Rosenblatt maintains Buy rating on Cadence Design Systems, $425 price target

Cadence Design Systems reported 3Q 2026 revenue of $1.63B, up 22% YoY, with net income of $289.75M and EPS of $1.05. Nine-month revenue also grew 22%, driven by software, hardware, and IP demand. Recurring revenue was 79% of total revenue, down from 82% YoY. Revenue increased 27% in the U.S. and 31% in EMEA, with China and Other Asia growing 4% and 29%, respectively. The company acquired Hexagon’s design and engineering business in February 2026.

Cadence Design Systems launched Maestro, AI models for chip design that run in customers' data centers, using Nvidia's Nemotron model. The company claims 30% better quality and 5x token efficiency, though unverified. Cadence reported Q3 2026 revenue of $1.633B, up 22%, and a 21% full-year growth outlook. Shares rose 3.9% post-announcement, according to Reuters.

Goldman Sachs notes optimism in AI sector but warns of credit market risks. Celestica (CLS) rose 17% after projecting $40B 2027 revenue, up 90% YoY. Cadence (CDNS) reported $8.2B backlog. Meta plans a $97.5B share sale. Broadcom arranges $63B financing for chip purchases. Elon Musk cautions about neocloud funding challenges.

Stifel reiterated a Buy rating and $432 price target on Cadence Design Systems (CDNS) after strong Q3 results. Revenue rose 22% YoY to $1.63B, beating estimates. Adjusted EPS was $2.11, above expectations. The company raised its fiscal 2026 outlook, now projecting $6.402B in revenue and $8.40 in adjusted EPS. Multiple analysts reiterated positive ratings and raised price targets.

Cadence Design Systems (CDNS) reported strong Q3 2026 results, with revenue of $1.63B (up 22% YoY) and EPS of $2.11, beating estimates. The company raised its full-year revenue guidance by $79M. StoneX reiterated a Buy rating and $450 price target, citing strong chip design activity and AI benefits. Analysts highlight 21% projected FY2026 revenue growth, but InvestingPro's Fair Value analysis suggests the stock is overvalued at $336.25.

KeyBanc reiterated an Overweight rating and $425 price target for Cadence Design Systems (CDNS) after strong Q3 results and raised full-year guidance. The company reported $1.63B revenue (up 22% YoY) and $2.11 EPS, exceeding estimates. Analysts cite robust fundamentals, AI-driven growth, and conservative guidance.