- Prev close
- $302.95
- Day range
- $294.00 – $303.85
- From 52-wk high
- -27.3%
- Next earnings
- in 34 days
Cadence’s +2.7% move came alongside a company-specific product update on ChipStack AI Super Agent, while broader markets were broadly calm and peers were mixed; the larger picture remains supported by strong growth and margins, though the 59.3 P/E keeps the setup sensitive to execution.
CDNS
CADENCE DESIGN SYS INC
As of Sep 22, 2026
72/100
Looks healthyHealth ScoreMove driver
CDNS closed +2.7%, while the S&P 500 was -0.0% and the Nasdaq 100 was +0.8%, so the index tape does not explain the move. Same-sector peers were mixed, with PLTR +1.0%, CRM -1.3%, APP -0.4%, and ADBE -4.5%, which points away from a broad software rally and toward stock-specific news. The primary driver is Cadence’s own product announcement: it expanded ChipStack AI Super Agent with a new agent for RTL generation and early PPA optimization, a concrete company event that fits the session’s strength better than the market backdrop.
Volatility check
The move looks within the range of normal volatility for a higher-multiple software name, not a sign of fundamental deterioration. Revenue is +14.7% YoY (TTM) and latest quarter revenue is +24.2% YoY, with EPS +36.0% YoY (TTM), gross margin +85.9%, operating margin +30.3%, and net margin +23.6%; that is a strong operating profile. But valuation is rich at a PE of 59.3, forward PE of 37.3, and PEG of 4.41 — the PEG, or P/E divided by growth, says investors are paying 4.41x the growth rate, so good news is already priced in and the stock can swing more on sentiment. Beta is 1.10, and the analyst recommendation distribution is 9 strong-positive, 20 positive, 3 neutral, 0 negative, 0 strong-negative, which is supportive rather than deteriorating.
Earnings preview
The next earnings date is 2026-10-26. The facts do not include analyst consensus estimates for revenue or EPS, so I cannot quote a forecasted growth rate or margin expectation for the coming print. What the market is likely to focus on is whether the AI-design workflow update translates into durable demand, whether revenue growth can stay near the latest quarter’s +24.2% YoY pace, and whether margins can hold near the TTM levels of +85.9% gross, +30.3% operating, and +23.6% net. Prior post-earnings reaction data are not provided here, so that pattern is unavailable this period.
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