JP Morgan Raises CDNS Price Target to $420
Key Points
- JP Morgan increased its price target for Cadence Design Systems from $405 to $420 while maintaining an Overweight rating on October 27, 2026.
- JP Morgan's $420 price target implies 22.42% upside from Cadence Design Systems, Inc.'s ($CDNS) current $343.08 share price.
- Cadence Design Systems recently traded around $343.08, which is above its 50-day and 200-day moving averages but still below its 52-week high of $416.69.
- The company has a P/E ratio of 64.05 and reported trailing twelve-month revenue of approximately $5.84 billion.
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Cadence Design Systems, Inc. received a boost from JP Morgan on October 27, 2026, as the firm raised its price target from $405 to $420. This change comes while maintaining an Overweight rating on the stock. The update was part of a series of analyst ratings issued on the same day.
CDNS
Cadence Design Systems, Inc.
JP Morgan vs. the S&P 500
Hypothetical returns from JP Morgan's disclosed trades, not real profit or advice. How we model this.
Other Institutional Activity in Cadence Design Systems
Van Eck Associates Corporation added 874,520 shares of Cadence Design Systems, bringing its total to 4,889,765 shares valued at about $1.58 billion. Meanwhile, Capital International Investors grew its stake by 931,684 shares, resulting in 4,886,202 shares worth approximately $1.57 billion. Local Pensions Partnership Investment reduced its holdings by 27,800 shares, ending with 575,028 shares valued at about $189.9 million.
Cadence Design Systems, Inc. Stock Up 8.4%
As of October 27, 2026, Cadence Design Systems shares traded around $343.08, which is about 6.5% above the closing price of $322.17 on October 26, 2026. The stock is also above its 50-day and 200-day moving averages by 7.6% and 4.9%, respectively. However, it remains about 17.7% below its 52-week high of $416.69.
$CDNS price target
Cadence Design Systems, Inc. daily closes and this analyst's $420 target. Not advice.
Recent Earnings
Cadence Design Systems reported trailing twelve-month revenue of approximately $5.84 billion, reflecting a year-over-year revenue growth of 24.2%. The next earnings report is expected on 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.
Insider Buying and Selling at Cadence Design Systems, Inc.
Several insiders sold shares recently, including Officer Paul Scannell, who sold 280 shares on August 26, 2026, at an average price of $339.00, totaling about $94,920. Director Ita M Brennan sold 180 shares on September 10, 2026, valued at $51,392. Officer Paul Alexander Cunningham sold 2,000 shares on September 15, 2026, at an average price of $277.12, amounting to about $554,240. Lastly, Director Vincentelli Alberto Sangiovanni sold 1,250 shares on October 1, 2026, at an average price of $350.07, totaling approximately $437,590.
Analysts Set New Price Targets
On October 27, 2026, several firms adjusted their price targets for Cadence Design Systems. JP Morgan raised its target to $420 from $405 while maintaining an Overweight rating. Rosenblatt also increased its target from $420 to $425, and Needham raised its target from $400 to $430. Baird increased its target from $420 to $440, reflecting positive sentiment among analysts.
About Cadence Design Systems
Cadence Design Systems, Inc. develops software, hardware, and silicon intellectual property products and solutions, primarily in the technology sector. The company, headquartered in San Jose, CA, is focused on delivering advanced computational and AI-driven tools for design and verification in various applications.
Bottom Line
Investors should watch for Cadence Design Systems' next earnings report on February 18, 2027, to see how the company continues to perform. With multiple analysts raising their price targets, the stock's outlook appears positive, but it remains below its recent highs.
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Source: JP Morgan's rating change on $CDNS (Oct 27, 2026). Written by software, not financial advice. How we make alerts