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Cadence Design SystemsCDNS

Application Software · San Jose, California · In the S&P 500
Solid businessPricier than peers
$327.89−4.34%After hours: $328.60 (+0.22%)At the close, 30 Oct · Prices from CNBC, may be delayed
▼ 4.0% over 1 year
Cadence Design Systems over 1 yearDaily close, $, to 30 Oct 2026
$300$350$400Nov2026MarMayJulSep$327.89$300$400NovMarJul$327.89
Source: Nasdaq daily closes
Market value$89.97B
Price to earnings65.2x
Forward P/E36.6x
Dividend yield–
Year to date+4.9%
One year−4.0%
Next earningsNot scheduled
SectorInformation Technology
52-week range (closes)
$265.66$416.39

Quality and valuation

How Cadence Design Systems compares with other information technology stocks. A description, not a recommendation.

Cadence Design Systems and 6 application software peers. Across: valuation (P/E) against the sector. Up: business quality against the sector. Hover or tap a logo for its numbers.

Business quality: about averageValuation: pricier than most

An average business among information technology companies, priced above most of them.

Cadence Design Systems trades at 36.6 times the next 12 months of expected earnings, against a median of 22.2x for the 99 information technology stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.

  • Revenue grew slower than the sector median: +17.6% vs +20.6%
  • More profitable (operating margin): 28.9% vs 17.0%
  • Turns more of its sales into cash: 28.8% vs 21.7%
CDNS trades at 36.6x forward earnings, above the sector medianForward p/e, Application Software peers
ADBE9.3xINTU14.3xORCL15.4xCRM15.7xSAP26.6xCDNS36.6xPLTR108.1xSNOW120.5xSector median 22.2xADBE9.3xINTU14.3xORCL15.4xCRM15.7xSAP26.6xCDNS36.6xPLTR108.1xSNOW120.5xSector median 22.2x
Source: CNBC quotes; Mostly Markets
At 65.2x earnings, CDNS is cheaper than its average since Oct 2024Price over the last 12 months of reported (GAAP) diluted EPS
P/EUsual range (±1 s.d.)
60x80x100xAverage 78.2x2025202665.2x60x80x100xAverage 78.2x2025202665.2x
Source: Nasdaq prices; SEC filings

Financials

From Cadence Design Systems's SEC filings, through the quarter ending 30 Sep 2026. Hover or tap a bar for its value.

Revenue grew 22.0% from a year earlierQuarterly revenue, $bn, latest Q3 ’26
$0.0bn$0.5bn$1.0bn$1.5bnQ4 ’24Q2 ’25Q4 ’25$1.6bnQ3 ’26$0bn$1bnQ4 ’24Q2 ’25Q4 ’25$1.6bnQ3 ’26
Source: SEC filings
Growth slowed to +22.0% last quarterRevenue growth, year on year, %
0%10%20%Q4 ’24Q2 ’25Q4 ’2522.0%Q3 ’260%10%20%Q4 ’24Q2 ’25Q4 ’2522.0%Q3 ’26
Source: SEC filings
Operating margin was 26.2% last quarterOperating income as a share of revenue, %
0%10%20%30%Q4 ’24Q2 ’25Q4 ’2526.2%Q3 ’260%20%Q4 ’24Q2 ’25Q4 ’2526.2%Q3 ’26
Source: SEC filings
Free cash flow was $1.8 billion over 12 monthsQuarterly free cash flow (operating cash flow minus capex), $m
$0m$200m$400mQ4 ’24Q2 ’25Q4 ’25$362mQ3 ’26$0m$200m$400mQ4 ’24Q2 ’25Q4 ’25$362mQ3 ’26
Source: SEC filings
Last 12 monthsCDNSSector median
Revenue growth+17.6%+20.6%
Operating margin28.9%17.0%
Free cash flow margin28.8%21.7%
Price to earnings65.2x33.1x

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