CDNS

— Fundamental Stock Analysis and Report Card

Technology : Software - Application

Located in San Jose, CA, US. 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.

Growth

Revenue, earnings and profitability.

Strong revenue growth and earnings can attract investors, driving the stock price up. Profitability indicates the company's efficiency and sustainability, which impacts investor confidence. Poor performance in these areas can lead to a decrease in stock price.

Revenue History

Earnings History

Margins

Gross Margin TTM
88.85%
EBITDA Margin TTM
35.82%
Net Margin TTM
21.18%
Earnings Per Share TTM
4.30
Statements

Income & Cash Flow analysis.

An income statement shows what a company earned and spent over a period — revenue at the top, costs and expenses in between, and net income at the bottom. A cash flow statement tracks the actual cash moving in and out, across operations, investing, and financing. Read together, they show whether reported earnings are backed by real cash.

Cadence Design Systems, Inc.
Select Period:
Q1 2026
Total ($)
Q1 2026
Margin (%)
Revenue
1.5b
+231.9m
+18.7%
Gross Income
1.4b
+337.8m
+31.4%
96%
+9.3pp
+10.7%
EBITDA
544.1m
+107.8m
+24.7%
37%
+1.8pp
+5.1%
Operating Income
431.3m
+69.9m
+19.3%
29%
+0.2pp
+0.6%
Net Income
335.7m
+62.1m
+22.7%
23%
+0.7pp
+3.4%
Earnings Per Share
1.23
+0.2
+21.8%
Operating Cash Flow
355.8m
-131.2m
-26.9%
24%
-15.1pp
-38.4%
Free Cash Flow
307.0m
-157.0m
-33.8%
21%
-16.5pp
-44.2%
Research & Development
508.4m
+69.3m
+15.8%
34%
-0.9pp
-2.4%
Recommendations

What are the analysts saying?

Analyst Consensus aggregates Wall Street recommendations into buy/hold/sell counts, while the Fundamental Scorecard grades the company on six financial ratios (P/B, P/E, D/E, ROA, ROE, DCF) plus an overall score. The two measure different things and can point in different directions.

Analyst Consensus
Fundamental Scorecard
Recent Upgrades & Downgrades
Loop Capital Markets
2 years ago
Rosenblatt Securities
2 years ago