Analyst Consensus ?
ConsensusBuy30 ratings
Bullish2583.3%
Neutral413.3%
Bearish13.4%
Cadence Design Systems, Inc. · CDNS · FY2025 Q3 · Calendar Q4 2025
Cadence raises outlook as AI-driven design demand broadens
The supplied analysis supports a constructive but conditional view: AI-driven design complexity, robust demand across Cadence's businesses, and portfolio expansion can sustain growth, while China exposure, AI monetization, hardware adoption, and integration remain the key tests.
Reported After market closeNASDAQTechnology
$89.97B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$1.93
Consensus $1.79
EPS surprise
+7.8%
Reported versus consensus
Reported revenue
$1.34B
Consensus $1.32B
Revenue surprise
+1.2%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
-2.9%
Event window
SPY move
+0.3%
Same window
Abnormal move
-3.1%
Stock minus SPY
Volume
2.0×
Versus trailing sessions
Subsequent drift
-11.0%
Up to 20 sessions
CDNSSPY benchmark
Ask FN2 about CDNS FY2025 Q3
Transcript, numbers and history already loaded
Why did CDNS fall 2.9% after beating EPS estimates in FY2025 Q3?What changed in CDNS's guidance and outlook in FY2025 Q3?Give me the bull and bear case for CDNS after FY2025 Q3 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Relative to the prior quarter, Cadence's narrative became more expansive: it added Cadence.Ai and JedAI, introduced the Hexagon D&E acquisition and Arm Artisan Foundation IP, reported a record backlog, and again raised its full-year outlook. The core AI-driven demand thesis remained intact, but the execution surface widened through new hardware, software, partnerships, and acquisitions.
Guidance delta
Management raised the full-year revenue and earnings outlook after results exceeded Q3 guidance.
Key takeaways
- Results exceeded Q3 guidance and management raised the full-year outlook.
- Management linked growth across EDA, IP, and system analysis to rising AI-driven design complexity.
- Cadence highlighted deeper collaborations with Samsung, TSMC, NVIDIA, Intel, and OpenAI.
- IP growth remained above 20% year over year, supported by AI, HPC, and chiplet-focused demand.
- The Arm Artisan Foundation IP and Hexagon D&E acquisitions broaden the portfolio but add integration and execution considerations.
Management priorities
- Expand Cadence.Ai and agentic AI solutions, including JedAI.
- Develop next-generation Z4 and X4 hardware for trillion-transistor designs.
- Integrate Hexagon D&E tools into system design and analysis offerings.
- Deepen collaborations with semiconductor and AI companies to expand AI-enabled design flows.
- Maintain disciplined capital allocation with at least 50% of free cash flow earmarked for share repurchases.
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Beat
Miss
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Analyst 52W Price Targets
$318.22Current
$165Low
$341.52Average
$450High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Sep 29, 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 $318.22. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| FBN Securities | Analyst unavailable | $375 | $284.95 | +17.8% | Sep 11, 2026 |
| Morgan Stanley | Analyst unavailable | $400 | $344.72 | +25.7% | Jul 29, 2026 |
| Oppenheimer | Analyst unavailable | $300 | $338.61 | -5.7% | Jul 28, 2026 |
| Piper Sandler | Clarke Jeffries | $349 | $338.61 | +9.7% | Jul 28, 2026 |
| Robert W. Baird | Analyst unavailable | $420 | $338.61 | +32.0% | Jul 28, 2026 |
| Benchmark Co. | Analyst unavailable | $450 | $371.5 | +41.4% | Jul 15, 2026 |
| Stifel Nicolaus | Analyst unavailable | $432 | $394.24 | +35.8% | Jun 9, 2026 |
| Berenberg Bank | Nay Soe Naing | $440 | $381.75 | +38.3% | May 27, 2026 |
| Wells Fargo | Analyst unavailable | $425 | $373.59 | +33.6% | May 26, 2026 |
| Robert W. Baird | Joe Vruwink | $385 | $336.54 | +21.0% | Apr 28, 2026 |
| KeyBanc | Analyst unavailable | $425 | $336.54 | +33.6% | Apr 28, 2026 |
| Stifel Nicolaus | Ruben Roy | $395 | $309.3 | +24.1% | Feb 18, 2026 |
| Morgan Stanley | Analyst unavailable | $370 | $283.46 | +16.3% | Feb 18, 2026 |
| Wells Fargo | Joe Quatrochi | $375 | $283.46 | +17.8% | Feb 18, 2026 |
| Oppenheimer | Edward Yang | $275 | $309.86 | -13.6% | Dec 1, 2025 |
| KeyBanc | Jason Celino | $405 | $341 | +27.3% | Oct 28, 2025 |
| Robert W. Baird | Joe Vruwink | $418 | $340.68 | +31.4% | Oct 28, 2025 |
| Wells Fargo | Analyst unavailable | $410 | $339.04 | +28.8% | Oct 28, 2025 |
| Wolfe Research | Gal Munda | $385 | $351.4 | +21.0% | Oct 28, 2025 |
| BNP Paribas | Andrew DeGasperi | $400 | $351.97 | +25.7% | Oct 2, 2025 |
| Berenberg Bank | Analyst unavailable | $400 | $371.03 | +25.7% | Jul 30, 2025 |
| Piper Sandler | Clarke Jeffries | $355 | $363.75 | +11.6% | Jul 29, 2025 |
| Mizuho Securities | Siti Panigrahi | $300 | $259.47 | -5.7% | Apr 15, 2025 |
| Loop Capital Markets | Gary Mobley | $360 | $300.9 | +13.1% | Nov 11, 2024 |
| Bank of America Securities | Vivek Arya | $310 | $280.18 | -2.6% | Oct 29, 2024 |
| Needham | Charles Shi | $315 | $252.77 | -1.0% | Oct 29, 2024 |
| Robert W. Baird | Jon Vruwink | $340 | $278.19 | +6.8% | Oct 29, 2024 |
| Stifel Nicolaus | Ruben Roy | $350 | $252.77 | +10.0% | Oct 29, 2024 |
| Mizuho Securities | Siti Panigrahi | $325 | $253.15 | +2.1% | Oct 21, 2024 |
| Oppenheimer | Edward Yang | $225 | $273.32 | -29.3% | Sep 24, 2024 |
| Robert W. Baird | Joe Vruwink | $338 | $287.08 | +6.2% | Jul 23, 2024 |
| Robert W. Baird | Jon Vruwink | $341 | $310.92 | +7.2% | Jul 2, 2024 |
| KeyBanc | Jason Celino | $355 | $310.17 | +11.6% | Jun 27, 2024 |
| KeyBanc | Jason Celino | $350 | $297.3 | +10.0% | Jun 6, 2024 |
| Piper Sandler | Clarke Jeffries | $318 | $285.02 | -0.1% | Apr 23, 2024 |
| Robert W. Baird | Jon Vruwink | $322 | $293.71 | +1.2% | Apr 18, 2024 |
| KeyBanc | Jason Celino | $340 | $305.36 | +6.8% | Apr 15, 2024 |
| Piper Sandler | Clarke Jeffries | $334 | $310.58 | +5.0% | Apr 4, 2024 |
| Morgan Stanley | Lee Simpson | $350 | $300.74 | +10.0% | Feb 14, 2024 |
| Needham | Charles Shi | $235 | $202.98 | -26.2% | Apr 25, 2023 |
| Needham | Charles Shi | $200 | $153.4 | -37.1% | Oct 25, 2022 |
| Deutsche Bank | Johannes Schaller | $200 | $166.97 | -37.1% | Sep 28, 2022 |
| Needham | Charles Shi | $193 | $153.41 | -39.3% | Apr 28, 2022 |
| UBS | Analyst unavailable | $180 | $153.67 | -43.4% | Apr 26, 2022 |
| Berenberg Bank | Gal Munda | $180 | $140.88 | -43.4% | Feb 23, 2022 |
| KeyBanc | Jason Celino | $205 | $161.75 | -35.6% | Jan 14, 2022 |
| Westpark Capital | Ruben Roy | $168 | $137.55 | -47.2% | Jul 15, 2021 |
| D.A. Davidson | Thomas Diffely | $165 | $132.75 | -48.1% | 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 |
|---|---|---|---|---|
| SNX TD Synnex Corp | FY2026 Q3 · Calendar Q3 2026 | +20.9% | -9.9% | TD SYNNEX: AI-led growth accelerates, but mix and cash flow matter |
| ADBE Adobe Inc. | FY2026 Q3 · Calendar Q3 2026 | +0.8% | +1.4% | Adobe raises FY26 outlook as AI strategy broadens |
| ORCL Oracle Corporation | FY2027 Q1 · Calendar Q3 2026 | +10.3% | -1.7% | Oracle raises FY27 outlook as AI demand accelerates cloud growth |
| SAIL SailPoint, Inc. | FY2027 Q2 · Calendar Q3 2026 | +13.8% | -1.2% | SailPoint pairs 25% ARR growth with accelerating AI-driven adoption |
| CIEN Ciena Corporation | FY2026 Q3 · Calendar Q3 2026 | +22.0% | -10.4% | Ciena raises outlook as AI networking demand lifts backlog |
| DOCU DocuSign, Inc. | FY2027 Q2 · Calendar Q3 2026 | +6.4% | +3.7% | DocuSign Q2 FY27: IAM momentum supports a raised outlook |
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-09-29T13:01:00.806121+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-29T13:01:00.802979+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 2026-09-29. For educational purposes only; not investment advice.