Cadence Design Systems, Inc. (CDNS) financials

NASDAQ · Technology · Software - Application · 13,800 employees · CEO Anirudh Devgan

Price: $327.89 -4.34%
Market cap: $90B
Enterprise value: $91.3B
Last report: Q3 '26 filed 2026-10-28
Next report: 2027-02-16 EPS est. $2.23

Revenue (TTM)$6.13B+17.6% vs a year agoLast 4 quarters; bars = each quarter

Operating margin (TTM)28.9%-2.5 pp vs a year agoOperating income $1.78B

Net income (TTM)$1.38B+30.1% vs a year agoAfter tax, incl. non-operating gains

Free cash flow (TTM)$1.76B+19.3% vs a year agoCapex $204M

Diluted EPS (TTM)$5.03+29.6% vs a year agoSum of the last 4 quarters

Net cash-$1.36B-596.3% vs a year agoCash + short-term investments - debt

Valuation & key figures

Market cap: $90B
Revenue: $6.13B
Revenue growth: +21%
Profit margin: 22.5%
P/E: 64.8×
P/S: 14.7×
EV / EBITDA: 38.8×
Free cash flow: $1.76B
Net income: $1.38B
Revenue estimate: $6.41B
Earnings: 2027-02-16
Dividend: –

Key takeaways

Computed from the reported numbers - every statement carries the figure it rests on.

Last report (2026-10-26): revenue beat by 1.3%, EPS beat by 2.9%Revenue $1.63B vs $1.61B expected (+1.3%); EPS $2.11 vs $2.05 (+2.9%).
Revenue growth accelerating: 22.0% year on yearQ3 '26 revenue $1.63B, against an average of 14.8% over the four quarters before.
Operating margin 28.9% (TTM), -2.5 pp on a year agoOperating income grew 8.1% while revenue grew 17.6%.
Capex 3.3% of revenue (a year ago 2.6%)$204M invested in the last 4 quarters (+48.0% on a year earlier). Free cash flow $1.76B = 127.7% of net income.
Returned $1B to shareholders = 56.7% of free cash flowBuybacks $1B (a year earlier $895M), dividends $0, stock-based pay $543M (TTM).
Diluted share count up 0.5% in a year275M diluted shares in Q3 '26, 274M a year earlier.
Net debt $1.36BCash + short-term investments $1.45B, debt incl. leases $2.81B; a year ago net cash $274M.

Last quarter: Q3 '26

Quarter ended 2026-09-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.

Quarter vs a year ago

	Q3 '26	Year ago	Change
Revenue	$1.63B	$1.34B	+22.0%
Gross margin	85.6%	86.4%	-0.8 pp
Operating income	$429M	$453M	-5.3%
Operating margin	26.2%	33.8%	-7.6 pp
Net income	$290M	$287M	+0.9%
Diluted EPS	$1.05	$1.05	0.0%
Operating cash flow	$424M	$311M	+36.4%
Capex	$61.8M	$33.7M	+83.5%
Free cash flow	$362M	$277M	+30.7%
R&D	$538M	$423M	+27.1%
Stock-based compensation	$145M	$116M	+24.7%

Reported vs consensus

2026-10-26

	Actual	Consensus	vs consensus
Revenue	$1.63B	$1.61B	+1.3%
EPS (as estimated)	$2.11	$2.05	+2.9%

From the report of 2026-10-26 for Q3 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.

EPS vs consensus

last 8 reports

Revenue

Where the money comes from - by business line and by region, quarter by quarter.

Revenue, operating income and growth

quarterly

Revenue by business line

stacked, quarterly

Segment	Q3 '26	y/y	Share	TTM	TTM y/y	12 quarters
Product and maintenance	$1.49B	+23.2%	91.1%	$5.6B	+18.4%
Technology Service	$146M	+11.3%	8.9%	$533M	+10.0%

Revenue by region

share of total

Segment	Q3 '26	y/y	Share	TTM	TTM y/y
United States	$674M	+26.7%	22.3%	$3.12B	–
Americas	$710M	+23.4%	23.5%	$2.72B	+10.1%
Asia	$675M	+38.3%	22.4%	$2.37B	+45.0%
Other Asia	$312M	+28.7%	10.4%	$1.45B	–
CHINA	$255M	+4.1%	8.5%	$995M	–
EMEA	$249M	+31.3%	8.2%	$939M	+19.0%
JAPAN	$107M	+24.0%	3.6%	$406M	+27.5%
Other America	$35.6M	-17.1%	1.2%	$200M	–

Margins & cost structure

How much of each unit of revenue is left at each level - and where the costs go.

Margins

quarterly

Costs as % of revenue

quarterly

Cash flow & capital allocation

Cash generated, what it is spent on, and what reaches shareholders.

Operating cash flow, capex, free cash flow

quarterly

Uses of cash vs operating cash flow

fiscal years

Last 4 quarters

cash flow statement

Operating cash flow: $1.97B
Capex: -$204M
Buybacks: -$1B
Dividends: $0
Acquisitions: -$2.32B
Net debt issued: $575M
Stock-based compensation: $543M
Free cash flow: $1.76B
Returned to shareholders / FCF: 56.7%

Share count and EPS

quarterly, diluted

Balance sheet

Liquidity, investments and debt at each quarter end.

Cash, investments and debt

quarter ends

Valuation & returns

Today's multiples against the company's own last five fiscal years; analyst targets and ratings.

Multiples and returns

TTM vs 5 fiscal years

	Now	5y average	Where today sits in the 5-year range
P/E (TTM)	64.8×	69.8×	51.3× – 77.2×
EV / EBITDA	38.8×	47.0×	36.2× – 54.9×
EV / Sales	14.9×	16.1×	12.2× – 17.9×
Price / FCF	51.0×	54.7×	39.0× – 72.9×
Price / Book	13.1×	17.8×	15.5× – 21.6×
FCF yield	2.0%	1.9%	1.4% – 2.6%
Return on invested capital	12.8%	18.7%	13.4% – 23.0%
Return on equity	21.4%	25.9%	20.3% – 30.9%

Analysts

Consensus target $405.08 (+23.5%)
range $300.00 – $450.00 · rating Buy

Strong buy0

Buy26

Hold4

Sell1

Strong sell0

Outlook

Analyst consensus for the coming fiscal years and what it implies at today's price.

Consensus estimates

Fiscal year	Revenue	Growth	EPS	Growth	P/E at today's price	Analysts (EPS)
FY2026	$6.41B	+20.9%	$8.41	+107.1%	39.0×	11
FY2027	$7.34B	+14.5%	$9.85	+17.2%	33.3×	15
FY2028	$8.25B	+12.5%	$11.40	+15.7%	28.8×	8
FY2029	$9.17B	+11.2%	$12.77	+12.0%	25.7×	5
FY2030	$9.33B	+1.7%	$11.27	-11.7%	29.1×	5

Financial statements

Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.

Income statementRevenue, costs, operating income, net income and EPSOpen Balance sheetCash, investments, assets, debt, liabilities and equityOpen Cash flowOperating cash flow, capex, free cash flow, buybacks and dividendsOpen

Every reported line

All 315 figures Cadence Design Systems, Inc. tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).

Line (SEC label)	Latest quarter	Year ago	y/y	Latest FY	Prior FY	y/y
	$33M	–	–	–	–	–
Accounts Payable and Accrued Liabilities, Current	$805M	$631M	+27.6%	$857M	$633M	+35.4%
Accounts Payable, Trade	$88.2M2026-03-31	–	–	$93.5M	$5.56M	+1,583.0%
Accounts Receivable, Allowance for Credit Loss, Current	$4.29M	$4.21M	+1.8%	$3.89M	$5.81M	-33.1%
Accounts Receivable, Allowance for Credit Loss, Writeoff	–	–	–	$2.75M	$823K	+234.0%
Accounts Receivable, before Allowance for Credit Loss	$1.18B	$805M	+46.0%	$1B	$710M	+40.9%
Accounts Receivable, before Allowance for Credit Loss, Current	$561M	$384M	+46.2%	$493M	$393M	+25.4%
Accounts Receivable, before Allowance for Credit Loss, Noncurrent	$60.9M	$45.7M	+33.3%	$52.5M	$24.2M	+116.9%
Accounts Receivable, Credit Loss Expense (Reversal)	–	–	–	$829K	$2.08M	-60.1%
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$1.02B2025-12-31	$917M	+11.4%	$1.02B	$917M	+11.4%
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	$10.6M	$3.49M	+202.5%	$10.3M	$4.45M	+131.5%
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	-$50.2M	$16.7M	-399.9%	$14.3M	-$179M	+108.0%
Accumulated Other Comprehensive Income (Loss), Net of Tax	-$68.7M	$7.3M	-1,041.3%	-$1.81M	-$190M	+99.1%
Advertising Expense	–	–	–	$15.2M	$23.2M	-34.5%
Amortization of Intangible Assets	$33.8M	$10.2M	+230.1%	$39.9M	$30.4M	+31.5%
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1.74M	1.72M	+1.1%	1.45M	442K	+226.9%
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax	-$5.81M	-$6.45M	+9.9%	-$6.43M	-$7.04M	+8.6%
AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax	$653K2025-12-31	-$352K	+285.5%	$653K	-$352K	+285.5%
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$145M	$116M	+24.7%	$455M	$391M	+16.3%
Assets	$12.2B	$9.6B	+27.4%	$10.2B	$8.97B	+13.1%
Assets, Current	$3.35B	$4.29B	-21.8%	$4.67B	$4.02B	+16.3%
Buildings and Improvements, Gross	$138M2025-12-31	$138M	-0.1%	$138M	$138M	-0.1%
Business Acquisition, Pro Forma Net Income (Loss)	$290M	$266M	+9.1%	–	–	–
Business Acquisition, Pro Forma Revenue	$1.63B	$1.4B	+16.9%	–	–	–
Business Combination, Acquisition Related Costs	–	–	–	$30.5M	$14.6M	+108.9%
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed	$1.6M	$17M	-90.6%	–	–	–
Capitalized Computer Software, Gross	$991M2025-12-31	$875M	+13.2%	$991M	$875M	+13.2%
Capitalized Contract Cost, Amortization	–	–	–	$50M	$47.6M	+5.0%
Capitalized Contract Cost, Net	$53.1M2025-12-31	$51.9M	+2.3%	$53.1M	$51.9M	+2.3%
Cash and Cash Equivalents, at Carrying Value	$1.45B	$2.75B	-47.3%	$3B	$2.64B	+13.5%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$1.45B	$2.75B	-47.3%	$3B	$2.64B	+13.5%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	$11.6M	-$69.5M	+116.7%	$357M	$1.64B	-78.2%
Common Stock, Capital Shares Reserved for Future Issuance	22.9M2025-12-31	25.1M	-8.8%	22.9M	25.1M	-8.8%
Common Stock, Par or Stated Value Per Share	$0.012025-12-31	$0.01	0.0%	$0.01	$0.01	0.0%
Common Stock, Shares Authorized	600M2025-12-31	600M	0.0%	600M	600M	0.0%
Common Stock, Shares, Issued	272M2025-12-31	274M	-0.7%	272M	274M	-0.7%
Common Stock, Shares, Outstanding	272M2025-12-31	274M	-0.7%	272M	274M	-0.7%
Common Stocks, Including Additional Paid in Capital	$6.04B	$4.61B	+31.1%	$4.72B	$4.18B	+12.9%
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$277M	$270M	+2.5%	$1.3B	$960M	+35.2%
Contract with Customer, Asset, after Allowance for Credit Loss	$42.5M	$91.1M	-53.3%	$67.8M	$29.3M	+131.0%
Contract with Customer, Liability	$1.15B	$905M	+27.1%	$934M	$853M	+9.6%
Contract with Customer, Liability, Current	$1.01B	$775M	+30.6%	–	–	–
Contract with Customer, Liability, Noncurrent	$138M	$130M	+6.3%	–	–	–
Contract with Customer, Liability, Revenue Recognized	$104M	$103M	+1.8%	$738M	$670M	+10.2%
Contract with Customer, Performance Obligation Satisfied in Previous Period	$34.9M	$22.7M	+53.7%	$87.3M	$68M	+28.4%
Cost, Amortization	$46.1M	$15.8M	+192.6%	$65.4M	$60.1M	+8.9%
Costs and Expenses	$1.2B	$913M	+31.9%	$3.8B	$3.29B	+15.6%
Current Federal Tax Expense (Benefit)	–	–	–	$133M	$282M	-52.7%
Current Foreign Tax Expense (Benefit)	–	–	–	$147M	$137M	+7.0%
Current Income Tax Expense (Benefit)	–	–	–	$347M	$469M	-26.0%
Current State and Local Tax Expense (Benefit)	–	–	–	$67.3M	$50.4M	+33.5%
Debt and Equity Securities, Realized Gain (Loss)	$2.79M	-$14.5M	+119.2%	$57.6M	$49.6M	+16.1%
Debt Instrument, Face Amount	$2.5B2026-06-30	$2.5B	0.0%	–	–	–
Debt Instrument, Unamortized Discount	$20.9M2025-09-30	$24.8M	-15.9%	$944K2023-12-31	$1.92M	-50.9%
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$16.8M	–	–	$23.8M2024-12-31	$944K	+2,423.0%
Debt Securities, Available-for-sale	$80.7M	$72.8M	+10.8%	$71M	$50.3M	+41.2%
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax	-$2.1M	$495K	-525.1%	–	–	–
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	$21K	$767K	-97.3%	$852K	$230K	+270.4%
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	$2.13M	$272K	+681.3%	$199K	$582K	-65.8%
Debt Securities, Available-for-sale, Amortized Cost	$82.8M	$72.3M	+14.5%	$70.3M	$50.6M	+39.0%

Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.

Sources

Statements, segment revenue, metrics, estimates: Financial Modeling Prep. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-09-30, 10-Q 2026-06-30, 10-Q 2026-03-31, 10-K 2025-12-31, 10-Q 2025-09-30, 10-Q 2025-06-30, 10-Q 2025-03-31, 10-K 2024-12-31, 10-Q 2024-09-30

Data as of 2026-11-01