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Cadence Design System Inc Financials

CDNS
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Cadence Design System Inc (CDNS) financial statements, including the 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).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 73 / 100
Financial Profile 73/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
85

Cadence Design System Inc 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 85/100, reflecting efficient cost management and pricing power. This is down from 29.1% the prior year.

Growth
57

Cadence Design System Inc's revenue grew 14.1% year-over-year to $5.3B, a solid pace of expansion. This earns a growth score of 57/100.

Leverage
85

Cadence Design System Inc carries a low D/E ratio of 0.85, meaning only $0.85 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 85/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
54

Cadence Design System Inc's current ratio of 2.86 indicates adequate short-term liquidity, earning a score of 54/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
100

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

Returns
56

Cadence Design System Inc's ROE of 20.3% shows moderate profitability relative to equity, earning a score of 56/100. This is down from 22.6% the prior year.

Altman Z-Score Safe
12.21

Cadence Design System Inc scores 12.21, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($77.0B) relative to total liabilities ($4.7B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
5/9

Cadence Design System Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Cash-Backed
1.56x

For every $1 of reported earnings, Cadence Design System Inc 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
12.8x

Cadence Design System Inc earns $12.8 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

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Earnings & Revenue

Revenue
$5.3B
YoY+14.1%
5Y CAGR+17.8%
10Y CAGR+13.8%

Cadence Design System Inc generated $5.3B in revenue in fiscal year 2025. This represents an increase of 14.1% from the prior year.

EBITDA
$1.7B
YoY+11.1%
5Y CAGR+22.9%
10Y CAGR+19.6%

Cadence Design System Inc's EBITDA was $1.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 11.1% from the prior year.

Net Income
$1.1B
YoY+5.1%
5Y CAGR+2.3%
10Y CAGR+21.0%

Cadence Design System Inc reported $1.1B in net income in fiscal year 2025. This represents an increase of 5.1% from the prior year.

EPS (Diluted)
$4.06
YoY+5.5%
5Y CAGR+2.8%
10Y CAGR+21.9%

Cadence Design System Inc earned $4.06 per diluted share (EPS) in fiscal year 2025. This represents an increase of 5.5% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$1.6B
YoY+41.9%
5Y CAGR+19.4%
10Y CAGR+17.3%

Cadence Design System Inc generated $1.6B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 41.9% from the prior year.

Cash & Debt
$3.0B
YoY+13.5%
5Y CAGR+33.6%
10Y CAGR+18.8%

Cadence Design System Inc held $3.0B in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
273M
YoY-0.5%
5Y CAGR-0.5%
10Y CAGR-0.6%

Cadence Design System Inc had 273M shares outstanding in fiscal year 2025. This represents a decrease of 0.5% from the prior year.

Margins & Returns

Gross Margin
N/A
Operating Margin
28.2%
YoY-0.9pp
5Y CAGR+7.1pp
10Y CAGR+15.2pp

Cadence Design System Inc's operating margin was 28.2% in fiscal year 2025, reflecting core business profitability. This is down 0.9 percentage points from the prior year.

Net Margin
20.9%
YoY-1.8pp
5Y CAGR-21.4pp
10Y CAGR+9.7pp

Cadence Design System Inc's net profit margin was 20.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.8 percentage points from the prior year.

Return on Equity
20.3%
YoY-2.3pp
5Y CAGR-26.8pp
10Y CAGR+6.0pp

Cadence Design System Inc's ROE was 20.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.3 percentage points from the prior year.

Capital Allocation

R&D Spending
N/A
Share Buybacks
$925.0M
YoY+68.2%
5Y CAGR+24.8%

Cadence Design System Inc spent $925.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 68.2% from the prior year.

Capital Expenditures
$141.9M
YoY-0.5%
5Y CAGR+13.7%
10Y CAGR+12.2%

Cadence Design System Inc invested $141.9M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 0.5% from the prior year.

CDNS Income Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue $1.4B+7.6% $1.3B+5.0% $1.3B+2.7% $1.2B-8.4% $1.4B+11.6% $1.2B+14.6% $1.1B+5.1% $1.0B
Cost of Revenue N/A N/A N/A N/A N/A N/A N/A N/A
Gross Profit N/A N/A N/A N/A N/A N/A N/A N/A
R&D Expenses N/A $423.0M-4.3% $442.1M+0.7% $439.1M N/A $407.4M+9.9% $370.7M-2.2% $379.0M
SG&A Expenses $103.2M+32.3% $78.0M+13.0% $69.0M+9.4% $63.1M-10.2% $70.2M-1.9% $71.6M+12.8% $63.4M-7.7% $68.7M
Operating Income $463.3M+8.9% $425.4M+75.9% $241.8M-33.1% $361.5M-20.9% $456.9M+30.5% $350.1M+19.1% $293.9M+17.6% $250.0M
Interest Expense $29.4M+1.4% $29.0M+0.3% $28.9M-0.6% $29.1M-2.6% $29.9M+22.1% $24.5M+89.8% $12.9M+48.5% $8.7M
Income Tax $104.8M-0.8% $105.7M-12.4% $120.6M+46.8% $82.1M-14.9% $96.4M+1.2% $95.3M+10.6% $86.2M+38.1% $62.4M
Net Income $388.1M+35.2% $287.1M+79.4% $160.1M-41.5% $273.6M-19.6% $340.2M+42.9% $238.1M+3.7% $229.5M-7.3% $247.6M
EPS (Diluted) N/A $1.05+78.0% $0.59-41.0% $1.00 N/A $0.87+3.6% $0.84-7.7% $0.91

CDNS Balance Sheet

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $10.2B+5.8% $9.6B+1.0% $9.5B+5.5% $9.0B+0.4% $9.0B-2.1% $9.2B+26.9% $7.2B+26.3% $5.7B
Current Assets $4.7B+8.9% $4.3B+1.5% $4.2B+5.6% $4.0B-0.4% $4.0B-2.0% $4.1B+86.7% $2.2B+13.8% $1.9B
Cash & Equivalents $3.0B+9.0% $2.8B-2.5% $2.8B+1.6% $2.8B+5.1% $2.6B-5.1% $2.8B+163.1% $1.1B+4.6% $1.0B
Inventory $303.5M+6.1% $286.2M+26.5% $226.2M+0.2% $225.6M-12.5% $257.7M-12.1% $293.4M+71.0% $171.5M-7.7% $185.8M
Accounts Receivable N/A N/A N/A N/A N/A N/A N/A N/A
Goodwill $2.7B+3.9% $2.6B+1.7% $2.6B+7.4% $2.4B+1.7% $2.4B-4.6% $2.5B+3.1% $2.4B+53.5% $1.6B
Total Liabilities $4.7B+6.3% $4.4B-2.3% $4.5B+6.3% $4.2B-1.5% $4.3B-6.6% $4.6B+55.3% $3.0B+37.6% $2.2B
Current Liabilities $1.6B+16.3% $1.4B-6.0% $1.5B+15.1% $1.3B-5.1% $1.4B-18.2% $1.7B+9.2% $1.5B+4.6% $1.5B
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $5.5B+5.3% $5.2B+3.8% $5.0B+4.8% $4.8B+2.2% $4.7B+2.4% $4.6B+7.1% $4.3B+19.4% $3.6B
Retained Earnings $7.1B+5.8% $6.7B+4.5% $6.4B+2.6% $6.3B+4.6% $6.0B+6.0% $5.7B+4.4% $5.4B+4.4% $5.2B

CDNS Cash Flow Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $553.5M+78.2% $310.7M-17.7% $377.6M-22.5% $487.0M+10.3% $441.4M+7.6% $410.0M+162.9% $156.0M-38.4% $253.2M
Capital Expenditures $41.0M+21.8% $33.7M-23.6% $44.1M+91.2% $23.1M-38.0% $37.2M+40.2% $26.5M-9.1% $29.2M-41.1% $49.6M
Free Cash Flow $512.5M+85.0% $277.0M-17.0% $333.5M-28.1% $464.0M+14.8% $404.2M+5.4% $383.5M+202.5% $126.8M-37.7% $203.6M
Investing Cash Flow -$88.8M+49.1% -$174.3M+0.7% -$175.6M-706.2% -$21.8M+45.6% -$40.0M-1.9% -$39.3M+94.2% -$678.1M-750.1% -$79.8M
Financing Cash Flow -$213.9M-10.2% -$194.1M+0.6% -$195.2M+43.5% -$345.8M+32.4% -$511.1M-138.3% $1.3B+132.2% $574.8M+460.6% -$159.4M
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks $200.0M0.0% $200.0M+14.3% $175.0M-50.0% $350.0M+133.3% $150.0M0.0% $150.0M+20.0% $125.0M0.0% $125.0M

CDNS Financial Ratios

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin N/A N/A N/A N/A N/A N/A N/A N/A
Operating Margin 32.2%+0.4pp 31.8%+12.8pp 19.0%-10.1pp 29.1%-4.6pp 33.7%+4.9pp 28.8%+1.1pp 27.7%+2.9pp 24.8%
Net Margin 27.0%+5.5pp 21.4%+8.9pp 12.6%-9.5pp 22.0%-3.1pp 25.1%+5.5pp 19.6%-2.1pp 21.6%-2.9pp 24.5%
Return on Equity 7.1%+1.6pp 5.5%+2.3pp 3.2%-2.5pp 5.7%-1.6pp 7.3%+2.1pp 5.2%-0.2pp 5.4%-1.6pp 6.9%
Return on Assets 3.8%+0.8pp 3.0%+1.3pp 1.7%-1.4pp 3.0%-0.8pp 3.8%+1.2pp 2.6%-0.6pp 3.2%-1.1pp 4.3%
Current Ratio 2.86-0.2 3.05+0.2 2.82-0.3 3.07+0.1 2.93+0.5 2.45+1.0 1.43+0.1 1.32
Debt-to-Equity 0.850.0 0.85-0.1 0.90+0.0 0.89-0.0 0.92-0.1 1.01+0.3 0.70+0.1 0.60
FCF Margin 35.6%+14.9pp 20.7%-5.5pp 26.2%-11.2pp 37.3%+7.5pp 29.8%-1.7pp 31.6%+19.6pp 11.9%-8.2pp 20.2%

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Frequently Asked Questions

Cadence Design System Inc (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.

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

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

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

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

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

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

Cadence Design System Inc (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.

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

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

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

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

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

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

Cadence Design System Inc (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.

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

Cadence Design System Inc (CDNS) has an Altman Z-Score of 12.21, 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.

Cadence Design System Inc (CDNS) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. 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 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Cadence Design System Inc (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.

Cadence Design System Inc (CDNS) has an interest coverage ratio of 12.8x, 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.

Cadence Design System Inc (CDNS) scores 73 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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