Rosenblatt Rates Cadence Design Systems (CDNS) Buy
Key Points
- Rosenblatt maintained its Buy rating on Cadence Design Systems, Inc. on October 23, 2026, while holding its price target steady at $420.00.
- Rosenblatt's $420 price target implies 35.64% upside from Cadence Design Systems, Inc.'s ($CDNS) current $309.65 share price.
- Cadence Design Systems carries a trailing-twelve-month revenue of $5.84 billion and a trailing earnings per share of $5.03, with its next earnings report scheduled for October 26, 2026.
- Major institutional holders like Van Eck Associates Corporation and Capital International Investors adjusted their large stakes earlier in the year.
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Rosenblatt reaffirmed its Buy rating on Cadence Design Systems, Inc. [CDNS] on October 23, 2026, keeping its price target steady at $420.00. The research note was issued on the same day the stock closed at $316.25.
CDNS
Cadence Design Systems, Inc.
Rosenblatt vs. the S&P 500
Hypothetical returns from Rosenblatt's disclosed trades, not real profit or advice. How we model this.
Rosenblatt's Call on Cadence Design Systems
In its research note on October 23, 2026, Rosenblatt maintained its Buy stance on the software developer, keeping its price target unchanged at $420.00 from a previous target of $420.00. Earlier on July 28, 2026, the firm had maintained a Buy rating with a $420.00 price target against a prior target of $410.00.
Other Institutional Activity in Cadence Design Systems
RMR Wealth Builders grew its holdings by 3,080 shares, ending with 9,599 shares worth about $3,169,439.00. Van Eck Associates Corporation grew its holdings by 874,520 shares, ending with 4,889,765 shares worth about $1,546,388,181.00. Capital International Investors grew its holdings by 931,684 shares, ending with 4,886,202 shares worth about $1,545,261,382.00.
Cadence Design Systems, Inc. Stock Down 5.0%
Cadence Design Systems recently traded around $309.65 on October 23, 2026. The stock closed that day at $316.25.
$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 $5,837,622,784.00 and earnings per share of $5.03. Its next earnings report is scheduled for October 26, 2026.
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.
Dividend
Cadence Design Systems currently does not pay a dividend, maintaining a dividend payout ratio of 0.0% and a dividend yield of 0.0%.
Insider Buying and Selling at Cadence Design Systems, Inc.
Paul Scannell sold 280 shares on August 26, 2026, at an average price of $339.00 for a total value of $94,920.00. Ita M Brennan sold 180 shares on September 10, 2026, with a total value of $51,392.00. Paul Alexander Cunningham sold 2,000 shares on September 15, 2026, at an average price of $277.12 for a total value of $554,240.00. Vincentelli Alberto Sangiovanni sold 1,250 shares on October 1, 2026, at an average price of $350.07 for a total value of $437,590.00.
Analysts Set New Price Targets
B of A Securities maintained a Buy rating with a $420.00 price target on July 28, 2026, moving up from a prior target of $400.00. Citigroup maintained a Buy rating with a $420.00 price target on July 28, 2026, moving up from a prior target of $400.00. Baird maintained an Outperform rating with a $420.00 price target on July 28, 2026, moving up from a prior target of $415.00. Consensus analyst opinion stands at a strong buy with a mean price target of $406.24 across 26 analyst opinions.
About Cadence Design Systems
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions from its headquarters in San Jose, California.
Bottom Line
Investors will look to the upcoming earnings report on October 26, 2026, for further updates on the company's financial performance. Wall Street continues to monitor analyst adjustments and institutional holding reports closely.
Related Filing Alerts
Source: Rosenblatt's rating change on $CDNS (Oct 23, 2026). Written by software, not financial advice. How we make alerts