Cadence Design Systems, Inc. logo

Cadence Design Systems, Inc.

CDNS

NASDAQTechnologySoftware - Application

Previous close

$319.02

+$5.43 · +1.73%

Aug 21, 4:00 PM ET

CDNS company overview

Regular session · ET · Market data may be delayed.

GoAI snapshot

AI-powered factor overview

Jul 10, 2026

GoAI score

Hold

Wait — insufficient conviction to act

Valuation

26

Expensive

Momentum

48

Neutral

Sentiment

62

Bullish

Risk resilience

64

Moderate Risk

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Company profile

Company website

Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. is headquartered in San Jose, California.

Industry
Software - Application
Sector
Technology
Headquarters
US
CEO
Anirudh Devgan
Listed since
Jun 10, 1987
Employees
13,800

Market position

Day range

Current $319.02

52-week range

Current $319.02

Open
$314.49
Previous close
$313.59
Volume
2.15M
0.89× average
Average volume
2.41M
Average daily volume
Market cap
87.86B USD
Beta
1.14
Market reference 1
50-day average
$353.85
-9.84% below average
200-day average
$327.08
-2.46% below average

Financials

Financial snapshot

Latest / TTM

Valuation & yield

Enterprise value
84.29B USD
P/E (TTM)
63.05×
P/B (TTM)
12.7×
P/S (TTM)
15.05×
EV / EBITDA
45.02×
Earnings yield
1.31%
Free cash flow yield
1.87%
Dividend yield
0.00%

Profitability & efficiency

Gross margin
88.50%
Operating margin
30.83%
Net margin
23.61%
Return on equity
20.26%
Return on assets
10.92%
Return on invested capital
14.11%

Financial health

Debt / equity
0.36×
Current ratio
2.86×

Financial statements

Margin trends

Profitability as a percentage of reported revenue.

Gross marginOperating marginNet margin
Gross, operating, and net margin trends97%69%42%14%Gross margin, FY2021: 89.73%Gross margin, FY2022: 89.57%Gross margin, FY2023: 89.36%Gross margin, FY2024: 86.05%Gross margin, FY2025: 86.36%Operating margin, FY2021: 26.07%Operating margin, FY2022: 30.15%Operating margin, FY2023: 30.59%Operating margin, FY2024: 29.10%Operating margin, FY2025: 31.15%Net margin, FY2021: 23.29%Net margin, FY2022: 23.84%Net margin, FY2023: 25.46%Net margin, FY2024: 22.74%Net margin, FY2025: 20.94%FY2021FY2022FY2023FY2024FY2025
Gross margin FY2021 89.73%. Gross margin FY2022 89.57%. Gross margin FY2023 89.36%. Gross margin FY2024 86.05%. Gross margin FY2025 86.36%. Operating margin FY2021 26.07%. Operating margin FY2022 30.15%. Operating margin FY2023 30.59%. Operating margin FY2024 29.10%. Operating margin FY2025 31.15%. Net margin FY2021 23.29%. Net margin FY2022 23.84%. Net margin FY2023 25.46%. Net margin FY2024 22.74%. Net margin FY2025 20.94%.

Income trends

Revenue

5.3B USD+14.12%

Operating income

1.65B USD+22.14%

Net income

1.11B USD+5.06%
Income trends across reported periods5.76B USD3.92B USD2.08B USD235.87M USDRevenue, FY2021: 2.99B USDRevenue, FY2022: 3.56B USDRevenue, FY2023: 4.09B USDRevenue, FY2024: 4.64B USDRevenue, FY2025: 5.3B USDOperating income, FY2021: 779.09M USDOperating income, FY2022: 1.07B USDOperating income, FY2023: 1.25B USDOperating income, FY2024: 1.35B USDOperating income, FY2025: 1.65B USDNet income, FY2021: 695.96M USDNet income, FY2022: 848.95M USDNet income, FY2023: 1.04B USDNet income, FY2024: 1.06B USDNet income, FY2025: 1.11B USDFY2021FY2022FY2023FY2024FY2025
Revenue FY2021 2.99B USD. Revenue FY2022 3.56B USD. Revenue FY2023 4.09B USD. Revenue FY2024 4.64B USD. Revenue FY2025 5.3B USD. Operating income FY2021 779.09M USD. Operating income FY2022 1.07B USD. Operating income FY2023 1.25B USD. Operating income FY2024 1.35B USD. Operating income FY2025 1.65B USD. Net income FY2021 695.96M USD. Net income FY2022 848.95M USD. Net income FY2023 1.04B USD. Net income FY2024 1.06B USD. Net income FY2025 1.11B USD.
Metric (USD)FY2025FY2024FY2023FY2022FY2021
Revenue5.3B USD4.64B USD4.09B USD3.56B USD2.99B USD
Cost of goods sold722.25M USD647.5M USD435.04M USD371.62M USD307.01M USD
Gross profit4.57B USD3.99B USD3.65B USD3.19B USD2.68B USD
Research and development1.77B USD1.55B USD1.44B USD1.25B USD1.13B USD
Selling, general, and administrative1.12B USD1.03B USD932.75M USD846.34M USD749.28M USD
Operating expenses2.92B USD2.64B USD2.4B USD2.12B USD1.9B USD
Interest income101.58M USD62.48M USD29.64M USD10.1M USD2.63M USD
Interest expense116.54M USD76M USD36.19M USD22.93M USD16.98M USD
Depreciation and amortization233.84M USD195.02M USD145.74M USD135.43M USD130.7M USD
Operating income1.65B USD1.35B USD1.25B USD1.07B USD779.09M USD
Net income1.11B USD1.06B USD1.04B USD848.95M USD695.96M USD

Company facts updated Aug 24, 2026.

Earnings

EPS beat rate
100%
11 beats, 0 misses, 0 met estimates
Average EPS surprise
+5.06%
11 comparable reports
Latest EPS result
2.11
Estimate 2.05 · Beat by 2.93%

EPS: actual versus estimate

Recent quarterly results

ActualEstimate
Quarterly EPS actual values compared with estimates2.191.931.671.41Q1 '25BeatQ2 '25BeatQ3 '25BeatQ4 '25BeatQ1 '26BeatQ2 '26BeatQ3 '26BeatQ4 '26Estimate
Q1 2025, reported Feb 18, 2025: actual 1.88, estimate 1.82, surprise +3.30%, Beat. Q2 2025, reported Apr 28, 2025: actual 1.57, estimate 1.49, surprise +5.37%, Beat. Q3 2025, reported Jul 28, 2025: actual 1.65, estimate 1.56, surprise +5.77%, Beat. Q4 2025, reported Oct 27, 2025: actual 1.93, estimate 1.79, surprise +7.82%, Beat. Q1 2026, reported Feb 17, 2026: actual 1.99, estimate 1.91, surprise +4.19%, Beat. Q2 2026, reported Apr 27, 2026: actual 1.96, estimate 1.91, surprise +2.62%, Beat. Q3 2026, reported Jul 27, 2026: actual 2.11, estimate 2.05, surprise +2.93%, Beat. Q4 2026, reported Oct 26, 2026: actual —, estimate 2.04, surprise —, Comparison unavailable.

Revenue: actual versus estimate

Recent quarterly results

ActualEstimate
Quarterly Revenue actual values compared with estimates1.68B1.51B1.34B1.18BQ1 '25BeatQ2 '25BeatQ3 '25BeatQ4 '25BeatQ1 '26BeatQ2 '26BeatQ3 '26BeatQ4 '26Estimate
Q1 2025, reported Feb 18, 2025: actual 1.36B USD, estimate 1.35B USD, surprise +0.75%, Beat. Q2 2025, reported Apr 28, 2025: actual 1.24B USD, estimate 1.24B USD, surprise +0.20%, Beat. Q3 2025, reported Jul 28, 2025: actual 1.28B USD, estimate 1.25B USD, surprise +2.04%, Beat. Q4 2025, reported Oct 27, 2025: actual 1.34B USD, estimate 1.32B USD, surprise +1.21%, Beat. Q1 2026, reported Feb 17, 2026: actual 1.44B USD, estimate 1.42B USD, surprise +1.13%, Beat. Q2 2026, reported Apr 27, 2026: actual 1.47B USD, estimate 1.46B USD, surprise +1.24%, Beat. Q3 2026, reported Jul 27, 2026: actual 1.58B USD, estimate 1.58B USD, surprise +0.48%, Beat. Q4 2026, reported Oct 26, 2026: actual —, estimate 1.61B USD, surprise —, Comparison unavailable.

Analyst ratings

Third-party consensus; not a GoAI recommendation.

Rating distribution

31 ratings
Strong buy00%
Buy2684%
Hold413%
Sell13%
Strong sell00%

Recent analyst actions

12 institutions

CDNS peers

ETFs holding CDNS

Funds reporting this stock among their holdings, ordered by reported position size.

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