How Is Cadence Design Systems’ Stock Performance Compared to Other Application Software Stocks

How Is Cadence Design Systems’ Stock Performance Compared to Other Application Software Stocks

Thu, September 3, 2026 at 1:37 PM GMT+3 2 min read

• CDNS -3.99%

San Jose, California-based Cadence Design Systems, Inc. (CDNS) is a technology company that provides AI-driven design and computational software for semiconductor and system innovation. With a market capitalization of approximately $86.2 billion, its solutions help leading companies design and develop next-generation chips and electronic systems across industries, including AI, automotive, aerospace, and robotics.

Companies worth $10 billion to $200 billion are generally described as "large-cap stocks," and Cadence Design Systems definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance within the software application industry. Cadence Design Systems stands out for its innovative AI-driven software, hardware, and semiconductor IP solutions. Its strong financial position, significant revenue growth, and expanding product portfolio support steady future revenue and strengthen its competitive position in the EDA market.

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Despite its notable strengths, CDNS has slipped 26.4% from its 52-week high of $416.69, reached on June 2, 2026. Over the past three months, CDNS stock has plunged 26.4%, underperforming the iShares Expanded Tech-Software Sector ETF (IGV), which has declined only 1.3% over the same period.

Shares of CDNS have declined 1.9% year-to-date, outperforming IGV's 2.2% decline. However, CDNS has declined 10.5% over the past 52 weeks, underperforming IGV's 3.6% gain over the same period.

While CDNS has traded above its 200-day moving average since late August, it has remained below its 50-day moving average since mid-July.

On July 27, CDNS shares rose about 3.8% after reporting its Q2 results. Its non-GAAP net income per share of $2.11 surpassed Wall Street expectations of $2.06, while the company's total revenue of $1.58 billion was in line with Wall Street forecasts.

In the competitive Application Software industry, top rival Salesforce, Inc. (CRM) has underperformed CDNS, plunging 3% year to date. However, CRM has shown resilience over the past 52 weeks, gaining 1.6% and outperforming CDNS.

Wall Street analysts are bullish on CDNS's prospects. The stock has a consensus "Strong Buy" rating from the 23 analysts covering it, while the mean price target of $409.18 implies 33.4% upside from current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com