Cadence Design Systems Earnings Preview: What to Expect

Core Insights - Cadence Design Systems, Inc. (CDNS) is valued at $96.3 billion and is a global provider of software services, offering various platforms for functional verification and chip verification [1] Financial Performance - Analysts expect CDNS to report a profit of $1.42 per share for Q3, reflecting a 13.6% increase from $1.25 per share in the same quarter last year [2] - For the full fiscal year 2025, CDNS is projected to report an EPS of $5.47, a 21.6% increase from $4.50 in 2024, with further growth expected in fiscal 2026 to $6.39 per share, a 16.8% year-over-year increase [3] Stock Performance - CDNS stock has increased by 31.4% over the past 52 weeks, outperforming the Technology Select Sector SPDR Fund's 27.7% gains and the S&P 500 Index's 17.9% returns during the same period [4] - Following the release of strong Q2 results, CDNS stock surged 9.7% in a single trading session [5] Revenue and Profitability - In the last quarter, Cadence's revenue grew by 20.2% year-over-year to $1.3 billion, exceeding expectations by 1.3% [6] - Non-GAAP net income rose by 28.3% year-over-year to $449.9 million, while operating cash flows increased significantly by 111.3% year-over-year to $864.6 million [6] Analyst Ratings - The consensus opinion on CDNS stock is optimistic, with a "Strong Buy" rating from 16 out of 22 analysts, and a mean price target of $375.75 indicating an 8.8% upside potential from current levels [7]