Cadence Design Systems, Inc. (CDNS)

In the past six months, Cadence Design Systems' stock (CDNS) has experienced some fluctuations. As of January 9, 2026, the stock was down 3.18% over the past 30 days but up 9.47% over the past 12 months, with a return of +1.53% over the past six months. Several officers have sold shares, including Chin-Chi Teng, Paul Scannell, Anirudh Devgan, Paul Alexander Cunningham, and CFO John M. Wall. Cadence launched a Chiplet Spec-to-Packaged Parts ecosystem in January 2026, in partnership with Arm, Samsung Foundry, and other IP providers. Cadence reported robust Q3 2025 results, with double-digit revenue and EPS growth, exceeding analyst estimates, a record $7 billion backlog, and expanding margins, raising its full-year Adjusted EPS guidance for 2025. The stock experienced a 30-day share price decline of 6.78% but a 90-day share price return of 10.10% as of January 7, 2026.

Cadence Design Systems' demand for its products and services generally appears stable, with annualized revenue growth aligning with its five-year trend, though sell-side analysts anticipate a deceleration in revenue growth over the next 12 months. The company's business model is characterized by high-margin, recurring revenue streams from multi-year licensing agreements. Seasonally, Cadence Design Systems (CDNS) tends to be bullish in most months, with average positive returns in April, May, June, July, August, October, and November, while September and December have historically shown average negative returns. The company's cash profitability can experience temporary swings due to seasonal investment needs, and it benefits from secular trends in artificial intelligence, 5G communications, autonomous vehicles, and cloud computing.

Cadence Design Systems, Inc. is a multinational technology and computational software company headquartered in San Jose, California, operating in the Technology sector, specifically within the Computer Software industries. Cadence is a leading provider of electronic design automation (EDA) software, hardware, and IP solutions crucial for designing, verifying, and implementing complex semiconductors, ICs, SoCs, and PCBs. The company's offerings include EDA Software, Hardware for Design Verification, System Design and Analysis Products, Semiconductor IP, and Services. Cadence's technology is used across various industries, including consumer electronics, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life sciences.

Cadence Design Systems, Inc. is headquartered in San Jose, California, U.S., with a global presence through subsidiaries across Asia-Pacific, Europe, the Americas, the Middle East, and Africa. Significant subsidiaries are primarily located in Europe and Asia, hosting 72.97% of its material entities. The top three geographies for Cadence Design Systems' customers in creative design services are the United States (68.87%), India (9.13%), and the United Kingdom (6.14%).

Cadence Design Systems maintains a strong brand reputation, particularly as a market leader in AI and digital twin technology, driving significant demand across various sectors. The company is recognized for its critical role in the semiconductor industry, providing essential software and hardware for advanced chip and system design. However, Cadence faced some reputation-affecting events in the past, including U.S. legislators requesting tighter controls on the sales of semiconductor manufacturing software due to its use in the People's Liberation Army's military-civil fusion efforts, highlighting potential geopolitical and export control risks.

Cadence Design Systems, Inc. has a significant institutional ownership base, with institutions holding approximately 87% of the company's shares. The largest institutional shareholders include The Vanguard Group, Inc., BlackRock, Inc., State Street Corporation, Fidelity Management & Research, Jennison Associates, Geode Capital Management, Invesco Capital Management (QQQ Trust), and MFS Investment Management. Individual insider ownership is less than 1% of the company, with Lip Bu Tan owning 5.40 million shares, representing 1.98% of the company. Recent insider trading activity has shown multiple small transactions leaning towards selling by officers.