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% | - | - |
| 2021 | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total Revenue | - | 3,561.72 | 4,089.99 | 4,641.26 | 5,296.76 |
| Operating 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 |
| 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 |
| Total Expenses | - | 2,487.98 | 2,827.75 | 3,258.41 | 3,646.98 |
| Operating Income | - | 1,073.74 | 1,262.24 | 1,382.85 | 1,649.78 |
| Total Operating Income As Reported | - | 1,073.69 | 1,251.22 | 1,350.76 | 1,492.04 |
| EBITDA | - | 1,203.73 | 1,463.85 | 1,666.83 | 1,872.43 |
| Normalized EBITDA | - | 1,218.41 | 1,434.90 | 1,639.15 | 1,983.14 |
| EBIT | - | 1,068.30 | 1,318.11 | 1,471.82 | 1,638.58 |
| Interest Income | - | 10.10 | 29.64 | 62.48 | 101.58 |
| Interest Expense | - | 22.93 | 36.18 | 76 | 116.54 |
| Net Interest Income | - | -12.84 | -6.55 | -13.52 | -14.96 |
| Other Non Operating Income Expenses | - | -0.86 | -2.71 | -1.20 | -2.07 |
| Other Income Expense | - | -15.54 | 26.24 | 26.48 | -112.78 |
| Interest Income Non Operating | - | 10.10 | 29.64 | 62.48 | 101.58 |
| Interest Expense Non Operating | - | 22.93 | 36.18 | 76 | 116.54 |
| Net Non Operating Interest Income Expense | - | -12.84 | -6.55 | -13.52 | -14.96 |
| Pretax Income | - | 1,045.36 | 1,281.93 | 1,395.82 | 1,522.04 |
| Tax Provision | - | 196.41 | 240.78 | 340.34 | 413.16 |
| Tax Rate For Calcs | - | 0 | 0 | 0 | 0 |
| Tax Effect Of Unusual Items | - | -2.76 | 5.44 | 6.76 | -30 |
| Net Income Continuous Operations | - | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| Net Income From Continuing And Discontinued Operation | - | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| Net Income From Continuing Operation Net Minority Interest | - | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| 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 |
| Net Income Including Noncontrolling Interests | - | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| Normalized Income | - | 860.87 | 1,017.63 | 1,034.55 | 1,189.60 |
| Diluted NI Availto Com Stockholders | - | 848.95 | 1,041.14 | 1,055.48 | 1,108.89 |
| Basic Average Shares | - | 271.20 | 269.38 | 271.21 | 271.33 |
| Diluted Average Shares | - | 275.01 | 272.75 | 273.83 | 273.31 |
| Reconciled Depreciation | - | 135.43 | 145.74 | 195.02 | 233.84 |
| Reconciled Cost Of Revenue | - | 254.66 | 307.46 | 482.86 | 528.34 |
| Total Unusual Items | - | -14.68 | 28.95 | 27.69 | -110.71 |
| Total Unusual Items Excluding Goodwill | - | -14.68 | 28.95 | 27.69 | -110.71 |
| Special Income Charges | - | -0.06 | -11.01 | -32.09 | -146.24 |
| Other Special Charges | - | - | - | 8.32 | 128.54 |
| Restructuring And Mergern Acquisition | - | 0.06 | 11.01 | 23.76 | 29.19 |
| Gain On Sale Of Security | - | -14.63 | 39.96 | 59.77 | 35.53 |
| Depreciation Amortization Depletion Income Statement | - | 18.47 | 18.16 | 30.38 | 39.94 |
| Depreciation And Amortization In Income Statement | - | 18.47 | 18.16 | 30.38 | 39.94 |
| General And Administrative Expense | - | 242.12 | 242.43 | 273.96 | 313.39 |
| Other Gand A | - | 242.12 | 242.43 | 273.96 | 313.39 |
| Gain On Sale Of Ppe | - | - | 0 | 0 | 11.50 |
| Selling And Marketing Expense | - | 604.22 | 690.32 | 757.48 | 802.63 |
| Amortization | - | 18.47 | 18.16 | 30.38 | 39.94 |
| Amortization Of Intangibles Income Statement | - | 18.47 | 18.16 | 30.38 | 39.94 |
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 | $113.5B | 102.40β premium | 20.74 | 20.3% | 60.35 |
| ServiceNow, Inc. | NOW | $123.1B | 70.42 | 9.50 | 13.5% | 40.30 |
| Accenture plc | ACN | $110.1B | 14.34 | 3.53 | 24.6% | 9.00 |
| Fortinet, Inc. | FTNT | $109.7B | 59.16 | 88.61 | 149.8% | 44.07 |
| Adobe Inc. | ADBE | $104.5B |
| - |
| - |
| - |
| - |
| - |
| - |
| 14.65 |
| 8.99 |
| 61.3% |
| 10.65 |
| Synopsys, Inc. | SNPS | $94.7B | 71.07 | 3.34 | 4.7% | 42.40 |
| Automatic Data Processing, Inc. | ADP | $92.5B | 22.66 | 14.94 | 65.9% | 14.76 |
| Datadog, Inc. | DDOG | $86.7B | 804.83 | 23.23 | 2.9% | 430.85 |
| Intuit Inc. | INTU | $82.6B | 21.35 | 4.19 | 19.6% | 14.66 |
| Peer Median | - | 40.91 | 9.24 | 22.1% | 27.53 | |