# Cadence Design Systems, Inc. (CDNS)

> Source: Nexqual · https://nexqual.com/CDNS · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Cadence Design Systems, Inc. (CDNS), nexqual.com/CDNS" · informational, not investment advice.

**Price:** USD 309.65 (-5.04% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 326.07 · day 306.39–319.47 · 52w 262.75–416.69 · market cap $85.3B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $5.84B, net income $1.38B (23.6% margin), free cash flow $1.68B (SEC filings).
- Valuation: P/E 61.9x (avg 75.5x at the last 3 fiscal year-ends).
- 2 of 80 tracked superinvestors hold CDNS (13F, Q2 2026): 0 new, 0 added, 2 reduced, 0 unchanged.
- Analysts: Buy (mean 1.88 on a 1–5 scale) (25 analysts), mean target USD 406.24 (range 300–470).
- Total return with dividends: 1Y -8.2% vs S&P 500 +14.9%; 5Y +85.7% vs S&P 500 +80.3%.
- Next earnings: 2026-10-26, EPS estimate USD 2.05, revenue estimate $1.61B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $2.99B | $3.56B | $4.09B | $4.64B | $5.30B | $5.84B |
| Operating income | $779M | $1.07B | $1.25B | $1.35B | $1.49B | $1.77B |
| Net income | $696M | $849M | $1.04B | $1.06B | $1.11B | $1.38B |
| EPS (diluted) | $2.50 | $3.09 | $3.82 | $3.85 | $4.06 | — |
| Free cash flow | $1.04B | $1.12B | $1.25B | $1.12B | $1.59B | $1.68B |
| Operating margin | 26.1% | 30.1% | 30.6% | 29.1% | 28.2% | 30.3% |
| Net margin | 23.3% | 23.8% | 25.5% | 22.7% | 20.9% | 23.6% |
| Revenue growth | +11.4% | +19.2% | +14.8% | +13.5% | +14.1% | — |
| Cash + short-term investments | $1.09B | $887M | $1.14B | $2.78B | $3.16B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 61.9x · P/S 14.6x · P/FCF 50.8x · P/B 12.4x · FCF yield 1.97% · Earnings yield 1.62% · Buyback yield (TTM) 0.94%
P/E at fiscal year-ends: Dec 2025 77.0x, Dec 2024 78.0x, Dec 2023 71.4x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold CDNS. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Jensen Investment Management |  | 2.81% | $116M | Reduced -39.0% |
| Dodge & Cox Funds | Dodge & Cox | 0.04% | $85.6M | Reduced -1.3% |

## Analysts
Consensus Buy (mean 1.88 on a 1–5 scale), 25 analysts; mean target USD 406.24 (low 300, high 470).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-07-28 | B of A Securities | Target raised | Buy | $400 → $420 |
| 2026-07-28 | Rosenblatt | Target raised | Buy | $410 → $420 |
| 2026-07-28 | Citigroup | Target raised | Buy | $400 → $420 |
| 2026-07-28 | Baird | Target raised | Outperform | $415 → $420 |
| 2026-07-28 | Needham | Reiterated | Buy | $400 |
| 2026-07-28 | Piper Sandler | Target raised | Neutral | $325 → $349 |
| 2026-07-16 | Benchmark | Initiated | Buy | $450 |
| 2026-07-14 | Rosenblatt | Target raised | Buy | $375 → $410 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -8.2% | +85.7% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -8.2% | +13.1% |
| Volatility (annualized) | 40.9% | 36.1% |
| Max drawdown | -34.2% (Jun 2026→Sep 2026) | -28.8% (Sep 2025→Apr 2026) |

## Peers (Software - Application)
INTU (Intuit Inc.) USD 354.9 +5.75% · DDOG (Datadog, Inc.) USD 257.75 -5.62% · ADBE (Adobe Inc.) USD 270.55 +6.07% · SNOW (Snowflake Inc.) USD 313.96 -2.72% · ADP (Automatic Data Processing, Inc.) USD 307.94 +4.56% · MSTR (Strategy Inc) USD 145.8 -5.00%

## More
Full page: https://nexqual.com/CDNS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in CDNS's own 10-K filed 2026-02-19 (https://www.sec.gov/Archives/edgar/data/813672/000081367226000016/cdns-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Zuken | "We also use a third-party distributor to license our products and services to certain customers in Japan." |
| Competitor | Synopsys (SNPS) | "Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA, and a variety of other tool providers, electronics device manufacturers with in-house EDA capabilities, technical and computational…" |
| Competitor | Siemens | "Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA, and a variety of other tool providers, electronics device manufacturers with in-house EDA capabilities, technical and computational…" |

Other companies that name CDNS in their own reports (relationship from CDNS's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| supplier | GSI TECHNOLOGY INC (GSIT) | 10-K 2026-06-05 | "We maintain long-term relationships with leading original equipment manufacturer ("OEM") customers, including KYEC, Cadence Design Systems, and Nokia." |
| partner | ARM HOLDINGS PLC /UK (ARM) | 20-F 2026-05-26 | "Definitive Agreement with Cadence Design Systems, Inc." |
| partner | TOWER SEMICONDUCTOR LTD (TSEM) | 20-F 2026-04-30 | "we collaborate with leading design automation providers - including Cadence Design Systems, Synopsys, Siemens EDA, and Keysight Technologies" |
| partner | UNITED MICROELECTRONICS CORP (UMC) | 20-F 2026-04-30 | "We and Cadence Design Systems collaborate on certification of analog/mixed-signal flow for 28HPC+ process." |
| partner | Starfighters Space, Inc. (FJET) | 10-K 2026-04-15 | "The Company's involvement in the Hypersonic and High-Cadence Airborne Testing Capabilities ("HyCAT") initiative, in partnership with Innoveering LLC and under the auspices of the Defense Innovation Un…" |
| partner | SWK Holdings Corp (SWKHL) | 10-K 2026-03-20 | "Our prior credit agreement with Cadence Bank was terminated in connection with the establishment of the new Credit Agreement." |
| partner | Silvaco Group, Inc. (SVCO) | 10-K 2026-03-12 | "On March 4, 2025, we consummated an asset purchase agreement with Cadence Design Systems, Inc. ("Cadence"), pursuant to which, among other things, we agreed to acquire certain assets and assume certai…" |
| partner | Ambiq Micro, Inc. (AMBQ) | 10-K 2026-03-05 | "We have entered into development, product collaboration and technology licensing arrangements with third parties, such as ARM Limited and Cadence Design Systems, Inc., and we expect to enter into new …" |
| partner | Stabilis Solutions, Inc. (SLNG) | 10-K 2026-03-05 | "Further, we are required to obtain prior approval for payment of dividends from our lenders as part of our financial covenants with both our secured term loan with AmeriState Bank and our revolving cr…" |
| supplier | EVERSPIN TECHNOLOGIES INC. (MRAM) | 10-K 2026-03-04 | "We have established relationships with several storage controller and FPGA companies, including Phison Electronics, Sage Micro, and Xilinx as well as IP core companies, including Cadence and Northwest…" |
| partner | Perella Weinberg Partners (PWP) | 10-K 2026-02-27 | "The Company has a revolving credit facility (the "Revolving Credit Facility") through a credit agreement with Cadence Bank (the "Credit Agreement"), with an available line of credit of $50.0 million a…" |
| partner | Xperi Inc. (XPER) | 10-K 2026-02-26 | "We have devoted significant time and resources to develop a broad range of solutions with key partners including Amlogic, Analog Devices, Cadence, Cirrus Logic, MediaTek, NXP, Qualcomm, Realtek, Synap…" |
| competitor | Schrodinger, Inc. (SDGR) | 10-K 2026-02-25 | "These competitors include BIOVIA, a brand of Dassault Systèmes SE, or BIOVIA, Chemical Computing Group (US) Inc., Cresset Biomolecular Discovery Limited, Cadence Design Systems, Inc., Optibrium Limite…" |
| competitor | HENRY SCHEIN INC (HSIC) | 10-K 2026-02-24 | "against several large competitors, including Cadence Group, Proclinic Group, DD" |
| supplier | BOYD GAMING CORP (BYD) | 10-K 2026-02-20 | "The principal customers of this property are Henderson residents, including the rapidly growing adjacent community of Cadence." |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Product and maintenance | $1.43B | 90.3% | +22.2% |
| Service | $153.8M | 9.7% | +46.6% |
| Total revenue | $1.58B | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Americas | $678.4M | 42.8% | +7.6% |
| — United States (part of Americas) | $656.1M | 41.4% | +11.0% |
| — Other America (part of Americas) | $22.3M | 1.4% | -42.9% |
| Asia | $662.7M | 41.8% | +48.9% |
| — Other Asia (part of Asia) | $321.8M | 20.3% | +35.1% |
| — China (part of Asia) | $236.2M | 14.9% | +95.7% |
| — JAPAN (part of Asia) | $104.7M | 6.6% | +21.8% |
| EMEA | $243.3M | 15.4% | +21.5% |
| Total revenue | $1.58B | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $2.05 | $1.95 | +5.2% | $1.61B | 18 |
| Next quarter (ends 2026-12-31) | $2.03 | $1.99 | +1.7% | $1.65B | 18 |
| Current fiscal year (ends 2026-12-31) | $4.81 | $4.50 | +7.0% | $6.32B | 13 |
| Next fiscal year (ends 2027-12-31) | $9.57 | $9.40 | +1.8% | $7.18B | 25 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-10-30 (includes earnings 2026-10-26): ±8.1%; last 8 reports averaged ±5.4%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 68.3% | ±8.1% |
| 2026-11-06 | 14 | 58.2% | ±9.4% |
| 2026-11-13 | 21 | 53.1% | ±10.4% |
| 2026-11-20 | 28 | 51.4% | ±11.6% |
| 2026-11-27 | 35 | 49.3% | ±12.4% |
| 2026-12-04 | 42 | 48.5% | ±13.3% |
| 2026-12-18 | 56 | 46.9% | ±14.8% |
| 2027-01-15 | 84 | 45.5% | ±17.5% |