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.

Analysis

StatementIncome Statement
SectionTax
CategoryProfitability
SignalContext dependent
VolatilityModerate
First reportedQ1 2023
Last reportedQ4 2025

How to read this metric

A lower rate may indicate tax efficiency or reliance on tax credits, while a higher rate may suggest increased tax burdens or lack of tax optimization.

Detailed definition

The ratio of the provision for income taxes to income from continuing operations before taxes. It represents the actual...

Peer comparison

A standard financial metric reported by all public companies to assess tax efficiency.

Metric ID: is_cat_effective_tax_rate_continuing_operations

Historical Data

5 years
 FY'21FY'22FY'23FY'24FY'25
Value0.10.20.20.20.3
YoY Change+111.1%+0.0%+26.3%+12.9%
Range0.10.3
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 ongoing business activities.