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CDNS · NasdaqGS

Cadence Design Systems, Inc.

Software - Application · United States

USD 329.26-0.7% daily changeQuote 2026-11-11 · USD
Market cap (USD)
US$90.34B
Trailing P/E
65.46x
Forward P/E
33.44x
Quarterly revenue growth
22.0%
Trailing net margin
22.5%
Indicated dividend yield
—

Snapshot 2026-11-11 · Latest financial period 2026-09-30 · Yahoo Finance. Quotes may be delayed; reporting periods can differ.

Company background

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 Innovus 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 Tensilica, 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.

Company website

Q3 2026

Go beyond the headline.

CDNS Stock: 22% Growth, Flat GAAP EPS — Who Gets the Upside? | Cadence Q3 2026

Published 2026-10-27

Q3 2026 REPORT HIGHLIGHTS

What’s changed for CDNS

Cadence’s recurring-demand strength meets weaker margin conversion, acquisition costs and a stock-compensation burden that matters for per-share cash value.

  1. Sales growth outpaced operating profit.

    Revenue rose 22%, while GAAP operating income increased less than 1% and GAAP EPS remained $1.05.

  2. Recurring demand is strong but not a pure organic measure.

    Recurring revenue grew 18%, with acquired scope and product mix requiring separate analysis.

  3. The guidance raise did not raise cash guidance.

    FY2026 revenue midpoint increased $102M and adjusted EPS midpoint increased $0.30; OCF remains approximately $2.0B.

  4. Repurchases did not shrink diluted ownership.

    Q3 buybacks used about $400M, while diluted weighted-average shares rose 0.54% year over year.

  5. The valuation methods disagree.

    Earnings-based routes give about $304 per share; an owner-cash route gives about $209, supporting a rounded $270 anchor with High uncertainty.

Comparable businesses

CDNS peer comparison

Same business group first, then company size. Preferred market cap: 0.5–2x; extended range: one-third–3x. Outside that range, industry benchmarks are labeled separately and excluded from peer medians.

Comparison stocks

No suitable peers with fresh, comparable size data are available. We have not substituted unrelated companies.

Market metrics · missing or inapplicable values shown as —
MetricCDNSCadence Design Systems, Inc.Snapshot 2026-11-11Financial period: 2026-09-30
Market capMarket value, converted to USDUS$90.34B
Forward P/EProvider forward earnings estimate33.44x
EV / EBITDAEnterprise value / trailing EBITDA41.55x
Revenue growthLatest quarter vs prior-year quarter22.0%
Operating marginLatest reported quarter29.9%
Free cash flow yieldTrailing cash flow / market cap1.9%
Net debt / EBITDANet debt / trailing EBITDA0.57x
Debt / equityTotal debt / positive book equity0.41x
Trailing P/ETrailing twelve-month earnings65.46x
Price / bookPrice / positive book equity per share13.14x
EV / salesEnterprise value / trailing revenue15.05x
Earnings growthLatest quarter vs prior-year quarter0.0%
Gross marginTrailing twelve months85.7%
Net marginTrailing twelve months22.5%
Return on equityProvider trailing return; positive equity only22.9%
Free cash flow marginTrailing free cash flow / revenue28.5%
Dividend yieldIndicated annual dividend / price—
Earnings payoutProvider trailing dividend payout0.0%
Current ratioCurrent assets / current liabilities1.36x
BetaProvider historical market sensitivity1.10

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Comparison methodology & limitations

Reviewed operating groups override broad sector classifications. Other companies are matched only within a sufficiently specific provider industry. Business mix, geography and accounting standards can still differ. Market caps are converted to USD using exchange rates captured during the snapshot refresh. Financial ratios that would mix currencies are omitted. Snapshots must be at most 14 days old and no more than seven days apart for automatic selection.

Peer medians require at least two valid similar-size peers for each metric. Negative earnings, nonpositive equity, missing data and irrelevant bank ratios are not presented as attractive valuations. A higher or lower number is not automatically a better investment. Financial statement periods are not calendar-aligned across companies.

Reported performance

Financial trends

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Financial history
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Market context

Valuation & price history

Adjusted closing price

Price history

Price history loads separately.

Earnings-multiple scenario

Illustrative price = your earnings-per-share assumption × your P/E assumption. This is not a price target or a complete valuation model.

Starting assumptions, when available, use provider forward estimates as of 2026-11-11. Negative earnings require a different valuation method. This calculation omits balance-sheet, dilution and execution risks.

THE RESEARCH RECORD

Research history for CDNS

All available reporting periods
Q3 20262026-10-27
Q2 20262026-07-28
Q1 20262026-04-28

Reported figures

Verify material figures against company filings. Market data and AI-assisted analysis may contain errors.