Cadence Design Systems, Inc. (CDNS)

Cadence Design Systems' stock (CDNS) has experienced positive momentum in the past six months, reaching an all-time high of $373.37 on September 22, 2025. Over the past 12 months, CDNS is up 30.66%. Key events include strong financial results for Q1 and Q2 FY25, with revenue growth exceeding 20% in Q1 and surpassing revenue and EPS guidance in Q2. Cadence raised its full-year 2025 outlook, targeting 13% revenue growth and 16% EPS growth. The lifting of U.S. export restrictions on chip design software to China in July 2025 and settlements with the DOJ and BIS regarding China transactions from 2015 to 2021 were also positive events. The company's stock was also upgraded to "Buy" in early October 2025.

Cadence Design Systems experiences some seasonality in the demand for its hardware business, with the fourth quarter typically being the strongest. The company benefits from strong and consistent demand for its diversified product portfolio, particularly its software offerings. This demand is driven by ongoing investments in new design concepts and projects from customers in sectors such as datacenter servers, networking products, and smartphones. The "AI super-cycle" is a significant tailwind, accelerating chip design activity and increasing R&D budgets for AI-driven automation, which in turn boosts demand for Cadence's products and services. The company's IP business and hardware demand are also expected to continue accelerating.

Cadence Design Systems, Inc. provides software, hardware, and IP for the design and development of advanced semiconductor chips and electronic systems. Its core business is its suite of EDA tools for designing, simulating, and verifying integrated circuits, systems-on-chip, and printed circuit boards. Cadence has expanded into machine design, digital twins, drug design, and AI-enabled big data analytics, serving markets like hyperscale computing, 5G, automotive, aerospace, defense, mobile, consumer, industrial, and healthcare.

Cadence Design Systems, Inc. operates globally across six regions: the United States, Other Americas, China, Other Asia, Europe, Middle East and Africa, and Japan. In fiscal year 2025, China represented the largest portion of its revenue at 23.32%, followed by Taiwan, Province of China, and Korea, Republic of. North America, Japan, Europe and Israel, and the Rest of Asia also contributed significantly to the company's revenue.

Cadence Design Systems maintains a strong brand reputation, particularly as an employer and in its industry. Cadence was recognized by Fortune and Great Place To Work as one of the "100 Best Companies to Work For," ranking No. 9, marking its tenth consecutive year on the list. The company was also acknowledged as a Great Place To Work in numerous countries globally and was named a World's Best Workplace. The company has received high usefulness scores for its annual reports. Cadence announced in July 2025 that it had reached settlements with the DOJ and BIS regarding previously disclosed investigations into certain China sales from 2015 to 2021, contributing to a stable reputation.

Cadence Design Systems, Inc. is largely controlled by institutional shareholders, who collectively own approximately 87% of the company's stock. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, State Street Corp, and Jennison Associates Llc. Individual investors hold about a 12% stake, while insiders own under 1%. Lip Bu Tan is the largest individual shareholder, owning 5.40 million shares, representing 1.98% of the company.