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Earnings transcript
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CDNS
Cadence Design Systems, Inc.
$343.27
8.59
(2.57%)
| Exchange: | NASDAQ |
| Market Cap: | 94.534B |
| Shares Outstanding: | 26.686M |
Delayed data
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Application | |||||
| CEO: | Anirudh Devgan | |||||
| Full Time Employees: | 13800 | |||||
| Address: |
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| Website: | https://www.cadence.com |
Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company’s robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. 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 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 8,657,436.542 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 9,176,954.185 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 8,915,000 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 3,523,357.398 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 3,734,787.920 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 3,628,179.202 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 2,875,102.861 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 3,101,410.664 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 2,987,300.170 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 1,990,089.633 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 2,109,511.435 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 2,049,295.885 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 10.930 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 11.350 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 10.520 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 12 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 5 | Research Access | Research Access | Research Access | Research 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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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.
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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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Daily snapshot
2.57
Trading Metrics:
| Open: | 340.04 | Previous Close: | 334.68 | |
| Day Low: | 330.68 | Day High: | 344.72 | |
| Year Low: | 262.75 | Year High: | 416.69 | |
| Price Avg 50: | 350.23 | Price Avg 200: | 327.06 | |
| Volume: | 483600 | Average Volume: | 2.41M |
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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…
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