Cadence vs Cloudflare
This page compares Cadence and Cloudflare, examining their business models, financial performance, and market context in a clear, neutral way. It presents distinctions and similarities to help readers understand the landscape without speculation. Educational content, not financial advice.
This page compares Cadence and Cloudflare, examining their business models, financial performance, and market context in a clear, neutral way. It presents distinctions and similarities to help readers...
Why It's Moving
Institutional investors pile into Cadence Design Systems amid analyst optimism ahead of earnings.
- Principal Financial Group boosted its CDNS holdings on February 1, while Arjuna Capital surged its stake by 404.8% to $1.63 million as of February 2, reflecting strong institutional interest.
- Wall Street maintains a 'Moderate Buy' consensus from 13 Buy and 4 Hold ratings, with an average price target of $379.59 versus recent levels near $296.
- Upcoming Q4 earnings on February 17 project $1.90 EPS and $1.42 billion revenue, building on Cadence's streak of beating estimates in the last four quarters.
Cloudflare Surges on Strategic Acquisitions Fueling Developer and AI Growth
- Acquired Astro Technology on January 16 to supercharge developer tools, sparking immediate optimism and a stock gap-up from $173.44 to $184.90 premarket.
- Snapped up Human Native, an AI data marketplace, bolstering Cloudflare's ecosystem for content creators and AI firms in a high-growth niche.
- Analysts upbeat with Moderate Buy consensus and targets around $232, ahead of Q4 earnings on February 10 eyed for 42% EPS growth and 28% revenue jump.
Institutional investors pile into Cadence Design Systems amid analyst optimism ahead of earnings.
- Principal Financial Group boosted its CDNS holdings on February 1, while Arjuna Capital surged its stake by 404.8% to $1.63 million as of February 2, reflecting strong institutional interest.
- Wall Street maintains a 'Moderate Buy' consensus from 13 Buy and 4 Hold ratings, with an average price target of $379.59 versus recent levels near $296.
- Upcoming Q4 earnings on February 17 project $1.90 EPS and $1.42 billion revenue, building on Cadence's streak of beating estimates in the last four quarters.
Cloudflare Surges on Strategic Acquisitions Fueling Developer and AI Growth
- Acquired Astro Technology on January 16 to supercharge developer tools, sparking immediate optimism and a stock gap-up from $173.44 to $184.90 premarket.
- Snapped up Human Native, an AI data marketplace, bolstering Cloudflare's ecosystem for content creators and AI firms in a high-growth niche.
- Analysts upbeat with Moderate Buy consensus and targets around $232, ahead of Q4 earnings on February 10 eyed for 42% EPS growth and 28% revenue jump.
Investment Analysis
Cadence
CDNS
Pros
- Cadence maintains a leading position in electronic design automation, with a record $7 billion backlog signaling robust demand for its high-value design software.
- Operational efficiency is strong, with expanding GAAP and non-GAAP margins and a 30%+ return on equity, reflecting disciplined cost management and pricing power.
- The company has raised full-year guidance, projects solid revenue growth, and has nearly half its backlog convertible to revenue within 12 months, providing visibility.
Considerations
- Recent quarterly revenue narrowly missed consensus estimates despite healthy growth, raising concerns about near-term top-line momentum in a competitive sector.
- Cadence’s valuation multiples are elevated relative to peers, with a price-to-earnings ratio above 80, potentially limiting upside if growth moderates.
- The stock exhibits higher volatility and has faced selling pressure after earnings, with technical indicators suggesting near-term bearish sentiment among traders.
Cloudflare
NET
Pros
- Cloudflare operates in the rapidly expanding edge computing and cybersecurity markets, with its global network well-positioned to capitalise on rising demand for internet infrastructure.
- The company benefits from high gross margins and recurring revenue streams, typical of leading SaaS businesses, providing stability in uncertain economic environments.
- Cloudflare continues to innovate with new products and services, such as zero trust security and serverless compute, driving customer acquisition and retention.
Considerations
- Despite strong top-line growth, Cloudflare remains unprofitable on a GAAP basis, relying on scale to achieve eventual profitability, which may test investor patience.
- Competition in its core markets is intensifying, with major tech firms and specialised rivals investing heavily in overlapping cloud and security offerings.
- Cloudflare’s valuation reflects aggressive growth expectations, leaving limited room for error if product adoption or margin expansion disappoints in future quarters.
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Cadence (CDNS) Next Earnings Date
Cadence Design Systems (CDNS) is estimated to report its next earnings on February 17, 2026, covering the fiscal quarter ending December 2025. This date aligns with the company's historical pattern of mid-February releases for Q4 results, though it remains unconfirmed officially. Investors should monitor for updates as the date approaches.
Cloudflare (NET) Next Earnings Date
Cloudflare's next earnings date is Tuesday, February 10, 2026, after market close, covering the fourth quarter ended December 31, 2025. The company officially announced this date on January 15, 2026, with a conference call scheduled at 5:00 p.m. Eastern time. This follows their historical pattern of early February releases for Q4 results.
Cadence (CDNS) Next Earnings Date
Cadence Design Systems (CDNS) is estimated to report its next earnings on February 17, 2026, covering the fiscal quarter ending December 2025. This date aligns with the company's historical pattern of mid-February releases for Q4 results, though it remains unconfirmed officially. Investors should monitor for updates as the date approaches.
Cloudflare (NET) Next Earnings Date
Cloudflare's next earnings date is Tuesday, February 10, 2026, after market close, covering the fourth quarter ended December 31, 2025. The company officially announced this date on January 15, 2026, with a conference call scheduled at 5:00 p.m. Eastern time. This follows their historical pattern of early February releases for Q4 results.
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Figma's upcoming IPO is creating waves in the tech industry. This collection features companies positioned to benefit from growing demand for digital collaboration tools and a revitalized tech IPO landscape, carefully selected by our expert analysts.
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Explore BasketWhich Baskets Do They Appear In?
The Figma Effect: Investing in Collaborative Tech
Figma's upcoming IPO is creating waves in the tech industry. This collection features companies positioned to benefit from growing demand for digital collaboration tools and a revitalized tech IPO landscape, carefully selected by our expert analysts.
Published: July 2, 2025
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