Analysts Boost Cadence Design Estimates After Earnings Surprise

Author: Kelly Martin Updated: 10-28-2025 09:45 AM

Cadence Design Systems Surprises With Strong Earnings Results

Cadence Design Systems, Inc. (NASDAQ: CDNS) has recently posted impressive third-quarter earnings, surprising analysts and investors alike. The company reported earnings of $1.93 per share, well above the anticipated figure of $1.79. In terms of revenue, Cadence Design generated $1.38 billion, exceeding projections of $1.32 billion, and showing a solid increase from $1.21 billion in the same quarter last year.

CEO's Insights and Revised Projections

Following the earnings release, CEO Anirudh Devgan expressed satisfaction with the results, stating, "Cadence delivered excellent results for the third quarter of 2025. With a record backlog and ongoing broad-based strength of our business, we are raising our full year revenue outlook to ~14% growth year-over-year." This optimistic outlook highlights the company's robust operational performance and market demand.

Updated Fiscal Guidance

Despite the strong quarterly results, Cadence Design adjusted its fiscal 2025 GAAP EPS guidance downward to a range of $3.80 to $3.86 per share, compared to the previous analyst estimate of $4.30. However, the company raised its revenue outlook to between $5.26 billion and $5.29 billion, surpassing the earlier estimate of $5.24 billion.

Market Reaction and Analyst Reactions

Following the earnings announcement, Cadence Design's shares experienced a decline of 4.5%, settling at $335.46 on the following day. Despite this drop, several analysts swiftly reacted to the earnings report with updated price targets.

Analyst Ratings and Price Target Adjustments

1. Rosenblatt’s analyst Blair Abernethy maintained a Neutral rating on Cadence Design, adjusting the price target from $320 to $335.

2. JP Morgan analyst Harlan Sur also maintained his Overweight rating, increasing the price target from $390 to $405.

3. Baird analyst Joe Vruwink expressed confidence by maintaining an Outperform rating and raising the target from $390 to $418.

Investor Considerations for CDNS Stock

If you're considering adding Cadence Design (CDNS) stock to your investment portfolio, understanding these changes in analyst ratings can provide valuable insights. The consensus view among analysts points to a cautiously optimistic outlook, reflecting confidence in the company's growth trajectory despite minor adjustments in earnings guidance.

Frequently Asked Questions

What were Cadence Design's earnings for the last quarter?

Cadence Design reported earnings of $1.93 per share, exceeding the analyst estimates of $1.79.

How much revenue did Cadence Design generate?

The company generated $1.38 billion in revenue, surpassing the analyst expectations of $1.32 billion.

What is the new fiscal EPS guidance for Cadence Design?

The adjusted guidance is set between $3.80 to $3.86 per share for fiscal 2025.

What changes did analysts make to price targets?

Analysts increased their price targets, with adjustments made from $320 to $335, $390 to $405, and $390 to $418, depending on the analyst's firm.

How did the stock perform after the earnings announcement?

Cadence Design’s shares fell 4.5% to $335.46 following the earnings announcement.

About The Author

Hello Kelly Martin here, a financial and publicly traded company specialist committed to writing with clarity and sage advice. Having a wealth of experience and a thorough grasp of corporate dynamics and the financial environment, my main goal in writing blog posts and articles is to provide insightful analysis together with useful guidance. My objective is to arm readers with the information they need to comprehend the complexities of publicly traded companies and make wise financial decisions.

Writing for several financial blogs has let me interact with a wide range of readers, from novice investors to seasoned pros looking for fresh perspectives. My goal is to make corporate analysis and finance understandable and interesting so you may confidently negotiate the intricacies of the financial world. I appreciate you traveling with me toward success and financial literacy.

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