TopFunds

Cadence Design Systems

NASDAQ: CDNS

Stock price

348.84 USD

(+132.37%) 5 years

Application SoftwareSoftware - Application

Financial Performance

Share

5Y price score: 172

Help

The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 1,266.4%

DATE RANGE:

%

ㅤ

  • Earnings per share

  • Free cash flow per share

  • Stock price

Time scale:

By default your notes are visible only to you.

262.7

52-week range

416.6

348.84

Your model inputs

Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

Help
FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

1.8 %

Dividend Yield TTM

-

Market cap $

$ 96,068

Price / Earnings TTM

Help
P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

69.4

Price / Book TTM

13.9

PEG TTM

Help
Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

12.7

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(0.3) %

132.4 %

1,266.4 %

Free cash flow per share growth

73.3 %

100.4 %

443.9 %

Earnings per share growth

125.4 %

92.4 %

401.2 %

Founded: 1,988

Employees: 12,837

Business Summary: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.

Q&A

SEARCH
Get answers on financials, industry, fundamentals or other questions.

Contribute

By providing well-researched and detailed answer you increase your chance of becoming Top Contributor. TopFunds is free for all top contributors. Learn more

VIEW ALL Q&A

Contribute or ask questions about business following TopFunds community guidelines

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 27, 2026)

1) Strategy & Leadership - Cadence is experiencing strong demand for its AI-driven solutions, leading to a record backlog and an increase in guidance for 2026 revenue growth to 19%. - The company is focusing on becoming a strategic partner for its customers, enhancing engagement across semiconductor firms and deepening collaborations with major players like Intel and Samsung. - The introduction of agentic AI solutions is expected to expand the total addressable market (TAM) significantly, with early customer results showing productivity improvements of up to 40x.

2) Financial & Segment Results - Q2 2026 revenue reached $1,584 million, a 24% YoY increase, with all product groups showing double-digit growth. - The operating margin was 45.5% (non-GAAP), while GAAP operating margin stood at 28.4%. Non-GAAP EPS was $2.11. - The IP business grew over 40% YoY, driven by demand in AI, HPC, and advanced packaging, while the core EDA segment grew 18% YoY.

3) Operational & Product Plans - Cadence's hardware business achieved record performance, driven by demand from AI and HPC customers, with a focus on hardware-assisted design and verification. - The company is expanding its product offerings, including the AuraStack AI Super Agent and ChipStack AI Super Agent, which are gaining traction with multiple customer engagements. - Collaborations with Intel and Samsung are set to enhance capabilities in next-generation designs, particularly in 3D IC technologies.

4) Guidance & Outlook - For 2026, Cadence expects revenue between $6,260 million and $6,340 million, with GAAP operating margin projected at 27.75% to 28.75%. - Q3 guidance suggests revenue in the range of $1,595 million to $1,625 million, with continued strong performance anticipated across all segments. - The company plans to use approximately 50% of free cash flow for share repurchases in 2026, reflecting confidence in its financial health and growth trajectory.

5) Problems / Headwinds - The transcript does not provide specific details on potential headwinds or challenges facing Cadence in the upcoming quarters, such as competitive pressures or regulatory concerns.

Bottom line: Cadence is positioned for robust growth driven by strong demand for AI solutions and strategic partnerships, with a solid financial outlook and a commitment to enhancing customer engagement. The company’s innovative product offerings and expanding market presence suggest a favorable environment for shareholders moving forward.

Annual Reports, Presentations And IR Contacts

Go to the website
Annual report links (10K)
202520242023202220212019201820172016

Cadence Design Systems — Financial Overview, Stock Price, Market Cap

Cadence Design Systems is a company. Founded in 1988. As of October 9, 2026, the company's market capitalization is $96068094120 with a current stock price of $348.84.