
CDNS Stock Forecast & Price Target
CDNS Analyst Ratings
Bulls say
Cadence Design Systems reported a strong Q2-25 with revenue of $1,275.4 million, marking a 20% year-over-year increase, which surpassed both internal forecasts and consensus estimates. The company's backlog increased to $6.4 billion, providing solid visibility and reflecting robust renewal activity and growth in key sectors such as system design and multi-physics solutions. Additionally, Cadence raised its FY25 revenue estimate to $5.24 billion and FY26 revenue to $5.87 billion, alongside an improvement in operating margins and increased EPS guidance, highlighting the company's strong financial performance and growth potential.
Bears say
The financial outlook for Cadence Design Systems is negatively impacted by projected long-term growth rates, with expectations of high single-digit growth in EDA and low double-digit growth in IP, indicating a slowdown. The company's reliance on the Chinese market is concerning, as evidenced by a revenue decline of 9.8% year-over-year in Q2, compounded by geopolitical factors and potential impacts from broader economic conditions. Additionally, competitive pressures and the risk of losing market share in critical segments like EDA and IP could further hinder revenue and earnings growth, creating a challenging landscape for the company's financial performance.
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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