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
46.3 / 100
Data Quality
FULL
Penalty
0.0
Sector
Information Technology
Close Price
$289.37
+1.55%
52W Range
$262.75 - $416.69
Market Cap
$93.3B
+1.6%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
32 analysts in latest ratings feed
RSI
35.7
<40 oversold
2Y Range Position
35%
-30.6% from high / +30.6% from low
Beta
1.13
Relative to market benchmark
MACD
-3.25
MACD line -13.33 / signal line -10.08
Fundamental Trend
Growth 62.0Financial Health
Quality 57.3Data Quality
FULLValuation Reference
Price Chart
Close price, two-year source window
Finlify Score
AVOID46.3 / 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 Aug 1, 2026
Finlify's signal for CDNS is HOLD, with an overall Finlify Score of 53.6/100. This suggests a balanced outlook, where some positive fundamental aspects appear to be offset by weaker technical performance.
Technical
The Relative Strength score of 38.1/100 indicates that CDNS may have underperformed recently, while an Accumulation / Volume score of 65.7/100 suggests some underlying buying interest. The asset has experienced a -11.9% return over the last 20 days and is currently -20.1% from its 52-week high, with an RSI(14) of 38.7, which may indicate recent price weakness.
Fundamentals
The Fundamental Trend score of 62.0/100 and Financial Quality score of 57.3/100 appear moderately positive. However, valuation metrics such as a P/E ratio of 84.3x, P/B of 15.5x, and P/S of 17.6x suggest the asset may be trading at a premium. A Beta of 1.1 indicates that CDNS may exhibit slightly higher volatility compared to the broader market, and the asset does not appear to offer a dividend yield.
Macro Context
The macro environment, characterized by a positive yield spread of 0.5% (10Y-2Y), may suggest a stable economic outlook that could generally support growth-oriented technology companies like CDNS, despite inflation metrics such as CPI YoY at 3.7% remaining above target.
Key Risks
- High valuation multiples, including a P/E of 84.3x and P/S of 17.6x, may indicate that the asset is priced at a premium, potentially limiting future upside or increasing sensitivity to market corrections.
- Recent technical weakness, evidenced by a -11.9% 20-day return and being -20.1% from its 52-week high, suggests potential for continued price pressure.
- A Beta of 1.1 indicates that CDNS may experience greater price volatility than the overall market, which could lead to more pronounced swings in its stock price.