CDNS
Cadence Design Systems Inc
NASDAQ: CDNS · TECHNOLOGY · SOFTWARE - APPLICATION
$384.96
+0.32% today
Updated 2026-06-12
Market cap
$114.85B
P/E ratio
96.61
P/S ratio
20.77x
EPS (TTM)
$4.31
Dividend yield
—
52W range
$263 – $417
Volume
2.4M
Cadence Design Systems Inc (CDNS) Financial Forecast & Price Target 2030
Research-backed projections from analyst consensus, management guidance, and sector analysis.
Research-backed CDNS price target 2030 projection accounting for share dilution, balance sheet debt, and time value of money.
Current price
$384.96
Today
Analyst consensus
$380.59
-1.14% · 12M
2030 Base
$441.11
+14.59% future
NPV today
$276.07
@ 11% WACC
30 analysts:
14 Buy3 Hold0 Sell
Management guidance
In Q1 2026 earnings (April 27, 2026), Cadence raised FY2026 revenue guidance to $6.29B (18.7% YoY growth from $5.30B in 2025), with EPS guidance of $8.15. Management cited sustained AI chip-design demand, record backlog, and multi-year customer commitments as drivers. CEO Anirudh Devgan highlighted AI adoption across hyperscalers (Meta, Google, Microsoft, NVIDIA) and automotive/industrial segments as structural growth tailwinds through 2028+.
Sources: Management guidance, analyst consensus, sector analysishigh confidence
CDNS · Cadence Design Systems Inc · Revenue & price projection · 2023–2030E
Actual / 2030 target Projected revenue Base case price Bull to bear range
Bear case (2030)
$205.61
NPV today: $128.68
Base case (2030)
$441.11
NPV today: $276.07
Bull case (2030)
$817.91
NPV today: $511.90
WallStSmart.com
CDNS financial forecast · Research-backed projections
| Metric | 2025 | 2026 (E) | 2027 (E) | 2028 (E) | 2029 (E) | 2030 (E) ★ |
|---|---|---|---|---|---|---|
| Revenue | $5.3B | $6.3B | $7.9B | $9.7B | $11.5B | $13.2B |
| Revenue growth | 14.1% | 18.7% | 25.6% | 22.2% | 18.9% | 15.0% |
| Net margin | — | 35.9% | 36.0% | 37.0% | 36.8% | 36.9% |
| EPS | $7.14 | $8.15 | $10.25 | $12.80 | $15.10 | $17.40 |
| Diluted shares | — | 277M | 278M | 279M | 279M | 280M |
| Net debt | — | $1.53B | $343.34M | $-1.11B | $-2.84B | $-4.82B |
| P/S multiple | — | 9.0x | 9.0x | 9.0x | 9.0x | 9.0x |
| Implied price (base) | — | $198.89 | $254.75 | $315.74 | $379.92 | $441.11 |
★ 2030E is the model's terminal target year. Implied price = (Revenue × P/S − Net debt) ÷ Diluted shares.
Scenario detail · Three drivers, three outcomes
| 2030E driver | Bear | Base | Bull |
|---|---|---|---|
| Revenue | $13.2B | $13.2B | $13.2B |
| P/S multiple | 4.0x | 9.0x | 17.0x |
| Diluted shares | 280M | 280M | 280M |
| Net debt | $-4.82B | $-4.82B | $-4.82B |
| Implied P/E † | 12x | 25x | 47x |
| 2030 Price | $205.61 | $441.11 | $817.91 |
| NPV @ 11% | $128.68 | $276.07 | $511.90 |
† Implied P/E: Multiples remain elevated across all three scenarios because CDNS is valued primarily on revenue scale during its growth phase, not near-term earnings power. Lower P/E in the bear case reflects multiple compression, but the absolute level stays high since 2030E still represents a hypergrowth-to-mature transition year.
EV to per-share bridge · How we get to $441.11 base case
CDNS catalysts and risks
Growth catalysts
+ AI chip design acceleration: Meta ($60B AI capex), Microsoft ($80B AI), Google, NVIDIA all drive EDA tool demand through 2028
+ Record backlog & RPO conversion: Backlog mentioned as 'record' in Q1 2026; multi-year SaaS contracts provide revenue visibility
+ Hexagon acquisition completion (Feb 2026) adds multiphysics simulation, expanding TAM into system-level design; cross-sell opportunities
+ ANSYS acquisition by Cadence (UK regulatory approval May 2026, $35B deal) will consolidate EDA + simulation market, driving synergy revenue by 2027+
+ Automotive & industrial AI adoption: autonomous vehicles, robotics, power electronics drive design complexity and tool spend
+ Market consolidation: Synopsys completed ANSYS merger; Cadence ANSYS deal reduces competitive fragmentation, supports pricing power
Key risks
- Semiconductor cycle downturn: EDA revenue is cyclical with chip capex; macro slowdown could compress customer spending 2027-2028
- ANSYS integration execution: $35B acquisition requires successful product/customer integration; synergy realization risk if execution falters
- Customer concentration: Hyperscalers (Meta, Google, Microsoft, NVIDIA) likely represent 40%+ of bookings; geopolitical restrictions on chip exports to China could reduce TAM by 15-20%
- Competition from Synopsys (post-ANSYS) and emerging players; pricing pressure if AI design tool market matures faster than expected
- Valuation compression: Current P/E 82.7x and PEG 2.49 imply very high growth expectations already priced in; multiple contraction if growth decelerates below 25% in 2027-2028
Methodology · Cadence Design Systems Inc 2030 stock forecast model
Cadence Design Systems Inc 2030 price target is calculated using WallStSmart's research model. Revenue projections are derived from analyst consensus across 30 Wall Street analysts, management guidance from the latest earnings call, and sector growth forecasts. The model is built on five core components:
| 1. Share dilution | Projected from per-ticker schedule of SBC + equity raise activity, compounding year by year (2% cumulative for CDNS by 2030) |
| 2. Net debt | EV minus net debt yields equity value; debt projected from capex cycle trajectory ($-4.82B by 2030) |
| 3. Time value | NPV calculated using 11% WACC (CAPM: beta 1.131) |
| 4. Multiple framework | P/S compresses with scale: bear 4.0x / base 9.0x / bull 17.0x |
| 5. Scenario design | Bull/Base/Bear vary revenue, margin, shares, debt, and multiple independently |
WallStSmart research model · Not financial advice · Past performance is not indicative of future results · Last researched: May 20, 2026.
CDNS price target FAQ
What is the CDNS price target for 2030?
WallStSmart's Cadence Design Systems Inc 2030 base case is $441.11 per share, with a bull case of $817.91 and bear case of $205.61. The NPV of the base case discounted to today at 11% WACC is $276.07.
How is the Cadence Design Systems Inc 2030 stock forecast calculated?
The CDNS 2030 projection multiplies projected revenue by a growth-adjusted P/S multiple to derive enterprise value, subtracts projected net debt to get equity value, then divides by diluted shares outstanding accounting for dilution from stock-based compensation and equity raises.
Why does the CDNS price target account for dilution?
Cadence Design Systems Inc is projected to grow diluted share count from 276M to 280M by 2030 (a 2% increase) through stock-based compensation and capital raises. Ignoring this would inflate the price target by approximately 2%.
What is the analyst consensus on CDNS stock?
30 analysts cover CDNS with an average 12-month price target of $380.59. The 2030 projection extends this framework with longer-horizon assumptions including dilution and time value of money.