Key Takeaways for Cadence Design Systems Stock as of August 2026
- Model Upside: TIKR’s mid-case values Cadence Design Systems stock at $591, 74% above today’s $339 and 13% annualized through December 2030.
- Analyst Conviction: Seventeen buys and five outperforms swamp the three holds, and not a single analyst rates it a sell.
- Record Raise: Cadence lifted full-year guidance to 19% revenue growth, its biggest single-quarter raise ever, after Q2 revenue rose 24% YoY to $1.58B and bookings pushed backlog to a record $8.1B.
- Drawdown Gap: The stock trades 19% below its peak, off a 29% April low.
Cadence Design Systems Just Delivered Its Largest Guidance Raise Ever on Record Backlog
Cadence Design Systems (CDNS) raised its full-year 2026 revenue growth target to 19% on its July 28 earnings call, the largest single-quarter guidance increase in the company’s history. Second-quarter revenue climbed 24% to $1.58 billion, and bookings drove backlog to a record $8.1 billion. A business this size rarely lifts the bar mid-year by this much. Management did it because demand is broadening, not because one contract landed.
The strength ran across every line. IP revenue jumped more than 40% year over year, core EDA rose 18%, system design and analysis grew 37%, and hardware booked another record quarter on AI and high-performance-computing demand. Inside that mix sat a structural win: a multiyear engagement with Intel on its 14A manufacturing process, covering both its EDA tools and design IP. Cadence chased a deeper Intel relationship for two decades, and management called the new revenue 100% incremental to its existing base. Hardware stayed supply-constrained rather than demand-constrained, another sign the backlog reflects orders Cadence cannot yet fully ship.
CEO Anirudh Devgan tied the raise directly to that broadening demand on the Q2 earnings call: “Given the growing business momentum and accelerating demand, we are raising our guidance for the year to 19% revenue growth and with higher profitability as we become more central to our customers as a strategic and trusted partner.” Devgan also pointed to agentic AI, where four new AI super agents pull Cadence’s simulation engines into more design cycles, as a demand accelerator layered on top of that base.
Profitability moved with the top line. Non-GAAP operating margin reached 45.5%, and free cash flow of $582 million ran up 75% from a year ago, proof the growth converts to cash as it scales.
So the development repricing Cadence Design Systems stock is not the earnings beat. It is a record backlog and a record raise arriving together, evidence that the growth the market keeps discounting is speeding up.
Cadence Design Systems Stock Trades 19% Below Its High Despite the Raise
Cadence Design Systems stock hit its deepest drawdown of 29% on April 10, 2026, and has clawed back only partway, still trading 18.53% below its peak. The stock rallied off that April low, then stalled, short of its high even as the fundamentals set records.
hat gap sits awkwardly against a record raise and record backlog, and the market is still pricing decelerating growth into a business that just told investors it is accelerating.
Wall Street stays firmly constructive. Seventeen analysts rate the stock a buy and five rate it outperform, against three holds and no sells. The mean price target of $404 implies 19% upside from the current $339, and those targets have climbed for two straight quarters, from $372 to $404, as estimates chased the raised guidance higher.
The range runs from $300 at the low to $470 at the high across 26 estimates, a spread that reflects debate over how long the raise sustains.
TIKR Values Cadence Design Systems Stock at $591, a 74% Premium to Today
TIKR’s mid-case model values Cadence Design Systems at $591 by December 2030, implying 74% total return from the current price of $339, or 13% annualized over 4.4 years.
A 13% annualized path prices the stock as a compounder, not a distressed rebound, the steady double-digit trajectory that fits a franchise extending its lead. The model assumes essentially flat multiples, so the projected return rides on earnings growth, not on the market paying up for the stock.
That target is reachable because the forces behind the record raise, double-digit growth across every product group and an Intel engagement that adds purely incremental revenue, are exactly the durable drivers a five-year model rewards. The 18.53% drawdown discounts a slowdown the $8.1 billion backlog does not support.
The model leans on double-digit mid-case revenue growth and net margins widening toward 38%, and both trace straight back to the leverage Cadence showed this quarter, when a 24% revenue gain carried operating margin to 45.5%.
Should You Invest in Cadence Design Systems, Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Cadence Design Systems stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Cadence Design Systems alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
