What's Next: Cadence Design Sys's Earnings Preview

Cadence Design Sys (NASDAQ:CDNS) is set to give its latest quarterly earnings report on Monday, 2025-10-27. Here's what investors need to know before the announcement.

Analysts estimate that Cadence Design Sys will report an earnings per share (EPS) of $1.65.

Cadence Design Sys bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

Last quarter the company beat EPS by $0.09, which was followed by a 9.74% increase in the share price the next day.

Here's a look at Cadence Design Sys's past performance and the resulting price change:

Tracking Cadence Design Sys's Stock Performance

Shares of Cadence Design Sys were trading at $337.27 as of October 23. Over the last 52-week period, shares are up 34.94%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Cadence Design Sys

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Cadence Design Sys.

Cadence Design Sys has received a total of 11 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $375.0, the consensus suggests a potential 11.19% upside.

Comparing Ratings with Peers

The below comparison of the analyst ratings and average 1-year price targets of Synopsys, Strategy and Autodesk, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Synopsys, with an average 1-year price target of $579.69, suggesting a potential 71.88% upside.
• Analysts currently favor an Buy trajectory for Strategy, with an average 1-year price target of $546.4, suggesting a potential 62.01% upside.
• Analysts currently favor an Outperform trajectory for Autodesk, with an average 1-year price target of $374.32, suggesting a potential 10.99% upside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Synopsys, Strategy and Autodesk, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Cadence Design Systems ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Cadence Design Systems is at the bottom compared to its peers.

All You Need to Know About Cadence Design Sys

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.

A Deep Dive into Cadence Design Sys's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Cadence Design Sys showcased positive performance, achieving a revenue growth rate of 20.25% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Cadence Design Sys's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 12.55%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cadence Design Sys's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.27%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Cadence Design Sys's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.73%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Cadence Design Sys's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.49, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Cadence Design Sys visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.