- Prev close
- $311.43
- Day range
- $306.93 – $320.55
CDNS is trading against a weak tape, but the move is modest at +0.5% and the underlying story is still driven by raised 2026 guidance, strong AI demand, and record $8.2 billion backlog; the setup looks solid but valuation and margin pressure keep it from reading as fully clean.
CDNS
CADENCE DESIGN SYS INC
As of Nov 2, 2026
66/100
Worth keeping an eye onHealth ScorePrimary driver
The move looks stock-specific rather than market-led: CDNS finished at +0.5% while the S&P 500 fell -1.8% and the Nasdaq 100 fell -3.5%. Same-sector peers were mixed to weaker, with PLTR -3.1% and CRM -1.3%, while ADBE was also +0.5% and INTU was +3.0%, so the session does not read like a broad software rally. The cleanest explanation is that the market is still digesting Cadence's raised 2026 outlook on strong AI demand and record $8.2 billion backlog.
Volatility check
This looks like ordinary volatility for a premium-valued software name, not a sign of deterioration: revenue is +17.6% YoY (TTM), the latest quarter was +22.0% YoY, and EPS is +29.8% YoY (TTM), while gross margin is +85.7%, operating margin is +28.9%, and net margin is +22.5%. The valuation is rich at PE 65.2, forward PE 34.1, and PEG 4.10 — the PEG is price/earnings divided by growth, so at 4.10 the market is already paying heavily for growth — which means even a modest move can happen without any fundamental break. Beta is 1.11, so the stock is a little more volatile than the market, but the recent move is still small relative to the strength in the operating figures and there is no sign in the facts of a cut consensus or margin collapse.
Earnings setup
The next earnings date isn't available this period, so I can't anchor the preview to a calendar date. The most relevant consensus backdrop is already in the facts: revenue +17.6% YoY (TTM), latest quarter +22.0% YoY, EPS +29.8% YoY (TTM), with gross margin +85.7%, operating margin +28.9%, and net margin +22.5%. The market will be focused on whether AI demand keeps supporting the raised 2026 revenue and earnings outlook, whether the record $8.2 billion backlog converts into realized growth, and whether rising costs and margin pressure remain contained; the only explicit historical clue in the facts is that Cadence has been strong over the long run, but no prior-print reaction is provided here.
This report is for informational and educational purposes only. It does not constitute financial, investment, tax, or legal advice. The platform does not recommend buying or selling any security.
Track CDNS with WhyIHold
Get a plain-English explanation the next time CADENCE DESIGN SYS INC makes a big move — so you know whether it's benign or worth your attention.