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Cadence Design Systems, Inc.

CDNS NASDAQ Categories PDF
Technology · Software - Application
San Jose, CA 95134, United States IPO 1987 cadence.com Updated Jun 27, 3:02am
Price
$377.27
Market Cap
$104.1B
Employees
12,837
Beta
1.15
Avg Volume
2,449,306
CEO
Anirudh Devgan
Business Description

Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. is headquartered in San Jose, California.

Business History
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Jun 27, 2026 3:04am (6h ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Deep Analysis

Pre-flight intelligence scans the company first, then routes to the right analytical methods.

0 Company Classification — What type of company is this?
1 Industry Landscape — Where is the industry headed?
2 Company Momentum — Where is this company trending?
3 Forward Projection — 1Y & 2Y projected metrics (requires Layer 1 + 2)
4a DCF Valuation — Present value of future cash flows
4b Earnings Power Value — Floor value — worth with zero growth
4c Anchored PE — Industry PE adjusted for growth differential
4d Reverse DCF — What growth is the market pricing in?
4e Revenue-Based DCF — For growth/narrative companies (skip if mature earner)
4f Anchored P/S — Price-to-Sales peer comparison (skip if mature earner)
4g Scenario Analysis — Bull / Base / Bear (skip if mature earner)
4h Dividend Discount Model — For dividend/income stocks only
4i Book Value Analysis — For deep value / turnaround stocks only
4j Insider Activity — Are insiders buying or selling?
4f Cash Flow Quality — How trustworthy is the FCF?
4g Debt Maturity Risk — Can it handle its debt?
4h Macro Environment — Rates, market valuation, volatility
4i Sector Intelligence — How does this company compare within its sector?
4j Revenue Confidence — How reliable is the growth projection?
4k Sensitivity Analysis — How fragile is the fair value estimate?
4l Sector Demand Cycle — Is the sector in a boom, steady state, or contraction?
5 AI Investigation — Adaptive research engine (Claude)
5b Thesis Evaluation — What does the market believe? (narrative/platform stocks only)
6 Valuation Synthesis — Weighted verdict from all methods (requires Layer 4)
Income Statement (Annual)
Last updated: Jun 27, 2026 3:04am (6h ago)
Metric 2021 2022 2023 2024 2025
Revenue $3.0B $3.6B $4.1B $4.6B $5.3B
Cost of Revenue $307.0M $371.6M $435.0M $647.5M $722.2M
Gross Profit $2.7B $3.2B $3.7B $4.0B $4.6B
Operating Expenses $1.9B $2.1B $2.4B $2.6B $2.9B
Operating Income $779.1M $1.1B $1.3B $1.4B $1.6B
Net Income $696.0M $849.0M $1.0B $1.1B $1.1B
EBITDA $916.1M $1.2B $1.5B $1.7B $1.9B
EPS $2.54 $3.13 $3.86 $3.89 $4.09
EPS (Diluted)
Balance Sheet (Annual)
Last updated: Jun 27, 2026 3:04am (6h ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $1.1B $882.3M $1.0B $2.6B $3.0B
Total Current Assets $1.7B $1.7B $2.0B $4.0B $4.7B
Total Assets $4.4B $5.1B $5.7B $9.0B $10.2B
Current Liabilities $971.2M $1.3B $1.6B $1.4B $1.6B
Long-Term Debt $347.6M $648.1M $299.8M $2.5B $2.5B
Total Liabilities $1.6B $2.4B $2.3B $4.3B $4.7B
Total Equity $2.7B $2.7B $3.4B $4.7B $5.5B
Retained Earnings $3.0B $3.9B $4.9B $6.0B $7.1B
Cash Flow (Annual)
Last updated: Jun 27, 2026 3:04am (6h ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $1.1B $1.2B $1.3B $1.3B $1.7B
Capital Expenditure -$66.9M -$124.2M -$102.5M -$142.5M -$141.9M
Free Cash Flow $1.0B $1.1B $1.2B $1.1B $1.6B
Acquisitions (net) -$226.2M -$613.8M -$198.4M -$737.6M -$429.5M
Debt Repayment
Dividends Paid
Stock Buybacks -$730.3M -$1.2B -$700.1M -$787.8M -$925.0M
Net Change in Cash $160.5M -$206.6M $125.8M $1.6B $357.3M
Growth Trends (YoY %)
Last updated: Jun 27, 2026 3:04am (6h ago)
Metric 2022 2023 2024 2025
Revenue Growth +19.2% +14.8% +13.5% +14.1%
Gross Profit Growth +19.0% +14.6% +9.3% +14.5%
Operating Income Growth +37.8% +16.5% +8.0% +22.1%
Net Income Growth +22.0% +22.6% +1.4% +5.1%
EBITDA Growth +31.4% +21.6% +13.9% +12.3%
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for CDNS — it's generated by the pipeline (market-narrative step).
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My Notes personal — only you see this
Data via Financial Modeling Prep · Cached for performance · fmp
v1.1.352 · d1100787 · 2026-06-26 11:39:30