Cadence Design Systems, Inc. (CDNS) Stock

Cadence Design Systems, Inc. (CDNS) is a Technology stock trading at $330.05 (as of 2026-07-17), with a market capitalization of $91.03B and a trailing P/E of 77.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Cadence Design Systems provides software, hardware, and services used to design and verify integrated circuits, including functional verification tools such as JasperGold, Xcelium, Palladium, and Protium. It also delivers digital IC design and signoff, physical implementation, custom circuit design and simulation, and system design and analysis products for semiconductor and electronics companies worldwide.

Understand Cadence Design Systems, Inc.: how it makes money

Cadence Design Systems sells software, hardware, and services used to design and verify integrated circuits, including functional verification platforms and digital IC design and sign off tools, earning money primarily from product and maintenance and a smaller amount from services.

Cadence’s profit engine is converting a large pool of already contracted future work, reflected in remaining performance obligations, into recognized product and maintenance revenue, with a smaller contribution from services.

Revenue by segment (latest quarter)
Product & maintenance$1.4B
Services$0.1B

Business quality (Strong): The provided facts clearly show revenue mix (product and maintenance versus services) and contract-backed demand (remaining performance obligations). However, gross margin is not provided, and there is no additional breakdown of revenue beyond these two buckets.

Valuation: Trades at 90× trailing earnings · $106B market cap.

Bull case

  • Contracted demand is sizable: Remaining performance obligations (next 12 months revenue) are reported at 3.8 USD_B, with current remaining performance obligations at 4.0 USD_B.
  • Revenue is concentrated in product and maintenance: Product and maintenance revenue is 1.35 USD_B out of total revenue of 1.5 USD_B for the latest period, suggesting the business mix is weighted toward core products.

Bear case

  • Less revenue diversification: Services revenue is relatively small at 0.13 USD_B versus product and maintenance at 1.35 USD_B, so results may be more sensitive to product and maintenance performance.
  • Backlog conversion risk: The company reports large remaining performance obligations (next 12 months revenue of 3.8 USD_B), but future results depend on converting these obligations into recognized revenue.
Valuation — source: SEC EDGAR (first-party)
Price$330.05
Market Cap$91.03B
P/E Ratio77.7
EV / EBITDA49.2
Price / Book13.87
Price / Sales16.47
FCF Yield1.6%
DCF Value (model)$65.55
DCF Upside vs Price-80.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$5.30B
Net Margin20.9%
Revenue Growth (YoY)18.7%
EPS Growth (YoY)21.8%
FCF Growth (YoY)-33.8%
Financial Health — source: SEC EDGAR
Altman Z-Score13.88 (safe)
Valuation vs Sector & Industry
Stock P/E77.7
Sector P/E (Technology)34.7
Industry P/E (Business Services)30.7
vs Sector124.2%
vs Industry153.0%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($8.51B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryBusiness Services
CEOAnirudh Devgan
Employees12,837
CountryUS
IPO Date1987-06-10

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CDNS earnings history · CDNS institutional & insider holders · CDNS KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.