Cadence Design Systems
Provides chip-design software, verification hardware, semiconductor IP, and multiphysics simulation.
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Profile
Licenses chip-design and verification software, sells or leases emulation hardware, and licenses reusable semiconductor IP, with most revenue recurring. Its system-analysis portfolio now reaches from boards and advanced packages into fluid, thermal, structural, acoustic, and motion simulation, while advanced-node access depends on foundry enablement and export controls.
Develops Core EDA software and accelerated verification hardware for analog, digital, mixed-signal, and advanced-package workflows. Virtuoso, Innovus, Jasper, Xcelium, Palladium, and Protium span circuit design, implementation, verification, emulation, and prototyping. Reusable interface, memory, security, and Tensilica processor IP goes into customer chips.
Extends beyond silicon through System Design and Analysis for boards, packages, and electromechanical systems. Allegro supports board and package design; multiphysics products cover fluid, thermal, electromagnetic, structural, acoustic, and motion simulation, including MSC Nastran and Adams. Fixed-term software licenses produce most revenue, supplemented by hardware, IP royalties, cloud services, and engineering support. Customers span global semiconductor and systems markets. Advanced-node workflows require foundry process enablement, while U.S. export controls govern access for certain overseas customers.
Company facts
Categories
Key statistics
Year to date +9.7% · Average volume (30d) 2.3M
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Rating | Prior target | Target |
|---|---|---|---|---|---|
| Jul 29, 2026 | Morgan Stanley | Reiterate | Overweight | $370 | $400 |
| Jul 28, 2026 | Oppenheimer | Reiterate | Perform | $275 | $300 |
| Jul 28, 2026 | Piper Sandler | Reiterate | Neutral | $355 | $349 |
| Jul 28, 2026 | Robert W. Baird | Target | $385 | $420 | |
| Jul 15, 2026 | Benchmark Co. | Target | $450 |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Jul 27, 2026Q2 FY26 | $2.05 | $2.11 | +2.9% | $1.58B | $1.58B | +0.5% | +1.80% |
| Apr 27, 2026Q1 FY26 | $1.91 | $1.96 | +2.6% | $1.46B | $1.47B | +1.2% | −3.34% |
| Feb 17, 2026Q4 FY25 | $1.91 | $1.99 | +4.2% | $1.42B | $1.44B | +1.1% | +7.60% |
| Oct 27, 2025Q3 FY25 | $1.79 | $1.93 | +7.8% | $1.32B | $1.34B | +1.2% | −2.87% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $1.24B | $1.28B | $1.34B | $1.44B | $1.47B | $1.58B | |
| Gross profit | $1.08B | $1.09B | $1.16B | $1.25B | $1.41B | $1.35B | |
| Operating income | $361.4M | $370.4M | $452.8M | $465.2M | $431.3M | $450.3M | |
| Net income | $273.6M | $160.1M | $287.1M | $388.1M | $335.7M | $367.1M | |
| Diluted EPS | $1.00 | $0.59 | $1.05 | $1.42 | $1.23 | $1.33 | |
| Gross margin | 86.5% | 85.6% | 86.4% | 86.9% | 95.8% | 84.9% | |
| Operating margin | 29.1% | 29.0% | 33.8% | 32.3% | 29.3% | 28.4% |
Fiscal years (4-quarter sums)FY21 $2.99B · FY22 $3.56B · FY23 $4.09B · FY24 $4.64B · FY25 $5.30B
Revenue by product · Q2 FY26
Revenue by geography · Q2 FY26
Balance sheet, Jun 30, 2026Cash & short-term investments $1.44B · Total debt $2.48B · Total assets $12.08B · Shareholders' equity $6.86B
Dividends
No dividends on record.
Ownership
A 13F quarter can total more than the shares outstanding — sub-advisers file the same block twice, and a filer's own share count can be a quarter stale. No split is drawn from it.
Shares outstanding 275.39M · Float 274.21M · 99.6% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| BlackRock, Inc. | 26.66M | 9.68% | 13F | Aug 7, 2026 |
| Vanguard Capital Management LLC | 18.02M | 6.54% | 13F | Aug 13, 2026 |
| State Street Corp | 13.03M | 4.73% | 13F | Aug 7, 2026 |
| FMR LLC | 9.55M | 3.47% | 13F | Aug 13, 2026 |
| Invesco Ltd. | 8.98M | 3.26% | 13F | Aug 14, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| Aug 25, 2026 | Vincentelli Alberto Sangiovanni | director | −1,250 | $320.88 |
| Aug 26, 2026 | Paul Scannell | officer: Sr. Vice President | −280 | $339.00 |
| Aug 21, 2026 | Chin-Chi Teng | officer: Sr. Vice President | −4,732 | $314.49 |
| Aug 17, 2026 | Paul Cunningham | officer: Sr. Vice President | −2,000 | $323.32 |
| Jul 22, 2026 | Chin-Chi Teng | officer: Sr. Vice President | −4,500 | $339.46 |
Peers
- Synopsys
Dominant EDA rival; now spans silicon-to-systems with Ansys multiphysics.
- Arm (ADR)
Dominant processor IP licensor; rivals Cadence in design IP and CPU cores.
- CEVA
Named CDNS 10-K rival; wireless and edge-AI IP licensing for smart-edge SoCs.
- Keysight Technologies
Named CDNS 10-K rival; RF/microwave EDA and signal-integrity simulation.
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Cadence Design Systems | $329.89 | −3.10% | $93.74B | 67.7 | 39.7 | 16.1 | +24.2% |
| Synopsys | $442.91 | +0.07% | $84.75B | 185.3 | 26.9 | 9.0 | +42.4% |
| Arm (ADR) | $239.00 | −0.02% | $255.31B | 246.4 | 100.0 | 49.5 | +22.4% |
| CEVA | $27.25 | +0.52% | $755.5M | — | 39.6 | 6.5 | +13.1% |
| Keysight Technologies | $319.97 | +0.09% | $54.68B | 44.1 | 24.0 | 8.3 | +36.5% |
| Median | 185.3 | 33.3 | 8.7 | +29.5% |