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Cadence Design Systems

CDNSNASDAQStock Fundamentals

Cadence Design Systems is a global leader in computational software, hardware, and silicon intellectual property used to design and verify complex electronic systems. The company provides AI-driven solutions that enable semiconductor and systems companies to optimize power, performance, and area while accelerating time-to-market for innovative products. Its mission focuses on empowering the development of advanced electronics that drive the global economy across sectors like automotive, hyperscale computing, and life sciences.

Market Cap$98.9B
Revenue TTM$5.5B
Net Income TTM$1.2B
P/E Ratio84.43
Net Margin21.18%
EPS TTM$4.29
Free Cash Flow TTM$1.4B
Employees11.2K
CEOAnirudh Devgan
CountryUnited States of America
Technology
Software - Application
SegmentsSoftware - Application, Semiconductors, Electronic Design Automation (EDA), Systems Engineering
Business ModelsSubscription SaaS, Time-based software licensing, Hardware sales and leasing, IP Royalties, Professional Services
Most Recent EarningsApr 27, 2026 · 28 days agoQ1 2026
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Next EarningsJul 27, 2026 · in 2 monthsAfter Market Close · Q3 2025

Financials

Based on Q1 2026 filing

Op. Margin28.25%
ROE20.66%
D/E2.7%
Current Ratio1.47
Total Debt$177.2M
Cash$1.4B
CapEx TTM$167.6M

Net Income

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Operating Cash Flow

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Free Cash Flow

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EPS (Diluted)

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Business Segments

Core EDA

primary

Provides the essential software, hardware, and services for the design and functional verification of integrated circuits, including analog, digital, and mixed-signal chips. This segment integrates generative AI and cloud scalability to enhance engineering productivity and design quality.

Products

Virtuoso, Innovus, Jasper Formal Verification Platform, Xcelium Parallel Logic Simulation Platform, Verisium, Palladium Enterprise Emulation Platform, Protium FPGA-Based Prototyping Platforms

Customers

Semiconductor companies, Hyperscalers, Automotive OEMs, Aerospace and defense contractors

System Design and Analysis (SD&A)

major

Delivers end-to-end solutions for the design and verification of complete electronic systems, including printed circuit boards (PCBs), advanced packaging, and multiphysics analysis. It utilizes digital twin technology and computational fluid dynamics to simulate real-world performance.

Products

Allegro X, OrCAD X, Sigrity X, Fidelity CFD, Clarity 3D Solver, Celsius Thermal Solver, Integrity 3D-IC, Millennium Multiphysics Enterprise Platform, M2000 supercomputer

Customers

Systems companies, PCB designers, Data center professionals, Biotechnology and pharmaceutical firms

Semiconductor IP

moderate

Offers pre-designed, verified silicon subsystems and architectures that customers integrate into their own system-on-chip (SoC) designs and chiplets. These solutions include standard interfaces, memory controllers, and specialized digital signal processors.

Products

Tensilica DSPs, Arm Artisan foundation IP, Verification IP (VIP), Secure-IC embedded security IP

Customers

Mobile computing companies, Consumer electronics manufacturers, IoT device makers, Data center operators

Segment Financials

Core EDA — Revenue percentage by product category

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System Design and Analysis — Revenue percentage by product category

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Semiconductor IP — Revenue percentage by product category

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Business Overview

Competitive Position

A leading global provider of EDA and IP solutions with a dominant position in custom IC design and high-performance hardware emulation.

Geographies

North America, Asia-Pacific, Europe, Japan

Customer Segments

Semiconductor manufacturers, Hyperscale data centers, Automotive and Aerospace OEMs, Life Sciences and Biotech

Upstream Dependencies

Foundry process design kits (PDKs), Third-party IP providers, Hardware component subcontractors, Cloud infrastructure providers

Downstream Customers

Integrated device manufacturers (IDMs), Fabless semiconductor companies, System-on-chip (SoC) developers, Electronic system OEMs

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Cadence Design Systems FAQ

Common questions about Cadence Design Systems

Cadence Design Systems is a global leader in computational software, hardware, and silicon intellectual property used to design and verify complex electronic systems. The company provides AI-driven solutions that enable semiconductor and systems companies to optimize power, performance, and area while accelerating time-to-market for innovative products. Its mission focuses on empowering the development of advanced electronics that drive the global economy across sectors like automotive, hyperscale computing, and life sciences.

Cadence Design Systems (CDNS) has a market capitalization of $98.9B and trades on NASDAQ.

Cadence Design Systems generated $5.5B in trailing twelve-month revenue with net income of $1.2B, representing a net margin of 21.2%, with free cash flow of $1.4B. These figures are based on the Q1 2026 filing.

Cadence Design Systems's key competitors include Synopsys, Inc., Keysight Technologies, Inc., Teradyne, Inc. Common Stock, and others. These companies compete in similar markets and product categories.

Cadence Design Systems has approximately 11,200 employees.