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Cadence Design Systems, Inc. CDNS NDXSPXR3KTECHAI

Technology · Software - Application · United States
https://www.cadence.com
Company Profile ↓
$292.70
-16.16% 1Y
Mkt Cap$80.73B
P/E58.08
P/B13.62
52W High$416.39
52W Low$265.66
Book Value$24.90
EPS (TTM)$5.04

Company Overview

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

Why Investors Should Care

Strong Return on Equity

Generates a return on equity of 23.2%, reflecting efficient use of shareholder capital.

Healthy Capital Returns

Return on capital employed stands at 17.5%.

Consistent Profit Growth

Net profit has compounded at 13.4% per year over the last five years.

Steady Revenue Expansion

Revenue has grown at a 10.1% CAGR over the past five years.

Healthy Margins

Maintains a net profit margin of 23.6%.

Conservative Balance Sheet

Carries low leverage with a debt-to-equity ratio of 0.39.

Recent Developments

  • Dec 2025 Revenue of $5.30B (+14.1% YoY); net profit $1.11B.
  • Trailing 12 Months Year-on-year growth — revenue +24.2%, earnings +125.4%.
  • 5-Year Trend Long-term compounding — revenue CAGR 10.1%, profit CAGR 13.4%.

Growth & Price Performance

Compounded Sales Growth

5 Years:10.06%
1 Year:24.20%

Compounded Profit Growth

5 Years:13.43%
1 Year:125.40%

Stock Price Performance

1 Year:-16.16%
6 Months:-1.43%
3 Months:-22.19%
1 Month:-13.51%

Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.

AI Exposure AI EDA Software / AI Chip Design

Cadence provides AI-driven electronic-design-automation software and IP used to design the chips and systems that power AI — and increasingly uses AI within its own tools.

Core Focus

Computational-software for chip design, verification and system analysis, with AI woven throughout (Verisium, Cerebrus) and a growing IP business.

Key Initiatives
  • AI-driven design (Cerebrus/Verisium) Cadence embeds generative and reinforcement-learning AI to automate and optimise chip design and verification.
  • Tools for AI chips Its EDA software and IP are essential to designing the advanced AI accelerators and SoCs driving demand.
  • System design & analysis AI-enhanced multiphysics and system tools extend Cadence beyond pure chip design.
Why Investors Should Care
  • Duopoly EDA franchise levered to surging AI-chip design complexity — net margin ~21%.
  • AI both drives customer demand and improves Cadence's own tool productivity.
  • Highly recurring revenue with strong free cash flow and a wide moat.
  • Premium valuation and semiconductor-R&D cyclicality are key risks.
AI InvestmentCadence invests heavily in AI-native EDA (Cerebrus, Verisium) and design IP — AI is central to the roadmap.
AI RevenueAI-chip design activity drives tool and IP demand; AI is embedded across the portfolio rather than a separate disclosed line.
ROI (Now)Strong — AI-design demand and recurring software revenue underpin high margins today.
ROI (Expected)Rising AI-chip complexity should keep expanding EDA/IP content per design over time.

Curated from public filings and analyst commentary; figures are illustrative.

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Price Chart

Robinhood TradingView

Fundamental Growth Charts

Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.

PROS

  • Strong return on equity of 23.2%.
  • Excellent profit margin of 23.6%.
  • Compounding revenue at 10.1% over 5 years.
  • Profit CAGR of 13.4% over 5 years.
  • Generates positive free cash flow.
  • In a confirmed uptrend (50-DMA above 200-DMA).

CONS

  • Trading at a high P/E of 58.1.
  • Trading 29.7% below its 52-week high.

* The pros and cons are auto-generated from financial metrics.

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Valuation

Stock P/E
58.08
Industry PE
32.42
Forward P/E
30.69
PEG Ratio
3.06
Book Value
$24.90
Price to Book
13.62
P/S
16.03
EV/EBITDA
43.85
Dividend Yield
0.00%

Growth (CAGR)

Revenue 5Y
10.06%
Profit 5Y
13.43%
Revenue (YoY)
24.20%
Earnings (YoY)
125.40%

Profitability & Returns

ROCE
17.52%
ROE
23.23%
ROA
10.61%
Profit Margin
23.61%
Op Margin
28.57%
Gross Margin
85.87%
EPS (Latest Qtr)
$1.33
EPS (TTM)
$5.04

Balance Sheet & Liquidity

Debt/Equity
0.39
Quick Ratio
1.43
Current Ratio
1.74
Debt
$2.65B
Total Assets
$12.10B
Current Assets
-
Working Capital
-

Ownership

Promoter Holding
0.33%
Chg in Prom Hold
-0.00%
FII / Inst Holding
91.80%
Chg in FII Hold
0.03%

Financial Snapshot

Enterprise Value
$80.73B
Total Revenue (TTM)
$5.84B
EBITDA
$2.16B
Free Cash Flow
$1.61B
Operating Cash Flow
$1.85B
Shares Outstanding
275.82M
Gross Margin
85.87%
Payout Ratio
0.00%

Peer comparison

Peer companies in the same sector (Technology).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 CDNS Cadence Design Systems, Inc. NDXSPXR3KTECHAI 292.70 58.08 $80.73B 0.00% 17.52% 23.23% 10.06% 13.43%
2 NVDA NVIDIA Corporation NDXSPXR3KAITECH 230.36 35.28 $5.58T 0.46% 74.66% 114.29% 24.64% 32.12%
3 AAPL Apple Inc. NDXSPXR3KTECH 319.97 36.69 $4.67T 0.35% 68.72% 148.75% 1.81% 3.92%
4 MSFT Microsoft Corporation NDXSPXR3KAITECH 499.70 27.85 $3.71T 0.73% 26.33% 34.04% 9.93% 11.90%
5 TSM Taiwan Semiconductor Manufacturing Company Limited AITECH 426.34 37.46 $2.21T 0.91% 30.20% 39.97% 18.94% 19.57%
6 AVGO Broadcom Inc. NDXSPXR3KAITECH 357.90 59.55 $1.70T 0.62% 16.70% 37.28% 17.04% 54.08%
7 MU Micron Technology, Inc. NDXSPXR3KAITECH 1,016.59 22.97 $1.15T 0.06% 13.69% 66.64% 13.68% 26.02%
8 AMD Advanced Micro Devices, Inc. NDXSPXR3KAITECH 477.57 122.14 $779.62B 0.00% 5.47% 10.20% 11.81% 66.28%
9 ASML ASML Holding N.V. NDXAITECH 1,714.88 58.49 $658.69B 0.53% 42.97% 53.94% 15.55% 19.55%
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios

Quarterly Results

Figures in USD.

Metric Sep 2013Mar 2014Jun 2014Sep 2014Apr 2015Jul 2015Oct 2015Apr 2016Jul 2016Oct 2016Apr 2017Jul 2017Sep 2017Mar 2018Jun 2018Sep 2018Mar 2019Jun 2019Sep 2019Mar 2020Jun 2020Sep 2020Apr 2021Jul 2021Oct 2021Apr 2022Jul 2022Oct 2022Mar 2023Jun 2023Sep 2023Mar 2024Jun 2024Sep 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue ------------485.40M517.31M518.39M532.47M576.74M580.42M579.60M617.96M638.42M666.61M736.03M728.28M750.89M901.77M857.52M902.55M1.02B976.58M1.02B1.01B1.06B1.22B1.24B1.28B1.34B1.44B1.47B1.58B
Cost of Revenue -----------------------------------184.17M182.19M188.73M214.53M239.32M
Gross Profit -----------------------------------1.09B1.16B1.25B1.26B1.35B
Operating Expenses -----------------------------------720.88M703.86M786.16M828.35M895.17M
Operating Income 47.93M42.31M35.50M54.05M49.28M76.40M77.90M58.04M66.91M66.84M79.60M82.69M80.39M85.83M93.06M103.63M128.40M133.68M120.83M139.35M151.95M169.27M203.94M185.44M194.03M318.93M282.89M260.75M322.46M299.33M292.91M249.96M293.88M350.06M361.52M370.39M452.79M465.23M431.34M449.96M
EBITDA -----------------------------------367.31M477.57M591.27M544.09M663.68M
Interest Expense -----------------------------------28.95M29.04M29.44M31.61M35.14M
Pretax Income -----------------------------------280.61M392.78M492.96M428.10M510.23M
Tax Provision -----------------------------------120.56M105.66M104.83M92.44M143.16M
Net Income 38.50M33.07M23.26M37.53M36.26M58.16M77.62M50.56M49.34M64.71M68.26M69.13M81.16M72.89M75.15M99.32M120.56M107.23M101.51M123.99M131.29M161.63M187.17M155.90M176.31M235.34M186.92M186.31M241.80M221.12M254.32M247.64M229.52M238.11M273.58M160.05M287.12M388.14M335.66M367.08M
Diluted EPS 0.130.110.080.120.120.190.250.170.170.230.250.250.290.260.270.350.430.380.360.440.470.580.670.560.630.850.680.680.890.810.930.910.840.871.000.591.051.421.231.33
R&D Expense -------------------241.67M250.82M250.93M270.99M285.23M289.11M290.89M286.60M323.63M350.30M354.42M369.64M378.96M370.74M407.37M439.10M442.06M423.03M-508.44M-

Profit & Loss (Annual)

Figures in USD.

Metric Jan 2009Jan 2010Jan 2011Dec 2011Dec 2012Dec 2013Jan 2015Jan 2016Dec 2016Dec 2017Dec 2018Dec 2019Jan 2021Jan 2022Dec 2022Dec 2023Dec 2024Dec 2025
Revenue 1.04B852.63M935.95M1.15B1.33B1.46B1.58B1.70B1.82B1.94B2.14B2.34B2.68B2.99B3.56B4.09B4.64B5.30B
Operating Income -1.57B-123.59M-28.97M120.38M211.67M189.01M206.64M285.43M244.90M323.95M396.21M491.80M645.55M779.09M1.07B1.25B1.35B1.49B
Net Income -1.86B-149.87M126.54M72.23M439.95M164.24M158.90M252.42M203.09M204.10M345.78M988.98M590.64M695.96M848.95M1.04B1.06B1.11B
Diluted EPS -7.30-0.580.480.271.570.560.520.810.700.731.233.532.112.503.093.823.854.06

Balance Sheet (Annual)

Figures in USD.

Metric Dec 2007Jan 2009Jan 2010Jan 2011Dec 2011Dec 2012Dec 2013Jan 2015Jan 2016Dec 2016Dec 2017Dec 2018Dec 2019Jan 2021Jan 2022Dec 2022Dec 2023Dec 2024Dec 2025
Total Assets --1.41B1.73B1.76B2.29B2.43B3.21B2.35B2.10B2.42B2.47B3.36B3.95B4.39B5.14B5.67B8.97B10.15B
Total Equity 2.17B186.71M108.37M276.65M411.13M915.17M1.16B1.33B1.38B741.77M989.20M1.29B2.10B2.49B2.74B2.75B3.40B4.67B5.47B
Cash & Equivalents 1.06B568.25M569.12M557.41M601.60M726.36M536.26M932.16M616.69M465.23M688.09M533.30M705.21M928.43M1.09B882.33M1.01B2.64B3.00B
Current Liabilities --397.90M697.55M1.02B1.22B1.15B1.39B536.31M585.56M642.40M708.98M672.39M796.81M971.23M1.35B1.59B1.37B1.64B

Cash Flows (Annual)

Figures in USD.

Metric Jan 2009Jan 2010Jan 2011Dec 2011Dec 2012Dec 2013Jan 2015Jan 2016Dec 2016Dec 2017Dec 2018Dec 2019Jan 2021Jan 2022Dec 2022Dec 2023Dec 2024Dec 2025
Operating Cash Flow 70.29M25.64M199.14M240.34M315.99M367.61M316.72M378.20M444.88M470.74M604.75M729.60M904.92M1.10B1.24B1.35B1.26B1.73B
Investing Cash Flow -126.89M-50.51M-285.11M-56.50M-201.24M-426.89M-198.01M-44.50M1.36M-191.21M-173.84M-105.71M-292.16M-292.95M-738.63M-412.25M-837.12M-460.52M
Financing Cash Flow -443.42M20.97M59.94M-144.80M15.83M-116.29M288.96M-626.31M-592.70M-70.15M-567.94M-443.89M-415.29M-643.79M-657.05M-803.57M1.24B-948.98M
Capital Expenditure -97.29M-41.31M-34.78M-31.42M-35.97M-44.93M-39.81M-44.81M-53.71M-57.90M-61.50M-74.61M-94.81M-65.30M-123.22M-102.34M-142.54M-141.87M
Free Cash Flow -27.00M-15.67M164.36M208.92M280.03M322.68M276.91M333.39M391.17M412.84M543.25M655.00M810.11M1.04B1.12B1.25B1.12B1.59B
Share Buybacks 273.95M-40.00M000100.12M333.19M960.29M100.03M250.06M306.15M380.06M612.30M1.05B700.13M550.03M925.03M

Ratios (Annual)

Figures in %.

Metric Jan 2009Jan 2010Jan 2011Dec 2011Dec 2012Dec 2013Jan 2015Jan 2016Dec 2016Dec 2017Dec 2018Dec 2019Jan 2021Jan 2022Dec 2022Dec 2023Dec 2024Dec 2025
Gross Margin % ------------------
Operating Margin % -151.5%-14.5%-3.1%10.5%16.0%12.9%13.1%16.8%13.5%16.7%18.5%21.1%24.1%26.1%30.1%30.6%29.1%28.2%
Net Margin % -178.8%-17.6%13.5%6.3%33.2%11.2%10.1%14.8%11.2%10.5%16.2%42.3%22.0%23.3%23.8%25.5%22.7%20.9%
ROE % -994.4%-138.3%45.7%17.6%48.1%14.2%11.9%18.3%27.4%20.6%26.8%47.0%23.7%25.4%30.9%30.6%22.6%20.3%
ROCE % --12.2%-2.8%16.1%19.8%14.8%11.4%15.8%16.2%18.2%22.5%18.3%20.5%22.8%28.3%30.7%17.8%17.5%

Shareholding Pattern

Insiders
0.33%
Institutions
91.80%
Public Float
92.10%

Top Institutional Holders

#Holder% HeldSharesValue
1 Blackrock Inc. 9.68% 26.66M $9.08B
2 Vanguard Capital Management LLC 6.54% 18.02M $6.13B
3 State Street Corporation 4.73% 13.03M $4.44B
4 FMR, LLC 3.47% 9.55M $3.25B
5 Invesco Ltd. 3.26% 8.98M $3.06B
6 JPMORGAN CHASE & CO 2.86% 7.87M $2.68B
7 Geode Capital Management, LLC 2.61% 7.18M $2.45B
8 Vanguard Portfolio Management LLC 2.53% 6.96M $2.37B
9 Van Eck Associates Corporation 1.78% 4.89M $1.66B
10 Capital International Investors 1.77% 4.89M $1.66B

Analyst View

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Latest News

Recent headlines for CDNS

Google News Mon, 07 Sep 2026

Cadence Design Systems Stock Slides 16% Over 6 Straight Down Days - Trefis

<a href="https://news.google.com/rss/articles/CBMiwwFBVV95cUxPdXM4djN0NTdXWTRUWUJrTXZjX0N6SUhWRll1YXRReHFJMWpmdk9tLThiTjNkSk5WQkExaVJ5a3hZaTVCNzBPSFMweGhFQVlhcG1vVlhMZ0dCY1RsempnblFueTVUejFPTnJwaEtlZzNHVEJKLWxnaXJUbFVxRzMyYlVXWF8ydEVING1wSW…

Google News Sat, 05 Sep 2026

Cadence Design Systems (CDNS) Stock Still Looks Overvalued Despite AI Chip Demand - Yahoo Finance

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Google News Sat, 05 Sep 2026

Cadence (CDNS) Stock Looks Priced At A Premium To Fair Value - simplywall.st

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Google News ue, 01 Sep 2026

Cadence Design Systems Falls as Higher Yields Pressure Tech and EDA Names - quiverquant.com

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Google News Fri, 04 Sep 2026

Cadence Design Systems Inc (CDNS) Stock Down 4.0% -- Now Undervalued? GF Score: 98/100 - GuruFocus

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Google News Sat, 05 Sep 2026

Can Cadence's Cash Generation Support Both Growth and Share Buybacks? - qz.com

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CDNS — Frequently Asked Questions

What is the current share price of Cadence Design Systems, Inc. (CDNS)?

As of 2026-09-07 16:24 PDT, Cadence Design Systems, Inc. (CDNS) trades at $292.70 on NasdaqGS. Its 52-week range is $265.66 to $416.39.

What is the market capitalisation of CDNS?

Cadence Design Systems, Inc. (CDNS) has a market capitalisation of $80.73B on NasdaqGS.

What is the P/E ratio of CDNS?

CDNS trades at a trailing price-to-earnings (P/E) ratio of 58.08. The industry average P/E is 32.42. Its price-to-book (P/B) ratio is 13.62.

What is the return on equity (ROE) of CDNS?

CDNS has a return on equity (ROE) of 23.23%. Its return on capital employed (ROCE) is 17.52%.

Is CDNS a good stock to buy?

This page provides a data-driven analysis of Cadence Design Systems, Inc. (CDNS), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.

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