Cadence Design Systems
CDNS · NasdaqServices-Prepackaged Software · Fiscal year ends Dec 31
Cadence Design Systems reported revenue of $5.3B in the fiscal year ended Dec 2025, up 14.1% from the year before. Operating income was $1.5B, an operating margin of 28.2%, and net income was $1.1B. Operating cash flow of $1.7B less capital expenditure of $142M left free cash flow of $1.6B.
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | $3B | $3.6B | $4.1B | $4.6B | $5.3B |
| Operating income | $779M | $1.1B | $1.3B | $1.4B | $1.5B |
| Interest expense | $17M | $23M | $36M | $76M | $117M |
| Pre-tax income | $768M | $1B | $1.3B | $1.4B | $1.5B |
| Income tax | $72M | $196M | $241M | $340M | $413M |
| Net income | $696M | $849M | $1B | $1.1B | $1.1B |
| Diluted EPS | 2.50 | 3.09 | 3.82 | 3.85 | 4.06 |
| Diluted shares | 279M | 275M | 273M | 274M | 273M |
Balance sheet
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | $1.1B | $882M | $1B | $2.6B | $3B |
| Receivables | $338M | $487M | $489M | $680M | $945M |
| Inventory | $116M | $128M | $182M | $258M | $304M |
| Current assets | $1.7B | $1.7B | $2B | $4B | $4.7B |
| Net PP&E | $306M | $371M | $403M | $458M | $517M |
| Goodwill | $928M | $1.4B | $1.5B | $2.4B | $2.7B |
| Total assets | $4.4B | $5.1B | $5.7B | $9B | $10.2B |
| Deferred revenue | $554M | $691M | $665M | $737M | $778M |
| Current liabilities | $971M | $1.3B | $1.6B | $1.4B | $1.6B |
| Shareholders' equity | $2.7B | $2.7B | $3.4B | $4.7B | $5.5B |
| Backlog (remaining obligations) | $4.4B | $5.8B | $6B | $6.8B | $7.8B |
Cash flow
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | $1.1B | $1.2B | $1.3B | $1.3B | $1.7B |
| Capital expenditure | $65M | $123M | $102M | $143M | $142M |
| Free cash flow | $1B | $1.1B | $1.2B | $1.1B | $1.6B |
| Depreciation & amortisation | $142M | $132M | $145M | $197M | $228M |
| Stock-based compensation | $210M | $270M | $326M | $391M | $455M |
| Acquisitions | $226M | $614M | $198M | $738M | $430M |
| Share buybacks | $612M | $1.1B | $700M | $550M | $925M |
Key ratios
| Fiscal year | Jan 2022 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 19.2% | 14.8% | 13.5% | 14.1% |
| Operating income growth (YoY) | – | 37.8% | 16.5% | 8.0% | 10.5% |
| EPS growth (YoY) | – | 23.6% | 23.6% | 0.8% | 5.5% |
| Operating margin | 26.1% | 30.1% | 30.6% | 29.1% | 28.2% |
| Net margin | 23.3% | 23.8% | 25.5% | 22.7% | 20.9% |
| Return on equityBlank when equity is negative | 25.4% | 30.9% | 30.6% | 22.6% | 20.3% |
| ROCEEBIT ÷ (assets − current liabilities) | 22.8% | 28.3% | 30.7% | 17.8% | 17.5% |
| Free cash flow margin | 34.7% | 31.4% | 30.5% | 24.1% | 30.0% |
| Cash conversion (CFO ÷ net income) | 1.58x | 1.46x | 1.30x | 1.19x | 1.56x |
| Receivable days | 41 | 50 | 44 | 54 | 65 |
| Interest cover | 45.9x | 46.8x | 34.6x | 17.8x | 12.8x |
| Current ratio | 1.77x | 1.27x | 1.24x | 2.93x | 2.86x |
Recent filings
More in Services-Prepackaged Software
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.