Cadence achieved 18.7% year-over-year revenue growth in 2026Q1 while maintaining structural resilience through a 95.8% gross margin.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 5.53B | 5.3B | 4.64B | 4.09B | 3.56B | 2.99B | 2.68B | 2.34B | 2.14B | 1.94B | 1.82B | 1.7B | 1.58B | 1.46B | 1.33B | 1.15B | 935.95M | 852.63M | 1.04B | 1.62B | 1.48B | 1.33B | 1.2B | 1.12B | 1.29B | 1.43B | 1.28B | 1.09B | 1.22B | 915.89M | 741.46M |
| Revenue Growth % | 13.42% | 14.12% | 13.48% | 14.83% | 19.19% | 11.38% | 14.83% | 9.27% | 10.04% | 6.99% | 6.7% | 7.66% | 8.27% | 10.08% | 15.36% | 22.85% | 9.77% | -17.91% | -35.69% | 8.84% | 11.64% | 11% | 6.97% | -13.42% | -9.6% | 11.79% | 17.04% | -10.1% | 32.77% | 23.53% | 35.2% |
| Cost of Goods Sold | 616.32M | 722.25M | 647.5M | 435.04M | 371.62M | 307.01M | 305.5M | 266.36M | 258.75M | 237.39M | 256.49M | 238.45M | 223.71M | 200.2M | 191.12M | 195.16M | 156.44M | 169.24M | 209.48M | 214.51M | 227.1M | 228.78M | 226.05M | 216.65M | 250.04M | 354.86M | 368.86M | 324.84M | 280.68M | 183.1M | 153.47M |
| COGS % of Revenue | - | 13.64% | 13.95% | 10.64% | 10.43% | 10.27% | 11.39% | 11.4% | 12.1% | 12.22% | 14.12% | 14.01% | 14.15% | 13.71% | 14.41% | 16.97% | 16.71% | 19.85% | 20.17% | 13.28% | 15.3% | 17.21% | 18.88% | 19.35% | 19.34% | 24.81% | 28.83% | 29.71% | 23.08% | 19.99% | 20.7% |
| Gross Profit | 4.91B | 4.57B | 3.99B | 3.65B | 3.19B | 2.68B | 2.38B | 2.07B | 1.88B | 1.71B | 1.56B | 1.46B | 1.36B | 1.26B | 1.14B | 954.68M | 779.51M | 683.39M | 829.13M | 1.4B | 1.26B | 1.1B | 971.43M | 902.84M | 1.04B | 1.08B | 910.69M | 768.46M | 935.39M | 732.8M | 587.99M |
| Gross Margin % | 88.85% | 86.36% | 86.05% | 89.36% | 89.57% | 89.73% | 88.61% | 88.6% | 87.9% | 87.78% | 85.88% | 85.99% | 85.85% | 86.29% | 85.59% | 83.03% | 83.29% | 80.15% | 79.83% | 86.72% | 84.7% | 82.79% | 81.12% | 80.65% | 80.66% | 75.19% | 71.17% | 70.29% | 76.92% | 80.01% | 79.3% |
| Gross Profit Growth % | - | 14.54% | 9.27% | 14.57% | 18.98% | 12.78% | 14.85% | 10.15% | 10.18% | 9.36% | 6.56% | 7.84% | 7.72% | 10.98% | 18.92% | 22.47% | 14.07% | -17.58% | -40.8% | 11.43% | 14.21% | 13.28% | 7.6% | -13.44% | -3.03% | 18.11% | 18.51% | -17.85% | 27.65% | 24.63% | 36.14% |
| Operating Expenses | 3.19B | 2.92B | 2.64B | 2.4B | 2.12B | 1.9B | 1.73B | 1.57B | 1.48B | 1.37B | 1.27B | 1.17B | 1.14B | 1.05B | 923.52M | 833.94M | 782.52M | 775.6M | 1.04B | 1.09B | 1.03B | 936.85M | 847.71M | 845.96M | 733.97M | 915.78M | 847.28M | 781.21M | 830.21M | 498.79M | 496.73M |
| OpEx % of Revenue | - | 55.22% | 56.95% | 58.77% | 59.42% | 63.65% | 64.55% | 67.18% | 69.37% | 70.63% | 70.14% | 68.96% | 72.13% | 72.11% | 69.62% | 72.53% | 83.61% | 90.97% | 100.01% | 67.47% | 69.55% | 70.48% | 70.79% | 75.57% | 56.76% | 64.02% | 66.22% | 71.45% | 68.27% | 54.46% | 66.99% |
| Selling, General & Admin | 1.15B | 1.12B | 1.03B | 932.75M | 846.34M | 749.28M | 670.88M | 621.48M | 573.08M | 553.34M | 520.3M | 512.41M | 513.31M | 499.47M | 454.35M | 416.66M | 391.95M | 409.48M | 510.44M | 576.14M | 548.9M | 518.94M | 409.35M | 409.14M | 515.37M | 508.21M | 484.62M | 440.94M | 369.78M | 314.36M | 280.88M |
| SG&A % of Revenue | - | 21.07% | 22.22% | 22.81% | 23.76% | 25.07% | 25.01% | 26.6% | 26.8% | 28.48% | 28.65% | 30.1% | 32.47% | 34.21% | 34.25% | 36.24% | 41.88% | 48.03% | 49.15% | 35.67% | 36.99% | 39.04% | 34.18% | 36.55% | 39.86% | 35.53% | 37.87% | 40.33% | 30.41% | 34.32% | 37.88% |
| Research & Development | 1.84B | 1.77B | 1.55B | 1.44B | 1.25B | 1.13B | 1.03B | 935.94M | 884.82M | 804.22M | 735.34M | 637.57M | 603.01M | 534.02M | 454.08M | 400.75M | 376.41M | 354.7M | 457.91M | 494.03M | 460.06M | 370.14M | 351.25M | 340.12M | 326.41M | 297.33M | 263.95M | 219.18M | 179.39M | 140.38M | 115.3M |
| R&D % of Revenue | - | 33.39% | 33.38% | 35.25% | 35.14% | 37.96% | 38.53% | 40.06% | 41.38% | 41.39% | 40.49% | 37.46% | 38.14% | 36.57% | 34.23% | 34.85% | 40.22% | 41.6% | 44.09% | 30.59% | 31% | 27.85% | 29.33% | 30.38% | 25.24% | 20.79% | 20.63% | 20.05% | 14.75% | 15.33% | 15.55% |
| Other Operating Expenses | 4M | 39.94M | 54.14M | 29.18M | 18.52M | 18.59M | 27.22M | 12.13M | 25.18M | 16.75M | 15.92M | 10.48M | 8.48M | 7.57M | 11.34M | 16.54M | 14.16M | 11.42M | 22.73M | 19.42M | 23.14M | 47.76M | 87.11M | 96.7M | -107.81M | 110.24M | 98.71M | 121.09M | 281.04M | 44.05M | 100.54M |
| Operating Income | 1.72B | 1.65B | 1.35B | 1.25B | 1.07B | 779.09M | 645.55M | 491.8M | 396.21M | 323.95M | 244.9M | 285.43M | 206.64M | 189.01M | 211.67M | 120.38M | -13.17M | -123.59M | -1.57B | 317.92M | 224.59M | 118.83M | 101.17M | -9.96M | 174.75M | 240.45M | 63.41M | -12.75M | 105.19M | 234.01M | 91.26M |
| Operating Margin % | 31.11% | 31.15% | 29.1% | 30.59% | 30.15% | 26.07% | 24.06% | 21.05% | 18.53% | 16.67% | 13.49% | 16.77% | 13.07% | 12.94% | 15.96% | 10.47% | -1.41% | -14.5% | -151.48% | 19.68% | 15.14% | 8.94% | 8.45% | -0.89% | 13.51% | 16.81% | 4.96% | -1.17% | 8.65% | 25.55% | 12.31% |
| Operating Income Growth % | - | 22.14% | 7.96% | 16.54% | 37.81% | 20.69% | 31.26% | 24.13% | 22.3% | 32.28% | -14.2% | 38.13% | 9.33% | -10.71% | 75.84% | 1014.3% | 89.35% | 92.14% | -594.87% | 41.55% | 89% | 17.46% | 1115.38% | -105.7% | -27.32% | 279.17% | 597.37% | -112.12% | -55.05% | 156.42% | -22.57% |
| EBITDA | 1.99B | 1.88B | 1.55B | 1.4B | 1.21B | 909.79M | 795.69M | 614.59M | 514.93M | 439.48M | 364.49M | 403.6M | 322.28M | 287.31M | 300.89M | 212.03M | 75.17M | -30.45M | -1.44B | 448.56M | 371.71M | 303.55M | 311.79M | 222.77M | 417.3M | 470.88M | 270.23M | 151.15M | 207.6M | 290.64M | 143M |
| EBITDA Margin % | 35.93% | 35.56% | 33.31% | 34.16% | 33.95% | 30.45% | 29.66% | 26.31% | 24.08% | 22.62% | 20.07% | 23.71% | 20.39% | 19.68% | 22.68% | 18.44% | 8.03% | -3.57% | -139.08% | 27.77% | 25.05% | 22.84% | 26.04% | 19.9% | 32.27% | 32.92% | 21.12% | 13.82% | 17.07% | 31.73% | 19.29% |
| EBITDA Growth % | 18.95% | 21.86% | 10.65% | 15.54% | 32.9% | 14.34% | 29.47% | 19.35% | 17.17% | 20.57% | -9.69% | 25.23% | 12.17% | -4.51% | 41.91% | 182.06% | 346.84% | 97.89% | -422.04% | 20.68% | 22.45% | -2.64% | 39.96% | -46.62% | -11.38% | 74.26% | 78.78% | -27.19% | -28.57% | 103.25% | -12.74% |
| D&A (Non-Cash Add-back) | 266.75M | 233.84M | 195.01M | 145.74M | 135.43M | 130.7M | 150.14M | 122.79M | 118.72M | 115.52M | 119.59M | 118.17M | 115.63M | 98.31M | 89.22M | 91.65M | 88.33M | 93.14M | 128.72M | 130.65M | 147.12M | 184.72M | 210.61M | 232.73M | 242.54M | 230.43M | 206.81M | 163.9M | 102.41M | 56.64M | 51.74M |
| EBIT | 1.71B | 1.64B | 1.47B | 1.32B | 1.07B | 785.41M | 653.5M | 497.8M | 407.3M | 333.36M | 286.96M | 290.64M | 216.9M | 207.01M | 223.01M | 138.45M | -26.43M | -124.63M | -1.59B | 376.44M | 224.69M | 163.57M | 123.71M | 56.87M | 294.88M | 302.07M | 63.41M | 46.5M | 353.1M | 271.8M | 198.8M |
| Net Interest Income | -25.41M | -14.96M | -13.52M | -6.55M | -12.84M | -14.35M | -16.93M | -9.32M | -15.07M | -21.79M | -20.75M | -25.64M | -32.29M | -35.88M | -33.27M | -41.72M | -35.14M | -26.28M | -6.99M | 35.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 93.63M | 101.58M | 62.48M | 29.64M | 10.1M | 2.63M | 3.82M | 9.51M | 8.07M | 3.88M | 2.92M | 2.67M | 1.83M | 1.71M | 1.47M | 1.3M | 1.2M | 2.6M | 20.4M | 48.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 119.04M | 116.54M | 76M | 36.19M | 22.93M | 16.98M | 20.75M | 18.83M | 23.14M | 25.66M | 23.67M | 28.31M | 34.12M | 37.58M | 34.74M | 43.02M | 36.34M | 28.87M | 11.61M | 12.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -125.28M | -127.74M | 45.06M | 30.7M | -28.32M | -10.65M | -12.8M | -12.83M | -19.82M | -8.91M | -7.75M | -17.83M | -25.64M | -30.01M | -23.4M | -25.31M | -33.8M | -29.91M | -28.46M | 53.16M | 17.29M | -35.08M | -14.73M | -20.6M | -30.73M | 1.7M | 4.58M | -57.9M | -253.1M | -37.79M | -100.3M |
| Pretax Income | 1.59B | 1.52B | 1.4B | 1.28B | 1.05B | 768.43M | 632.75M | 478.97M | 376.39M | 315.05M | 237.15M | 267.6M | 181M | 159M | 188.27M | 95.43M | -46.97M | -153.5M | -1.6B | 364.07M | 241.88M | 128.48M | 86.44M | -30.57M | 157.97M | 242.15M | 68M | -11.38M | 112.67M | 234.01M | 90.48M |
| Pretax Margin % | 28.84% | 28.74% | 30.07% | 31.34% | 29.35% | 25.72% | 23.58% | 20.5% | 17.6% | 16.21% | 13.06% | 15.72% | 11.45% | 10.89% | 14.19% | 8.3% | -5.02% | -18% | -154.22% | 22.54% | 16.3% | 9.67% | 7.22% | -2.73% | 12.22% | 16.93% | 5.31% | -1.04% | 9.26% | 25.55% | 12.2% |
| Income Tax | 423.49M | 413.15M | 340.33M | 240.78M | 196.41M | 72.48M | 42.1M | -510.01M | 30.61M | 110.94M | 34.07M | 15.18M | 22.1M | -5.25M | -251.68M | 23.2M | -189.31M | -3.63M | 252.31M | 67.82M | 99.7M | 79.14M | 11.96M | -13M | 86.02M | 100.86M | 18.02M | 2.69M | 80.69M | 77.89M | 61.44M |
| Effective Tax Rate % | 26.56% | 27.14% | 24.38% | 18.78% | 18.79% | 9.43% | 6.65% | -106.48% | 8.13% | 35.22% | 14.36% | 5.67% | 12.21% | -3.3% | -133.68% | 24.31% | 403.05% | 2.37% | -15.75% | 18.63% | 41.22% | 61.6% | 13.84% | 42.53% | 54.45% | 41.65% | 26.5% | -23.68% | 71.61% | 33.28% | 67.91% |
| Net Income | 1.17B | 1.11B | 1.06B | 1.04B | 848.95M | 695.96M | 590.64M | 988.98M | 345.78M | 204.1M | 203.09M | 252.42M | 158.9M | 164.24M | 439.95M | 72.23M | 142.34M | -149.87M | -1.85B | 296.25M | 142.59M | 49.34M | 74.47M | -17.57M | 71.95M | 141.29M | 49.98M | -14.07M | 31.98M | 169.47M | 29.04M |
| Net Margin % | 21.18% | 20.94% | 22.74% | 25.46% | 23.84% | 23.29% | 22.02% | 42.33% | 16.17% | 10.5% | 11.18% | 14.83% | 10.05% | 11.25% | 33.17% | 6.28% | 15.21% | -17.58% | -178.51% | 18.34% | 9.61% | 3.71% | 6.22% | -1.57% | 5.56% | 9.88% | 3.91% | -1.29% | 2.63% | 18.5% | 3.92% |
| Net Income Growth % | 8.28% | 5.06% | 1.38% | 22.64% | 21.98% | 17.83% | -40.28% | 186.02% | 69.41% | 0.5% | -19.54% | 58.85% | -3.25% | -62.67% | 509.1% | -49.26% | 194.97% | 91.92% | -725.83% | 107.76% | 188.98% | -33.74% | 523.97% | -124.41% | -49.08% | 182.7% | 455.08% | -144.01% | -81.13% | 483.6% | -70.15% |
| Net Income (Continuing) | 1.17B | 1.11B | 1.06B | 1.04B | 848.95M | 695.96M | 590.64M | 988.98M | 345.78M | 204.1M | 203.09M | 252.42M | 158.9M | 164.24M | 439.95M | 72.23M | 126.54M | -149.87M | -1.85B | 296.25M | 142.17M | 49.34M | 74.47M | -17.57M | 60.34M | 141.29M | 49.98M | -14.1M | 25.1M | 177.4M | 34.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.61M | 41K | 377K | 121K | 15.21M |
| EPS (Diluted) | 4.28 | 4.06 | 3.85 | 3.82 | 3.09 | 2.50 | 2.11 | 3.53 | 1.23 | 0.73 | 0.70 | 0.81 | 0.52 | 0.56 | 1.57 | 0.27 | 0.54 | -0.58 | -7.29 | 1.01 | 0.46 | 0.16 | 0.25 | -0.07 | 0.23 | 0.55 | 0.19 | -0.06 | 0.10 | 0.71 | 0.16 |
| EPS Growth % | 8.61% | 5.45% | 0.79% | 23.62% | 23.6% | 18.48% | -40.23% | 186.99% | 68.49% | 4.29% | -13.58% | 55.77% | -7.14% | -64.33% | 481.48% | -50% | 193.1% | 92.04% | -821.78% | 119.57% | 187.5% | -36% | 479.94% | -128.61% | -58.18% | 189.47% | 417.2% | -159.9% | -85.92% | 343.75% | -89.81% |
| EPS (Basic) | - | 4.09 | 3.89 | 3.86 | 3.13 | 2.54 | 2.16 | 3.62 | 1.26 | 0.75 | 0.71 | 0.88 | 0.56 | 0.59 | 1.63 | 0.27 | 0.55 | -0.58 | -7.29 | 1.09 | 0.51 | 0.18 | 0.27 | -0.07 | 0.23 | 0.57 | 0.20 | -0.06 | 0.11 | 0.75 | 0.32 |
| Diluted Shares Outstanding | 273.73M | 273.31M | 273.83M | 272.75M | 275.01M | 278.86M | 279.64M | 280.51M | 281.14M | 280.22M | 291.26M | 312.3M | 306.77M | 294.56M | 280.67M | 270.82M | 265.87M | 257.78M | 254.32M | 295.59M | 312.46M | 314.38M | 305.77M | 266.79M | 267.5M | 256.89M | 262.7M | 235M | 257.86M | 232.54M | 214.38M |
| Basic Shares Outstanding | 272.06M | 271.33M | 271.21M | 269.38M | 271.2M | 273.5M | 273.73M | 273.24M | 273.73M | 272.1M | 284.5M | 288.02M | 283.35M | 277.8M | 270.48M | 263.89M | 260.79M | 257.78M | 254.32M | 271.45M | 279.35M | 278.52M | 271.33M | 266.79M | 259.87M | 246.86M | 244.56M | 235M | 234.6M | 220.13M | 90.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical export control exposure
As reported in recent financial statements, Cadence achieved a 18.7% year-over-year revenue growth in 2026Q1, signaling that the company's core EDA offerings remain essential despite broader semiconductor market volatility, as design complexity continues to necessitate increased investment in advanced verification and simulation software tools.
The revenue trajectory appears to be decoupling from cyclical chip manufacturing volumes, suggesting that the company's 'design-start' model provides a durable growth floor. Investors should monitor whether this momentum can be sustained as the company expands into multi-physics simulation, which may face different adoption cycles than traditional IC design software.
Based on the provided income statement data, Cadence maintained a robust gross margin of 95.8% in 2026Q1, reflecting the high-margin nature of its software-centric business model and the significant pricing power inherent in its industry-standard sign-off tools that are critical to global foundry manufacturing processes.
The exceptional gross margin profile suggests that the company's software-heavy revenue mix is highly efficient, with minimal direct cost of goods sold. While hardware sales can introduce periodic margin volatility, the underlying software-driven profitability appears to be a structural advantage that competitors struggle to replicate.
According to the latest quarterly filings, R&D expenses reached $508.4 million in 2026Q1, representing a significant commitment to maintaining technological parity, which appears necessary to defend the company's market position against increasing competition in the multi-physics and AI-integrated design tool segments of the industry.
The high level of R&D spending is a fundamental requirement for maintaining the 'workflow gravity' that keeps customers locked into the Cadence ecosystem. Management's discipline in balancing these investments with operating income suggests a focus on long-term moat protection rather than short-term margin maximization.
As indicated by the financial data, stock-based compensation reached $138.2 million in 2026Q1, a figure that warrants investor scrutiny as it represents a substantial non-cash expense that may mask the true cost of retaining specialized engineering talent in a highly competitive Silicon Valley labor market.
While the company reports strong net income, the persistent rise in stock-based compensation suggests that shareholders should be mindful of potential dilution. This expense structure appears to be a necessary trade-off for maintaining the high-caliber workforce required to innovate in complex EDA and AI-driven design domains.
Based on recent regulatory context, the tightening of U.S. export controls on advanced design tools poses a material risk to growth, as a significant portion of revenue is derived from international markets that may be increasingly restricted from accessing the company's most advanced software capabilities.
Investors should consider that the current valuation may not fully account for the potential loss of high-growth revenue streams in restricted regions. Furthermore, the potential consolidation of competitors in the system design space could lead to increased pricing pressure, which may challenge the company's ability to maintain its current operating margin levels.
Quick answers to the most common questions about buying CDNS stock.
For fiscal year 2025, Cadence Design Systems, Inc. (CDNS) reported total revenue of $5.30B. This represents a 614.4% increase compared to $741.5M in 1996.
Cadence Design Systems, Inc. (CDNS) is profitable, generating $1.11B in net income for the fiscal year ending 2025 with a net profit margin of 20.9%.
Cadence Design Systems, Inc. (CDNS) reported an operating income of $1.65B, resulting in an operating profit margin of 31.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Cadence Design Systems, Inc. (CDNS) generated $4.57B in gross profit for the year, representing a gross profit margin of 86.4%. This demonstrates the company's core pricing power and production efficiency.