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Cadence Design Systems, Inc.

Cadence Design Systems, Inc.

NASDAQ•CDNS
CEO: Dr. Anirudh Devgan Ph.D.
Sector: Technology
Industry: Software - Application
Listing Date: 1987-06-10
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and Innovus implementation system, a physical implementation system. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.
Contact Information
Building 5, 2655 Seely Avenue, San Jose, CA, 95134, United States
408-943-1234
www.cadence.com
Market Cap
$88.60B
P/E (TTM)
83.2
75.2
Dividend Yield
--
52W High
$376.45
52W Low
$221.56
52W Range
67%
Rank21Top 7.6%
6.0
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Strong • 6 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2016-2025

Financial Dashboard

Q3 2025 Data

Revenue

$1.34B+10.15%
4-Quarter Trend

EPS

$1.06+21.84%
4-Quarter Trend

FCF

$276.98M-27.77%
4-Quarter Trend

2025 Q3 Earnings Highlights

Key Highlights

Nine Month Revenue Growth Total revenue reached $3.86B for nine months ended September 30, 2025, marking a strong 17% increase over the prior year period.
Operating Cash Flow Surge Cash provided by operating activities increased substantially to $1.18B for nine months, reflecting a 43.5% improvement year-over-year.
Income From Operations Rises Income from operations grew to $1.03B for the nine months ended September 30, 2025, up 15.1% compared to the prior year.

Risk Factors

Export Control Regulatory Risk Ongoing geopolitical conflicts and expanded trade control laws, especially concerning China, pose risks to global market access and competitiveness.
Contingent Liability Settlement Recognized a $128.5M loss related to contingent liability from BIS/DOJ export violation settlements during the nine months ended September 30, 2025.
Foreign Currency Contract Exposure Unhedged foreign currency forward contracts resulted in $18.6M in recognized losses during the nine months ended September 30, 2025.

Outlook

Pending Hexagon Acquisition Definitive agreement signed to acquire Hexagon's design business for approximately €2.70B, expected to close in Q1 2026.
Share Repurchase Availability $1.6B remains authorized for common stock repurchases as of September 30, 2025, following a recent $1.5B increase in May 2025.
Tax Law Benefits Cash The OBBBA legislation is estimated to decrease remaining fiscal 2025 cash tax payments by approximately $134M.

Peer Comparison

Revenue (TTM)

Dell Technologies Inc.DELL
$103.97B
+10.7%
NetEase, Inc.NTES
$15.51B
+5.8%
Corning IncorporatedGLW
$14.92B
+18.3%

Gross Margin (Latest Quarter)

Cadence Design Systems, Inc.CDNS
95.3%
+8.7pp
Autodesk, Inc.ADSK
92.4%
+2.7pp
Roblox CorporationRBLX
78.2%
+0.5pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
SNPS$102.05B64.17.1%29.6%
NTES$93.04B17.824.7%3.4%
CDNS$88.60B83.221.6%25.8%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
-0.4%
Flat Growth
4Q Net Income CAGR
-5.5%
Declining Profitability
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Next earnings:Feb 17, 2026
|
EPS:$1.90
|
Revenue:$1.42B
Reports
All Years
  • Form 10-Q - Q3 2025

    Period End: Sep 30, 2025|Filed: Oct 29, 2025|
    Revenue: $1.34B+10.1%
    |
    EPS: $1.06+21.8%
    Miss
  • Form 10-Q - Q2 2025

    Period End: Jun 30, 2025|Filed: Jul 30, 2025|
    Revenue: $1.28B+20.2%
    |
    EPS: $0.59-30.6%
    Miss
  • Form 10-Q - Q1 2025

    Period End: Mar 31, 2025|Filed: Apr 30, 2025|
    Revenue: $1.24B+23.1%
    |
    EPS: $1.01+9.8%
    Miss
  • Form 10-K - FY 2024

    Period End: Dec 31, 2024|Filed: Feb 21, 2025|
    Revenue: $4.64B+13.5%
    |
    EPS: $3.89+0.8%
    Beat
  • Form 10-Q - Q3 2024

    Period End: Sep 30, 2024|Filed: Oct 30, 2024|
    Revenue: $1.22B+18.8%
    |
    EPS: $0.87-7.4%
    Miss
  • Form 10-Q - Q2 2024

    Period End: Jun 30, 2024|Filed: Jul 24, 2024|
    Revenue: $1.06B+8.6%
    |
    EPS: $0.85+3.7%
    Miss
  • Form 10-Q - Q1 2024

    Period End: Mar 31, 2024|Filed: Apr 24, 2024|
    Revenue: $1.01B-1.2%
    |
    EPS: $0.92+2.2%
    Miss
  • Form 10-K - FY 2023

    Period End: Dec 31, 2023|Filed: Feb 14, 2024|
    Revenue: $4.09B+14.8%
    |
    EPS: $3.86+23.3%
    Miss