Cadence Design Systems, Inc. (CDNS), headquartered in San Jose, California, provides software, hardware, and other services worldwide. With a market cap of $85.2 billion, the company licenses its electronic design automation (EDA) software technology and provides a variety of professional services. Cadence's design realization solutions are used to design and develop complex chips and electronic systems, including semiconductors. The EDA giant is expected to announce its fiscal fourth-quarter earnings for 2025 after the market closes on Tuesday, Feb. 17.
Ahead of the event, analysts expect CDNS to report a profit of $1.55 per share on a diluted basis, up 4% from $1.49 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect CDNS to report EPS of $5.66, up 25.8% from $4.50 in fiscal 2024. Its EPS is expected to rise 15.2% year over year to $6.52 in fiscal 2026.
CDNS stock has underperformed the S&P 500 Index’s ($SPX) 16.7% gains over the past 52 weeks, with shares up 6.6% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) 25.2% gains over the same time frame.
On Oct. 27, 2025, CDNS shares closed up by 1.8% after reporting its Q3 results. Its adjusted EPS of $1.93 exceeded Wall Street expectations of $1.79. The company’s revenue was $1.34 billion, beating Wall Street forecasts of $1.33 billion. The company expects full-year adjusted EPS in the range of $7.02 to $7.08, and expects revenue to be between $5.26 billion and $5.29 billion.
Analysts’ consensus opinion on CDNS stock is bullish, with a “Strong Buy” rating overall. Out of 23 analysts covering the stock, 17 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and five give a “Hold.” CDNS’ average analyst price target is $386.81, indicating a potential upside of 20.7% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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