Free cash flow
Cadence Design Systems Free cash flow decreased by 40.1% to $306.96M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 33.8%, from $463.96M to $306.96M. Over 4 years (FY 2021 to FY 2025), Free cash flow shows an upward trend with a 11.3% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
cf_free_cash_flowHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $366.21M | $277.45M | $200.54M | $318.48M | $300.47M | $273.02M | $226.72M | $240.68M | $393.83M | $373.94M | $238.39M | $203.63M | $126.77M | $383.46M | $404.16M | $463.96M | $333.52M | $276.98M | $512.45M | $306.96M |
| QoQ Change | — | -24.2% | -27.7% | +58.8% | -5.7% | -9.1% | -17.0% | +6.2% | +63.6% | -5.1% | -36.2% | -14.6% | -37.7% | +202.5% | +5.4% | +14.8% | -28.1% | -17.0% | +85.0% | -40.1% |
| YoY Change | — | — | — | — | -18.0% | -1.6% | +13.1% | -24.4% | +31.1% | +37.0% | +5.1% | -15.4% | -67.8% | +2.5% | +69.5% | +127.8% | +163.1% | -27.8% | +26.8% | -33.8% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is Cadence Design Systems's free cash flow?
- Cadence Design Systems (CDNS) reported free cash flow of $306.96M in Q1 2026.
- How has Cadence Design Systems's free cash flow changed year-over-year?
- Cadence Design Systems's free cash flow decreased by 33.8% year-over-year, from $463.96M to $306.96M.
- What is the long-term trend for Cadence Design Systems's free cash flow?
- Over 4 years (2021 to 2025), Cadence Design Systems's free cash flow has grown at a 11.3% compound annual growth rate (CAGR), from $1.04B to $1.59B.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.