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CDNS

Cadence DesignB
Nasdaq / Software & Services
Last Price
Quote time unavailable
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Current thesis
Q2 demonstrated broad-based growth, margin expansion and strong cash-generation expectations. Record backlog, $4.2 billion of performance obligations expected within 12 months and raised FY2026 guidance provide tangible support for continued growth, while AuraStack expands the AI-product narrative.
Posture
Constructive
Lead driver
Sentiment
What changed
Next scheduled catalyst: earnings 2026-10-26 · AMC.
What can break
AuraStack and broader AI demand are not separately quantified, limiting visibility into incremental monetization and durability.
Momentum
52
Value
50
Sentiment
63
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $350.00 · Bull $410.00 · Bear $245.00Analysis 2026-09-12; returns require an exact persisted reference.
Earnings
12 · Non-qualifying
Next 2026-10-26 · AMC
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-10-23 • Vendor: Data Vendor v1
Scores
As of 2026-10-23 • Model: HYBRID_IC_RP
AI Memo
As of 2026-09-12 • Model: RankAlpha Sentiment Codex
Earnings Setup
As of 2026-10-26 • RankAlpha AI
Investment thesis
As of 2026-10-23

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-10-23. Definitions

Supporting evidence
What
Grade B · Constructive
Confidence Medium · Net Neutral
Target $411.35
Why
Momentum52 · Δ7d +0.4
Value50 · Δ7d +0.2
Sentiment63 · Δ7d +1.2
So what
Strength-led posture (Net Neutral). Favor watchlist adds and disciplined entries.
Earnings surprise screen
12Non-qualifying2026-10-26 amc
View setup

The checked pre-event sources supplied an Oct 26 after-close calendar entry and consensus estimates, and noted prior-quarter beats, but they did not substantiate positive current estimate revisions or revenue upside; available tape evidence was insufficient to verify required close-location, accumulation, and risk checks.

Screen as of 2026-10-26. Window 2026-10-26 to 2026-10-30.

Confirming evidence

  • • Next scheduled catalyst: earnings 2026-10-26 · AMC.
  • • Pre-earnings setup: 12 / non-qualifying.
  • • Sentiment remains the lead driver in the composite, 7D delta +1.2.

Contradictions & invalidation

  • • AuraStack and broader AI demand are not separately quantified, limiting visibility into incremental monetization and durability.
  • • Competitive pressure from Synopsys, Siemens EDA and other company-identified competitors may require sustained product investment and could constrain pricing or share gains. [#10-K-2026-02-19]
  • • The stock already discounts substantial AI and backlog conversion.

Catalyst clock

2026-10-26 · AMC

Q2 results materially strengthened the 2026 outlook

Lead driver: Sentiment · See AI snapshot
Momentum
52
8% active weight
Current posture
7d trendImproving
Δ7d
+0.4
Δ21d
+49.4
Value
50
47% active weight
Current posture
7d trendFlat
Δ7d
+0.2
Δ21d
+0.6
Sentiment
63
45% active weight
Current posture
7d trendImproving
Δ7d
+1.2
Δ21d
+5.2
Why this grade

Composite grade B. Momentum 52.0 / Value 50.2 / Sentiment 62.9

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-09-12. Scenario method

B+
Bull case
25%
Probability
Target price
$410.00
Analysis reference price unavailable
Analysis 2026-09-12 · RankAlpha Sentiment Codex
Most likely
B
Base case
50%
Probability
Target price
$350.00
Analysis reference price unavailable
Analysis 2026-09-12 · RankAlpha Sentiment Codex
B-
Bear case
25%
Probability
Target price
$245.00
Analysis reference price unavailable
Analysis 2026-09-12 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-10-23
Market Cap
$87.16B
Beta
1.02
Shares Out
275.39M
P/E (TTM)
77.7
P/S (TTM)
15.73
P/FCF (TTM)
55.45
Rev YoY
+24.2%
EPS YoY
+126.6%
Gross Margin
+84.6%
Op Margin
+31.4%
Net Debt
-$489.2M
Current Ratio
1.74
As of 2026-10-23 • Updated nightlySource: Internal modelMethods & Data