Cadence Design Systems, Inc. CDNS

Information TechnologySoftware & IT ServicesUnited States of America

Last close 327.89 USD on Nov 1, 2026, +4.9% year to date

Quant rating

Quant rating A+ Rank 5 of 389 in Information Technology

Growth B 116 of 389
Valuation B 263 of 389
Quality B 62 of 389
Revisions B 64 of 389
Momentum B 228 of 389

Wall Street consensus Buy (1.79)Average target 412.29 USD +25.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 90.0B
Enterprise value: 91.1B
52-week range: 262.83 – 416.69
3-year range: 231.64 – 416.69
Dividend yield: –
Beta (5 years): 1.10
Shares outstanding: 274M
Next earnings: Feb 17, 2027

About the company

Cadence Design Systems, Inc. is an electronic systems designing company. The Company applies its Intelligent System Design strategy to deliver software, hardware and intellectual property (IP) that turn design concepts into reality. Its product categories include Core Electronic Design Automation (EDA), Semiconductor IP, and System Design and Analysis (SD&A). Core EDA includes software, hardware, and services used to design and verify a wide variety of semiconductors. The semiconductor IP portfolio includes silicon subsystems, software, and services that are used in semiconductor design. The SD&A category provides solutions and services that enable the design and verification of complete electronic systems, from PCBs to complex system assemblies. Its semiconductors are used in various industries, including automotive, aerospace, biotech, hyperscale and cloud computing, data centers, telecommunications, medical technology, industrial Internet of things, and artificial intelligence (AI).

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	5,297	4,641	4,090	3,562	2,988	–
Revenue growth	14.1%	13.5%	14.8%	19.2%	11.4%	14.6%
EPS (basic, normalized)	7.14	5.97	5.15	4.27	3.29	–
EPS growth	19.6%	15.9%	20.6%	29.8%	–	–
Gross margin	86.4%	86.0%	89.4%	89.6%	89.7%	88.2%
Net margin	20.9%	22.7%	25.5%	23.8%	23.3%	23.3%
ROE	21.9%	26.1%	33.9%	31.0%	26.6%	27.9%

Balance sheet, last quarter
Cash & short-term investments (mil)	1,543
Current ratio	1.36x
Long-term debt (mil)	1,984
Net debt (mil)	1,090
Total equity (mil)	6,875
Net debt / equity	0.16x
Net debt / EBITDA	0.42x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	5,297	+14.1%	17.2x	2,590	+22.5%	35.2x	7.14	+19.6%	45.9x
2026	6,403	+20.9%	14.2x	3,073	+18.6%	29.6x	8.40	+17.7%	39.0x
2027	7,331	+14.5%	12.4x	3,587	+16.7%	25.4x	9.88	+17.6%	33.2x
2028	8,361	+14.1%	10.9x	4,078	+13.7%	22.3x	11.63	+17.6%	28.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	6,403	+1.4%	+1.6%	+3.7%	8.40	+3.3%	+3.6%	+5.3%
2027	7,331	+2.3%	+2.4%	+5.0%	9.88	+3.2%	+3.7%	+5.2%
2028	8,361	+3.0%	+3.4%	+6.0%	11.63	+4.1%	+4.4%	+6.8%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	1,009	1,061	1,215	1,356	1,242	1,275	1,339	1,440	1,474	1,584
Sales mean (mil)	1,002	1,043	1,181	1,346	1,239	1,250	1,323	1,424	1,451	1,577
Surprise	+0.7%	+1.7%	+2.9%	+0.7%	+0.3%	+2.0%	+1.2%	+1.1%	+1.6%	+0.5%
EPS reported	1.17	1.28	1.64	1.88	1.57	1.65	1.93	1.99	1.96	2.11
EPS mean	1.13	1.22	1.44	1.82	1.49	1.55	1.79	1.91	1.90	2.05
Surprise	+3.9%	+4.6%	+13.8%	+3.3%	+5.3%	+6.1%	+8.0%	+4.0%	+3.2%	+2.7%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
CDNS Cadence Design Systems, Inc.	90.0B	0.42x	20.9%	13.09x	39.0x	33.2x	29.6x	25.4x
CRWD CrowdStrike Holdings, Inc.	256.4B	−3.19x	−3.4%	50.26x	199.4x	155.9x	139.0x	106.5x
SNOW Snowflake Inc.	108.0B	−0.10x	−28.4%	50.18x	139.4x	101.7x	97.1x	70.0x
NET Cloudflare, Inc.	100.0B	−1.86x	−4.7%	61.67x	219.1x	162.9x	140.5x	98.2x
DDOG Datadog Inc	84.5B	−4.89x	3.1%	19.34x	92.1x	78.1x	72.0x	56.7x
SNPS Synopsys, Inc.	89.6B	2.31x	18.9%	2.88x	30.9x	25.1x	22.9x	19.2x
Mean		−1.22x	1.1%	32.90x	120.0x	92.8x	83.5x	62.7x
Median		−0.98x	−0.1%	34.76x	115.7x	89.9x	84.5x	63.3x

Technical analysis

1M+0.4%
3M−4.9%
1Y−3.9%
3Y+42.0%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Cadence Design Systems, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	5,297	4,641	4,090	3,562	2,988	2,683
Cost of revenue	722	648	435	372	307	305
Gross profit	4,575	3,994	3,655	3,190	2,681	2,377
Selling, general & administrative expenses	1,086	1,025	921	846	749	671
Research & development	1,769	1,549	1,442	1,252	1,134	1,034
Depreciation/amortization	39.9	30.4	18.2	18.5	19.6	18.0
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	188	38.4	23.1	0.1	−1.0	9.2
Other operating expenses	0	0	0	0	0	0
Operating income	1,492	1,351	1,251	1,074	779	646
Net interest income (expense)	20.6	46.3	33.4	−27.5	−10.4	−12.6
Gain (loss) on sale of assets	11.5	–	–	–	–	–
Other non-operating income (expense)	−2.1	−1.2	−2.7	−0.9	−0.3	−0.2
Net income before taxes	1,522	1,396	1,282	1,045	768	633
Provision for taxes	413	340	241	196	72.5	42.1
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	1,109	1,055	1,041	849	696	591
Extraordinary items	–	–	–	–	–	–
Net income	1,109	1,055	1,041	849	696	591
EBIT, normalized	1,680	1,389	1,274	1,074	778	655
EBITDA, normalized	1,908	1,586	1,420	1,206	920	800
Basic EPS, normalized	7.14	5.97	5.15	4.27	3.29	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Cadence Design Systems, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	3,156	2,785	1,139	882	1,089	928
Receivables	1,013	710	507	509	344	348
Total inventory	304	258	182	128	116	76.0
Prepaid expenses	198	264	149	187	167	126
Other current assets	0	0	0	0	0	0
Total current assets	4,670	4,016	1,976	1,707	1,716	1,479
Property, plant & equipment	693	604	554	542	436	444
Goodwill	2,749	2,379	1,536	1,374	928	782
Intangibles	718	595	337	355	233	211
Long-term investments	67.5	124	138	120	128	132
Note receivable	–	–	–	–	–	–
Other long-term assets	1,256	1,257	1,128	1,040	945	903
Total assets	10,153	8,974	5,669	5,137	4,386	3,951
Liabilities
Accounts payable	93.5	5.6	–	–	–	–
Payable/accrued	–	–	–	–	–	–
Accrued expenses	763	627	467	503	353	350
Short-term debt	0	0	0	100	0	0
Current portion of long-term debt	–	0	349	–	–	–
Other current liabilities	778	737	775	745	618	447
Total current liabilities	1,635	1,370	1,591	1,348	971	797
Long-term debt	2,480	2,476	300	648	348	347
Minority interest	–	–	–	–	–	–
Other liabilities	564	455	375	396	327	314
Total liabilities	4,679	4,301	2,265	2,392	1,646	1,458
Shareholders' equity
Preferred stock	0	0	–	–	–	–
Common stock	4,719	4,182	3,167	2,766	2,468	2,218
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	7,101	5,992	4,936	3,895	3,046	2,350
Treasury stock	−6,344	−5,310	−4,604	−3,824	−2,740	−2,058
Other equity	−1.8	−190	−94.8	−91.6	−33.3	−17.4
Total equity	5,474	4,674	3,404	2,745	2,741	2,493
Total liabilities & shareholders' equity	10,153	8,974	5,669	5,137	4,386	3,951

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Cadence Design Systems, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	1,109	1,055	1,041	849	696	591
Depreciation, depletion & amortization	228	197	145	132	142	146
Deferred taxes	66.0	−129	−36.5	−108	−43.2	−26.1
Non-cash items	399	346	298	281	200	210
Changes in working capital	−73.3	−209	−98.8	87.5	106	−15.4
Cash from operations	1,729	1,261	1,349	1,242	1,101	905
Investing activities
Capital expenditures	−142	−143	−103	−124	−66.9	−94.8
Other investing cash flows	−319	−695	−310	−614	−226	−197
Cash from investing	−461	−837	−412	−739	−293	−292
Financing activities
Financing cash flow items	−170	−262	−136	−112	−119	−110
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−779	1,501	−667	−545	−525	−305
Cash from financing	−949	1,239	−804	−657	−644	−415
Foreign exchange effects	38.0	−26.8	−7.5	−52.8	−3.7	25.7
Net change in cash	357	1,636	126	−207	161	223
Free cash flow	1,587	1,118	1,247	1,118	1,034	810

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.