Cadence Design Systems, Inc.

CDNS · NASDAQ · USD

Financials

Annual

StatisticsIncome statementBalance sheetCash flowDividendsSegments

Valuation and market statistics · USD millions unless noted · ratios on the twelve months ending at each period

Line item	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018	FY2017	FY2016	FY2015	FY2014	FY2013	FY2012	FY2011	FY2010	FY2009	FY2008	FY2007	FY2006	FY2005	FY2004	FY2003	FY2002	FY2001	FY2000	FY1999	FY1998	FY1997	FY1996	FY1995	FY1994	FY1993	FY1992	FY1991	FY1990	FY1989	FY1988	FY1987	FY1986
Valuation
Market cap	$85,085	$82,405	$74,102	$44,066	$51,645	$37,810	$19,222	$12,050	$11,590	$6,989	$5,767	$5,375	$3,895	$3,654	$2,744	$2,154	$1,544	$931	$4,617	$5,003	$4,713	$3,747	$4,797	$3,064	$5,411	$6,726	$5,640	$6,979	$5,393	$1,795	$868	$197	$202	$371	$436	$747	$647	$252	$61	$84
Enterprise value	$84,409	$82,205	$73,727	$44,067	$51,011	$37,343	$18,948	$11,962	$11,627	$7,215	$5,405	$5,044	$3,586	$3,274	$2,566	$2,134	$1,409	$775	$4,270	$4,803	$4,450	$3,574	$4,799	$2,723	$5,139	$6,606	$5,550	$6,908	$5,092	$1,548	$786	$129	$148	$301	$359	$700	$621	$220	$48	$81
P/E (TTM) at period end	76.73×	78.07×	71.17×	51.91×	74.21×	64.02×	19.44×	34.85×	56.79×	34.42×	22.85×	33.83×	23.71×	8.31×	38.00×	17.02×	–	–	15.59×	35.09×	95.51×	50.31×	–	42.58×	38.30×	134.57×	–	218.23×	31.83×	61.81×	8.92×	5.38×	–	6.70×	–	19.65×	23.29×	19.23×	19.00×	55.71×
P/S (TTM) at period end	16.06×	17.75×	18.12×	12.37×	17.28×	14.09×	8.23×	5.64×	5.96×	3.85×	3.39×	3.40×	2.67×	2.75×	2.39×	2.30×	1.81×	0.90×	2.86×	3.37×	3.55×	3.13×	4.28×	2.37×	3.78×	5.26×	5.16×	5.74×	5.89×	2.42×	1.58×	0.46×	0.55×	0.85×	1.11×	3.23×	4.53×	3.75×	2.54×	5.03×
P/B at period end	15.54×	17.63×	21.77×	16.05×	18.84×	15.17×	9.14×	9.35×	11.72×	9.42×	4.19×	4.03×	3.37×	3.99×	6.68×	7.79×	14.25×	4.99×	2.22×	2.94×	2.55×	2.20×	3.05×	1.86×	4.83×	7.40×	5.72×	7.36×	7.42×	4.20×	6.47×	1.12×	0.98×	1.49×	2.18×	4.72×	6.24×	4.91×	2.42×	27.85×
EV / EBITDA (TTM)	49.08×	53.11×	52.79×	36.55×	55.36×	47.20×	30.83×	23.23×	26.46×	19.79×	13.39×	15.65×	12.48×	10.88×	12.10×	35.94×	–	–	9.52×	12.92×	14.66×	11.46×	21.54×	6.52×	10.91×	24.45×	36.72×	33.27×	17.52×	10.83×	4.80×	1.25×	3.56×	2.92×	13.75×	9.64×	11.23×	8.19×	6.52×	20.79×
EV / Sales (TTM)	15.94×	17.71×	18.03×	12.37×	17.07×	13.92×	8.11×	5.59×	5.98×	3.97×	3.18×	3.19×	2.46×	2.47×	2.23×	2.28×	1.65×	0.75×	2.64×	3.24×	3.35×	2.98×	4.29×	2.11×	3.59×	5.16×	5.08×	5.68×	5.56×	2.09×	1.43×	0.30×	0.40×	0.69×	0.91×	3.02×	4.35×	3.27×	1.99×	4.88×
Returns
Return on equity	20.3%	22.6%	30.6%	30.9%	25.4%	23.7%	47.0%	26.8%	20.6%	27.4%	18.3%	11.9%	14.2%	48.1%	17.6%	45.7%	(138.3%)	(994.4%)	14.2%	8.4%	2.7%	4.4%	(1.1%)	4.4%	12.6%	5.5%	(1.4%)	3.4%	23.3%	6.8%	72.5%	20.8%	(6.2%)	22.2%	(10.8%)	24.0%	26.8%	25.5%	12.7%	50.0%
Return on invested capital	21.9%	22.1%	32.2%	31.7%	33.5%	29.8%	26.9%	30.3%	20.4%	21.6%	24.3%	16.6%	20.0%	33.3%	38.7%	–	–	(4491.2%)	14.1%	8.7%	2.8%	5.2%	(0.4%)	5.9%	15.3%	5.5%	(1.4%)	3.7%	29.9%	16.1%	131.6%	34.0%	(1.5%)	29.7%	(11.3%)	31.8%	34.6%	72.2%	25.2%	300.0%
Dividend yield	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	0.2%	0.5%	–	–	–	–	–
Financial health
Current ratio	2.86×	2.93×	1.24×	1.27×	1.77×	1.86×	1.74×	1.34×	1.53×	1.20×	1.80×	1.33×	1.06×	1.14×	1.05×	1.26×	2.14×	1.69×	1.95×	2.39×	2.11×	1.95×	1.75×	1.48×	1.34×	1.13×	1.14×	2.03×	2.27×	2.12×	1.03×	1.17×	1.93×	2.61×	2.00×	2.86×	2.68×	2.79×	4.11×	2.89×
Debt / equity	0.45×	0.53×	0.19×	0.27×	0.13×	0.14×	0.16×	0.35×	0.74×	0.93×	0.25×	0.52×	0.28×	0.49×	1.04×	1.99×	4.02×	2.23×	0.35×	0.45×	0.34×	0.25×	0.27×	0.03×	0.00×	0.01×	0.03×	0.15×	0.00×	0.06×	0.02×	0.16×	0.04×	0.05×	0.05×	0.09×	0.14×	0.09×	0.10×	0.83×
Effective tax rate	27.1%	24.4%	18.8%	18.8%	9.4%	6.7%	(106.5%)	8.1%	35.2%	14.4%	5.7%	12.2%	(3.3%)	(133.7%)	24.3%	301.6%	2.4%	(14.9%)	18.6%	41.2%	61.6%	13.8%	42.5%	54.5%	41.7%	26.5%	(23.7%)	71.6%	33.3%	67.9%	28.0%	25.0%	–	19.0%	(88.7%)	32.5%	34.4%	31.1%	33.3%	34.8%
Share count
Diluted shares outstanding	273	274	273	275	279	280	281	281	280	291	312	307	295	281	271	266	258	254	296	312	314	306	267	268	257	263	235	258	233	214	62	43	78	78	78	141	132	101	46	42

StatisticsIncome statementBalance sheetCash flowDividendsSegments

Income statement · USD millions

Line item	TTM	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018	FY2017	FY2016	FY2015	FY2014	FY2013	FY2012	FY2011	FY2010	FY2009	FY2008	FY2007	FY2006	FY2005	FY2004	FY2003	FY2002	FY2001	FY2000	FY1999	FY1998	FY1997	FY1996	FY1995	FY1994	FY1993	FY1992	FY1991	FY1990	FY1989	FY1988	FY1987	FY1986
Revenue and gross profit
Revenue	$5,838	$5,297	$4,641	$4,090	$3,562	$2,988	$2,683	$2,336	$2,138	$1,943	$1,816	$1,702	$1,581	$1,460	$1,326	$1,150	$936	$853	$1,039	$1,615	$1,484	$1,329	$1,197	$1,119	$1,293	$1,430	$1,280	$1,093	$1,216	$916	$741	$548	$429	$369	$434	$392	$231	$143	$67	$24	$17
Cost of revenue	($825)	($722)	($648)	($435)	($372)	($307)	($305)	($266)	($259)	($237)	($256)	($238)	($156)	($132)	($73)	($70)	($31)	($32)	($50)	($215)	($227)	($229)	($226)	($217)	($250)	($355)	($369)	($325)	($281)	($183)	($153)	($117)	($95)	($45)	($69)	($61)	($97)	($47)	($23)	($9)	($6)
Gross profit	$5,013	$4,575	$3,994	$3,655	$3,190	$2,681	$2,377	$2,070	$1,879	$1,706	$1,560	$1,464	$1,425	$1,328	$1,253	$1,080	$905	$821	$988	$1,401	$1,257	$1,100	$971	$903	$1,043	$1,076	$911	$768	$935	$733	$588	$432	$334	$323	$365	$331	$134	$96	$44	$15	$10
Operating expenses
Research and development	($1,927)	($1,769)	($1,549)	($1,442)	($1,252)	($1,134)	($1,034)	($936)	($885)	($804)	($735)	($638)	($603)	($534)	($454)	($401)	($376)	($355)	($458)	($494)	($460)	($370)	($351)	($340)	($326)	($297)	($264)	($219)	($179)	($140)	($115)	($89)	($73)	–	–	–	–	–	–	–	–
Selling, general and administrative	($358)	($313)	($274)	($242)	($242)	($189)	($154)	($140)	($133)	($134)	($125)	($110)	($114)	($121)	($112)	($93)	($86)	($123)	($152)	($576)	($549)	($519)	($409)	($409)	($515)	($508)	($485)	($441)	($370)	($314)	($281)	($225)	($203)	($282)	($262)	($305)	($61)	($40)	($17)	($8)	($6)
Total operating expenses	($3,242)	($3,082)	($2,643)	($2,404)	($2,116)	($1,902)	($1,732)	($1,578)	($1,483)	($1,382)	($1,315)	($1,178)	($1,218)	($1,139)	($1,041)	($960)	($933)	($944)	($2,562)	($1,083)	($1,032)	($982)	($870)	($913)	($868)	($835)	($847)	($781)	($830)	($499)	($497)	($314)	($276)	($326)	($300)	($345)	($82)	($55)	($24)	($10)	($8)
Total costs and expenses	($4,067)	($3,805)	($3,291)	($2,839)	($2,488)	($2,209)	($2,037)	($1,845)	($1,742)	($1,619)	($1,571)	($1,417)	($1,374)	($1,271)	($1,115)	($1,029)	($965)	($976)	($2,612)	($1,297)	($1,259)	($1,210)	($1,096)	($1,129)	($1,118)	($1,190)	($1,216)	($1,106)	($1,111)	($682)	($650)	($431)	($370)	($371)	($369)	($406)	($179)	($102)	($47)	($19)	($14)
Operating income	$1,770	$1,492	$1,351	$1,251	$1,074	$779	$646	$492	$396	$324	$245	$285	$207	$189	$212	$120	($29)	($124)	($1,573)	$318	$225	$119	$101	($10)	$175	$240	$63	($13)	$105	$234	$91	$118	$59	($2)	$66	($14)	$52	$41	$20	$4	$2
Earnings
EBITDA	$2,093	$1,720	$1,548	$1,397	$1,206	$921	$791	$615	$515	$439	$364	$404	$322	$287	$301	$212	$59	($30)	($1,447)	$449	$372	$304	$312	$223	$417	$471	$270	$151	$208	$291	$143	$164	$103	$42	$103	$26	$73	$55	$27	$7	$4
Interest income	$78	$102	$62	$30	$10	$3	$4	$10	$8	$4	$3	$3	$2	$2	$1	$1	$1	$3	$20	$48	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–
Interest expense	($125)	($117)	($76)	($36)	($23)	($17)	($21)	($19)	($23)	($26)	($24)	($28)	($34)	($38)	($35)	($43)	($36)	($29)	($27)	($12)	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–
Pre-tax income	$1,824	$1,522	$1,396	$1,282	$1,045	$768	$633	$479	$376	$315	$237	$268	$181	$159	$188	$95	($63)	($154)	($1,602)	$364	$242	$128	$86	($31)	$158	$242	$68	($11)	$113	$234	$90	$135	$49	–	$68	($12)	$56	$42	$19	$5	$2
Income tax expense	($446)	($413)	($340)	($241)	($196)	($72)	($42)	$510	($31)	($111)	($34)	($15)	($22)	$5	$252	($23)	$189	$4	($239)	($68)	($100)	($79)	($12)	$13	($86)	($101)	($18)	($3)	($81)	($78)	($61)	($38)	($12)	($10)	($13)	($10)	($18)	($15)	($6)	($2)	($1)
Net income	$1,378	$1,109	$1,055	$1,041	$849	$696	$591	$989	$346	$204	$203	$252	$159	$164	$440	$72	$127	($150)	($1,857)	$296	$143	$49	$74	($18)	$72	$141	$50	($14)	$32	$169	$29	$97	$37	($13)	$55	($22)	$38	$28	$13	$3	$2
Per share
Diluted EPS (GAAP)	$5.03	$4.06	$3.85	$3.82	$3.09	$2.50	$2.11	$3.53	$1.23	$0.73	$0.70	$0.81	$0.52	$0.56	$1.57	$0.27	$0.48	($0.58)	($7.30)	$1.01	$0.46	$0.16	$0.25	($0.0658)	$0.23	$0.55	$0.19	($0.0599)	$0.10	$0.71	$0.16	$1.57	$0.85	($0.16)	$0.71	($0.28)	$0.27	$0.21	$0.13	$0.07	$0.0359
Basic EPS (GAAP)	$5.06	$4.09	$3.89	$3.86	$3.13	$2.54	$2.16	$3.62	$1.26	$0.75	$0.71	$0.88	$0.56	$0.59	$1.63	$0.27	$0.49	($0.58)	($7.30)	$1.09	$0.51	$0.18	$0.27	($0.0658)	$0.23	$0.57	$0.20	($0.0599)	$0.11	$0.75	$0.32	$1.57	$0.85	($0.16)	$0.71	($0.28)	$0.27	$0.21	$0.13	$0.07	$0.0359
Basic shares outstanding	272	271	271	269	271	274	274	273	274	272	285	288	283	278	270	264	261	258	254	271	279	279	271	267	260	247	245	235	235	220	91	62	43	78	78	78	141	132	101	46	42
Margins
Gross margin	85.9%	86.4%	86.0%	89.4%	89.6%	89.7%	88.6%	88.6%	87.9%	87.8%	85.9%	86.0%	90.1%	90.9%	94.5%	93.9%	96.6%	96.2%	95.2%	86.7%	84.7%	82.8%	81.1%	80.6%	80.7%	75.2%	71.2%	70.3%	76.9%	80.0%	79.3%	78.8%	78.0%	87.7%	84.1%	84.3%	57.9%	66.9%	65.4%	62.8%	60.8%
Operating margin	30.3%	28.2%	29.1%	30.6%	30.1%	26.1%	24.1%	21.1%	18.5%	16.7%	13.5%	16.8%	13.1%	12.9%	16.0%	10.5%	(3.1%)	(14.5%)	(151.5%)	19.7%	15.1%	8.9%	8.4%	(0.9%)	13.5%	16.8%	5.0%	(1.2%)	8.6%	25.5%	12.3%	21.5%	13.7%	(0.6%)	15.1%	(3.5%)	22.7%	28.5%	29.7%	18.8%	13.9%
Net margin	23.6%	20.9%	22.7%	25.5%	23.8%	23.3%	22.0%	42.3%	16.2%	10.5%	11.2%	14.8%	10.1%	11.2%	33.2%	6.3%	13.5%	(17.6%)	(178.8%)	18.3%	9.6%	3.7%	6.2%	(1.6%)	5.6%	9.9%	3.9%	(1.3%)	2.6%	18.5%	3.9%	17.7%	8.5%	(3.5%)	12.8%	(5.5%)	16.4%	19.5%	19.5%	13.4%	9.0%

Analyst consensus

Buy31 analysts

Bearish · 1 · Hold · 4 · Bullish · 26

Earnings history

	EPS	Estimate
Q3 2024	$1.64	$1.46	Beat
Q4 2024	$1.88	$1.82	Beat
Q1 2025	$1.57	$1.49	Beat
Q2 2025	$1.65	$1.56	Beat
Q3 2025	$1.93	$1.79	Beat
Q4 2025	$1.99	$1.91	Beat
Q1 2026	$1.96	$1.91	Beat
Q2 2026	$2.11	$2.05	Beat

Peers

Company overview

IPO dateJun 10, 1987

CEOAnirudh Devgan

Employees13,800

SectorTechnology

IndustrySoftware - Application

CountryUS

ExchangeNASDAQ Global Select

Websitewww.cadence.com

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.

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