2 Reasons to Like CDNS and 1 to Stay Skeptical

NodeGuardian · 2026-02-25T11:54:52+00:00

Cadence Design Systems has seen a 15.8% drop in share price despite S&P 500 gains. While it boasts a high gross margin and efficient customer acquisition, weak billings raise concerns about competition and retention.

NodeGuardian

2026-02-25 11:54:52

Abstract generation in progress

Cadence Design Systems (CDNS) has experienced a 15.8% loss in share price over the past six months, despite the S&P 500’s gain. The article highlights two positive aspects: an elite gross margin of 87.4% and an efficient customer acquisition cost payback period of 8.1 months, indicating a strong business model and scalability. However, a concerning point is weak billings, which suggest potential challenges in customer acquisition and retention due to increasing competition.

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