Analyst Consensus ?
ConsensusBuy30 ratings
Bullish2583.3%
Neutral413.3%
Bearish13.4%
Cadence Design Systems, Inc. · CDNS · FY2024 Q4 · Calendar Q1 2025
Cadence: AI demand supports growth, but China and backlog risks remain
The supplied analysis supports a constructive but conditional view: AI-enabled EDA, advanced-node IP, and hardware-emulation demand provide evidence for continued growth, while flat China assumptions, recurring-revenue deceleration, and limited hardware visibility argue against treating that trajectory as assured.
Reported After market closeNASDAQTechnology
$87.99B market cap
80quality score
Earnings scorecard
Reported versus consensus
Reported EPS
—
Consensus $1.82
EPS surprise
—
Reported versus consensus
Reported revenue
—
Consensus $1.35B
Revenue surprise
—
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
-8.8%
Event window
SPY move
+0.2%
Same window
Abnormal move
-9.0%
Stock minus SPY
Volume
4.7×
Versus trailing sessions
Subsequent drift
-5.6%
Up to 20 sessions
CDNSSPY benchmark
Ask FN2 about CDNS FY2024 Q4
Transcript, numbers and history already loaded
What drove CDNS's -8.8% move after FY2024 Q4 earnings?What changed in CDNS's guidance and outlook in FY2024 Q4?Give me the bull and bear case for CDNS after FY2024 Q4 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
The current analysis adds Secure-IC, reinforces demand for AI-enabled design tools and Palladium Z3/Protium X3 hardware, and keeps guidance sentiment at maintained. Compared with the prior analysis, China remains a more explicit constraint and backlog, recurring revenue, and hardware conversion are central questions.
Guidance delta
Maintained relative to the prior analysis; management presented a confident outlook while assuming flat China revenue.
Key takeaways
- Management emphasized AI-driven EDA, advanced-node IP, and strong demand for hardware emulation as growth drivers.
- The company plans to extend Cerebrus, SimAI, and Allegro X AI, integrate Secure-IC, and expand chiplet and 3D-IC offerings.
- China revenue is expected to be flat, while hardware-pipeline visibility remains limited and recurring-revenue growth is a concern.
- The supplied market data shows a negative reaction after the report, so execution and conversion of demand remain important tests.
Management priorities
- Launch next-generation AI products including Cerebrus, SimAI, and Allegro X AI.
- Integrate Secure-IC security IP into the broader portfolio.
- Deepen collaborations with Nvidia, Qualcomm, Marvell, and foundry partners.
- Expand chiplet and 3D-IC design offerings and continue Quantum SoC and OpenEye development.
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Beat
Miss
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Analyst 52W Price Targets
$319.51Current
$165Low
$344.13Average
$450High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 17, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Rosenblatt | Buy | Buy | Maintain | Jul 28, 2026 |
| Piper Sandler | Neutral | Neutral | Maintain | Jul 28, 2026 |
| Needham | Buy | Buy | Maintain | Jul 28, 2026 |
| Citigroup | Buy | Buy | Maintain | Jul 28, 2026 |
| Baird | Outperform | Outperform | Maintain | Jul 28, 2026 |
| B of A Securities | Buy | Buy | Maintain | Jul 28, 2026 |
| Stifel | Buy | Buy | Maintain | Jun 9, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | May 26, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Apr 28, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Feb 18, 2026 |
| Oppenheimer | Underperform | Underperform | Maintain | Oct 28, 2025 |
| JP Morgan | Overweight | Overweight | Maintain | Oct 28, 2025 |
| Mizuho | Outperform | Outperform | Maintain | Jul 29, 2025 |
| Loop Capital | Buy | Buy | Maintain | Jul 29, 2025 |
| Deutsche Bank | Buy | Buy | Maintain | Apr 26, 2023 |
| Atlantic Equities | Overweight | Neutral | Upgrade | Jan 17, 2023 |
| Wolfe Research | Outperform | Outperform | Maintain | Aug 17, 2022 |
| UBS | Neutral | Neutral | Maintain | Apr 26, 2022 |
| Berenberg | Buy | Hold | Upgrade | Feb 23, 2022 |
| Credit Suisse | Neutral | Neutral | Maintain | Oct 26, 2021 |
| RBC Capital | Outperform | Outperform | Maintain | Feb 23, 2021 |
| CFRA | Buy | Buy | Maintain | Apr 24, 2020 |
| Bank of America | Buy | Neutral | Upgrade | Apr 22, 2020 |
| Benchmark | Buy | Hold | Upgrade | Oct 23, 2018 |
| DA Davidson | Buy | Neutral | Upgrade | Apr 5, 2018 |
| Pacific Crest | Sector Perform | Outperform | Downgrade | Feb 5, 2015 |
| Summit Research Partners | Buy | Hold | Upgrade | May 20, 2014 |
| Summit Insights Group | Buy | Hold | Upgrade | May 20, 2014 |
| Topeka | Buy | Buy | Maintain | Jun 6, 2013 |
| PiperJaffray | Overweight | Overweight | Maintain | Apr 16, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $319.51. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Deutsche Bank | Analyst unavailable | $420 | $356.34 | +31.5% | Oct 7, 2026 |
| FBN Securities | Analyst unavailable | $375 | $284.95 | +17.4% | Sep 11, 2026 |
| Morgan Stanley | Analyst unavailable | $400 | $344.72 | +25.2% | Jul 29, 2026 |
| Oppenheimer | Analyst unavailable | $300 | $338.61 | -6.1% | Jul 28, 2026 |
| Piper Sandler | Clarke Jeffries | $349 | $338.61 | +9.2% | Jul 28, 2026 |
| Robert W. Baird | Analyst unavailable | $420 | $338.61 | +31.5% | Jul 28, 2026 |
| Benchmark Co. | Analyst unavailable | $450 | $371.5 | +40.8% | Jul 15, 2026 |
| Stifel Nicolaus | Analyst unavailable | $432 | $394.24 | +35.2% | Jun 9, 2026 |
| Berenberg Bank | Nay Soe Naing | $440 | $381.75 | +37.7% | May 27, 2026 |
| Wells Fargo | Analyst unavailable | $425 | $373.59 | +33.0% | May 26, 2026 |
| Robert W. Baird | Joe Vruwink | $385 | $336.54 | +20.5% | Apr 28, 2026 |
| KeyBanc | Analyst unavailable | $425 | $336.54 | +33.0% | Apr 28, 2026 |
| Stifel Nicolaus | Ruben Roy | $395 | $309.3 | +23.6% | Feb 18, 2026 |
| Morgan Stanley | Analyst unavailable | $370 | $283.46 | +15.8% | Feb 18, 2026 |
| Wells Fargo | Joe Quatrochi | $375 | $283.46 | +17.4% | Feb 18, 2026 |
| Oppenheimer | Edward Yang | $275 | $309.86 | -13.9% | Dec 1, 2025 |
| KeyBanc | Jason Celino | $405 | $341 | +26.8% | Oct 28, 2025 |
| Robert W. Baird | Joe Vruwink | $418 | $340.68 | +30.8% | Oct 28, 2025 |
| Wells Fargo | Analyst unavailable | $410 | $339.04 | +28.3% | Oct 28, 2025 |
| Wolfe Research | Gal Munda | $385 | $351.4 | +20.5% | Oct 28, 2025 |
| BNP Paribas | Andrew DeGasperi | $400 | $351.97 | +25.2% | Oct 2, 2025 |
| Berenberg Bank | Analyst unavailable | $400 | $371.03 | +25.2% | Jul 30, 2025 |
| Piper Sandler | Clarke Jeffries | $355 | $363.75 | +11.1% | Jul 29, 2025 |
| Mizuho Securities | Siti Panigrahi | $300 | $259.47 | -6.1% | Apr 15, 2025 |
| Loop Capital Markets | Gary Mobley | $360 | $300.9 | +12.7% | Nov 11, 2024 |
| Bank of America Securities | Vivek Arya | $310 | $280.18 | -3.0% | Oct 29, 2024 |
| Needham | Charles Shi | $315 | $252.77 | -1.4% | Oct 29, 2024 |
| Robert W. Baird | Jon Vruwink | $340 | $278.19 | +6.4% | Oct 29, 2024 |
| Stifel Nicolaus | Ruben Roy | $350 | $252.77 | +9.5% | Oct 29, 2024 |
| Mizuho Securities | Siti Panigrahi | $325 | $253.15 | +1.7% | Oct 21, 2024 |
| Oppenheimer | Edward Yang | $225 | $273.32 | -29.6% | Sep 24, 2024 |
| Robert W. Baird | Joe Vruwink | $338 | $287.08 | +5.8% | Jul 23, 2024 |
| Robert W. Baird | Jon Vruwink | $341 | $310.92 | +6.7% | Jul 2, 2024 |
| KeyBanc | Jason Celino | $355 | $310.17 | +11.1% | Jun 27, 2024 |
| KeyBanc | Jason Celino | $350 | $297.3 | +9.5% | Jun 6, 2024 |
| Piper Sandler | Clarke Jeffries | $318 | $285.02 | -0.5% | Apr 23, 2024 |
| Robert W. Baird | Jon Vruwink | $322 | $293.71 | +0.8% | Apr 18, 2024 |
| KeyBanc | Jason Celino | $340 | $305.36 | +6.4% | Apr 15, 2024 |
| Piper Sandler | Clarke Jeffries | $334 | $310.58 | +4.5% | Apr 4, 2024 |
| Morgan Stanley | Lee Simpson | $350 | $300.74 | +9.5% | Feb 14, 2024 |
| Needham | Charles Shi | $235 | $202.98 | -26.4% | Apr 25, 2023 |
| Needham | Charles Shi | $200 | $153.4 | -37.4% | Oct 25, 2022 |
| Deutsche Bank | Johannes Schaller | $200 | $166.97 | -37.4% | Sep 28, 2022 |
| Needham | Charles Shi | $193 | $153.41 | -39.6% | Apr 28, 2022 |
| UBS | Analyst unavailable | $180 | $153.67 | -43.7% | Apr 26, 2022 |
| Berenberg Bank | Gal Munda | $180 | $140.88 | -43.7% | Feb 23, 2022 |
| KeyBanc | Jason Celino | $205 | $161.75 | -35.8% | Jan 14, 2022 |
| Westpark Capital | Ruben Roy | $168 | $137.55 | -47.4% | Jul 15, 2021 |
| D.A. Davidson | Thomas Diffely | $165 | $132.75 | -48.4% | Apr 27, 2021 |
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Start freeCompany context
Snapshot as of publicationCadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip.…
Historical context
All CDNS earningsTechnology peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| WIT Wipro Limited | FY2027 Q2 · Calendar Q4 2026 | -25.0% | +3.9% | Wipro: AI pipeline expands as Q3 guidance stays narrow |
| TSM Taiwan Semiconductor Manufacturing Company Limited | FY2026 Q3 · Calendar Q4 2026 | +3.4% | -1.8% | TSMC beats Q3 guidance as AI demand drives fab expansion |
| ERIC Telefonaktiebolaget LM Ericsson (publ) | FY2026 Q3 · Calendar Q4 2026 | +28.6% | +11.8% | Ericsson Q3: 7% organic growth, resilient margins and AI-led demand |
| ASML ASML Holding N.V. | FY2026 Q3 · Calendar Q4 2026 | +20.4% | -3.9% | ASML: Record Q3, strong AI demand and broader capacity plans |
Latest beats and misses
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2025-02-04T00:03:19.509714+00:00
- Polygon adjusted daily market bars · 2026-10-17T12:50:42.103686+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-17T12:50:42.101065+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-17. For educational purposes only; not investment advice.