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...

Comparison Snapshot

Key Financial Metrics

CDNS

Metric

NET

$87.65B

Market Cap

$66.33B

20.59%

Potential Profit

14.39%

Buy

Analyst Rating

Buy

Why It's Moving

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Recent trading showed a strong +2.23% gain to $313.84, signaling investor confidence despite modest weekly moves of 0.3%.
Analysts project Q4 EPS of $1.91 and revenue of $1.42B, up 1.06% and 5.02% year-over-year, highlighting growth in AI-driven design software.
Institutional shifts continue, with some funds trimming stakes while others boost holdings, underscoring Cadence's key position in the semiconductor ecosystem.

Sentiment:

🐃Bullish

Cloudflare Shares Surge 8.85% as AI Acquisitions and Analyst Upgrades Fuel Momentum

Stock jumped 8.85% to an intraday high of $193.69, driven by optimism around recent acquisitions bolstering AI data marketplaces and high-performance web frameworks.
DZ Bank upgraded shares from sell to hold with a $237 target, while Citizens reiterated Market Outperform at $270, highlighting Cloudflare's edge in agentic AI architectures.
Expanded JD Cloud tie-up slashes AI latency by up to 80%, opening doors to Chinese markets and underscoring robust demand from account executives exceeding Q4 quotas.

Sentiment:

🐃Bullish

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Recent trading showed a strong +2.23% gain to $313.84, signaling investor confidence despite modest weekly moves of 0.3%.
Analysts project Q4 EPS of $1.91 and revenue of $1.42B, up 1.06% and 5.02% year-over-year, highlighting growth in AI-driven design software.
Institutional shifts continue, with some funds trimming stakes while others boost holdings, underscoring Cadence's key position in the semiconductor ecosystem.

Sentiment:

🐃Bullish

Cloudflare Shares Surge 8.85% as AI Acquisitions and Analyst Upgrades Fuel Momentum

Stock jumped 8.85% to an intraday high of $193.69, driven by optimism around recent acquisitions bolstering AI data marketplaces and high-performance web frameworks.
DZ Bank upgraded shares from sell to hold with a $237 target, while Citizens reiterated Market Outperform at $270, highlighting Cloudflare's edge in agentic AI architectures.
Expanded JD Cloud tie-up slashes AI latency by up to 80%, opening doors to Chinese markets and underscoring robust demand from account executives exceeding Q4 quotas.

Sentiment:

🐃Bullish

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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About The Companies

Cadence (CDNS)

Cadence Design Systems (CDNS) is a leading provider of electronic‑design automation (EDA) software and semiconductor IP used to design, verify and optimise chips and complex electronic systems. Investors should know Cadence benefits from secular trends — rising chip complexity, AI acceleration and growing demand for custom silicon — which support steady software licence and subscription revenue. The company combines product sales, recurring licences, and professional services, and has a strong position with major semiconductor and systems companies. That said, Cadence’s business is sensitive to semiconductor industry cycles, capital spending patterns and long sales cycles for large design projects. Financial performance can fluctuate with macro conditions, and past performance is no guarantee of future returns. This summary is for educational purposes only and not personalised investment advice; consider your own situation and consult a financial professional before acting.

Cloudflare (NET)

Cloudflare, Inc. (NET) operates a global network that accelerates and protects internet applications. Its services include a content delivery network (CDN), DDoS protection, managed DNS, Zero Trust security, and edge computing products such as Workers. The company monetises traffic and security features via subscription and usage-based plans, serving customers from small websites to large enterprises. Investors watch Cloudflare for its high revenue growth potential tied to rising internet traffic, cloud adoption and security needs, but also for competitive pressure from large cloud providers and specialist security firms. Profitability and free-cash-flow trends matter as the business scales and invests in infrastructure. Valuation can reflect both growth expectations and the durability of its margins. Consider investment suitability carefully: this is general information only and not personalised advice. Stock prices can be volatile and past performance is not a reliable indicator of future results.

Cadence (CDNS) Next Earnings Date

Cadence Design Systems is scheduled to report its next earnings on February 17, 2026, covering the fourth quarter and full fiscal year 2025. The company will conduct a conference call following the announcement to discuss financial results and forward guidance. Analysts are currently projecting earnings per share of approximately $1.90 for this reporting period. This earnings release represents the company's first major report following its strong Q3 2025 performance in October.

Cloudflare (NET) Next Earnings Date

Cloudflare's next earnings date is expected on February 10, 2026, covering the fourth quarter of 2025 ending December. This date aligns with consensus estimates from multiple analyst sources, following the company's historical pattern of early February releases for Q4 results. Investors should monitor official announcements for any updates.

Cadence (CDNS) Next Earnings Date

Cadence Design Systems is scheduled to report its next earnings on February 17, 2026, covering the fourth quarter and full fiscal year 2025. The company will conduct a conference call following the announcement to discuss financial results and forward guidance. Analysts are currently projecting earnings per share of approximately $1.90 for this reporting period. This earnings release represents the company's first major report following its strong Q3 2025 performance in October.

Cloudflare (NET) Next Earnings Date

Cloudflare's next earnings date is expected on February 10, 2026, covering the fourth quarter of 2025 ending December. This date aligns with consensus estimates from multiple analyst sources, following the company's historical pattern of early February releases for Q4 results. Investors should monitor official announcements for any updates.

Which Baskets Do They Appear In?

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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.

Published: July 2, 2025

Explore Basket

Which 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

Explore Basket

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Comparison Snapshot

Why It's Moving

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Cloudflare Shares Surge 8.85% as AI Acquisitions and Analyst Upgrades Fuel Momentum

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Cloudflare Shares Surge 8.85% as AI Acquisitions and Analyst Upgrades Fuel Momentum