CDNS
Updated: 24/09/2026, 14:56:35
Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. is headquartered in San Jose, California.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.
Revenue
$5.3B
FY 2025 · Reported
Net income
$1.1B
FY 2025 · Reported
Gross margin
N/A
FY — · Reported
Free cash flow
$1.6B
FY 2025 · Calculated
R&D intensity
N/A
FY — · Reported
Share repurchases
$0.9B
FY 2025 · Reported
| Product / service | Sales | Share of sales | YoY growth | By reported area |
|---|---|---|---|---|
product_and_maintenanceSource evidence“Product and maintenance$4,821.6 $4,213.5 $608.1 14 % Services475.2 427.8 47.4 11 % Total revenue$5,296.8 $4,641.3 $655.5 14 %” | $4,821.6m | +91.0% | +14.4% | Not disclosed by product and area |
servicesSource evidence“Product and maintenance$4,821.6 $4,213.5 $608.1 14 % Services475.2 427.8 47.4 11 % Total revenue$5,296.8 $4,641.3 $655.5 14 %” | $475.2m | +9.0% | +11.1% | Not disclosed by product and area |
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Business overview
Cadence develops computational, AI-driven software, accelerated hardware, and silicon IP for semiconductor and systems companies
“Cadence® is a global market leader that develops computational, AI-driven software, accelerated hardware, and silicon IP products and solutions for engineers and scientists to bring new and innovative products to life.”
Company overview
Develops computational, AI-driven software, accelerated hardware, and silicon IP for IC designers and electromechanical systems makers
“Cadence® is a global technology leader that develops computational, AI-driven software, accelerated hardware, and silicon intellectual property (“IP”) products and solutions.”
Customer base
Semiconductor companies and systems companies
“Our customers include semiconductor companies that design and manufacture integrated circuits (“ICs”), as well as systems companies that design and manufacture electromechanical systems containing various types of semiconductor and other electronics.”
Customer types
Semiconductor companies designing/manufacturing ICs and systems companies designing electromechanical systems with semiconductors/electronics
“Our customers include semiconductor companies that design and manufacture ICs, as well as systems companies that design and manufacture electromechanical systems containing various types of semiconductor and other electronics.”
Cloud delivery via Cadence OnCloud Platform
Cadence OnCloud Platform cloud access
“Customers can access our solutions via our Cadence OnCloud Platform.”
Three product categories
Core EDA, Semiconductor IP, and System Design and Analysis (SD&A)
“we organize our offerings into three tightly integrated product categories: Core EDA, Semiconductor IP, and System Design and Analysis (“SD&A”).”
Product categories
Core EDA; Semiconductor IP; System Design and Analysis
“We group our products into the following categories: •Core EDA •Semiconductor IP; and •System Design and Analysis.”
Core EDA flagship platforms
Virtuoso, Innovus, Jasper, Xcelium, Verisium, Palladium, Protium
“Virtuoso is our flagship platform used by engineers to design and verify analog, custom, RF, mixed-signal IC, memory, and photonics devices.”
End-use industries served
Automotive, aerospace and defense, consumer electronics, data centers, industrial, medical, mobile
“widely used across multiple industries including automotive, aerospace and defense, consumer electronics, data centers, industrial, medical, and mobile”
Revenue by category, fiscal 2025 vs 2024
FY2025 total revenue $5,296.8M (+14% vs $4,641.3M in FY2024); Product and maintenance $4,821.6M (+14%); Services $475.2M (+11%)
“Product and maintenance$4,821.6 $4,213.5 $608.1 14 % Services475.2 427.8 47.4 11 % Total revenue$5,296.8 $4,641.3 $655.5 14 %”
Foundry ecosystem PDK partnerships
Foundry partners co-develop PDKs ensuring manufacturing sign-off compatibility
“We work closely with leading semiconductor ecosystem partners to develop foundry process design kits (“PDKs”) to ensure our core EDA products and solutions meet manufacturing sign-off requirements.”
Fiscal 2024 acquisition: BETA CAE
Acquired BETA CAE in Q2 FY2024; multi-domain engineering simulation solutions in System Design and Analysis
“During the second quarter of fiscal 2024, we completed our acquisition of BETA CAE Systems International AG ("BETA CAE"), a system analysis platform provider of multi-domain, engineering simulation solutions.”
Fiscal 2025 acquisitions
FY2025 acquisitions: VLAB Works, Artisan foundation IP (from Arm Limited), Secure-IC
“During fiscal 2025, we completed multiple acquisitions, including our acquisition of a holding company containing the VLAB Works business ("VLAB Works"), our acquisition of the Artisan foundation IP business from Arm Limited and our acquisition of Secure-IC.”
Pending acquisition: Hexagon D&E business
Definitive agreement (Sept 4, 2025) to acquire Hexagon's D&E business; pending regulatory approvals
“On September 4, 2025, we entered into a definitive agreement with Hexagon to acquire its D&E business.”
Fiscal 2025 acquisitions in AI verification and automotive
Fiscal 2025: agentic AI verification technology and VLAB Works (automotive)
“In fiscal 2025, we acquired industry‑leading technology that expands our AI‑driven design and verification capabilities to include advanced agentic AI technology purpose‑built for semiconductor development.”
Competitive factors
Innovation, product differentiation, customer relationships, engineering talent, geopolitical trade restrictions
“Competition in our market is driven by several critical factors, including the ability to deliver continuous technological innovation, the quality and differentiation of product and service offerings, the strength and stability of customer relationships, the ability to attract and retain top engineering talent, and potential geopolitical trade restrictions.”
Key competitors
Synopsys (incl. Ansys), Siemens EDA, Keysight, Schrödinger, CEVA, Altium/Renesas, Zuken, emerging China EDA players
“Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA, and a variety of other tool providers”
Chip and system design complexity
Growing design complexity and PPA optimization needs drive demand
“The growing complexity of chip and system designs is a fundamental driver of demand for our technology.”
Intelligent System Design (ISD) strategy
ISD strategy: Design Excellence, System Innovation, Pervasive Intelligence
“Our ISD strategy focuses on three key pillars: Design Excellence, System Innovation, and Pervasive Intelligence.”
AI investments including generative AI platform
Making significant investments in AI initiatives, including expanding generative AI platform and applications.
“We use AI Technologies throughout our business and are making significant investments in AI initiatives, including expanding our generative AI platform and applications”
Debt obligations and repurchase provisions
Debt agreements restrict operations; notes repurchasable at holders' option; variable-rate debt creates interest rate risk.
“At the option of the holders of our outstanding notes, we may, under certain circumstances, be required to repurchase such notes.”
US outbound investment restrictions on China-sensitive sectors
US outbound investment review mechanism effective January 2, 2025 restricts US-person investments in China-sensitive sectors.
“the U.S. government implemented an outbound investment review mechanism, effective January 2, 2025, which could limit our ability to pursue investment opportunities outside the United States”
Recurring revenue outlook
Expects recurring/up-front revenue mix to remain relatively consistent with FY2025
“On an annual basis, we expect recurring and up-front revenue as a percentage of total revenue to remain relatively consistent with the results of fiscal 2025.”
China EDA export controls
2025 BIS China EDA export license requirement imposed then rescinded (July 2, 2025); 50% rule suspended until Nov 9, 2026; possible reimposition
“on May 23, 2025, BIS informed us that a license was required for the export, re-export or in-country transfer of EDA software and technology classified under Export Control Classification Numbers (ECCNs) 3D991 and 3E991 on the Commerce Control List”
EU AI Act
EU AI Act imposes risk-based AI governance with fines up to 7% of worldwide annual turnover.
“the EU Artificial Intelligence Act (the "EU AI Act") establishes a comprehensive, risk-based governance framework for AI in the EU market ... includes fines for breach of up to 7% of worldwide annual turnover”
EU AI Act compliance exposure
EU AI Act fines up to 7% of worldwide annual turnover; substantive requirements from Aug 2, 2026
“fines for breach of up to 7% of worldwide annual turnover”
Hardware/IP revenue recognition timing
Hardware and IP revenue is recognized at a point in time upon delivery, making results harder to forecast.
“A substantial portion of the product revenue related to our hardware and IP, and to a lesser extent certain software, is recognized upon delivery”
Foreign cash holdings
~29% of cash and cash equivalents held by non-US subsidiaries as of Dec 31, 2025
“As of December 31, 2025, approximately 29% of our cash and cash equivalents balance was held by subsidiaries outside the United States.”
Long sales cycle risk
Long sales cycle up to six months or longer causes revenue fluctuation and delayed macro impact
“Generally, we have a long sales cycle that can extend up to six months or longer.”
Geographic concentration of headquarters in Silicon Valley
HQ, R&D, distribution and many employees concentrated in seismically active, wildfire-prone Silicon Valley
“Our corporate headquarters, including certain of our research and development operations and certain of our distribution facilities, and a significant portion of our employees are located in the Silicon Valley area of Northern California, a region known to experience seismic activity and wildfires.”
Customer consolidation in semiconductor industry
Semiconductor customer consolidation may increase customer concentration and bargaining power
“There has been a trend toward customer consolidation in the semiconductor industry through business combinations, including mergers, asset acquisitions and strategic partnerships.”
Geopolitical/trade restriction competition risk from China
Emerging Chinese EDA competitors and geopolitical trade restrictions
“emerging players in China such as Huada Empyrean, Xpeedic Technology, X-EPIC, Primarius Technologies, Univista, and Giga Design Automation”
Export and import controls
Subject to governmental export and import controls that create liability and impair global competitiveness.
“We are subject to governmental export and import controls that subject us to liability and impair our ability to compete in global markets”
Customer concentration / consolidation and installed base
Customer consolidation, payment delays and non-renewals could affect results; future revenue depends on installed customer base renewing licenses.
“Our future revenue is dependent in part upon our installed customer base continuing to license or buy products and purchase services.”
Third-party data center provider reliance
Relies on third-party data center providers; disruption or capacity limits could harm the business.
“We rely on third-party data center providers and any disruption in the operations of these third-party providers, limitations on capacity or interference with our use could adversely affect our business”
Cybersecurity risk
Cyberattacks on our or third-party providers' IT systems could materially harm reputation, business and operations.
“Cyberattacks that compromise the confidentiality, integrity or availability of our or our third-party providers’ information technology systems or confidential information could materially harm our reputation, business, financial condition and results of operations.”
Substantial cash held outside the US
Significant cash is held outside the US; may need to raise US cash if domestic balances are insufficient.
“A significant portion of our cash is held and generated outside of the United States, and if our cash available in the United States is insufficient to meet our requirements in the United States, we may be required to raise cash”
Cost driver: inflation and long sales cycle volatility
Inflation could raise expenses faster than pricing; long sales cycle and restructuring plans cause operating-result fluctuations.
“Unexpected increases in inflation could cause our expenses to increase at a rate faster than our product pricing to recover such increases.”
AI drives business growth across Infrastructure AI, Physical AI, and Life Sciences AI horizons, fueling demand for Cadence's AI-driven design tools.
“Our business growth and customer success are fueled by the transformative impact of AI and the increasing complexity of semiconductors and electronic system design”
US export controls on EDA software to China reduced revenue in China in 2025; future reimposition possible amid US-China negotiations.
“During this period, our revenue in China decreased primarily due to reduced deliveries of software offerings to our customers in China due to these license requirements.”
Demand for HPC and AI chips essential for data centers and hyperscalers powers Infrastructure AI, a key growth horizon.
“Infrastructure AI, is powered by the demand for high-performance computing (“HPC”) and AI chips essential for data centers and hyperscalers”
Customer consolidation in the semiconductor industry could concentrate sales among fewer customers with increased bargaining power.
“it could make us more dependent on fewer customers who may be able to exert increased bargaining power in negotiations with us and could increase the portion of our total sales concentration for any single customer.”
Synopsys, including its acquisition of Ansys, is a key large established competitor in the EDA market.
“Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA”
Cadence integrates agentic and generative AI, machine learning, and digital twin algorithms into core products to address growing design complexity.
“To address the growing complexity of modern design, we've integrated cutting-edge technologies including agentic and generative AI, machine learning, and digital twin algorithms, into our core products and solutions.”
AI may drive future growth in semiconductor/electronics industries and the business, but requires significant ongoing investment with uncertain returns.
“While AI Technologies may drive future growth in the semiconductor and electronics systems industries as well as our business, worldwide markets for AI-enabled products may not develop in the manner or time periods we anticipate”
Trends such as migration to advanced-process nodes, design reuse, cloud computing adoption, slowing Moore's Law and 3D packaging could obsolete products if Cadence fails to keep pace.
“changes in the design and manufacturing of ICs, including migration to advanced-process nodes, present major challenges to the semiconductor industry, particularly in IC design and verification”
Siemens EDA is named as a key established competitor.
“Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA”
Data centers and hyperscalers are a source of Infrastructure AI demand, and hyperscalers are named as deployers of Cadence's newly acquired agentic AI verification technology.
“This technology, deployed at leading chip companies and hyperscalers, is integrated with our Xcelium Logic Simulator”
Core EDA products depend on jointly developed foundry PDKs to meet manufacturing sign-off requirements, tying Cadence to semiconductor ecosystem partners.
“We work closely with leading semiconductor ecosystem partners to develop foundry process design kits (“PDKs”) to ensure our core EDA products and solutions meet manufacturing sign-off requirements.”
Emerging Chinese EDA competitors and geopolitical trade restrictions affect the competitive landscape.
“emerging players in China such as Huada Empyrean, Xpeedic Technology, X-EPIC, Primarius Technologies, Univista, and Giga Design Automation”
Hardware/IP revenue recognized at a point in time upon delivery and depends on customers commencing new IC/system design projects, making revenue volatile and hard to predict.
“Revenue related to our hardware and IP products is inherently difficult to predict because sales of our hardware and IP products depend on the commencement of new projects for the design and development of complex ICs and systems by our customers”
The EU AI Act imposes requirements on companies developing or providing AI in the EU with fines up to 7% of worldwide annual turnover, potentially impacting Cadence's AI technology commercialization.
“Such additional regulations may impact our ability to develop, use and commercialize AI Technologies in the future.”
Strategy targets vertical sectors including consumer, hyperscale computing, mobile, communications, automotive, aerospace and defense, industrial and life sciences with expected increased customer investment.
“addressing the needs across a variety of vertical sectors including consumer, hyperscale computing, mobile, communications, automotive, aerospace and defense, industrial and life sciences, where increased investment is expected by our customers.”
US outbound investment rules prohibit/require notification of investments in sensitive China sectors (semiconductors, quantum, AI), limiting investment opportunities.
“These restrictions, which impose certain notification requirements and prohibitions on investments by U.S. persons in sensitive sectors in China, such as semiconductors, quantum information technologies and artificial intelligence systems”
New and higher US tariffs and retaliatory tariffs could directly affect the hardware business or have downstream effects.
“We are monitoring these actions, including any pauses, escalations, exemptions or removal of exemptions, with respect to the threatened or imposed tariffs, and will continue to assess their potential impact on our business either directly, such as on our hardware business, or due to downstream effects.”
Faces significant competition in AI Technologies from companies that may develop similar or superior, more cost-effective or faster-to-deploy offerings.
“AI Technologies are complex and rapidly evolving, and we face significant competition from other companies.”
EU AI Act applies to companies developing/providing AI in the EU with fines up to 7% of worldwide annual turnover.
“includes fines for breach of up to 7% of worldwide annual turnover”
See which prediction-market events move CDNS, how its filings map to real-world exposure, and what 12 AI strategies are doing with positions like it.
Free forever to follow AlphaBrain’s AI strategies. No card required.
Cadence Design Systems: The Software Version Of An AI Bottleneck
Seeking Alpha • STOCK • 10/06/2026, 06:09:48
Cadence Design Systems, Inc. (CDNS) Presents at 54th Nasdaq & Jefferies Investor Conference Transcript
Seeking Alpha • STOCK • 09/06/2026, 12:02:14
Brokers Suggest Investing in Cadence (CDNS): Read This Before Placing a Bet
Zacks Investment Research • STOCK • 05/06/2026, 12:31:13
Is Trending Stock Cadence Design Systems, Inc. (CDNS) a Buy Now?
Zacks Investment Research • STOCK • 05/06/2026, 12:01:37
Cadence Design Systems, Inc. (CDNS) Presents at Bank of America 2026 Global Technology Conference Transcript
Seeking Alpha • STOCK • 03/06/2026, 22:31:57
Here's Why Cadence Design Systems (CDNS) Fell More Than Broader Market
Zacks Investment Research • STOCK • 03/06/2026, 20:51:11
Cadence Design Systems (CDNS)'s Technical Outlook is Bright After Key Golden Cross
Zacks Investment Research • STOCK • 29/05/2026, 12:55:20
Cadence (CDNS) Up 17.4% Since Last Earnings Report: Can It Continue?
Zacks Investment Research • STOCK • 27/05/2026, 14:31:23
Cadence Design Systems, Inc. (CDNS) is Attracting Investor Attention: Here is What You Should Know
Zacks Investment Research • STOCK • 25/05/2026, 12:01:21
Cadence Design Systems, Inc. (CDNS) Is a Trending Stock: Facts to Know Before Betting on It
Zacks Investment Research • STOCK • 12/05/2026, 12:01:32
Cadence Design Systems, Inc. (CDNS) Shareholder/Analyst Call Prepared Remarks Transcript
Seeking Alpha • STOCK • 07/05/2026, 20:21:20
Implied Volatility Surging for Cadence Design Systems Stock Options
Zacks Investment Research • STOCK • 06/05/2026, 13:01:27
