Cadence Design Systems, Inc. (CDNS)

Cadence Design Systems, Inc. stock has experienced fluctuations, with a closing share price of $283.52 as of February 6, 2026. Key events include Q3 2025 earnings surpassing estimates but lowered guidance due to China demand concerns, strong Q2 2025 results, an agreement to acquire Hexagon AB's Design & Engineering business, a technical collaboration with Lightmatter, insider selling, and a software sector sell-off.

There is no explicit information indicating significant seasonality in the demand for Cadence Design Systems' products and services. The company consistently reports strong demand driven by generational trends and advancements in AI. However, analysis of historical data suggests a seasonal pattern in stock performance, with a "Buy Date" of February 4 and a "Sell Date" of June 2 resulting in a geometric average return above the S&P 500 Total Return Index over the past 20 years.

Cadence Design Systems, Inc. specializes in electronic design automation (EDA) software for the semiconductor industry, offering software and hardware for designing various products and licensing intellectual property. Its major offerings include functional verification services, digital IC design and sign-off products, custom IC design and simulation, system design and analysis products, semiconductor IP products, and services. The company's solutions cater to diverse markets, including consumer electronics, hyperscale computing, and automotive.

Cadence Design Systems, Inc. has a global presence, operating in regions including the United States, Other Americas, China, Other Asia, Europe, Middle East and Africa, and Japan. In fiscal year 2025, significant revenue contributions came from China, Japan, Korea, North America, Europe and Israel, and Taiwan.

Cadence Design Systems generally maintains a strong brand reputation, recognized as one of the world's top 100 best-managed companies by the Wall Street Journal in 2024. However, the company's reputation was impacted by the settlement of export control violations, resulting in a $140.6 million fine. Concerns regarding demand from China due to US-China trade tensions also pose a challenge to the company's reputation.

Cadence Design Systems, Inc. is predominantly owned by institutional investors, accounting for approximately 87% of the company's shares. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, and State Street Corp. Individual ownership is relatively small, accounting for about 0.29% of the shares.