Services-Prepackaged Software · SIC 7372

CADENCE DESIGN SYSTEMS INC

CDNS

Watch

Latest revenue

$1.47B

as of 2026-03-31

Latest net income

$335.7M

as of 2026-03-31

Net margin

22.8%

as of 2026-03-31

Price · 5Y

+24.2% / yr 10.4 pts / yr vs S&P 500 194.2% total
Compare:

Live market

delayed ≤15 min
$373.59
4.22%
Market cap
$103.04B
Enterprise value
$103.12B
P/E (trailing)
92.9×
Forward P/E
P/B
19.82×
Dividend yield
0.0%
52-wk high
$381.55
52-wk low
$262.75
Beta
Shares out
275.8M

5-year trend

What this company does

AI

Cadence sells electronic design automation software, IP, and hardware systems that chipmakers and electronics firms use to design semiconductors and complex circuit boards. Recurring software licenses and maintenance generate the bulk of revenue, with hardware emulation systems and design services contributing the remainder. Revenue grew 17% year-over-year to $3.86 billion for the first nine months of 2025, driven by surging AI-chip design demand, though a $129 million contingent liability charge tied to export-control matters weighed on operating income.

Generated from CDNS's filing dated 2026-02-19

Key risks

AI
  • China export controls: $128.5M contingent liability loss recorded in 9M 2025 tied to BIS matter (Note 16), signaling regulatory exposure on China sales.
  • Leverage rose sharply: $2.48B long-term debt drove interest expense to $87M (9M 2025) vs $46M prior year, pressuring earnings if rates persist.
  • Aggressive capital return amid M&A: $725M buybacks plus $251M acquisitions in 9M 2025 lifted goodwill+intangibles to $3.3B, raising impairment risk.

Generated from CDNS's filing dated 2026-02-19

Profitability

Operating margin

28.2%

3.2%

Net margin

20.9%

7.9%

Return on equity

20.3%

10.3%

Return on assets

10.9%

7.1%

Leverage

Debt / equity

0.85×

7.1%

Long-term debt / equity

0.45×

14.5%

Debt / assets

46.1%

3.8%

Earnings tracker

QuarterRevenueYoYNet incomeYoYNet margin

Q1 2026

2026-03-31

$1.47B+18.7%$335.7M+22.7%22.8%

Q4 2025

2025-12-31

$1.44B+6.2%$388.1M+14.1%27.0%

Q3 2025

2025-09-30

$1.34B+10.1%$287.1M+20.6%21.4%

Q2 2025

2025-06-30

$1.28B+20.2%$160.1M-30.3%12.5%

Q1 2025

2025-03-31

$1.24B+23.1%$273.6M+10.5%22.0%

Q4 2024

2024-12-31

$1.36B$340.2M25.1%

Q3 2024

2024-09-30

$1.22B+18.8%$238.1M-6.4%19.6%

Q2 2024

2024-06-30

$1.06B+8.6%$229.5M+3.8%21.6%

Year-over-year change vs the same fiscal quarter one year prior. Revenue + net income sourced from SEC 10-Q / 10-K filings — no analyst-consensus dependency.

Industry trend

Services-Prepackaged Software · SIC 7372

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Insider activity

Insider buying

$0

Insider selling

$53.3M

Net activity

−$53.3M

Distinct insiders

7

Open-market trades over the last 365 days.

Recent transactions

DateInsiderTypeSharesPriceValue
2026-05-18

Scannell Paul

Sr. Vice President

Sale1,071$345.06$369.6K
2026-05-18

Scannell Paul

Sr. Vice President

Sale1,071$345.06$369.6K
2026-05-05

John M Wall

Sr. VP & CFO

Sale412$346.68$142.8K
2026-05-05

John M Wall

Sr. VP & CFO

Sale1,021$347.75$355.1K
2026-05-05

John M Wall

Sr. VP & CFO

Sale1,907$348.68$664.9K
2026-05-05

John M Wall

Sr. VP & CFO

Sale1,280$349.41$447.2K
2026-05-05

John M Wall

Sr. VP & CFO

Sale380$351.32$133.5K
2026-05-01

Paul Cunningham

Sr. Vice President

Sale1,000$337.49$337.5K
2026-05-01

Scannell Paul

Sr. Vice President

Sale10,500$339.00$3.6M
2026-04-16

John M Wall

Sr. VP & CFO

Sale21,500$309.45$6.7M
2026-04-01

Paul Cunningham

Sr. Vice President

Sale1,000$280.19$280.2K
2026-03-17

Ita M Brennan

Director

Sale73$293.53$21.4K
2026-03-17

Ita M Brennan

Director

Sale55$295.11$16.2K

Source: SEC Form 4 filings. Officers, directors, and 10%+ owners must disclose share transactions within two business days. RSU grants and tax-withholding rows are excluded by default — compensation activity is not a trading signal.

Who owns CDNS

Institutional value

$21.93B

Total shares held

81.1M

Distinct holders

739

As of

2026-03-31

Filers with $100M+ AUM disclose holdings 45 days after quarter end.

Top institutional holders

#ManagerSharesValueQoQ changeAction
1VANGUARD CAPITAL MANAGEMENT LLC17.8M$4.95BNew
2VANGUARD PORTFOLIO MANAGEMENT LLC7.0M$1.95BNew
3JENNISON ASSOCIATES LLC5.8M$1.60BNew
4Invesco Ltd.3.0M$839.8MNew
5Legal & General Group Plc2.0M$546.9MNew
6PRINCIPAL FINANCIAL GROUP INC1.9M$524.9MNew
7Swedbank AB1.8M$510.1MNew
8Bank of New York Mellon Corp1.6M$452.1MNew
9VANGUARD FIDUCIARY TRUST CO1.6M$437.3MNew
10DEUTSCHE BANK AG\1.5M$419.2MNew
11Pictet Asset Management Holding SA1.2M$346.6MNew
12Nuveen, LLC1.2M$320.3MNew
13UBS Group AG1.1M$310.1MNew
14Sumitomo Mitsui Trust Group, Inc.1.0M$283.0MNew
15Swiss National Bank798.9K$222.0MNew
16Mitsubishi UFJ Asset Management Co., Ltd.776.3K$215.7MNew
17National Pension Service754.0K$209.5MNew
18Meridiem Investment Management Ltd.752.4K$209.0MNew
19Temasek Holdings (Private) Ltd749.1K$208.2MNew
20WELLS FARGO & COMPANY/MN679.4K$188.8MNew

Source: SEC Form 13F-HR. Positions aggregated across sub-managers within each firm. Options (puts/calls) excluded — common stock only.

Top questions investors are asking

AI
  1. 1

    The $128.5M Note 16 contingent liability charge—what triggered it, is it tied to China export controls, and could further accruals follow?

  2. 2

    Q3 product/maintenance growth was 9.7% YoY versus 17% YTD—is hardware/Palladium demand decelerating, and what's implied Q4 backlog conversion?

  3. 3

    R&D rose to $1.30B YTD (+13%) while operating margin compressed ex-charge—how do you defend EDA pricing power against Synopsys/Ansys integration?

Refreshed when CDNS files a new report · last from 2026-02-19