Cadence Design Systems (CDNS) stock
Information Technology · Application Software
Cadence Design Systems (CDNS) is an Application Software company in the Information Technology sector, headquartered in San Jose, California. As of October 23, 2026, CDNS closed at $316.49, a market capitalization of $87.16 billion, the 144th largest company in the S&P 500. Over the last twelve months it generated $5.84 billion in revenue (+24% year over year) and $1.67 billion in free cash flow. The stock trades at 62.9x trailing earnings and 33.1x forward earnings.
- 1-year total return: -6.2% (dividends reinvested)
- 5-year return: +13.7% a year
- 52-week range: $262.75 – $416.69
- Gross margin 85.9%, operating margin 28.6%
- FI Handbook report card: B- across 10 metrics
- 35th largest of 75 Information Technology stocks in the S&P 500
CDNS price chart
1Y price change: -6.2% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| CDNS | +2.4% | +1.3% | -6.2% | +9.7% | +13.7% | +28.5% | +13.7% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1987.
CDNS key statistics
- Market cap
- $87.2B
- #144 in S&P 500
- P/E (TTM)
- 62.9x
- Forward P/E
- 33.1x
- EPS (TTM)
- $5.03
- Revenue (TTM)
- $5.8B
- +24%
- Free cash flow
- $1.7B
- Gross margin
- 85.9%
- Operating margin
- 28.6%
- Return on equity
- 23.2%
- Dividend yield
- None
- 52-week range
- $262.75 – $416.69
- Beta
- 1.13
- Price / sales
- 14.9x
- EV / EBITDA
- 40.9x
- Debt / equity
- 0.39x
- Employees
- 15,445
CDNS report card
B-Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth24.2%A
- Gross margin85.9%A
- Operating margin28.6%B
- FCF margin28.6%A
- Return on equity23.2%B
- Net debt / EBITDA0.5xB
- Forward P/E33.1xD
- PEG ratio2.3xD
- Shareholder yield1.1%D
- Share count change / yr-0.5%B
Cadence Design Systems financials
Revenue went from $1.6B in fiscal 2015 to $5.3B in fiscal 2025, growing 12.9% a year.
| Fiscal year | 2015 | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.6B | $1.8B | $1.9B | $2.1B | $2.3B | $2.7B | $3.6B | $4.1B | $4.6B | $5.3B |
| Operating income | $206.6M | $244.9M | $324.0M | $396.2M | $491.8M | $645.6M | $1.1B | $1.3B | $1.4B | $1.5B |
| Net income | $158.9M | $203.1M | $204.1M | $345.8M | $989.0M | $590.6M | $849.0M | $1.0B | $1.1B | $1.1B |
| EPS (diluted) | $0.52 | $0.70 | $0.73 | $1.23 | $3.53 | $2.11 | $3.09 | $3.82 | $3.85 | $4.06 |
| Free cash flow | $276.9M | $391.2M | $412.8M | $543.2M | $655.0M | $810.1M | $1.1B | $1.2B | $1.1B | $1.6B |
| Buybacks | $100.1M | $960.3M | $100.0M | $250.1M | $306.1M | $380.1M | $1.1B | $700.1M | $550.0M | $925.0M |
| Diluted shares | 306.8M | 291.3M | 280.2M | 281.1M | 280.5M | 279.6M | 275.0M | 272.7M | 273.8M | 273.3M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into CDNS?
A reverse DCF asks what growth the current price requires. With an enterprise value of $88.3B and $1.7B of trailing free cash flow, Cadence Design Systems needs to grow free cash flow about 36.0% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 19.4% a year over the last five years.
P/E ratio history
Current 78.0x vs. median 56.4x (10th–90th percentile 27.6x–81.7x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
CDNS earnings
Next report: October 26, 2026. Cadence Design Systems has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $1.6B (+24% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Jul 27, 2026 | $2.06 | $2.11 | +2.7% |
| Apr 27, 2026 | $1.89 | $1.96 | +4.0% |
| Feb 17, 2026 | $1.91 | $1.99 | +4.1% |
| Oct 27, 2025 | $1.79 | $1.93 | +7.8% |
| Jul 28, 2025 | $1.56 | $1.65 | +6.0% |
| Apr 28, 2025 | $1.50 | $1.57 | +4.8% |
| Feb 18, 2025 | $1.82 | $1.88 | +3.2% |
| Oct 28, 2024 | $1.44 | $1.64 | +13.7% |
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CDNS news
- Cadence Design Systems (CDNS) to report earnings tomorrow: here is what to expect · Oct 25, 2026
- Cadence Design Systems (CDNS) Stock Looks Fully Valued Despite AI Hopes · Oct 24, 2026
- Cadence Design Systems (CDNS) Debuts Europe’s First Sovereign AI Platform · Oct 24, 2026
- PRGS vs. CDNS: Which Stock Is the Better Value Option? · Oct 22, 2026
- Here's How Much a $1000 Investment in Cadence Design Systems Made 10 Years Ago Would Be Worth Today · Oct 21, 2026
CDNS stock FAQ
What is CDNS's market cap?
Cadence Design Systems's market capitalization is $87.16 billion as of October 23, 2026, ranking 144th in the S&P 500.
What is CDNS's P/E ratio?
CDNS trades at a trailing price-to-earnings ratio of 62.9x and a forward P/E of 33.1x. Its median P/E over the period we track is 56.4x.
Does CDNS pay a dividend?
No. Cadence Design Systems does not currently pay a regular cash dividend.
How much has CDNS stock returned?
Including reinvested dividends, CDNS returned -6.2% over one year, +13.7% a year over five years, +28.5% a year over ten years through October 23, 2026.
Is CDNS stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Cadence Design Systems must grow free cash flow about 36% a year for the next decade. Its free cash flow grew 19% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
When does CDNS report earnings?
Cadence Design Systems is expected to report earnings on October 26, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Cadence Design Systems have?
Cadence Design Systems has about 15,445 full-time employees, or $377,962 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology