
CDNS Stock Forecast & Price Target
CDNS Analyst Ratings
Bulls say
Cadence Design Systems has demonstrated a robust financial outlook, with a backlog of $7.0 billion in Q3, reflecting a 9.4% increase from the previous quarter, enhancing visibility for future revenue. The company's core Electronic Design Automation (EDA) segment has shown strong growth, reaching $950.6 million, which translates to an 11.7% year-over-year increase, while the overall revenue for FY25 is projected to rise by 13.7%. Additionally, the firm has positioned itself for continued growth through improved demand in intellectual property and system design and analysis products, along with an anticipated backlog increase by year-end, thereby reinforcing a positive trajectory for the company.
Bears say
Cadence Design Systems is anticipated to experience a decline in growth rates, with the projected Ex-China growth rate for fiscal year 2025 estimated at approximately 13%, reduced from a previous strong performance of 19%. Additionally, the non-GAAP operating margin is expected to peak in 2025 before declining to the range of 41-42%, while the GAAP margin is projected to decrease to 28-29%, indicating worsening profitability trends. The overall revenue growth is expected to decelerate to less than 5% year-over-year, compounding concerns regarding potential long-term performance amidst challenging market conditions and reduced earnings forecasts.
This aggregate rating is based on analysts' research of Cadence Design Systems and is not a guaranteed prediction by Public.com or investment advice.
CDNS Analyst Forecast & Price Prediction
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