Baird Raises Cadence Design Systems (CDNS) Price Target to $440
Key Points
- Baird increased its price target for Cadence Design Systems from $420 to $440, reflecting a positive outlook.
- Baird's $440 price target implies 36.57% upside from Cadence Design Systems, Inc.'s ($CDNS) current $322.17 share price.
- Cadence recently traded at about $322.17, which is below the new analyst target by approximately 26.8%.
- The company has a market cap of about $88.7 billion and a P/E ratio of 64.05, indicating strong growth potential.
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On October 27, 2026, Baird raised its price target for Cadence Design Systems, Inc. (CDNS) to $440 from $420 while keeping an Outperform rating on the stock. This change signals confidence in the company’s future performance. The update comes as Cadence continues to develop advanced software and hardware solutions in the technology sector.
CDNS
Cadence Design Systems, Inc.
Baird vs. the S&P 500
Hypothetical returns from Baird's disclosed trades, not real profit or advice. How we model this.
Baird's Call on Cadence Design Systems
Baird's new target of $440 represents a notable increase from the previous target of $420. The firm's rating remains at Outperform, suggesting they expect the stock to perform well compared to the market. This adjustment positions Baird's target above the current trading level, indicating potential for growth.
Other Institutional Activity in Cadence Design Systems
Several other institutional investors have recently adjusted their positions in Cadence. RMR Wealth Builders grew its holdings by 3,080 shares, totaling 9,599 shares worth about $3.17 million. Meanwhile, Local Pensions Partnership Investment trimmed its stake by 27,800 shares, bringing its total to 575,028 shares valued at approximately $189.9 million. Van Eck Associates Corporation added 874,520 shares, ending with 4,889,765 shares worth about $1.58 billion, while Capital International Investors increased its holdings by 931,684 shares, totaling 4,886,202 shares valued at around $1.57 billion.
Cadence Design Systems, Inc. Stock Up 1.8%
Cadence Design Systems recently closed at $322.17 on October 26, 2026. This price is about equal to where it was trading recently, but still below Baird’s new target by approximately 26.8%. The stock is currently above its 50-day moving average by about 1.1% but below its 200-day moving average by 1.5%. It also trades below its 52-week high of $416.69, indicating room for potential growth.
$CDNS price target
Cadence Design Systems, Inc. daily closes and this analyst's $440 target. Not advice.
Recent Earnings
Cadence reported trailing twelve-month revenue of approximately $5.84 billion, with a year-over-year revenue growth of 24.2%. The company’s net margin stands at 23.6%, and it has an impressive return on equity of 23.2%. The next earnings report is scheduled for February 18, 2027.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target raises vs 1 cuts.
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EPS & revenue
EPS beat estimates by 1.2%. Revenue met estimates.
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Profit surprise
EBITDA missed by 34 percent. Operating income missed by 32 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
5 target raises, 1 target cut.
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Earnings quality
Gross margin up 9.3 points. Positive free cash flow.
Earnings Call Summary
Cadence delivered a strong first quarter with $1.47 billion in revenue and record $8 billion backlog, driven by accelerating demand for AI-powered chip design tools. The company introduced new agentic AI agents for analog and digital design, signed a major IP deal with a leading foundry, and expects these AI tools to boost usage of its existing software while opening new revenue categories through subscription and consumption-based pricing.
Guidance Cadence raised its full year 2026 revenue outlook to about $6.2 billion, expecting 17 percent growth. The company expects to reach the Rule of 60 metric for the first time and plans to spend about half of free cash flow on share buybacks this year.
Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.
Analysts Set New Price Targets
On October 27, 2026, Baird raised its price target for Cadence to $440 while maintaining an Outperform rating. Other firms, such as Needham, also maintained a Buy rating with a target of $430 on the same day. The consensus among 26 analysts suggests a strong buy recommendation with a mean target price of approximately $406.24.
About Cadence Design Systems
Cadence Design Systems, Inc. develops advanced software and hardware products for the technology sector, focusing on computational and AI-driven solutions. This price target adjustment by Baird reflects confidence in Cadence's growth potential in a competitive market.
Bottom Line
Investors should keep an eye on Cadence's upcoming earnings report on February 18, 2027, as well as any further analyst updates. With Baird's raised target, the stock may attract more attention as it seeks to reach new heights in the market.
Related Filing Alerts
Source: Baird's rating change on $CDNS (Oct 27, 2026). Written by software, not financial advice. How we make alerts