In the latest trading session, Cadence Design Systems (CDNS) closed at $377.92, marking a -1.63% move from the previous day. This change lagged the S&P 500's 0.79% loss on the day. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 1.55%.
Coming into today, shares of the maker of hardware and software products for validating chip designs had lost 0.21% in the past month. In that same time, the Computer and Technology sector gained 3.44%, while the S&P 500 gained 4.28%.
The upcoming earnings release of Cadence Design Systems will be of great interest to investors. The company's earnings report is expected on July 27, 2026. The company's earnings per share (EPS) are projected to be $2.05, reflecting a 24.24% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.58 billion, showing a 23.58% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.94 per share and a revenue of $6.2 billion, signifying shifts of +11.2% and +17.11%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cadence Design Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cadence Design Systems currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Cadence Design Systems is currently trading at a Forward P/E ratio of 48.4. This valuation marks a premium compared to its industry average Forward P/E of 16.31.
We can additionally observe that CDNS currently boasts a PEG ratio of 3.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
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