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
61.0 / 100
Data Quality
FULL
Penalty
0.0
Sector
Information Technology
Close Price
$394.50
+2.48%
52W Range
$262.75 - $416.69
Market Cap
$103.4B
+2.5%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
54.6
40-70 moderate
2Y Range Position
89%
-5.3% from high / +78.1% from low
Beta
1.14
Relative to market benchmark
MACD
-2.49
MACD line 12.32 / signal line 14.82
Fundamental Trend
Growth 62.0Financial Health
Quality 57.3Data Quality
FULLValuation Reference
Price Chart
Close price, two-year source window
Finlify Score
HOLD61.0 / 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 Jun 16, 2026
Finlify's signal for CDNS is HOLD, supported by an overall Finlify Score of 60.4/100, which suggests a balanced quantitative outlook across its components for Cadence Design Systems Inc.
Technical
The asset appears to exhibit solid recent momentum, with a 60-day return of 32.9% and a 20-day return of 9.1%. Its Relative Strength score of 64.1/100 indicates above-average performance, while the RSI(14) at 55.5 suggests it is not currently overbought or oversold. The stock is also 7.5% below its 52-week high, indicating some room for potential recovery to previous peaks.
Fundamentals
CDNS shows a Fundamental Trend score of 62.0/100 and a Financial Quality score of 57.3/100. However, its valuation multiples appear elevated, with a P/E of 98.1x, P/B of 15.5x, and P/S of 20.5x. The asset has a Beta of 1.1, indicating slightly higher volatility than the broader market, and does not currently offer a dividend yield.
Macro Context
In a macro environment with a CPI YoY of 4.3% and a 10Y Treasury Yield at 4.5%, the current interest rate landscape may present headwinds for growth-oriented technology stocks like CDNS, potentially impacting future valuation multiples.
Key Risks
- High valuation multiples, such as a P/E of 98.1x and P/S of 20.5x, may suggest limited upside potential or increased downside risk if growth expectations are not met.
- The current macro environment, characterized by a 4.3% CPI YoY and 4.5% 10Y Treasury Yield, could pressure growth stock valuations, particularly for technology companies.
- A Beta of 1.1 indicates CDNS may experience higher volatility compared to the overall market, potentially leading to larger price swings.