Cadence Design Systems, Inc. (CDNS)

Over the past six months, Cadence Design Systems' stock has experienced several notable events. Cadence reported better-than-expected fourth-quarter 2024 results, but soft guidance for 2025 led to a stock price decline. Redburn Atlantic initiated coverage of CDNS with a "Buy" recommendation, and JP Morgan upgraded its outlook from "Neutral" to "Overweight". Cadence surpassed its Q1 2025 guidance, leading to the stock jumping 5.8% post-results, and the company raised its revenue and EPS outlook for fiscal year 2025. Cadence announced the acquisition of Secure-IC, which is expected to close by mid-2025. Cadence launched the Millennium M2000 Supercomputer and the Cadence Tensilica NeuroEdge 130 AI Co-Processor and expanded its partnership with Samsung Foundry. As of June 27, 2025, CDNS stock was up 5.75% over the past 30 days.

Cadence Design Systems' revenue is predominantly subscription-based, with approximately 85% of its quarterly earnings derived from software and IP licensing. While hardware sales exhibit some seasonality, Cadence anticipates a boost in demand for its new third-generation hardware systems in the second half of the year. The company's consistent growth in revenue is driven by the semiconductor industry's ongoing demand for advanced chip designs, and its diversified customer base supports its financial stability.

Cadence Design Systems, Inc. is an American multinational technology and computational software company headquartered in San Jose, California, operating within the Technology sector, specifically in the Software & IT Services industry, focusing on Electronic Design Automation (EDA). Cadence provides software, hardware, and intellectual property (IP) solutions that enable customers to design electronic products, including integrated circuits (ICs), systems on chips (SoCs), and printed circuit boards (PCBs). Its offerings include functional verification tools, digital IC design and signoff solutions, custom IC design and simulation platforms, system design and analysis tools, semiconductor IP products, and AI and machine learning integration. The company's solutions are applied across various industries, including consumer electronics, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life sciences.

Cadence Design Systems has a significant global presence with its headquarters in San Jose, California, and an international headquarters in Dublin, Ireland. It also maintains regional headquarters in China, Japan, India, and the United Kingdom. Cadence operates sales offices, design centers, and R&D facilities across North America, Europe, Asia Pacific, the Middle East, and Africa.

Cadence Design Systems has maintained a strong brand reputation, ranking #9 on Fortune Magazine and Great Place To Work's World's Best Workplaces list in 2024. The company is committed to creating exceptional employee experiences and fair workplaces. The Trump administration's pause on issuing licenses for exports of Cadence software to China in 2025 could raise concerns regarding geopolitical risks and market access.

Cadence Design Systems (CDNS) stock ownership is primarily institutional, with approximately 84.93% held by institutional shareholders, 6.23% by Cadence Design Systems insiders, and 8.84% by retail investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., and State Street Corp. The largest individual shareholder is Lip Bu Tan, who owns 5.40 million shares, representing 1.98% of the company.