Cadence Design Systems (CDNS)
Market Price (6/2/2026): $407.53 | Market Cap: $110.9 BilSector: Information Technology | Industry: Application Software
Cadence Design Systems (CDNS)
Market Price (6/2/2026): $407.53Market Cap: $110.9 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 31% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 26% Stock buyback supportStock Buyback 3Y Total is 2.9 Bil Low stock price volatilityVol 12M is 37% Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and 5G & Advanced Connectivity. Themes include AI Chips, Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% Weak multi-year price returns2Y Excs Rtn is -2.5% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 66x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 71x, P/EPrice/Earnings or Price/(Net Income) is 96x Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.2% Key risksCDNS key risks include [1] intense competition from established rivals like Synopsys and Siemens EDA and [2] geopolitical tensions and export controls impacting growth in key markets such as China. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 31% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 26% |
| Stock buyback supportStock Buyback 3Y Total is 2.9 Bil |
| Low stock price volatilityVol 12M is 37% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and 5G & Advanced Connectivity. Themes include AI Chips, Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Weak multi-year price returns2Y Excs Rtn is -2.5% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 66x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 71x, P/EPrice/Earnings or Price/(Net Income) is 96x |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.2% |
| Key risksCDNS key risks include [1] intense competition from established rivals like Synopsys and Siemens EDA and [2] geopolitical tensions and export controls impacting growth in key markets such as China. |
Qualitative Assessment
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Cadence Design Systems (CDNS) stock has gained about 35% since 2/28/2026 because of the following key factors:
1. Exceptional Q1 2026 Financial Performance and Upgraded Outlook.
Cadence Design Systems reported strong first-quarter 2026 results on April 27, 2026, with an EPS of $1.96, surpassing analyst consensus estimates of $1.81 to $1.91. Revenue reached $1.47 billion, an 18.6% increase year-over-year, also exceeding the $1.46 billion consensus. Following this performance, the company raised its full-year 2026 revenue guidance to a range of $6.125 billion to $6.225 billion, projecting approximately 17% year-over-year growth, and updated its non-GAAP EPS guidance to $7.85 to $7.95.
2. Robust Demand Fueled by AI and High-Performance Computing (HPC).
The company experienced broad-based strength across all business segments, with Core EDA revenue growing 18% and IP business achieving 22% year-over-year growth, largely driven by strong demand from AI infrastructure and HPC customers. Cadence's hardware segment delivered a record quarter, benefiting significantly from AI and HPC demand, and the company noted a record backlog of $8 billion. Cadence is actively capitalizing on the emerging "Physical AI" opportunity following its acquisition of Hexagon's Design and Engineering Business.
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Stock Movement Drivers
Fundamental Drivers
The 37.4% change in CDNS stock from 2/28/2026 to 6/1/2026 was primarily driven by a 30.7% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 6012026 | Change |
|---|---|---|---|
| Stock Price ($) | 301.40 | 414.16 | 37.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,297 | 5,529 | 4.4% |
| Net Income Margin (%) | 20.9% | 21.2% | 1.2% |
| P/E Multiple | 73.6 | 96.2 | 30.7% |
| Shares Outstanding (Mil) | 271 | 272 | -0.4% |
| Cumulative Contribution | 37.4% |
Market Drivers
2/28/2026 to 6/1/2026| Return | Correlation | |
|---|---|---|
| CDNS | 37.4% | |
| Market (SPY) | 10.9% | 47.2% |
| Sector (XLK) | 41.3% | 61.7% |
Fundamental Drivers
The 32.8% change in CDNS stock from 11/30/2025 to 6/1/2026 was primarily driven by a 20.7% change in the company's P/E Multiple.| (LTM values as of) | 11302025 | 6012026 | Change |
|---|---|---|---|
| Stock Price ($) | 311.84 | 414.16 | 32.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,213 | 5,529 | 6.1% |
| Net Income Margin (%) | 20.4% | 21.2% | 4.1% |
| P/E Multiple | 79.7 | 96.2 | 20.7% |
| Shares Outstanding (Mil) | 271 | 272 | -0.3% |
| Cumulative Contribution | 32.8% |
Market Drivers
11/30/2025 to 6/1/2026| Return | Correlation | |
|---|---|---|
| CDNS | 32.8% | |
| Market (SPY) | 11.6% | 51.1% |
| Sector (XLK) | 37.2% | 62.0% |
Fundamental Drivers
The 44.3% change in CDNS stock from 5/31/2025 to 6/1/2026 was primarily driven by a 33.3% change in the company's P/E Multiple.| (LTM values as of) | 5312025 | 6012026 | Change |
|---|---|---|---|
| Stock Price ($) | 287.07 | 414.16 | 44.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,875 | 5,529 | 13.4% |
| Net Income Margin (%) | 22.2% | 21.2% | -4.5% |
| P/E Multiple | 72.2 | 96.2 | 33.3% |
| Shares Outstanding (Mil) | 272 | 272 | 0.0% |
| Cumulative Contribution | 44.3% |
Market Drivers
5/31/2025 to 6/1/2026| Return | Correlation | |
|---|---|---|
| CDNS | 44.3% | |
| Market (SPY) | 30.2% | 48.1% |
| Sector (XLK) | 70.5% | 56.3% |
Fundamental Drivers
The 79.4% change in CDNS stock from 5/31/2023 to 6/1/2026 was primarily driven by a 50.2% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 5312023 | 6012026 | Change |
|---|---|---|---|
| Stock Price ($) | 230.91 | 414.16 | 79.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,682 | 5,529 | 50.2% |
| Net Income Margin (%) | 23.2% | 21.2% | -8.8% |
| P/E Multiple | 72.7 | 96.2 | 32.3% |
| Shares Outstanding (Mil) | 270 | 272 | -0.9% |
| Cumulative Contribution | 79.4% |
Market Drivers
5/31/2023 to 6/1/2026| Return | Correlation | |
|---|---|---|
| CDNS | 79.4% | |
| Market (SPY) | 88.6% | 62.2% |
| Sector (XLK) | 143.3% | 69.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CDNS Return | 37% | -14% | 70% | 10% | 4% | 20% | 175% |
| Peers Return | 31% | -17% | 33% | 7% | 13% | 38% | 141% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% |
Monthly Win Rates [3] | |||||||
| CDNS Win Rate | 58% | 33% | 67% | 75% | 50% | 60% | |
| Peers Win Rate | 60% | 40% | 58% | 58% | 55% | 36% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| CDNS Max Drawdown | -19% | -28% | -10% | -24% | -29% | -19% | |
| Peers Max Drawdown | -26% | -39% | -29% | -32% | -37% | -27% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: SNPS, KEYS, ADSK, RMBS, CEVA. See CDNS Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/1/2026 (YTD)
How Low Can It Go
| Event | CDNS | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -15.5% | -18.8% |
| % Gain to Breakeven | 18.3% | 23.1% |
| Time to Breakeven | 16 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -22.8% | -7.8% |
| % Gain to Breakeven | 29.6% | 8.5% |
| Time to Breakeven | 121 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -26.3% | -24.5% |
| % Gain to Breakeven | 35.7% | 32.4% |
| Time to Breakeven | 160 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.1% | -33.7% |
| % Gain to Breakeven | 47.3% | 50.9% |
| Time to Breakeven | 37 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -12.9% | -19.2% |
| % Gain to Breakeven | 14.7% | 23.8% |
| Time to Breakeven | 12 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -14.4% | -12.2% |
| % Gain to Breakeven | 16.8% | 13.9% |
| Time to Breakeven | 48 days | 62 days |
In The Past
Cadence Design Systems's stock fell -15.5% during the 2025 US Tariff Shock. Such a loss loss requires a 18.3% gain to breakeven.
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| Event | CDNS | S&P 500 |
|---|---|---|
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -22.8% | -7.8% |
| % Gain to Breakeven | 29.6% | 8.5% |
| Time to Breakeven | 121 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -26.3% | -24.5% |
| % Gain to Breakeven | 35.7% | 32.4% |
| Time to Breakeven | 160 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.1% | -33.7% |
| % Gain to Breakeven | 47.3% | 50.9% |
| Time to Breakeven | 37 days | 140 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -23.3% | -15.4% |
| % Gain to Breakeven | 30.4% | 18.2% |
| Time to Breakeven | 66 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -84.9% | -53.4% |
| % Gain to Breakeven | 562.1% | 114.4% |
| Time to Breakeven | 2016 days | 1085 days |
In The Past
Cadence Design Systems's stock fell -15.5% during the 2025 US Tariff Shock. Such a loss loss requires a 18.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Cadence Design Systems (CDNS)
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```htmlHere are 1-3 brief analogies for Cadence Design Systems:
- Adobe for chip design: Just as Adobe provides essential software tools for creative professionals to design graphics, videos, and web content, Cadence provides the specialized software and hardware tools engineers use to design, verify, and prepare integrated circuits (chips) for manufacturing.
- AutoDesk for the semiconductor industry: Similar to how AutoDesk provides sophisticated design software for architects, engineers, and construction professionals, Cadence offers advanced software and hardware tools critical for engineers designing microchips and electronic systems.
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- Functional Verification Platforms: A suite of software and hardware tools, including emulation and prototyping, used to verify the correct functionality of chip designs.
- Digital IC Design and Sign-off Products: Software tools for the complete design flow of digital integrated circuits, from logic synthesis to physical implementation and final sign-off for manufacturing.
- Custom IC Design and Simulation Products: Tools enabling the design and simulation of analog, mixed-signal, custom digital, memory, and radio frequency circuits at the transistor level.
- System Design and Analysis Products: Software solutions for designing printed circuit boards and IC packages, along with analysis of various multi-physics effects.
- Intellectual Property (IP) Products: Pre-verified and customizable functional blocks and models that customers integrate into their integrated circuit designs.
- Methodology, Education, and Hosted Design Solutions: Services offering expert guidance on design methodologies, training, and cloud-based design environments.
- Technical Support and Maintenance Services: Ongoing support and updates for Cadence's software and hardware products.
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Cadence Design Systems (CDNS) primarily sells its software, hardware, services, and design blocks to other companies that develop integrated circuits and electronic systems. The provided background information describes the various markets Cadence serves (e.g., 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing) and the types of tools it offers (e.g., IC design, verification, IP products). While specific customer names are not listed in the provided background, the following companies are representative of major customers who would extensively utilize Cadence's sophisticated Electronic Design Automation (EDA) solutions given their significant investments in custom silicon design and presence in Cadence's target markets:
- Apple Inc. (Symbol: AAPL) - A major designer of custom processors for its mobile, consumer, and computing products.
- NVIDIA Corporation (Symbol: NVDA) - A leading developer of GPUs and AI accelerators, requiring advanced design and verification tools for its complex chip architectures.
- Intel Corporation (Symbol: INTC) - A prominent semiconductor company designing CPUs, GPUs, and other specialized chips across various segments including computing, automotive, and communications.
- Qualcomm Incorporated (Symbol: QCOM) - A key player in mobile System-on-Chips (SoCs) and 5G communication technologies.
- Alphabet Inc. (Symbol: GOOGL) - Engaged in custom silicon development (e.g., Tensor, TPU chips) for its mobile devices and hyperscale cloud infrastructure.
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```htmlAnirudh Devgan, President and Chief Executive Officer
Dr. Anirudh Devgan has served as President of Cadence Design Systems since 2017 and as Chief Executive Officer since December 2021. Prior to joining Cadence in May 2012, he held senior roles at Magma Design Automation, including Corporate Vice President and General Manager of the Custom Design Business Unit and later Corporate Vice President and member of the executive staff. Magma Design Automation was acquired by Synopsys. Before Magma, he spent 12 years at IBM in various technical and management roles across the IBM Thomas J. Watson Research Center, IBM Server Division, and IBM Microelectronics Division. He holds a Bachelor of Technology degree in electrical engineering from IIT Delhi and M.S. and Ph.D. degrees from Carnegie Mellon University. Dr. Devgan holds 27 U.S. patents.
John Wall, Senior Vice President and Chief Financial Officer
John Wall has served as Senior Vice President and Chief Financial Officer of Cadence Design Systems since October 2017. He joined Cadence in June 1997 and held various finance-related positions within the company, including Corporate Vice President and Corporate Controller, and Vice President of Finance & Operations. Before joining Cadence, Mr. Wall worked as a Financial Controller at Venture Fleet Services. He holds a degree in ACCA Accounting and Finance from BPP and a degree in Business Studies from Munster Technological University.
Paul Cunningham, Senior Vice President and General Manager, System Verification Group
Paul Cunningham is the Senior Vice President and General Manager of the System Verification Group at Cadence Design Systems. He joined Cadence in 2011 through the acquisition of Azuro, a startup he co-founded and served as CEO. Dr. Cunningham holds a Ph.D. in Computer Science from the University of Cambridge, UK.
Chin-Chi Teng, Senior Vice President and General Manager, Digital & Signoff Group
Chin-Chi Teng serves as the Senior Vice President and General Manager of the Digital and Signoff Group at Cadence Design Systems. His career at Cadence spans over two decades, where he has held significant roles including Corporate Vice President and General Manager, and Corporate Vice President of Research and Development.
Nimish Modi, Senior Vice President and General Manager, Strategy and New Ventures
Nimish Modi is the Senior Vice President and General Manager of Strategy and New Ventures at Cadence Design Systems. His extensive career includes significant roles at Intel Corporation and various leadership positions at Cadence since 2006.
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Key Risks to Cadence Design Systems (CDNS):- Failure to Adapt to Rapid Technological Changes and Intense Competition: Cadence operates in the highly dynamic and competitive Electronic Design Automation (EDA) industry, which requires continuous innovation in software, hardware, and design methodologies. The company's success is directly tied to its ability to anticipate and respond to evolving customer needs, new IC architectures, advanced manufacturing processes (like smaller technology nodes), and emerging verification challenges. A failure to develop and deliver competitive, cutting-edge solutions, or the emergence of disruptive technologies or superior competitor offerings, could lead to a loss of market share and reduced revenue.
- Dependence on the Semiconductor Industry's Capital Expenditure and R&D Cycles: Cadence's primary customers are companies involved in designing and manufacturing integrated circuits across various sectors, including 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing. The demand for Cadence's products and services is highly sensitive to the overall health, capital expenditure, and research and development (R&D) cycles of the semiconductor industry and its end markets. Economic downturns, geopolitical factors, supply chain disruptions, or reduced investment in semiconductor innovation by its customers could directly and negatively impact Cadence's sales and financial performance.
- Intellectual Property (IP) Protection and Infringement Risks: As a provider of complex design software, hardware, and pre-verified IP blocks, Cadence's business heavily relies on the strength and protection of its intellectual property. The company faces risks related to effectively protecting its proprietary technologies from unauthorized use, copying, or infringement by third parties. Conversely, there is a risk of inadvertently infringing on the intellectual property rights of others, which could lead to costly litigation, significant damages, injunctions against the use of its products, or the inability to license crucial technologies.
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Cadence Design Systems (CDNS) operates within the global Electronic Design Automation (EDA) and Semiconductor Intellectual Property (IP) markets. Here are the estimated addressable market sizes for their main products and services:The global Electronic Design Automation (EDA) market, which encompasses a wide range of software, hardware, and services for designing integrated circuits (ICs) and electronic systems, was valued at approximately USD 19.53 billion in 2024. This market is projected to grow to nearly USD 39.95 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.36% from 2025 to 2032. Another estimate placed the global EDA market at USD 17.2 billion in 2024, with a projection to reach USD 37.8 billion by 2032, at a CAGR of 10.5% from 2025 to 2032.
Within the broader EDA market, key segments directly addressed by Cadence's offerings include:
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IC Physical Design & Verification: This segment held the largest market revenue share of 38.2% within the EDA tools market in 2024. This segment is crucial for ensuring the functional correctness and performance of complex IC designs.
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Functional Verification: The verification segment of the EDA tools market is expected to demonstrate robust growth, with a projected CAGR of 13.9% from 2025 to 2032.
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Printed Circuit Board (PCB) & Multi-Chip Module (MCM) Design: The PCB design software segment accounts for an 18.5% market share, with an annual expansion rate of 7.4%.
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3D IC Design and Manufacturers Software: This specialized market, crucial for advanced packaging and heterogeneous integration, was valued at USD 12.6 billion globally in 2025. It is projected to grow to USD 32.6 billion by 2035, with a CAGR of 10.0% during the forecast period from 2026 to 2035.
The global Semiconductor Intellectual Property (IP) market, where Cadence provides pre-verified and customizable functional blocks, was valued at approximately USD 8.8 billion in 2024. This market is anticipated to reach around USD 35.7 billion by 2034, driven by a significant CAGR of 15.1% from 2025 to 2034. Other estimates place the global semiconductor IP market at USD 8.17 billion in 2025, projected to reach approximately USD 17.06 billion by 2034, with a CAGR of 8.52% from 2024 to 2034.
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Cadence Design Systems (CDNS) is expected to drive future revenue growth over the next 2-3 years through several key areas:
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Accelerated Adoption of AI-driven Design Solutions and Workflows: Cadence is experiencing strong demand for its artificial intelligence (AI) solutions, including products like ChipsTech AI SuperAgent and the deployment of Agentic AI workflows. These tools are designed to automate chip design and verification, offering customers significant productivity improvements and faster time to market, thereby driving increased customer engagement and utilization across Cadence's portfolio.
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Robust Demand for Hardware Systems: The company's hardware business, particularly its emulation and prototyping platforms such as Palladium and Protium, continues to deliver record performance. This growth is fueled by substantial and increasing demand from AI and hyperscale computing customers, who rely on these systems for complex chip verification.
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Growth in Intellectual Property (IP) and System Design and Analysis (SDA) Segments: Cadence's IP business is experiencing significant growth, driven by strong adoption in areas like AI, high-performance computing (HPC), and automotive applications. Simultaneously, the System Design and Analysis segment is achieving substantial growth, powered by the company's multi-physics analysis platform and AI-driven optimization, particularly within the aerospace, defense, and automotive industries.
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Strategic Partnerships and Broad Customer Adoption: Cadence is strengthening collaborations with industry leaders and major foundries such as TSMC, Samsung, Intel, and Rapidus. These expanded partnerships, along with broad-based customer adoption across various market segments including hyperscale, 5G, and autonomous driving, are contributing to sustained demand for Cadence's comprehensive design and analysis solutions.
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Share Repurchases
- Cadence Design Systems repurchased approximately $925.034 million of its common stock in 2025.
- In 2024, the company repurchased approximately $550.026 million of its common stock.
- On May 8, 2025, an additional $1.5 billion was authorized for share repurchases under the existing program.
Share Issuance
- In February 2026, as part of the acquisition of Hexagon AB's Design and Engineering business, approximately €810 million (about $875 million based on current exchange rates) of the purchase price was paid in newly issued shares of Cadence's common stock.
- Cadence's shares outstanding saw a 0.4% increase in 2024 to 0.274 billion, after declining in previous years.
Outbound Investments
- Cadence completed the acquisition of Hexagon AB's Design and Engineering business for approximately €2.7 billion (around $2.9 billion as of current exchange rates, approximately $3.16 billion at the time of announcement) in February 2026, expanding its System Design and Analysis portfolio to include structural analysis, acoustics, and multibody dynamics.
- In 2025, Cadence announced the acquisition of Secure-IC, a provider of embedded security IP platforms, which was expected to close by mid-2025.
- Significant acquisitions in 2021 included NUMECA's system analysis products for computational fluid dynamics (CFD) and multiphysics simulation, and Pointwise for CFD mesh generation.
Capital Expenditures
- Cadence's capital expenditures were $273 million in 2024, continuing an upward trend from $238 million in 2023, $206 million in 2022, and $201 million in 2021.
- The average capital expenditures for fiscal years ending January 2022 to 2025 was $115.1 million, with a peak of $142.5 million in December 2024, according to other sources.
- Capital expenditure is described as modest relative to cash flow, with Q4 2025 PPE purchases around $41 million, suggesting steady investment.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 289.08 |
| Mkt Cap | 54.6 |
| Rev LTM | 5,603 |
| Op Inc LTM | 875 |
| FCF LTM | 1,386 |
| FCF 3Y Avg | 1,251 |
| CFO LTM | 1,535 |
| CFO 3Y Avg | 1,395 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 15.8% |
| Rev Chg 3Y Avg | 14.2% |
| Rev Chg Q | 18.5% |
| QoQ Delta Rev Chg LTM | 4.3% |
| Op Inc Chg LTM | 12.1% |
| Op Inc Chg 3Y Avg | 7.8% |
| Op Mgn LTM | 21.5% |
| Op Mgn 3Y Avg | 21.1% |
| QoQ Delta Op Mgn LTM | -0.4% |
| CFO/Rev LTM | 30.6% |
| CFO/Rev 3Y Avg | 26.1% |
| FCF/Rev LTM | 28.1% |
| FCF/Rev 3Y Avg | 24.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 54.6 |
| P/S | 10.9 |
| P/Op Inc | 62.1 |
| P/EBIT | 52.0 |
| P/E | 64.1 |
| P/CFO | 36.1 |
| Total Yield | 1.2% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 2.7% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 11.5% |
| 3M Rtn | 26.2% |
| 6M Rtn | 45.2% |
| 12M Rtn | 77.2% |
| 3Y Rtn | 79.7% |
| 1M Excs Rtn | 9.8% |
| 3M Excs Rtn | 15.8% |
| 6M Excs Rtn | 33.8% |
| 12M Excs Rtn | 48.2% |
| 3Y Excs Rtn | 18.7% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Core Electronic Design Automation (EDA) | 3,295 | 3,108 | |||
| System Design and Analysis | 743 | 491 | 401 | 309 | 254 |
| Semiconductor Intellectual Property (IP) | 603 | 491 | 401 | 366 | 355 |
| Custom Integrated Circuit (IC) Design and Simulation | 735 | 647 | 634 | ||
| Digital Integrated Circuit (IC) Design and Signoff | 935 | 816 | 736 | ||
| Functional Verification, including Emulation and Prototyping Hardware | 868 | 675 | 558 | ||
| Services | 222 | 175 | 146 | ||
| Total | 4,641 | 4,090 | 3,562 | 2,988 | 2,683 |
Price Behavior
| Market Price | $414.16 | |
| Market Cap ($ Bil) | 112.7 | |
| First Trading Date | 03/26/1990 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $324.51 | $323.41 |
| DMA Trend | indeterminate | up |
| Distance from DMA | 27.6% | 28.1% |
| 3M | 1YR | |
| Volatility | 43.4% | 37.5% |
| Downside Capture | 180.28 | 183.31 |
| Upside Capture | 227.87 | 170.03 |
| Correlation (SPY) | 52.9% | 49.6% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.33 | 1.77 | 1.41 | 1.74 | 1.51 | 1.48 |
| Up Beta | -0.49 | 1.21 | 1.01 | 1.29 | 1.33 | 1.38 |
| Down Beta | 0.69 | 0.11 | 0.30 | 1.11 | 1.33 | 1.25 |
| Up Capture | 237% | 248% | 223% | 271% | 200% | 483% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 12 | 27 | 35 | 64 | 132 | 394 |
| Down Capture | 176% | 276% | 169% | 185% | 145% | 111% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 8 | 14 | 28 | 60 | 117 | 356 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CDNS | |
|---|---|---|---|---|
| CDNS | 41.5% | 37.4% | 1.01 | - |
| Sector ETF (XLK) | 70.4% | 20.8% | 2.46 | 56.9% |
| Equity (SPY) | 30.2% | 11.8% | 1.93 | 48.9% |
| Gold (GLD) | 34.7% | 26.7% | 1.09 | 1.6% |
| Commodities (DBC) | 42.7% | 18.9% | 1.75 | 0.1% |
| Real Estate (VNQ) | 9.6% | 13.2% | 0.44 | 11.3% |
| Bitcoin (BTCUSD) | -30.6% | 41.6% | -0.77 | 30.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CDNS | |
|---|---|---|---|---|
| CDNS | 26.1% | 35.8% | 0.73 | - |
| Sector ETF (XLK) | 24.0% | 24.8% | 0.85 | 74.0% |
| Equity (SPY) | 14.2% | 17.0% | 0.65 | 67.2% |
| Gold (GLD) | 18.5% | 18.0% | 0.83 | 9.0% |
| Commodities (DBC) | 10.3% | 19.4% | 0.42 | 11.3% |
| Real Estate (VNQ) | 2.8% | 18.8% | 0.05 | 37.3% |
| Bitcoin (BTCUSD) | 13.7% | 54.6% | 0.44 | 28.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CDNS | |
|---|---|---|---|---|
| CDNS | 32.3% | 33.9% | 0.91 | - |
| Sector ETF (XLK) | 26.2% | 24.5% | 0.96 | 75.4% |
| Equity (SPY) | 15.8% | 17.9% | 0.76 | 67.9% |
| Gold (GLD) | 13.1% | 16.0% | 0.68 | 9.4% |
| Commodities (DBC) | 7.4% | 17.9% | 0.33 | 16.6% |
| Real Estate (VNQ) | 5.5% | 20.7% | 0.23 | 41.9% |
| Bitcoin (BTCUSD) | 66.7% | 66.9% | 1.06 | 21.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 02/19/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/30/2025 | 10-Q |
| 03/31/2025 | 04/30/2025 | 10-Q |
| 12/31/2024 | 02/21/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/24/2024 | 10-Q |
| 03/31/2024 | 04/24/2024 | 10-Q |
| 12/31/2023 | 02/14/2024 | 10-K |
| 09/30/2023 | 10/23/2023 | 10-Q |
| 06/30/2023 | 07/24/2023 | 10-Q |
| 03/31/2023 | 04/24/2023 | 10-Q |
| 12/31/2022 | 02/13/2023 | 10-K |
| 09/30/2022 | 10/24/2022 | 10-Q |
| 06/30/2022 | 07/25/2022 | 10-Q |
Insider Activity
Updated 5/27/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Teng, Chin-Chi | Sr. Vice President | Direct | Sell | 5272026 | 369.35 | 4,500 | 1,662,087 | 54,952,666 | Form |
| 2 | Devgan, Anirudh | President and CEO | Direct | Sell | 5272026 | 370.00 | 51,887 | 19,198,190 | 112,304,250 | Form |
| 3 | Scannell, Paul | Sr. Vice President | Direct | Sell | 5202026 | 345.06 | 1,071 | 369,559 | 11,104,376 | Form |
| 4 | Wall, John M | Sr. VP & CFO | Direct | Sell | 5072026 | 348.71 | 5,000 | 1,743,564 | 28,550,862 | Form |
| 5 | Cunningham, Paul | Sr. Vice President | Direct | Sell | 5052026 | 337.49 | 1,000 | 337,490 | 43,058,999 | Form |
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Application Software Resources |
| Capterra |
| Software Advice |
| InfoWorld |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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