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. In the quarter to June 2026, revenue grew 24.2%, EPS grew 127.1%, free cash flow grew 72.5% and total debt was flat, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; revenue growth for ten consecutive years.

319.51 4.87 −1.50%
Market cap
$89.3B
P/E
63.1×
Fwd P/E
83.7×
Dividend yield
—
F-score
5/9
Altman Z
13.22
Beneish M
−2.43
Dividend safety
n/a

Insider Decisions trades per month

Total sells 103.45
Totals in millions of $.
Dec 25 Mar 26 Jun 26 Sep 26
Buy — — — — — — — — — — — —
Sell 3 7 2 1 1 2 6 6 2 4 2 1
Insider Ownership 0.00%

Capital & Financial Ratios $m

Market Cap 89,330.00
Revenue 5,837.62
Net Income 1,377.99
Free Cash Flow 1,671.55
Net Debt 1,041.76
Current Ratio 1.74 (at or above 1.5: strong)
Debt/Equity 0.36 (at or below 0.5: strong)
P/E ratio 63.14 (above 35: high)
Fwd P/E 83.70 (above 35: high)
P/S ratio 14.99 (above 10: high)
P/B ratio 12.76 (above 6: high)
Past 5Y EPS Growth 13.99%
This Y EPS Growth 14.09%
Next Y EPS Growth 17.23% (at or above 15%: strong)
Next Y revenue growth 19.34% (at or above 10%: strong)
Next 5Y EPS Growth 15.42% (at or above 15%: strong)

Green and red mark values outside typical ranges. How we judge →

Valuation vs history

P/E against its own 10 years 62.92%
10-year low 10-year high
P/S against its own 10 years 66.35%
10-year low 10-year high
P/B against its own 10 years 40.03%
10-year low 10-year high
EV/Sales against its own 10 years 68.30%
10-year low 10-year high
EV/FCF against its own 10 years 70.99%
10-year low 10-year high

Dividends

Payout Ratio —
Annual Dividend Rate —
Annual Dividend Yield —
total individual payouts
2027 Powerpack
2026 Powerpack
2025 Powerpack
2024 Powerpack
2023 Powerpack
2022 Powerpack
2021 Powerpack
2020 Powerpack
2019 Powerpack
2017 Powerpack
predictions special payouts not included in total or ratios

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 1,008 2,644 3,001 1,440
Receivables 489 680 945 1,065
Inventory 182 258 304 390
Other — — — —
1,976 4,016 4,670 3,222
2023 2024 2025 Q'26
Payables 577 633 857 824
ST’ Debt 349 — — —
Other — — — —
1,591 1,370 1,635 1,849

Compound Annual Growth %

10y 5y 3y
Sales 12.02% 14.57% 14.14%
Cash Flow 16.41% 13.82% 11.66%
Earnings 15.95% 13.43% 9.31%
Book Value 14.81% 17.04% 25.87%

Revenue $m

Mar Jun Sep Dec Year
’26 1,474 1,584 — — —
’25 1,242 1,275 1,339 1,440 5,297
’24 1,009 1,061 1,215 1,356 4,641
’23 1,022 977 1,023 1,069 4,090
’22 902 858 903 900 3,562
’21 736 728 751 773 2,988
’20 618 638 667 760 2,683
Fiscal quarters ending in the months shown.

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 356 635 — — —
’25 487 378 311 553 1,729
’24 253 156 410 441 1,261
’23 267 414 396 272 1,349
’22 337 325 317 264 1,242
’21 208 380 296 216 1,101
’20 218 345 207 136 905
Fiscal quarters ending in the months shown.

Free Cash Flow $m

Mar Jun Sep Dec Year
’26 307 575 — — —
’25 464 334 277 512 1,587
’24 204 127 383 404 1,118
’23 241 394 374 238 1,247
’22 318 300 273 227 1,118
’21 191 366 277 199 1,034
’20 196 324 186 104 810
Fiscal quarters ending in the months shown.

EPS $

Mar Jun Sep Dec Year
’26 1.23 1.33 — — —
’25 1.00 0.59 1.05 1.42 4.06
’24 0.91 0.84 0.87 1.24 3.85
’23 0.89 0.81 0.93 1.19 3.82
’22 0.85 0.68 0.68 0.88 3.09
’21 0.67 0.56 0.63 0.63 2.50
’20 0.44 0.47 0.58 0.62 2.11
Fiscal quarters ending in the months shown.

Target Price Range

Analyst price targets

Recommendation Rating

1.4
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Trend 2026e 2027e 2028e
Price, $
Price, $ Low 18.32 25.24 35.49 41.43 51.39 118.11 132.32 154.88 241.29 221.56

Analyst estimates 2026–2028

Powerpack
High 28.00 45.64 47.40 77.08 136.84 192.70 194.97 279.33 328.99 376.45
People
People Employees 7,100 7,200 7,500 8,100 8,800 9,300 10,200 11,200 12,700 13,800
Revenue/emp, $m 0.26 0.27 0.29 0.29 0.30 0.32 0.35 0.37 0.37 0.38
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
Gross margin, % 85.88 87.78 87.90 88.60 88.61 89.73 89.57 89.36 86.05 86.36
EBT 237 315 376 479 633 768 1,045 1,282 1,396 1,522
EBT margin, % 13.06 16.21 17.60 20.50 23.58 25.72 29.35 31.34 30.07 28.74
Net income 203 204 346 989 591 696 849 1,041 1,055 1,109
Depreciation 121 117 120 124 147 144 133 145 197 228
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
Earnings 0.71 0.75 1.26 3.62 2.16 2.54 3.13 3.86 3.89 4.09
Cash flow 1.56 1.73 2.21 2.67 3.31 4.03 4.58 5.01 4.65 6.37
Capex (0.19) (0.21) (0.22) (0.27) (0.35) (0.24) (0.46) (0.38) (0.53) (0.52)
Free cash flow 1.38 1.52 1.98 2.40 2.96 3.78 4.12 4.63 4.12 5.85
Book value 2.61 3.64 4.71 7.70 9.11 10.02 10.12 12.64 17.23 20.18
Shares, m 285 272 274 273 274 274 271 269 271 271
Valuation, ×
Valuation, × P/E 35.69 56.07 34.51 19.21 63.46 73.08 51.00 68.11 77.24 76.43
P/S 3.97 5.89 5.57 8.11 13.92 17.06 12.16 17.32 17.56 16.01
P/B 9.72 11.57 9.24 9.01 14.98 18.60 15.77 20.80 17.44 15.49
EV/Sales 4.09 5.91 5.53 7.97 13.83 16.82 12.12 17.23 17.60 15.98
EV/FCF 18.96 27.81 21.75 28.43 45.81 48.52 38.62 56.52 73.06 53.34
Cash, $m
Cash, $m Operating cash flow 445 471 605 730 905 1,101 1,242 1,349 1,261 1,729
Capex (53) (58) (62) (75) (95) (67) (124) (103) (143) (142)
Free cash flow 392 413 543 655 810 1,034 1,118 1,247 1,118 1,587
Balance, $m
Balance, $m Working capital 116 338 242 497 682 745 359 385 2,646 3,034
Total debt 693 729 445 372 381 373 748 649 2,476 2,480
Net debt 225 41 (88) (333) (548) (716) (134) (359) (168) (521)
Shareholders’ equity 742 989 1,288 2,103 2,493 2,741 2,745 3,404 4,674 5,474
Returns, %
Returns, % ROA 9.14 9.04 14.15 33.95 16.16 16.70 17.83 19.27 14.42 11.59
ROIC 15.83 19.65 20.63 17.37 20.74 24.05 25.70 25.68 18.74 18.83
ROE 19.18 23.58 30.36 58.32 25.70 26.60 30.95 33.86 26.13 21.85
Negative figures in brackets.

All 10 years →

Fiscal years to Dec 2025 · latest quarter Jun 2026

Charts ten years each

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. $145.6B 15.2× 24.0× +12.17% (above 0%: growing) +81.54% (above 0%: growing) +12.81% (above 0%: growing) 44.93% 13.32% Compare
SNOW Snowflake Inc. $118.2B — (loss-making) — (loss-making) +35.09% (above 0%: growing) n/m +47.23% (above 0%: growing) 67.02% (17.00%) Compare
ADP Automatic Data Processing, Inc. $113.2B 26.3× 19.0× +6.77% (above 0%: growing) +9.37% (above 0%: growing) −5.49% (below 0%: shrinking) 45.88% 23.00% Compare
ADBE Adobe Inc. $98.0B 13.7× 13.8× +12.89% (above 0%: growing) +10.77% (above 0%: growing) +14.68% (above 0%: growing) 88.71% 34.82% Compare
DDOG Datadog, Inc. $95.6B 485× 420× +35.64% (above 0%: growing) +1,610.53% (above 0%: growing) +68.55% (above 0%: growing) 78.59% 0.49% Compare
CDNS Cadence Design Systems, Inc. $89.3B 63.1× 83.7× +24.23% (above 0%: growing) +127.12% (above 0%: growing) +72.50% (above 0%: growing) 84.90% 28.42%
INTU Intuit Inc. $88.2B 19.7× 15.3× +13.65% (above 0%: growing) −1.47% (below 0%: shrinking) +253.37% (above 0%: growing) 78.11% 10.91% Compare
MSTR Strategy Inc $63.9B — (loss-making) 3.8× +6.88% (above 0%: growing) n/m +6.40% (above 0%: growing) 66.64% (6,808.11%) Compare
TEAM Atlassian Corporation PLC $55.0B — (loss-making) 125× +27.60% (above 0%: growing) n/m +31.74% (above 0%: growing) 86.50% 11.93% Compare
Median of peers $96.8B 19.7× 19.0× +13.27% +10.77% +23.21% 72.57% 11.42%

All 237 Software Application stocks →

CDNS metrics, ten years each

Cadence Design Systems, Inc. (CDNS) key facts

  • Strength: Cadence Design Systems, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $5.3 billion, up 14.1% from fiscal 2024.
  • Strength: Net income was $1.1 billion, or $4.09 per share (basic), a net margin of 20.9%.
  • Cadence Design Systems, Inc. (CDNS) is a Software Application company in the Technology sector, listed on Nasdaq.
  • As of October 16, 2026, CDNS traded at $319.51, a market capitalization of $89.3 billion.
  • At that price the stock trades at 63.1× trailing-twelve-month earnings and 15.0× sales; its P/E is higher than 63% of its own readings over the past ten years.
  • Return on equity was 21.9% and debt-to-equity 0.36.
  • Its Piotroski F-score is 5 out of 9 and its Altman Z-score is 13.22 (safe zone) for fiscal 2025.

Source: company filings (standardised) and stockrow calculations.

Cadence Design Systems, Inc. (CDNS) Latest News

stockrow.com/CDNS · Data as of Jun 30, 2026 · For information only; not investment advice. · © 2026 stockrow.com