What is Cadence Design Systems's earnings per share (EPS)?

Cadence Design Systems (CDNS) reported diluted earnings per share of $4.06 for fiscal year 2025. This represents a 5.5% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Cadence Design Systems (CDNS) Financials

CDNS

Trailing 12 months to March 31, 2026

Revenue $5.5B +13.4% YoY

Net Income $1.2B +8.3% YoY

EPS (Diluted) $4.29 +8.6% YoY

Free Cash Flow $1.4B +3.7% YoY

Market Cap $98.1B as of Oct 7, 2026

Price / Sales 17.7x on $5.5B revenue, trailing 12 months to March 31, 2026

Price / Earnings 83.8x on $1.2B net income, trailing 12 months to March 31, 2026

Price / Book 14.9x on $6.6B equity, Q1 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 7, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q1 FY2026, ended Mar 31, 2026 Reported May 1, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q1 FY2026, filed May 1, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the CDNS SEC filings page.

Cadence Design Systems (CDNS) reported $5.5B in revenue over the twelve months to Mar 31, 2026, up 13.4% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI CDNS FY2025 2026-10-04

Cadence converts rising revenue into cash efficiently, but higher financing and tax costs keep profit growth from fully matching it.

The FY2025 cash story diverged from earnings: free cash flow rose 42.0% while net income rose only 5.1%. With capital spending roughly flat, the widening gap indicates stronger cash conversion, not merely reported-profit growth.

Revenue expanded in FY2025, yet operating profit grew more slowly, pulling operating margin from 29.1% to 28.2%. Net margin fell to 20.9% as interest expense reached $116.5M, so growth improved scale without producing proportional bottom-line expansion.

Capital spending was $141.9M in FY2025, roughly unchanged from FY2024, while FCF margin recovered to 30.0%; this makes cash generation less dependent on heavy physical reinvestment. Debt-to-equity was 0.9x and current ratio 2.9x, combining meaningful leverage with substantial short-term coverage.

Financial Health Signals

Financial Health Score 79/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Cadence Design Systems's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Cadence Design Systems has an operating margin of 28.2%, meaning the company retains $28 of operating profit per $100 of revenue. This strong profitability earns a score of 95/100, reflecting efficient cost management and pricing power. This is down from 29.1% the prior year.

Growth

Cadence Design Systems's revenue grew 14.1% year-over-year to $5.3B, a solid pace of expansion. This earns a growth score of 73/100.

Leverage

Cadence Design Systems has a moderate D/E ratio of 0.85. This balance of debt and equity financing earns a leverage score of 51/100.

Liquidity

With a current ratio of 2.86, Cadence Design Systems holds $2.86 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 77/100.

Cash Flow

Cadence Design Systems converts 30.0% of revenue into free cash flow ($1.6B). This strong cash generation earns a score of 93/100.

Returns

Cadence Design Systems earns a strong 20.3% return on equity (ROE), meaning it generates $20 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 85/100. This is down from 22.6% the prior year.

Altman Z-Score Safe

14.92

Cadence Design Systems scores 14.92, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($98.1B) relative to total liabilities ($4.7B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

5/7

Cadence Design Systems passes 5 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Cash-Backed

1.56x

For every $1 of reported earnings, Cadence Design Systems generates $1.56 in operating cash flow ($1.7B OCF vs $1.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

12.80x

Cadence Design Systems earns $12.80 in operating income for every $1 of interest expense ($1.5B vs $116.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$1.5B

YoY+18.7%

QoQ+2.4%

5Y CAGR+14.2%

10Y CAGR+13.5%

Cadence Design Systems generated $1.5B in revenue in Q1 2026. This represents an increase of 18.7% from the same quarter a year earlier. Against the prior quarter it is up 2.4%.

EBITDA

$516.0M

YoY+24.5%

QoQ-2.3%

5Y CAGR+18.2%

10Y CAGR+17.2%

Cadence Design Systems's EBITDA was $516.0M in Q1 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 24.5% from the same quarter a year earlier. Against the prior quarter it is down 2.3%.

Net Income

$335.7M

YoY+22.7%

QoQ-13.5%

5Y CAGR+14.1%

10Y CAGR+19.2%

Cadence Design Systems reported $335.7M in net income in Q1 2026. This represents an increase of 22.7% from the same quarter a year earlier. Against the prior quarter it is down 13.5%.

EPS (Diluted)

$1.23

YoY+23.0%

QoQ-13.4%

5Y CAGR+14.7%

10Y CAGR+20.5%

Cadence Design Systems earned $1.23 per diluted share (EPS) in Q1 2026. This represents an increase of 23.0% from the same quarter a year earlier. Against the prior quarter it is down 13.4%.

Cash & Balance Sheet

Free Cash Flow

$307.0M

YoY-33.8%

QoQ-40.1%

5Y CAGR+24.1%

10Y CAGR+11.3%

Cadence Design Systems generated $307.0M in free cash flow in Q1 2026, representing cash available after capex. This represents a decrease of 33.8% from the same quarter a year earlier. Against the prior quarter it is down 40.1%.

Cash & Debt

$1.4B

YoY-49.4%

QoQ-53.1%

5Y CAGR+8.7%

10Y CAGR+8.1%

Cadence Design Systems held $1.4B in cash as of Q1 2026; long-term debt is not reported for that period.

Shares Outstanding

276M

YoY+1.0%

QoQ+1.2%

5Y CAGR-0.2%

10Y CAGR-0.5%

Cadence Design Systems had 276M shares outstanding in Q1 2026. This represents an increase of 1.0% from the same quarter a year earlier. Against the prior quarter it is up 1.2%.

Dividends Per Share

Not reported for Q1 2026.

Margins & Returns

Operating Margin

29.3%

YoY+0.2pp

QoQ-2.9pp

5Y change+4.9pp

10Y change+10.9pp

Cadence Design Systems's operating margin was 29.3% in Q1 2026, reflecting core business profitability. This is up 0.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.9 percentage points.

Net Margin

22.8%

YoY+0.8pp

QoQ-4.2pp

5Y change-0.1pp

10Y change+8.8pp

Cadence Design Systems's net profit margin was 22.8% in Q1 2026, showing the share of revenue converted to profit. This is up 0.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 4.2 percentage points.

Return on Equity

5.1%

YoY-0.6pp

QoQ-2.0pp

5Y change-1.8pp

10Y change+1.0pp

Cadence Design Systems's ROE was 5.1% in Q1 2026, measuring profit generated per dollar of shareholder equity. This is down 0.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.0 percentage points.

Gross Margin

Not reported for Q1 2026.

Capital Allocation

R&D Spending

$508.4M

YoY+15.8%

Cadence Design Systems invested $508.4M in research and development in Q1 2026. This represents an increase of 15.8% from the same quarter a year earlier.

Share Buybacks

$200.0M

YoY-42.9%

QoQ0.0%

5Y CAGR+9.0%

10Y CAGR+13.5%

Cadence Design Systems spent $200.0M on share buybacks in Q1 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 42.9% from the same quarter a year earlier. It is unchanged from the prior quarter.

Capital Expenditures

$48.8M

YoY+111.7%

QoQ+19.0%

5Y CAGR+9.5%

10Y CAGR+11.4%

Cadence Design Systems invested $48.8M in capex in Q1 2026, funding long-term assets and infrastructure. This represents an increase of 111.7% from the same quarter a year earlier. Against the prior quarter it is up 19.0%.

CDNS Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

CDNS quarterly income statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Revenue	$5.5B	$5.3B+14.1%	$4.6B+13.5%	$4.1B+14.8%	$3.6B+19.2%	$3.0B+11.4%	$2.7B+14.8%	$2.3B+9.3%	$2.1B+10.0%	$1.9B+7.0%	$1.8B+6.7%	$1.7B+7.7%	$1.6B+8.3%	$1.5B+10.1%	$1.3B+15.4%	$1.1B
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$73.4M+5.4%	$69.7M
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$1.3B+16.0%	$1.1B
SG&A Expenses	$338.5M	$313.4M+14.4%	$274.0M+13.0%	$242.4M+0.1%	$242.1M+28.1%	$189.0M+22.4%	$154.4M+10.5%	$139.8M+4.8%	$133.4M-0.6%	$134.2M+7.3%	$125.1M+13.8%	$110.0M-3.2%	$113.6M-6.3%	$121.3M+8.2%	$112.1M+20.7%	$92.9M
Operating Income	$1.6B	$1.5B+10.5%	$1.4B+8.0%	$1.3B+16.5%	$1.1B+37.8%	$779.1M+20.7%	$645.6M+31.3%	$491.8M+24.1%	$396.2M+22.3%	$324.0M+32.3%	$244.9M-14.2%	$285.4M+38.1%	$206.6M+9.3%	$189.0M-10.7%	$211.7M+75.8%	$120.4M
EBITDA	N/A	$1.7B+11.1%	$1.5B+10.8%	$1.4B+15.8%	$1.2B+30.9%	$921.4M+16.5%	$791.2M+28.7%	$614.6M+19.4%	$514.9M+17.2%	$439.5M+20.6%	$364.5M-9.7%	$403.6M+25.2%	$322.3M+12.2%	$287.3M-4.5%	$300.9M+41.9%	$212.0M
Interest Expense	$119.0M	$116.5M+53.3%	$76.0M+110.0%	$36.2M+57.8%	$22.9M+35.1%	$17.0M-18.2%	$20.7M+10.2%	$18.8M-18.6%	$23.1M-9.8%	$25.7M+8.4%	$23.7M-16.4%	$28.3M-17.0%	$34.1M-9.2%	$37.6M+8.2%	$34.7M-19.3%	$43.0M
Income Tax	$423.5M	$413.2M+21.4%	$340.3M+41.3%	$240.8M+22.6%	$196.4M+171.0%	$72.5M+72.1%	$42.1M+108.3%	-$510.0M-1766.0%	$30.6M-72.4%	$110.9M+225.7%	$34.1M+124.4%	$15.2M-31.3%	$22.1M+521.3%	-$5.2M+97.9%	-$251.7M-1185.0%	$23.2M
Net Income	$1.2B	$1.1B+5.1%	$1.1B+1.4%	$1.0B+22.6%	$849.0M+22.0%	$696.0M+17.8%	$590.6M-40.3%	$989.0M+186.0%	$345.8M+69.4%	$204.1M+0.5%	$203.1M-19.5%	$252.4M+58.9%	$158.9M-3.3%	$164.2M-62.7%	$439.9M+509.1%	$72.2M
EPS (Basic)	N/A	$4.09+5.1%	$3.89+0.8%	$3.86+23.3%	$3.13+23.2%	$2.54+17.6%	$2.16-40.3%	$3.62+187.3%	$1.26+68.0%	$0.75+5.6%	$0.71-19.3%	$0.88+57.1%	$0.56-5.1%	$0.59-63.8%	$1.63+503.7%	$0.27
EPS (Diluted)	$4.29	$4.06+5.5%	$3.85+0.8%	$3.82+23.6%	$3.09+23.6%	$2.50+18.5%	$2.11-40.2%	$3.53+187.0%	$1.23+68.5%	$0.73+4.3%	$0.70-13.6%	$0.81+55.8%	$0.52-7.1%	$0.56-64.3%	$1.57+481.5%	$0.27
Diluted Shares (Avg)	N/A	273M-0.2%	274M+0.4%	273M-0.8%	275M-1.4%	279M-0.3%	280M-0.3%	281M-0.2%	281M+0.3%	280M-3.8%	291M-6.7%	312M+1.8%	307M+4.1%	295M+5.0%	281M+3.6%	271M

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Revenue	$1.5B+18.7%	$1.4B+6.2%	$1.3B+10.1%	$1.3B+20.2%	$1.2B+23.1%	$1.4B+26.9%	$1.2B+18.8%	$1.1B+8.6%
R&D Expenses	$508.4M+15.8%	N/A	$423.0M+3.8%	$442.1M+19.2%	$439.1M+15.9%	N/A	$407.4M+10.2%	$370.7M+4.6%
SG&A Expenses	$88.2M+39.8%	$103.2M+47.0%	$78.0M+9.0%	$69.0M+8.8%	$63.1M-8.2%	$70.2M-7.3%	$71.6M+22.2%	$63.4M+16.2%
Operating Income	$431.3M+19.3%	$463.3M+1.4%	$425.4M+21.5%	$241.8M-17.7%	$361.5M+44.6%	$456.9M+35.8%	$350.1M+19.5%	$293.9M-1.8%
EBITDA	$516.0M+24.5%	$527.9M+3.2%	$482.1M+19.0%	$295.5M-13.5%	$414.4M+43.1%	$511.6M+36.4%	$405.1M+23.0%	$341.5M+1.8%
Interest Expense	$31.6M+8.6%	$29.4M-1.6%	$29.0M+18.5%	$28.9M+124.3%	$29.1M+235.0%	$29.9M+232.7%	$24.5M+170.4%	$12.9M+45.4%
Income Tax	$92.4M+12.6%	$104.8M+8.7%	$105.7M+10.9%	$120.6M+39.9%	$82.1M+31.6%	$96.4M+152.7%	$95.3M+108.9%	$86.2M+11.5%
Net Income	$335.7M+22.7%	$388.1M+14.1%	$287.1M+20.6%	$160.1M-30.3%	$273.6M+10.5%	$340.2M+5.0%	$238.1M-6.4%	$229.5M+3.8%
EPS (Basic)	$1.23+21.8%	$1.44+15.2%	$1.06+21.8%	$0.59-30.6%	$1.01+9.8%	$1.25+4.2%	$0.87-7.4%	$0.85+3.7%
EPS (Diluted)	$1.23+23.0%	$1.42+14.5%	$1.05+20.7%	$0.59-29.8%	$1.00+9.9%	$1.24+4.2%	$0.87-6.5%	$0.84+3.7%
Diluted Shares (Avg)	274M0.0%	N/A	274M-0.1%	273M-0.2%	274M0.0%	N/A	274M+0.6%	274M+0.2%

Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit.

CDNS Balance Sheet

CDNS quarterly balance sheet

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Total Assets	$10.2B+13.1%	$9.0B+58.3%	$5.7B+10.4%	$5.1B+17.1%	$4.4B+11.0%	$4.0B+17.7%	$3.4B+36.0%	$2.5B+2.1%	$2.4B+15.3%	$2.1B-10.6%	$2.3B-26.9%	$3.2B+32.2%	$2.4B+6.2%	$2.3B+29.8%	$1.8B
Current Assets	$4.7B+16.3%	$4.0B+103.2%	$2.0B+15.8%	$1.7B-0.5%	$1.7B+16.0%	$1.5B+26.4%	$1.2B+22.9%	$951.1M-2.9%	$980.0M+39.6%	$702.0M-27.2%	$964.2M-47.9%	$1.9B+51.6%	$1.2B-12.2%	$1.4B+30.8%	$1.1B
Cash & Equivalents	$3.0B+13.5%	$2.6B+162.3%	$1.0B+14.3%	$882.3M-19.0%	$1.1B+17.3%	$928.4M+31.7%	$705.2M+32.2%	$533.3M-22.5%	$688.1M+47.9%	$465.2M-24.6%	$616.7M-33.8%	$932.2M+73.8%	$536.3M-26.2%	$726.4M+20.7%	$601.6M
Short-Term Investments	$154.2M+9.7%	$140.6M+7.9%	$130.4M+2803.3%	$4.5M	$0	$0	$0	$0-100.0%	$4.5M+45.7%	$3.1M-96.8%	$94.5M+4.5%	$90.4M-6.6%	$96.8M-3.9%	$100.7M+3215.9%	$3.0M
Inventory	$303.5M+17.8%	$257.7M+41.9%	$181.7M+41.9%	$128.0M+10.6%	$115.7M+52.4%	$76.0M+36.1%	$55.8M+98.1%	$28.2M-15.2%	$33.2M-15.9%	$39.5M-30.5%	$56.8M+0.7%	$56.4M+12.3%	$50.2M+38.9%	$36.2M-16.4%	$43.2M
Long-Term Investments	$67.5M-45.6%	$124.1M	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Goodwill	$2.7B+15.6%	$2.4B+54.9%	$1.5B+11.8%	$1.4B+48.0%	$928.4M+18.7%	$782.1M+18.2%	$661.9M-0.1%	$662.3M-0.6%	$666.0M+16.3%	$572.8M+3.8%	$551.8M-0.4%	$553.8M+21.2%	$456.9M+95.9%	$233.3M+21.4%	$192.1M
Total Liabilities	$4.7B+8.8%	$4.3B+89.9%	$2.3B-5.3%	$2.4B+45.4%	$1.6B+12.9%	$1.5B+16.2%	$1.3B+6.3%	$1.2B-17.4%	$1.4B+5.5%	$1.4B+39.8%	$969.4M-48.3%	$1.9B+47.4%	$1.3B-7.2%	$1.4B+1.6%	$1.4B
Current Liabilities	$1.6B+19.4%	$1.4B-13.9%	$1.6B+18.0%	$1.3B+38.8%	$971.2M+21.9%	$796.8M+18.5%	$672.4M-5.2%	$709.0M+10.4%	$642.4M+9.7%	$585.6M+9.2%	$536.3M-61.5%	$1.4B+21.3%	$1.1B-5.7%	$1.2B+19.9%	$1.0B
Non-Current Liabilities	$3.0B+3.9%	$2.9B+334.6%	$674.4M-35.4%	$1.0B+54.8%	$674.4M+2.0%	$661.0M+13.6%	$581.9M+23.5%	$471.3M-40.1%	$787.1M+2.3%	$769.6M+77.7%	$433.1M-10.3%	$482.9M+288.5%	$124.3M-19.6%	$154.6M-53.8%	$334.8M
Total Equity	$5.5B+17.1%	$4.7B+37.3%	$3.4B+24.0%	$2.7B+0.2%	$2.7B+9.9%	$2.5B+18.6%	$2.1B+63.2%	$1.3B+30.2%	$989.2M+33.4%	$741.8M-46.1%	$1.4B+3.2%	$1.3B+15.4%	$1.2B+26.3%	$915.2M+122.6%	$411.1M
Retained Earnings	$7.1B+18.5%	$6.0B+21.4%	$4.9B+26.7%	$3.9B+27.9%	$3.0B+29.6%	$2.4B+33.4%	$1.8B+128.0%	$772.7M+81.0%	$426.9M+211.9%	$136.9M+285.0%	-$74.0M+77.3%	-$326.4M+32.7%	-$485.3M+25.3%	-$649.5M+40.0%	-$1.1B

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Total Assets	$12.1B+34.2%	$10.2B+13.1%	$9.6B+4.7%	$9.5B+31.6%	$9.0B+57.5%	$9.0B+58.3%	$9.2B+68.8%	$7.2B+40.2%
Current Assets	$3.2B-20.5%	$4.7B+16.3%	$4.3B+4.6%	$4.2B+92.2%	$4.0B+107.2%	$4.0B+103.2%	$4.1B+124.7%	$2.2B+33.7%
Cash & Equivalents	$1.4B-49.4%	$3.0B+13.5%	$2.8B-1.2%	$2.8B+166.6%	$2.8B+174.4%	$2.6B+162.3%	$2.8B+189.6%	$1.1B+21.2%
Short-Term Investments	$0	$154.2M+9.7%	$0	$0	$0	$140.6M+7.9%	$0	$0
Inventory	$318.0M+40.9%	$303.5M+17.8%	$286.2M-2.4%	$226.2M+31.9%	$225.6M+21.4%	$257.7M+41.9%	$293.4M+79.2%	$171.5M+22.9%
Long-Term Investments	$0	$67.5M-45.6%	$0	$0	$0	$124.1M	$0	$0
Goodwill	$4.9B+103.7%	$2.7B+15.6%	$2.6B+6.1%	$2.6B+7.5%	$2.4B+53.6%	$2.4B+54.9%	$2.5B+66.2%	$2.4B+69.2%
Total Liabilities	$5.5B+30.7%	$4.7B+8.8%	$4.4B-4.4%	$4.5B+51.9%	$4.2B+96.7%	$4.3B+89.9%	$4.6B+98.7%	$3.0B+32.0%
Current Liabilities	$2.2B+66.2%	$1.6B+19.4%	$1.4B-16.0%	$1.5B-2.4%	$1.3B-11.3%	$1.4B-13.9%	$1.7B+32.5%	$1.5B+28.2%
Non-Current Liabilities	$3.4B+14.9%	$3.0B+3.9%	$3.0B+2.2%	$3.0B+110.0%	$2.9B+326.3%	$2.9B+334.6%	$2.9B+178.0%	$1.4B+36.2%
Total Equity	$6.6B+37.4%	$5.5B+17.1%	$5.2B+13.9%	$5.0B+17.5%	$4.8B+33.9%	$4.7B+37.3%	$4.6B+46.5%	$4.3B+46.5%
Retained Earnings	$7.4B+18.7%	$7.1B+18.5%	$6.7B+18.8%	$6.4B+18.7%	$6.3B+20.9%	$6.0B+21.4%	$5.7B+22.5%	$5.4B+24.2%

Not reported in any period shown, so not listed: Accounts Receivable, Long-Term Debt.

CDNS Cash Flow Statement

CDNS quarterly cash flow statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Operating Cash Flow	$1.6B	$1.7B+37.1%	$1.3B-6.6%	$1.3B+8.6%	$1.2B+12.8%	$1.1B+21.7%	$904.9M+24.0%	$729.6M+20.6%	$604.8M+28.5%	$470.7M+5.8%	$444.9M+17.6%	$378.2M+19.4%	$316.7M-13.8%	$367.6M+16.3%	$316.0M+31.5%	$240.3M
Depreciation & Amortization	N/A	$227.8M+15.7%	$196.9M+35.5%	$145.3M+10.0%	$132.1M-7.2%	$142.3M-2.3%	$145.7M+18.6%	$122.8M+3.4%	$118.7M+2.8%	$115.5M-3.4%	$119.6M+1.2%	$118.2M+2.2%	$115.6M+17.6%	$98.3M+10.2%	$89.2M-2.7%	$91.6M
Stock-Based Compensation	N/A	$455.2M+16.3%	$391.2M+20.1%	$325.6M+20.4%	$270.4M+28.7%	$210.1M+6.5%	$197.3M+8.7%	$181.5M+8.2%	$167.7M+29.0%	$130.0M+19.1%	$109.2M+18.3%	$92.3M+10.2%	$83.8M+26.4%	$66.3M+39.4%	$47.6M+9.1%	$43.6M
Capital Expenditures	$167.6M	$141.9M-0.5%	$142.5M+39.3%	$102.3M-16.9%	$123.2M+88.7%	$65.3M-31.1%	$94.8M+27.1%	$74.6M+21.3%	$61.5M+6.2%	$57.9M+7.8%	$53.7M+19.9%	$44.8M+12.6%	$39.8M-11.4%	$44.9M+24.9%	$36.0M+14.5%	$31.4M
Free Cash Flow	$1.4B	$1.6B+41.9%	$1.1B-10.3%	$1.2B+11.5%	$1.1B+8.0%	$1.0B+27.8%	$810.1M+23.7%	$655.0M+20.6%	$543.2M+31.6%	$412.8M+5.5%	$391.2M+17.3%	$333.4M+20.4%	$276.9M-14.2%	$322.7M+15.2%	$280.0M+34.0%	$208.9M
Investing Cash Flow	-$2.6B	-$460.5M+45.0%	-$837.1M-103.1%	-$412.2M+44.2%	-$738.6M-152.1%	-$293.0M-0.3%	-$292.2M-176.4%	-$105.7M+39.2%	-$173.8M+9.1%	-$191.2M-14190.6%	$1.4M+103.0%	-$44.5M+77.5%	-$198.0M+53.6%	-$426.9M-112.1%	-$201.2M-256.2%	-$56.5M
Financing Cash Flow	-$428.7M	-$949.0M-176.6%	$1.2B+254.2%	-$803.6M-22.3%	-$657.0M-2.1%	-$643.8M-55.0%	-$415.3M+6.4%	-$443.9M+21.8%	-$567.9M-709.6%	-$70.1M+88.2%	-$592.7M+5.4%	-$626.3M-316.7%	$289.0M+348.5%	-$116.3M-834.5%	$15.8M+110.9%	-$144.8M
Share Buybacks	$775.0M	$925.0M+68.2%	$550.0M-21.4%	$700.1M-33.3%	$1.1B+71.5%	$612.3M+61.1%	$380.1M+24.1%	$306.1M+22.4%	$250.1M+150.0%	$100.0M-89.6%	$960.3M+188.2%	$333.2M+232.8%	$100.1M	$0	$0	$0

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Operating Cash Flow	$355.8M-26.9%	$553.5M+25.4%	$310.7M-24.2%	$377.6M+142.1%	$487.0M+92.3%	$441.4M+62.2%	$410.0M+3.6%	$156.0M-62.3%
Depreciation & Amortization	$84.6M+59.9%	$64.6M+18.1%	$56.7M+3.0%	$53.7M+12.7%	$52.9M+33.8%	$54.7M+42.0%	$55.0M+51.4%	$47.6M+32.2%
Stock-Based Compensation	$138.2M+28.4%	N/A	$116.1M+6.5%	$118.3M+35.1%	$107.6M+22.1%	N/A	$109.0M+23.8%	$87.6M+14.3%
Capital Expenditures	$48.8M+111.7%	$41.0M+10.3%	$33.7M+26.9%	$44.1M+51.0%	$23.1M-53.5%	$37.2M+10.4%	$26.5M+20.8%	$29.2M+46.5%
Free Cash Flow	$307.0M-33.8%	$512.5M+26.8%	$277.0M-27.8%	$333.5M+163.1%	$464.0M+127.8%	$404.2M+69.5%	$383.5M+2.5%	$126.8M-67.8%
Investing Cash Flow	-$2.1B-9595.1%	-$88.8M-122.0%	-$174.3M-344.1%	-$175.6M+74.1%	-$21.8M+72.7%	-$40.0M+59.5%	-$39.3M+78.6%	-$678.1M-620.8%
Financing Cash Flow	$174.5M+150.5%	-$213.9M+58.2%	-$194.1M-114.5%	-$195.2M-134.0%	-$345.8M-116.9%	-$511.1M-271.5%	$1.3B+1267.3%	$574.8M+262.3%
Share Buybacks	$200.0M-42.9%	$200.0M+33.3%	$200.0M+33.3%	$175.0M+40.0%	$350.0M+180.0%	$150.0M+20.0%	$150.0M+20.0%	$125.0M-61.6%

Not reported in any period shown, so not listed: Dividends Paid.

CDNS Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

CDNS quarterly financial ratios

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	94.5%+0.5pp	93.9%
Operating Margin	28.2%-0.9pp	29.1%-1.5pp	30.6%+0.4pp	30.1%+4.1pp	26.1%+2.0pp	24.1%+3.0pp	21.1%+2.5pp	18.5%+1.9pp	16.7%+3.2pp	13.5%-3.3pp	16.8%+3.7pp	13.1%+0.1pp	12.9%-3.0pp	16.0%+5.5pp	10.5%
Net Margin	20.9%-1.8pp	22.7%-2.7pp	25.5%+1.6pp	23.8%+0.6pp	23.3%+1.3pp	22.0%-20.3pp	42.3%+26.2pp	16.2%+5.7pp	10.5%-0.7pp	11.2%-3.6pp	14.8%+4.8pp	10.1%-1.2pp	11.3%-21.9pp	33.2%+26.9pp	6.3%
Return on Equity	20.3%-2.3pp	22.6%-8.0pp	30.6%-0.4pp	30.9%+5.5pp	25.4%+1.7pp	23.7%-23.3pp	47.0%+20.2pp	26.8%+6.2pp	20.6%-6.7pp	27.4%+9.0pp	18.3%+6.4pp	11.9%-2.3pp	14.2%-33.9pp	48.1%+30.5pp	17.6%
Return on Assets	10.9%-0.8pp	11.8%-6.6pp	18.4%+1.8pp	16.5%+0.7pp	15.9%+0.9pp	14.9%-14.5pp	29.5%+15.4pp	14.0%+5.6pp	8.4%-1.2pp	9.7%-1.1pp	10.8%+5.8pp	5.0%-1.8pp	6.8%-12.5pp	19.2%+15.1pp	4.1%
Current Ratio	2.86-0.1x	2.93+1.7x	1.240.0x	1.27-0.5x	1.77-0.1x	1.86+0.1x	1.74+0.4x	1.34-0.2x	1.53+0.3x	1.20-0.6x	1.80+0.5x	1.33+0.3x	1.06-0.1x	1.14+0.1x	1.05
Debt-to-Equity	0.85-0.1x	0.92+0.3x	0.67-0.2x	0.87+0.3x	0.600.0x	0.580.0x	0.60-0.3x	0.92-0.5x	1.45-0.4x	1.83+1.1x	0.70-0.7x	1.41+0.3x	1.10-0.4x	1.50-1.8x	3.28
Asset Turnover	0.520.0x	0.52-0.2x	0.720.0x	0.690.0x	0.680.0x	0.680.0x	0.70-0.2x	0.87+0.1x	0.80-0.1x	0.87+0.1x	0.73+0.2x	0.49-0.1x	0.600.0x	0.58-0.1x	0.65
FCF Margin	30.0%+5.9pp	24.1%-6.4pp	30.5%-0.9pp	31.4%-3.3pp	34.7%+4.5pp	30.2%+2.2pp	28.0%+2.6pp	25.4%+4.2pp	21.3%-0.3pp	21.5%+2.0pp	19.6%+2.1pp	17.5%-4.6pp	22.1%+1.0pp	21.1%+2.9pp	18.2%

Metric	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q	Q2'2410-Q
Operating Margin	29.3%+0.2pp	32.2%-1.5pp	31.8%+3.0pp	19.0%-8.8pp	29.1%+4.3pp	33.7%+2.2pp	28.8%+0.2pp	27.7%-2.9pp
Net Margin	22.8%+0.8pp	27.0%+1.9pp	21.4%+1.9pp	12.6%-9.1pp	22.0%-2.5pp	25.1%-5.2pp	19.6%-5.3pp	21.6%-1.0pp
Return on Equity	5.1%-0.6pp	7.1%-0.2pp	5.5%+0.3pp	3.2%-2.2pp	5.7%-1.2pp	7.3%-2.2pp	5.2%-2.9pp	5.4%-2.2pp
Return on Assets	2.8%-0.3pp	3.8%0.0pp	3.0%+0.4pp	1.7%-1.5pp	3.0%-1.3pp	3.8%-1.9pp	2.6%-2.1pp	3.2%-1.1pp
Current Ratio	1.47-1.6x	2.86-0.1x	3.05+0.6x	2.82+1.4x	3.07+1.8x	2.93+1.7x	2.45+1.0x	1.43+0.1x
Debt-to-Equity	0.840.0x	0.85-0.1x	0.85-0.2x	0.90+0.2x	0.89+0.3x	0.92+0.3x	1.01+0.3x	0.70-0.1x
Asset Turnover	0.120.0x	0.140.0x	0.140.0x	0.130.0x	0.140.0x	0.150.0x	0.13-0.1x	0.150.0x
FCF Margin	20.8%-16.5pp	35.6%+5.8pp	20.7%-10.9pp	26.2%+14.2pp	37.3%+17.2pp	29.8%+7.5pp	31.6%-5.0pp	11.9%-28.4pp

Not reported in any period shown, so not listed: Gross Margin.

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company	Fiscal year	Revenue	Net income	Net margin	Market cap	Health score
Cadence Design Systems CDNS	FY2025	$5.3B	$1.1B	20.9%	$98.1B	79/100
Strategy Inc MSTR	FY2025	$477.2M	-$3.8B	N/A	$65.6B	40/100
Automatic Data Processing ADP	FY2026	$21.9B	$4.4B	20.1%	$104.0B	22/100
Snowflake Inc. SNOW	FY2026	$4.7B	-$1.3B	-28.4%	$118.5B	47/100
Autodesk Inc ADSK	FY2026	$7.2B	$1.1B	15.6%	$48.3B	72/100
Adobe Inc. ADBE	FY2025	$23.8B	$7.1B	30.0%	$94.7B	76/100

Where Cadence Design Systems Ranks

Frequently Asked Questions

What is Cadence Design Systems's annual revenue?

Cadence Design Systems (CDNS) reported $5.3B in total revenue for fiscal year 2025. This represents a 14.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Cadence Design Systems's revenue growing?

Cadence Design Systems (CDNS) revenue grew by 14.1% year-over-year, from $4.6B to $5.3B in fiscal year 2025.

Is Cadence Design Systems profitable?

Yes, Cadence Design Systems (CDNS) reported a net income of $1.1B in fiscal year 2025, with a net profit margin of 20.9%.

What is Cadence Design Systems's EBITDA?

Cadence Design Systems (CDNS) had EBITDA of $1.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Cadence Design Systems's operating margin?

Cadence Design Systems (CDNS) had an operating margin of 28.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Cadence Design Systems's net profit margin?

Cadence Design Systems (CDNS) had a net profit margin of 20.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Cadence Design Systems's return on equity (ROE)?

Cadence Design Systems (CDNS) has a return on equity of 20.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Cadence Design Systems's free cash flow?

Cadence Design Systems (CDNS) generated $1.6B in free cash flow during fiscal year 2025. This represents a 41.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Cadence Design Systems's operating cash flow?

Cadence Design Systems (CDNS) generated $1.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Cadence Design Systems's total assets?

Cadence Design Systems (CDNS) had $10.2B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Cadence Design Systems's capital expenditures?

Cadence Design Systems (CDNS) invested $141.9M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Does Cadence Design Systems buy back shares?

Yes, Cadence Design Systems (CDNS) spent $925.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Cadence Design Systems have outstanding?

Cadence Design Systems (CDNS) had 273M shares outstanding as of fiscal year 2025.

What is Cadence Design Systems's current ratio?

Cadence Design Systems (CDNS) had a current ratio of 2.86 as of fiscal year 2025, which is generally considered healthy.

What is Cadence Design Systems's debt-to-equity ratio?

Cadence Design Systems (CDNS) had a debt-to-equity ratio of 0.85 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Cadence Design Systems's return on assets (ROA)?

Cadence Design Systems (CDNS) had a return on assets of 10.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Cadence Design Systems's P/E ratio?

Cadence Design Systems (CDNS) trades at 83.8x earnings, its market capitalization divided by net income of $1.2B net income, trailing 12 months to March 31, 2026. The market capitalization is $98.1B as of Oct 7, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Cadence Design Systems's price-to-sales ratio?

Cadence Design Systems (CDNS) trades at 17.7x sales, its market capitalization divided by revenue of $5.5B revenue, trailing 12 months to March 31, 2026. The market capitalization is $98.1B as of Oct 7, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Cadence Design Systems's Altman Z-Score?

Cadence Design Systems (CDNS) has an Altman Z-Score of 14.92, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Cadence Design Systems's Piotroski F-Score?

Cadence Design Systems (CDNS) has a Piotroski F-Score of 5 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Cadence Design Systems's earnings high quality?

Cadence Design Systems (CDNS) has an earnings quality ratio of 1.56x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Cadence Design Systems cover its interest payments?

Cadence Design Systems (CDNS) has an interest coverage ratio of 12.80x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Cadence Design Systems?

Cadence Design Systems (CDNS) scores 79 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.