CDNSNasdaqServices-Prepackaged SoftwareFiscal year ends December 31
CADENCE DESIGN SYSTEMS INC
Financials through Q1 FY2026, quarter ended Mar 31, 2026Last filing: 10-Q on Jul 29, 2026
$325.86+6.35 (+1.99%)
Close on Oct 19, 2026
- Market cap
- $89.20B
- P/E (TTM)
- 76.0
- Dividend yield
- –
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
–
Operating margin
28.2%+4.1 pts over 5 years
Net margin
20.9%−1.1 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +14.1% | +14.1% | +14.6% | +12.0% | |
| Operating income | +10.5% | +11.6% | +18.2% | +18.0% | |
| Net income | +5.1% | +9.3% | +13.4% | +16.0% | |
| EPS, diluted | +5.5% | +9.5% | +14.0% | +17.5% | |
| Free cash flow | +41.9% | +12.4% | +14.4% | +16.9% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 19.2% | 25.7% | 21.9% | |
| Return on assets | 9.1% | 16.2% | 11.6% | |
| Current ratio | 1.20 | 1.86 | 2.86 | |
| Interest coverage | 10.3× | 31.1× | 12.8× | |
| Capex to revenue | 3.0% | 3.5% | 2.7% | |
| Diluted shares | 291M | 280M | 273M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Cadence Design Systems generated $6.68B from operations and spent $4.41B on capital expenditure, dividends and share buybacks. 13% of that went back into the business.
Generated
$6.68B
Used
$4.41B
Capital expenditure$575.26M13%Dividends$00%Share buybacks$3.84B87%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin20.9%
×Asset turnover0.55×
×Equity multiplier1.88×
=Return on equity, FY202521.9%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 20.9% | 0.55× | 1.88× | 21.9% |
| FY2024 | 22.7% | 0.63× | 1.81× | 26.1% |
| FY2023 | 25.5% | 0.76× | 1.76× | 33.9% |
| FY2022 | 23.8% | 0.75× | 1.74× | 31.0% |
| FY2021 | 23.3% | 0.72× | 1.59× | 26.6% |
| FY2020 | 22.0% | 0.73× | 1.59× | 25.7% |
| FY2019 | 42.3% | 0.80× | 1.72× | 58.3% |
| FY2018 | 16.2% | 0.87× | 2.15× | 30.4% |
| FY2017 | 10.5% | 0.86× | 2.61× | 23.6% |
| FY2016 | 11.2% | 0.82× | 2.10× | 19.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
4of 7 tests passed in fiscal 2025. Some tests lack the figures they need.
- ProfitableNet income above zero$1.11B
- Cash generatingOperating cash flow above zero$1.73B
- Return on assets improvedROA up on the prior year18.6% → 12.4%
- Earnings backed by cashOperating cash flow above net income$1.73B vs $1.11B
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose2.93 → 2.86
- No dilutionShare count did not rise274M → 273M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.82 → 0.59