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Friday 6 November 2026
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Cadence Design Systems, Inc.
CDNS Technology Software Application
Cadence Design Systems, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $5.3 billion, up 14.1% from fiscal 2024.
- Revenue
- +22.0%
- EPS
- −0.15%
- Free cash flow
- +30.7%
- Total debt
- +6.22%
Quarter to September 2026, against a year earlier
312.11
17.41
−5.28%
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Target Price Range
Analyst price targets
Free accountTen years at a glance Fiscal years to December
| Ten-year view | Analyst estimates Powerpack | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Group | Line | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM Sep ’26 | Trend | 10 yrs | 2026e | 2027e | 2028e | Next 3/yr |
| Income, $m | ||||||||||||||||||
| Income, $m | Revenue | 1,816 | 1,943 | 2,138 | 2,336 | 2,683 | 2,988 | 3,562 | 4,090 | 4,641 | 5,297 | 6,132 | +12.6% | 6,410 | 7,334 | 8,365 | +16.5% | |
| Gross margin, % | 85.88 | 87.78 | 87.90 | 88.60 | 88.61 | 89.73 | 89.57 | 89.36 | 86.05 | 86.36 | 85.68 | +0.5 pt | ||||||
| EBT | 237 | 315 | 376 | 479 | 633 | 768 | 1,045 | 1,282 | 1,396 | 1,522 | 1,840 | +22.9% | ||||||
| EBT margin, % | 13.06 | 16.21 | 17.60 | 20.50 | 23.58 | 25.72 | 29.35 | 31.34 | 30.07 | 28.74 | 30.00 | +15.7 pt | ||||||
| Net income | 203 | 204 | 346 | 989 | 591 | 696 | 849 | 1,041 | 1,055 | 1,109 | 1,381 | +20.8% | ||||||
| Per share, $ | ||||||||||||||||||
| Per share, $ | Revenue | 6.38 | 7.14 | 7.81 | 8.55 | 9.80 | 10.93 | 13.13 | 15.18 | 17.11 | 19.52 | 22.40 | +13.2% | |||||
| Earnings | 0.71 | 0.75 | 1.26 | 3.62 | 2.16 | 2.54 | 3.13 | 3.86 | 3.89 | 4.09 | 5.06 | +21.5% | ||||||
| Cash flow | 1.56 | 1.73 | 2.21 | 2.67 | 3.31 | 4.03 | 4.58 | 5.01 | 4.65 | 6.37 | 7.19 | +16.9% | ||||||
| Capex | (0.19) | (0.21) | (0.22) | (0.27) | (0.35) | (0.24) | (0.46) | (0.38) | (0.53) | (0.52) | (0.77) | +12.2% | ||||||
| Free cash flow | 1.38 | 1.52 | 1.98 | 2.40 | 2.96 | 3.78 | 4.12 | 4.63 | 4.12 | 5.85 | 6.42 | +17.4% | ||||||
| Book value | 2.61 | 3.64 | 4.71 | 7.70 | 9.11 | 10.02 | 10.12 | 12.64 | 17.23 | 20.18 | 25.12 | +25.5% | ||||||
| Shares, m | 285 | 272 | 274 | 273 | 274 | 274 | 271 | 269 | 271 | 271 | 273 | (0.5%) | ||||||
| Valuation, × | ||||||||||||||||||
| Valuation, × | P/E | 35.69 | 56.07 | 34.51 | 19.21 | 63.46 | 73.08 | 51.00 | 68.11 | 77.24 | 76.43 | 61.70 | 55.5 | |||||
| P/S | 3.97 | 5.89 | 5.57 | 8.11 | 13.92 | 17.06 | 12.16 | 17.32 | 17.56 | 16.01 | 13.93 | 11.8 | ||||||
| P/B | 9.72 | 11.57 | 9.24 | 9.01 | 14.98 | 18.60 | 15.77 | 20.80 | 17.44 | 15.49 | 12.43 | 14.3 | ||||||
| EV/Sales | 4.09 | 5.91 | 5.53 | 7.97 | 13.83 | 16.82 | 12.12 | 17.23 | 17.60 | 15.98 | 14.13 | 11.7 | ||||||
| EV/FCF | 18.96 | 27.81 | 21.75 | 28.43 | 45.81 | 48.52 | 38.62 | 56.52 | 73.06 | 53.34 | 49.31 | 41.3 | ||||||
| Cash, $m | ||||||||||||||||||
| Cash, $m | Operating cash flow | 445 | 471 | 605 | 730 | 905 | 1,101 | 1,242 | 1,349 | 1,261 | 1,729 | 1,968 | +16.3% | |||||
| Capex | (53) | (58) | (62) | (75) | (95) | (67) | (124) | (103) | (143) | (142) | (211) | +11.6% | ||||||
| Free cash flow | 392 | 413 | 543 | 655 | 810 | 1,034 | 1,118 | 1,247 | 1,118 | 1,587 | 1,756 | +16.8% | ||||||
| Balance, $m | ||||||||||||||||||
| Balance, $m | Working capital | 116 | 338 | 242 | 497 | 682 | 745 | 359 | 385 | 2,646 | 3,034 | 887 | +43.7% | |||||
| Net debt | 225 | 41 | (88) | (333) | (548) | (716) | (134) | (359) | (168) | (521) | 1,181 | n/m | ||||||
| Shareholders’ equity | 742 | 989 | 1,288 | 2,103 | 2,493 | 2,741 | 2,745 | 3,404 | 4,674 | 5,474 | 6,875 | +24.9% | ||||||
| Returns, % | ||||||||||||||||||
| Returns, % | ROA | 9.14 | 9.04 | 14.15 | 33.95 | 16.16 | 16.70 | 17.83 | 19.27 | 14.42 | 11.59 | 12.65 | +2.5 pt | |||||
| ROIC | 15.83 | 19.65 | 20.63 | 17.37 | 20.74 | 24.05 | 25.70 | 25.68 | 18.74 | 18.83 | 13.76 | +3.0 pt | ||||||
| ROE | 19.18 | 23.58 | 30.36 | 58.32 | 25.70 | 26.60 | 30.95 | 33.86 | 26.13 | 21.85 | 22.87 | +2.7 pt | ||||||
| People | ||||||||||||||||||
| People | Employees | 7,100 | 7,200 | 7,500 | 8,100 | 8,800 | 9,300 | 10,200 | 11,200 | 12,700 | 13,800 | — | +7.7% | |||||
| Revenue/emp, $m | 0.26 | 0.27 | 0.29 | 0.29 | 0.30 | 0.32 | 0.35 | 0.37 | 0.37 | 0.38 | — | +4.6% | ||||||
Negative figures in brackets.
estimates
Fiscal years to Dec 2025 · latest quarter Sep 2026 · fundamentals updated 2 Nov 2026
Business profile
Where the money comes from and where it goes Fiscal 2025
| Reportable Segment | 5,297 | 100.00% |
|---|---|---|
| Gross margin | 86.36% | |
| Operating margin | 28.17% | |
| Pre-tax margin | 28.74% |
Cadence Design Systems, Inc. vs peers in Software Application (Q) = latest quarter vs a year earlier
| Company | Market cap | P/E | Fwd P/E | Revenue growth (Q) | EPS growth (Q) | FCF growth (Q) | Gross margin (Q) | EBIT margin (Q) | Compare |
|---|---|---|---|---|---|---|---|---|---|
| UBER Uber Technologies, Inc. | $140.5B | 39.7× | 20.5× | +9.65% (above 0%: growing) | −91.22% (below 0%: shrinking) | +13.68% (above 0%: growing) | 43.46% | 9.80% | Compare |
| ADP Automatic Data Processing, Inc. | $121.3B | 27.1× | 23.8× | +6.10% (above 0%: growing) | +13.51% (above 0%: growing) | −4.05% (below 0%: shrinking) | 46.00% | 26.64% | Compare |
| NOW ServiceNow, Inc. | $106.3B | 73.1× | 73.2× | +20.52% (above 0%: growing) | −44.21% (below 0%: shrinking) | +31.46% (above 0%: growing) | 70.51% | 9.38% | Compare |
| ADBE Adobe Inc. | $95.9B | 13.7× | 13.7× | +12.89% (above 0%: growing) | +10.77% (above 0%: growing) | +14.68% (above 0%: growing) | 88.71% | 34.82% | Compare |
| SNOW Snowflake Inc. | $95.1B | — (loss-making) | — (loss-making) | +35.09% (above 0%: growing) | n/m | +47.23% (above 0%: growing) | 67.02% | (17.00%) | Compare |
| INTU Intuit Inc. | $94.8B | 21.4× | 16.8× | +13.65% (above 0%: growing) | −1.47% (below 0%: shrinking) | +253.37% (above 0%: growing) | 78.11% | 10.91% | Compare |
| CDNS Cadence Design Systems, Inc. | $85.5B | 61.7× | 67.7× | +21.99% (above 0%: growing) | −0.15% (below 0%: shrinking) | +30.67% (above 0%: growing) | 85.57% | 26.25% | |
| DDOG Datadog, Inc. | $62.7B | 237× | 431× | +35.16% (above 0%: growing) | +229.90% (above 0%: growing) | +17.14% (above 0%: growing) | 80.19% | 6.24% | Compare |
| MSTR Strategy Inc | $54.6B | — (loss-making) | — (loss-making) | −2.54% (below 0%: shrinking) | +413.76% (above 0%: growing) | +96.11% (above 0%: growing) | 71.46% | 16,670.88% | Compare |
| Median of peers | $95.5B | 33.4× | 22.2× | +13.27% | +10.77% | +24.30% | 70.99% | 10.36% |
From the latest earnings call
- CEO Anirudh Devgan said Cadence’s AI super agents had more than 100 active customer engagements and introduced Maestro models for chip and system design.
- CFO John Wall said hardware demand was supported by AI and high-performance computing customers, while delivery and installation schedules could make quarterly revenue uneven.
Largest institutional holders 13F, quarter to 30 June 2026
Held by institutions
87.90%
Held by the ten largest
42.13%
| Holder | Shares | Stake | Change |
|---|---|---|---|
| Vanguard | 27.89m | 10.13% | +218.32k |
| BlackRock | 26.66m | 9.68% | +1.21m |
| State Street | 13.03m | 4.73% | +539.37k |
| Fidelity (FMR) | 9.55m | 3.47% | +401.74k |
| Invesco | 8.98m | 3.26% | +163.88k |
| JPMorgan Chase | 7.87m | 2.86% | +1.32m |
| Geode Capital Management | 7.18m | 2.61% | −691.33k |
| Capital Group | 5.08m | 1.84% | +969.52k |
| VanEck | 4.89m | 1.78% | +874.39k |
| Wellington Management | 4.88m | 1.77% | −20.89k |
13F filings for the quarter to 30 June 2026: long positions in US-listed shares reported by managers with $100m or more, ~45 days after the quarter.
Pay and ownership Proxy statement filed 25 March 2026
Ownership
Directors and executive officers, together
less than 1%
The Vanguard Group
9.86%
BlackRock, Inc.
7.93%
Ownership is the proxy’s own table: the directors and officers as a group, and every holder of 5% or more.
Read the proxy statement
Cadence Design Systems, Inc. (CDNS) Latest News
2 Nov
28 Oct
27 Oct
26 Oct
24 Oct
CDNS metrics, ten years each
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Altman Z-score
- Beneish M-score
Cadence, founded in 1988 and headquartered in San Jose, develops computational, AI-driven software, accelerated hardware and silicon intellectual property (IP). Its customers are semiconductor companies designing and manufacturing integrated circuits, and systems companies making electromechanical products that contain semiconductors and other electronics.
The company’s tools help engineers design, test and verify chips and complete electronic systems before they are manufactured. Its Core EDA offering covers chip-design workflows, including analog, digital, mixed-signal, memory, radio-frequency and photonics devices. For example, Virtuoso supports custom and analog chip design, while Innovus supports the design and verification of large digital chips. Jasper and Xcelium address functional verification, which checks whether a chip’s physical implementation matches its intended behavior.