Cadence Design Systems provides software, hardware and intellectual property used to design chips, circuit boards and electronic systems. Engineers at semiconductor makers, technology companies, carmakers and other electronics firms use its tools to design, simulate and verify products before manufacturing. The offering spans digital and analog chip design, system analysis and reusable design blocks, used in areas such as data centres, mobile devices and vehicles.
Cadence earns revenue from software licences, subscriptions and maintenance, from hardware systems used to test chip designs, and from licensing design blocks and providing services. The last twelve months brought in $5.5 billion, and growth over the last three years was 14.1% a year. The operating margin is 28.3%, and the business earns a profit of 22% on the capital invested in it. No dividend is paid. On the site's X-Ray Score it receives 45 out of 100.
Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.
52-wk range $262.75 – $416.69Volume 2,501,800Daily, split-adjusted
Vitals
Market cap$87.5B
52-week range$262.75 – $416.69
Volume (last day)2,501,800
P/E (TTM)74.6
EBIT / EV yield1.8%
Free-cash-flow yield1.6%
Dividend yieldNo dividend
Revenue (TTM)$5.5B
Net income (TTM)$1.2B
Operating margin28.3%
Return on capital22.3%
Debt incl. leasesData missing
Cash & securities$1.4B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
Not rated
Debt not found in the filing data although interest is paid: not rated
What this means
Read the lenses below
A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
ValuationWeak
22/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield1.8%
Free-cash-flow yield1.6%
GrowthFair
54/100
Growing at a typical pace for its sector.
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Revenue growth (3y)14.1%
EPS growth (3y)9.5%
Growth consistency90%
ProfitabilityFair
61/100
Returns on capital are typical for its sector.
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Return on invested capital22.3%
Operating margin28.3%
Financial healthWeak
47/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Interest cover13.1×
DividendsNone
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+26.9%Dec '24
+23.1%Mar '25
+20.2%Jun '25
+10.1%Sep '25
+6.2%Dec '25
+18.7%Mar '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.5B, diluted EPS $1.23.
Other Application Software companies by X-Ray Score.
Fundamentals checklist
● 1 Good · ● 10 Average · ● 2 Bad
Cash quality
Earnings backed by cashAverage
Free-cash-flow yieldBad
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Good
Growth consistencyAverage
Balance sheet
Current ratioAverage
Interest coverAverage
Valuation
EBIT / EV yieldBad
Profitability
Return on invested capitalAverage
Operating marginAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 44/100.
Financials
FY22
FY22
FY23
FY24
FY25
Revenue
$3.0B
$3.6B
$4.1B
$4.6B
$5.3B
Operating income
$779M
$1.1B
$1.3B
$1.4B
$1.5B
Net income
$696M
$849M
$1.0B
$1.1B
$1.1B
Operating cash flow
$1.1B
$1.2B
$1.3B
$1.3B
$1.7B
Operating margin
26.1%
30.1%
30.6%
29.1%
28.2%
Free cash flow
$1.0B
$1.1B
$1.2B
$1.1B
$1.6B
Diluted EPS
$2.50
$3.09
$3.82
$3.85
$4.06
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
3 bullish · 2 neutral · 11 bearish
Weekly
Bearish
3 bullish · 1 neutral · 8 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
SMA 10
342.7
Bearish
EMA 10
334.2
Bearish
SMA 20
333.3
Bearish
EMA 20
331.1
Bearish
SMA 50
319.8
Bearish
EMA 50
328.0
Bearish
SMA 100
344.4
Bearish
EMA 100
331.0
Bearish
SMA 200
327.0
Bearish
EMA 200
329.7
Bearish
Oscillators (daily)
RSI (14)
44.10
Neutral
MACD (12, 26)
5.00
Bullish
Momentum (12)
-3.23
Bearish
Stochastic %K (14)
11.50
Bullish
Williams %R (14)
-88.50
Bullish
CCI (20)
-47.14
Neutral
Pivot points (classic, last session)
S3
305.2
S2
310.9
S1
315.2
Pivot
320.9
R1
325.2
R2
331.0
R3
335.3
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.