Tax

Effective Tax Rate, Continuing Operations

Cadence Design Systems Effective Tax Rate, Continuing Operations remained flat by 0.0% to $0.07 in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 12.9%, from $0.06 to $0.07. Over 4 years (FY 2021 to FY 2025), Effective Tax Rate, Continuing Operations shows an upward trend with a 31.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementIncome Statement
SectionTax
CategoryProfitability
SignalLower is better
VolatilityStable
First reportedQ1 2013
Last reportedQ4 2025Feb 19, 2026

How to read this metric

A lower rate generally indicates higher tax efficiency, while a significantly higher rate may suggest increased tax liabilities or geographic shifts in profitability.

Detailed definition

The ratio of income tax expense to income from continuing operations before taxes, representing the actual percentage of...

Peer comparison

Standard metric across all public companies; peers in the industrial gas sector typically target rates aligned with their geographic footprint.

Metric ID: cat_effective_tax_rate_continuing_operations

Historical Data

5 years
 FY'21FY'22FY'23FY'24FY'25
Value$0.09$0.19$0.19$0.24$0.27
YoY Change+111.1%+0.0%+26.3%+12.9%
Range$0.09$0.27
CAGR+31.7%
Avg YoY Growth+37.6%
Median YoY Growth+19.6%
Current Streak4+ years growth

Frequently Asked Questions

What is Cadence Design Systems's effective tax rate, continuing operations?
Cadence Design Systems (CDNS) reported effective tax rate, continuing operations of $0.07 in Q4 2025.
How has Cadence Design Systems's effective tax rate, continuing operations changed year-over-year?
Cadence Design Systems's effective tax rate, continuing operations increased by 12.9% year-over-year, from $0.06 to $0.07.
What is the long-term trend for Cadence Design Systems's effective tax rate, continuing operations?
Over 4 years (2021 to 2025), Cadence Design Systems's effective tax rate, continuing operations has grown at a 31.7% compound annual growth rate (CAGR), from $0.09 to $0.27.
What does effective tax rate, continuing operations mean?
The actual percentage of pre-tax income paid in taxes from continuing business operations.