Zacks Investment Research·2d ago
Top Robotics Stocks With Strong Potential for Long-Term GrowthRobotics is poised for robust long-term growth. Consider OMCL, SNPS, CDNS and MCHP for potential market dominance across sectors.
Cadence's revenue reaccelerated to 22.0% year-over-year growth in 2026Q3 (approximately $1.6B), apparently powered by broadening AI-optimized chip design demand and its 'Design for AI' portfolio, supported by high-quality earnings evidenced by a cumulative OCF/NI ratio near 1.53 over the last ten quarters.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth reaccelerated to 22.0% in 2026Q3 on approximately $1.6B of quarterly revenue, but operating margin fell to 26.2% from 33.8% five quarters earlier and gross margins swung within a 1,240 basis point range (83.8% to 96.2%) on Palladium/Protium hardware delivery timing, suggesting reported profitability is partly a mix artifact.
Cadence is a leading provider of electronic design automation (EDA) and Intelligent System Design solutions, offering hardware, software, and IP for electronic design.
The company has a wide moat, as evidenced by its strong market position and competitive advantages in the EDA and system design industry.
Cadence is a market leader in AI and digital twins, leveraging computational software to drive innovation and streamline processor development.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 26, 2026 | $2.11+2.9% vs $2.05 | $1.6B+1.3% vs $1.6B |
Q3 2026 Jul 27, 2026 | $2.11+2.9% vs $2.05 | $1.6B+0.5% vs $1.6B |
Q2 2026 Apr 27, 2026 | $1.96+2.6% vs $1.91 | $1.5B+1.2% vs $1.5B |
Q1 2026 Feb 17, 2026 | $1.99+4.2% vs $1.91 | $1.4B+1.1% vs $1.4B |
Robotics is poised for robust long-term growth. Consider OMCL, SNPS, CDNS and MCHP for potential market dominance across sectors.
Cadence (CDNS) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Semiconductor sales are poised to surge, driven by rising demand for chips across multiple applications. Nvidia, Broadcom, and Micron dominate their respective semiconductor niches, and they are trading attractively right now.
CDNS' AI-driven growth, record $8.2 billion backlog and strong cash flow bolster its outlook, but premium valuation and margin pressure raise concerns.
Benchmark CDNS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Cadence Design Systems, Inc. (CDNS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $319.92 | $88.24B | 78.80 | 14.12% | 20.94% | 21.85% | — | |
| $450.46 | $86.25B | 56.03 | 15.12% | 11.43% | 3.57% | — | |
| $210.98 | $16.1B | -289.01 | 32.58% | 20.7% | 17.09% | — | |
| $32.40 | $5.33B | 15.21 | 16.61% | 16.86% | 45.3% | 0.26% | |
| $195.07 | $22.53B | 32.08 | 19.18% | 41.43% | 32.64% | — | |
| $186.64 | $4.52T | 38.09 | 65.47% | 63.66% | 110.11% | 0.02% |
Cadence Design Systems, Inc. (CDNS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Cadence Design Systems, Inc. (CDNS) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 26, 2026·SEC
Jul 27, 2026·SEC
May 12, 2026·SEC
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Cadence Design Systems, Inc. (CDNS) stock FAQ — growth, dividends, profitability & financials explained
Cadence Design Systems, Inc. (CDNS) reported $6.13B in revenue over the trailing twelve months. Revenue was $5.30B in fiscal year 2025. That is 614% more than the $741.5M of fiscal year 1996.
Cadence Design Systems, Inc. (CDNS) grew revenue by 14.1% in fiscal year 2025, compared with the prior fiscal year.
Yes. Cadence Design Systems, Inc. (CDNS) earned $1.38B in net income over the trailing twelve months (a 22.5% net margin).
Cadence Design Systems, Inc. (CDNS) had a return on equity (ROE) of 21.9% in fiscal year 2025. That is well above the market's typical 10-15%.
Cadence Design Systems, Inc. (CDNS) generated $1.76B in free cash flow over the trailing twelve months.
