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CDNS
Cadence Design Systems, Inc.
$278.72
-1.47
(-0.52%)
[ms_data_label text=’Delayed data’]
| Exchange: | NASDAQ |
| Market Cap: | 75.993B |
| Shares Outstanding: | 26.686M |
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Application | |||||
| CEO: | Anirudh Devgan | |||||
| Full Time Employees: | 12837 | |||||
| Address: |
| |||||
| Website: | https://www.cadence.com |
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer’s ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing markets. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 4,089,986 | 4,641,264 | 5,296,759 |
| Gross Profit | 3,654,945 | 3,993,762 | 4,574,510 |
| EBITDA | 1,463,854 | 1,666,833 | 1,872,428 |
| Operating Income | 1,251,225 | 1,350,763 | 1,649,781 |
| Net Income | 1,041,144 | 1,055,484 | 1,108,888 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 5,669,491 | 8,974,482 | 10,153,148 |
| Total Liabilities | 2,265,220 | 4,300,904 | 4,678,967 |
| Total Stockholders Equity | 3,404,271 | 4,673,578 | 5,474,181 |
| Total Debt | 764,414 | 2,585,076 | 2,480,150 |
| Cash and Cash Equivalents | 1,008,152 | 2,644,030 | 3,001,317 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 1,349,176 | 1,260,551 | 1,728,781 |
| Capital Expenditure | -102,503 | -142,542 | -141,871 |
| Free Cash Flow | 1,246,673 | 1,118,009 | 1,586,910 |
| Net Income | 1,041,144 | 1,055,484 | 1,108,888 |
| Net Change in Cash | 125,827 | 1,635,878 | 357,287 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 8,675,347.055 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 9,046,570.003 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 8,825,700 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 3,530,646.523 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 3,681,724.861 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 3,591,836.364 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 2,979,939.878 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 3,146,572.739 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 3,047,428.811 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 1,994,206.732 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 2,079,539.953 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 2,028,768.445 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 11.150 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 11.510 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 10.900 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 5 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 2 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Revenue Growth: Cadence reported a 14% year-over-year revenue increase for fiscal year 2025, as highlighted in the Q4 earnings call transcript. This growth reflects strong demand for its products and services, positioning the company favorably within the technology and semiconductor design sector.
- Solid Financial Performance: Key metrics such as net income and operating cash flow from the income and cash flow statements indicate consistent profitability and operational efficiency. High gross and net profit margins (per Key Metrics TTM) further underscore financial health.
- Innovation-Driven Portfolio: The earnings call emphasized ongoing innovation and an expanding product portfolio, which are critical for maintaining competitive advantage in the fast-evolving electronic design automation (EDA) industry.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates CDNS intrinsic value between $60.08 – $195.99 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about CDNS valuation
Is Cadence Design Systems, Inc. (CDNS) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Cadence Design Systems, Inc. (CDNS) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is CDNS a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether CDNS trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is CDNS’s P/E ratio?
You can see CDNS’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for CDNS?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is CDNS a good long-term investment?
Whether CDNS fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
CDNS
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-0.52
Trading Metrics:
| Open: | [ms_cell_or_dash table='trading_quote' column='open'] | Previous Close: | [ms_cell_or_dash table='trading_quote' column='previousClose'] | |
| Day Low: | [ms_cell_or_dash table='trading_quote' column='dayLow'] | Day High: | [ms_cell_or_dash table='trading_quote' column='dayHigh'] | |
| Year Low: | 221.56 | Year High: | 376.45 | |
| Price Avg 50: | 292.86 | Price Avg 200: | 321.77 | |
| Volume: | 1.511M | Average Volume: | 2.72M |
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Login — it's freeCDNS full analysis
Hey everyone, welcome back to the channel! Today, we’re diving deep into a comprehensive analysis of Cadence Design Systems, ticker symbol CDNS, a major player in the electronic design automation space. If you’re looking to understand whether this stock deserves a spot in your portfolio, stick around because we’re breaking down everything from financials to recent performance, valuation, and more. Let’s get started! Alright, let’s set the stage. Cadence Design Systems is a tech company that’s been making waves in…
