- Prev close
- $339.24
- Day range
- $335.58 – $348.12
- From 52-wk high
- -18.6%
- Next earnings
- in 79 days
Cadence slipped -1.1% in a session where the S&P 500 rose 1.4% and the Nasdaq 100 rose 1.8%, while peers were also higher, so the move looks stock-specific rather than a broad-market effect. The business still shows strong AI-driven growth, but a PE 67.2 and PEG 4.41 mean the bar is high and the setup is more mixed than cleanly reassuring.
CDNS
CADENCE DESIGN SYS INC
As of Aug 3, 2026
62/100
Worth keeping an eye onHealth ScoreWhy it moved
CDNS fell -1.1% even as the S&P 500 rose 1.1% and the Nasdaq 100 rose 1.1%, while same-sector peers were positive too: PLTR +2.1%, CRM +1.0%, APP +2.6%, and ADBE +0.4%. That points to a stock-specific drift rather than a market or sector move. The day’s intraday path also weakened from an open of $343.79 to a close of $336.15 after a high of $344.445 and a low of $331.675, which reads like steady selling rather than a clean rebound.
Normal volatility?
This looks like ordinary single-session volatility in a name that trades at a rich multiple, not evidence of fundamental deterioration. Growth is still strong at revenue +14.7% YoY (TTM), latest quarter +24.2% YoY, and EPS +36.0% YoY (TTM), while margins remain high at gross +85.9%, operating +30.3%, and net +23.6%. But valuation is demanding at PE 67.2, forward PE 37.3, and PEG 4.41 — a PEG of 4.41 means investors are paying 4.41x the growth rate, so strong growth is already well reflected in the price. Beta 1.15 also signals the shares can move a bit more than the market. Analyst consensus is still constructive at 9 strong-positive, 20 positive, 3 neutral, 0 negative, and 0 strong-negative, so the down move is not backed by a visible cut in third-party sentiment.
Earnings preview
The next earnings date is 2026-10-26. The facts here do not give consensus revenue or EPS expectations for that report, so I cannot cite a street forecast for the coming quarter. What the market will focus on is whether the Q2 theme — heightened demand for AI-powered electronic design automation, broad-based customer adoption, and progress in agentic AI — is holding up, whether latest-quarter revenue growth of +24.2% YoY can persist, and whether the company can keep operating margins near +30.3% and net margins near +23.6%. The recent note on Q2 said results reflected strong AI-driven demand, but no explicit post-earnings price reaction is provided in the facts, so there is not enough here to quantify the usual reaction pattern.
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