CADENCE DESIGN SYSTEMS INC
CDNSNasdaqGSSoftware - Application • Technology
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Summary
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Latest results at a glance
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Recent Earnings Exceed Consensus
Reported EPS of $2.11 per share exceeded the same-quarter consensus estimate of $2.06 per share for the period ending 2026-06-30. This marked the fourth consecutive quarter in which reported EPS surpassed the comparable consensus estimate.
Quarterly Revenue Growth Accelerates
Revenue for the quarter ended 2026-03-31 reached $1.47bn, representing an 18.66% increase from $1.24bn in the same quarter of the prior year. Net income for that period was $335.7m, up 22.69% from $273.6m a year earlier.
Product Segment Dominates Revenue
Product and maintenance revenue accounted for 91.0% of consolidated revenue at $4.82bn for the fiscal year ended 2025-12-31, growing 14.4% year over year. Technology service revenue contributed $475.2m, or 9.0% of the total, with an 11.1% increase.
Free Cash Flow Covers Buybacks
Filed free cash flow of $1.587bn was 1.72 times the $925.034m in common stock repurchases during the fiscal year ended 2025-12-31.
Net Margin Declines Year Over Year
Net margin was 20.94% for the fiscal year ended 2025-12-31, down from 22.74% in the prior year. Return on equity also decreased to 20.26% from 22.58% over the same period.
Company Raises 2026 Outlook
[2026-08-15] Cadence Design Systems raised its 2026 financial outlook, a move supported by record backlog and AI-oriented demand across its design and verification portfolio.
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Overview
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No Data
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Financial Fundamentals
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Growth
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Earnings
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Profitability
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Cash Flow
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Valuation
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Forward P/E
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Financial Health
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Shareholder Signals
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Peer Comparison
| Ticker | Price | Mkt Cap | EV/EBITDA | Fwd P/E | Rev Growth | Gross Margin | FCF Yield |
|---|---|---|---|---|---|---|---|
CDNSCADENCE DESIGN SYSTEMS INC | $340.39 | $93.7B | 50.7x | 70.8x | +13.4% | — | 1.5% |
Company Profile
About the Company
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.
Next Earnings Date
Oct 26, 2026
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