CDNS - Cadence Design Systems Inc
An EDA (Electronic Design Automation) software leader whose tools are essential for designing every modern chip — a picks-and-shovels play on the semiconductor industry.
Finlify Score
53.6 / 100
Data Quality
FULL
Penalty
0.0
Sector
Information Technology
Close Price
$332.82
+0.02%
52W Range
$262.75 - $416.69
Market Cap
$103.5B
+0.0%Compared to previous day
2026 Q1 Revenue
$1.5B
+2.4%Changes from last reporting quarter
2026 Q1 EPS
$1.23
Diluted shares
Analyst Rating
31 analysts in latest ratings feed
RSI
28.2
<40 oversold
2Y Range Position
57%
-20.1% from high / +50.2% from low
Beta
1.16
Relative to market benchmark
MACD
-1.97
MACD line -11.38 / signal line -9.41
Fundamental Trend
Growth 62.0Financial Health
Quality 57.3Data Quality
FULLValuation Reference
Price Chart
Close price, two-year source window
Finlify Score
HOLD53.6 / 100
Score History
Finlify Score and component trend
Financial Statements
Calendar year view. Figures are estimates only. For official figures, refer to the company website.
| 2026 Q1 | 2025 Q4 | 2025 Q3 | 2025 Q2 | |
|---|---|---|---|---|
| Revenue | $1.5B+2.4% | $1.4B+7.6% | $1.3B+5.0% | $1.3B+2.7% |
| Gross Profit | - | - | - | - |
| Operating Income | $431M-6.9% | $463M+8.9% | $425M+75.9% | $242M-33.1% |
| Net Income | $336M-13.5% | $388M+35.2% | $287M+79.4% | $160M-41.5% |
Columns use the calendar quarter of each reported period end date. QoQ is shown for adjacent company reporting quarters only.
AI Signal
Generated Jul 25, 2026
Finlify's signal for Cadence Design Systems Inc (CDNS) is HOLD, with an overall Finlify Score of 50.0/100, suggesting a neutral stance. This score appears to be influenced by a mix of moderate fundamental strength and subdued technical indicators.
Technical
The Relative Strength score of 46.0/100 and Accumulation / Volume score of 28.4/100 appear somewhat subdued. The asset's recent performance indicates a downtrend, with a -11.3% return over 20 days and an RSI(14) of 33.4, suggesting it may be approaching oversold conditions. CDNS is also trading -20.6% below its 52-week high.
Fundamentals
The Fundamental Trend score of 62.0/100 and Financial Quality score of 57.3/100 suggest generally positive underlying financial health. However, valuation multiples appear elevated, with a P/E ratio of 82.0x, P/B of 15.5x, and P/S of 17.2x. The asset has a Beta of 1.2, indicating higher volatility relative to the market, and does not currently offer a dividend yield.
Macro Context
The broader macro environment, characterized by a 3.7% CPI YoY and a 4.7% 10Y Treasury Yield, suggests a potentially higher interest rate environment. This could influence the valuation of growth-oriented technology stocks like CDNS, especially given its elevated multiples.
Key Risks
- The asset's recent price weakness, indicated by a -11.3% 20-day return and an RSI of 33.4, may suggest continued downward pressure.
- Elevated valuation multiples, such as a P/E of 82.0x and P/S of 17.2x, could pose a risk if growth expectations are not met.
- Upcoming earnings on 2026-07-27, just days after the current date, could introduce significant volatility.