Cadence shares fall as Q4 profit forecast misses estimates

Cadence Design Systems

28/10/2025 11:38

** Shares of electronic systems designing co Cadence CDNS.O RIC fall nearly 2.2% to $343.66 in premarket

** Co forecasts fourth-quarter profit just shy of market estimates on Monday, as Sino-U.S. trade tensions threaten to hurt demand for its chip design software from the key market of China

** J.P. Morgan raises its PT to $405 from $390; maintains an "overweight" stance on the stock, says co’s bookings and backlog are sharply higher, with more growth expected as demand for advanced chip design accelerates

** Cadence’s investment in 3D solvers opens up a larger addressable market, and a shift toward more cyclically exposed names will further boost growth - JPM

** Co reported third-quarter revenue of $1.34 billion, beating estimates of $1.32 billion

** Average rating of 23 analysts is "buy"; median PT $395 - data compiled by LSEG

** As of last close, stock is up nearly 17% YTD

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))