth. Despite strong institutional ownership of 84.85%, insiders have sold $1.75 million worth of stock in the last 90 days.
Synopsys, Inc. (NASDAQ:SNPS) has a consensus "Moderate Buy" rating from eighteen brokerages, with an average 12-month price target of $561.00. The company recently exceeded quarterly earnings expectations with $3.91 adjusted EPS and $2.48 billion in revenue, also providing strong fiscal 2026 EPS guidance. While an expanded collaboration with TSMC on AI presents growth opportunities, the stock faces risks from high valuation, insider selling, and competition from Cadence.
Envestnet Portfolio Solutions Inc. increased its stake in Cadence Design Systems (NASDAQ: CDNS) by 74.8% during the second quarter, purchasing 9,016 additional shares to reach a total holding of 21,069 shares valued at approximately $7.9 million. The article highlights Cadence's strong growth prospects through its TSMC partnership, AI-driven design tools, and an $8.1 billion backlog. Despite a "Moderate Buy" consensus from Wall Street, insiders have sold shares, and the stock trades at a high P/E ratio of 64.02.
Cadence Design Systems (CDNS) saw a 3.9% increase in its stock price, attributed to strong AI product momentum and a favorable environment for chip-design and AI infrastructure stocks. The gain follows a recent announcement of a new ChipStack AI Super Agent and management's optimistic outlook on customer demand, reinforcing investor confidence in AI-driven chip design. Despite significant insider selling over the past six months, institutional investors have largely increased their holdings, and analysts have set a median price target of $400.0 for CDNS.
Argus has raised its target price for Synopsys, Inc. (SNPS) to $463.00, an increase from its current price of $420.63. Synopsys specializes in electronic design automation (EDA) software and intellectual property products, which are crucial for chip design. The report was published on September 23, 2026.