Cadence climbs as AI demand drives annual forecast hike
CDNS•Quarterly results and analyst commentary
Cadence reported second-quarter adjusted EPS of $2.11, beating analysts' average estimate of $2.05, according to data compiled by LSEG.
Piper Sandler said that while Cadence continues to impress, its higher valuation versus peers already prices in the "likelihood of great growth outcomes".
According to LSEG data, 24 of 26 brokerages rate the stock "buy" or higher, and the rest rate it "hold"; their median price target is $400.
As of the last close, the stock was up 8.3% year to date.
Cadence shares rise after raised forecast
Shares of chip design software provider Cadence Design rose 3.4% to $350 before the bell.
Cadence raised its 2026 revenue forecast to $6.26 billion-$6.34 billion, up from its prior outlook of $6.13 billion-$6.23 billion.
It expects adjusted EPS between $8.05 and $8.15, up from its previous forecast of $7.85-$7.95.
