Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.
5-year financial trends. Figures in USD millions.
Latest fiscal year: 2025
Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)
| Year | Revenue | EBITDA | Net Profit | FCF | ROE | Rev Growth 1Y | NP Growth 1Y |
|---|---|---|---|---|---|---|---|
| 2025 | $5.3B | $1.9B | $1.1B | $1.6B | 20.3% | 14.1% | 5.1% |
| 2024 | $4.6B | $1.7B | $1.1B | $1.1B | 22.6% | 13.5% | 1.4% |
| 2023 | $4.1B | $1.5B | $1.0B | $1.2B | 30.6% | 14.8% | 22.6% |
| 2022 | $3.6B | $1.2B | $849M | $1.1B | 30.9% | - | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Total Revenue | 3,561.72 | 4,089.99 | 4,641.26 | 5,296.76 |
| Cost Of Revenue | 371.62 | 435.04 | 647.50 | 722.25 |
| Gross Profit | 3,190.10 | 3,654.94 | 3,993.76 | 4,574.51 |
| Operating Expense | 2,116.35 | 2,392.71 | 2,610.91 | 2,924.73 |
| Operating Income | 1,073.74 | 1,262.24 | 1,382.85 | 1,649.78 |
| EBITDA | 1,203.73 | 1,463.85 | 1,666.83 | 1,872.43 |
| EBIT | 1,068.30 | 1,318.11 | 1,471.82 | 1,638.58 |
| Pretax Income | 1,045.36 | 1,281.93 | 1,395.82 | 1,522.04 |
| Tax Provision | 196.41 | 240.78 | 340.34 | 413.16 |
| Net Income | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| Net Income Common Stockholders | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| Total Expenses | 2,487.98 | 2,827.75 | 3,258.41 | 3,646.98 |
| Interest Expense | 22.93 | 36.18 | 76 | 116.54 |
| Interest Income | 10.10 | 29.64 | 62.48 | 101.58 |
| Research And Development | 1,251.54 | 1,441.80 | 1,549.09 | 1,768.77 |
| Selling General And Administration | 846.34 | 932.75 | 1,031.44 | 1,116.02 |
| Normalized EBITDA | 1,218.41 | 1,434.90 | 1,639.15 | 1,983.14 |
| Normalized Income | 860.87 | 1,017.63 | 1,034.55 | 1,189.60 |
| Market Cap | 91,908.29 | 91,908.29 | 91,908.29 | 91,908.29 |
Technology sector peers, ranked by market cap
| Company | Ticker | Market Cap | P/E | P/B | ROE | EV/EBITDA |
|---|---|---|---|---|---|---|
| Cadence Design Systems, Inc.this co. | CDNS | $90.3B | 82.88β premium | 16.79 | 20.3% | 48.88 |
| Accenture plc | ACN | $111.5B | 14.30 | 3.52 | 24.6% | 8.97 |
| Intuit Inc. | INTU | $110.8B | 28.48 | 5.59 | 19.6% | 19.34 |
| Adobe Inc. | ADBE | $104.6B | 13.91 | 8.54 | 61.3% | 10.23 |
| Synopsys, Inc. | SNPS | $82.1B |
| 72.01 |
| 3.39 |
| 4.7% |
| 42.93 |
| Automatic Data Processing, Inc. | ADP | $80.0B | 19.40 | 12.79 | 65.9% | 13.37 |
| Monolithic Power Systems, Inc. | MPWR | $78.4B | 128.99 | 22.70 | 17.6% | 101.24 |
| Ciena Corporation | CIEN | $73.8B | 597.06 | 26.98 | 4.5% | 190.98 |
| Motorola Solutions, Inc. | MSI | $73.0B | 33.82 | 30.22 | 89.4% | 22.64 |
| Peer Median | - | 31.15 | 10.66 | 22.1% | 20.99 | |