Cadence Design Systems (CDNS)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-11-05
$311.43-5.49%
Close 2026-11-05 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-11-05
QuarterlyIQ Insights · CDNS
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-11-05.
The screen ranks CDNS against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 55% of the time over the next year (vs 56% for the rest of the cohort, n=8515).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 8 guided quarters · 63.8% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
With broad-based business momentum, expanding technology leadership and a record backlog, we are raising our 2026 revenue outlook to 21% year-over-year growth,” said Anirudh Devgan, president and chi…
Stated in 8 of 8 supplied quarters. Management reported: “Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.387 billion to $6.417 billion • GAAP operating margin in the range of 28.2% to 29.2% • Non-GAAP operating margin in the range of 44.2% to 45.2% • GAAP diluted net income per share in the range of $4.84 to $4.90 • Non-GAAP diluted net income per share in the range of $8.37 to $8.43 The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions.” Revenue was $1.633 billion in 2026-Q3.
“With broad-based business momentum, expanding technology leadership and a record backlog, we are raising our 2026 revenue outlook to 21% year-over-year growth,” said Anirudh Devgan, president and chi…”
““With a record backlog and continued business momentum, we are now raising our 2026 outlook to 19% revenue growth, non-GAAP operating margin to 44.25%, non-GAAP EPS to $8.10, and operating cash flow…”
““With robust design activity and solid execution, we are raising our 2026 revenue outlook to 17% year-over-year growth.””
““Strong customer demand for our expanding AI-driven product portfolio and the essential nature of Cadence's engineering software position us well to capture the massive opportunities in the AI era.””
“With a record backlog and ongoing broad-based strength of our business, we are raising our full year revenue outlook to ~14% growth year-over-year,” said Anirudh Devgan, president and chief executive…”
““We are raising our 2025 revenue outlook to 13% growth year-over-year, and non-GAAP operating margin to 44%.””
Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.387 billion to $6.417 billion • GAAP operating margin in the range of 28.2% to 29.2% • Non-GAAP operating marg…
Stated in 8 of 8 supplied quarters. Management reported: “Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.387 billion to $6.417 billion • GAAP operating margin in the range of 28.2% to 29.2% • Non-GAAP operating margin in the range of 44.2% to 45.2% • GAAP diluted net income per share in the range of $4.84 to $4.90 • Non-GAAP diluted net income per share in the range of $8.37 to $8.43 The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions.” ““We delivered a 44.6% non-GAAP operating margin, reflecting continued productivity-driven profitability improvement.”
“With the launch of Maestro, our portfolio of domain specialized AI models for chip and system design, and the accelerating deployment of our AI Super Agents, Cadence is exceptionally well positioned…
Stated in 8 of 8 supplied quarters. Management reported: “Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.387 billion to $6.417 billion • GAAP operating margin in the range of 28.2% to 29.2% • Non-GAAP operating margin in the range of 44.2% to 45.2% • GAAP diluted net income per share in the range of $4.84 to $4.90 • Non-GAAP diluted net income per share in the range of $8.37 to $8.43 The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions.”
Underscoring Cadence's continued commitment to returning capital to shareholders, Cadence's Board of Directors has authorized an additional $2.5 billion for Cadence's share repurchase program.
Stated in 1 of 8 supplied quarters. Management reported: “Underscoring Cadence's continued commitment to returning capital to shareholders, Cadence's Board of Directors has authorized an additional $2.5 billion for Cadence's share repurchase program.”
“Underscoring Cadence's continued commitment to returning capital to shareholders, Cadence's Board of Directors has authorized an additional $2.5 billion for Cadence's share repurchase program.”
Develop and broaden adoption of AI product offerings for chip, system, and engineering design workflows.
Over the trailing year it converted 1.16x of net income into operating cash flow. Historically, Information Technology names rated neutral grew net income 57% of the time over the next year (vs 52% for the rest of the cohort, n=4167).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
13 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 56% of the time over the next year (vs 55% for the rest of the cohort, n=8114).
Not investment advice. As of 2026-11-05.
“First Quarter 2025 Financial Results • Revenue of $1.242 billion, compared to revenue of $1.009 billion in Q1 2024 • GAAP operating margin of 29.1%, compared to 24.8% in Q1 2024 • Non-GAAP operating…”
“Cadence is very well positioned to benefit from the various phases of AI, including the current AI infrastructure buildout, applying AI to our own products, and expanding into new markets such as lif…”
“Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.387 billion to $6.417 billion • GAAP operating margin in the range of 28.2% to 29.2% • Non-GAAP operating marg…”
“Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.26 billion to $6.34 billion • GAAP operating margin in the range of 27.75% to 28.75% • Non-GAAP operating marg…”
“Business Outlook For fiscal year 2026, the company expects: • Revenue in the range of $6.125 billion to $6.225 billion • GAAP operating margin in the range of 27.5% to 28.5% • Non-GAAP operating marg…”
““We delivered a 44.6% non-GAAP operating margin, reflecting continued productivity-driven profitability improvement.”
“Business Outlook For fiscal year 2025, the company expects: • Revenue in the range of $5.262 billion to $5.292 billion • GAAP operating margin in the range of 27.9% to 28.9% • Non-GAAP operating marg…”
““We are raising our 2025 revenue outlook to 13% growth year-over-year, and non-GAAP operating margin to 44%.””
“Business Outlook For fiscal year 2025, the company expects: • Revenue in the range of $5.15 billion to $5.23 billion • GAAP operating margin in the range of 30.25% to 31.25% • Non-GAAP operating marg…”
“Business Outlook For fiscal year 2025, the company expects: • Revenue in the range of $5.14 billion to $5.22 billion • GAAP operating margin in the range of 30.25% to 31.25% • Non-GAAP operating marg…”
““With the launch of Maestro, our portfolio of domain specialized AI models for chip and system design, and the accelerating deployment of our AI Super Agents, Cadence is exceptionally well positioned…”
“Business Highlights • Launched AuraStack AI Super Agent, the industry's first agentic AI platform for advanced packaging and PCB, extending Cadence's AI Super Agents portfolio to span the full electr…”
““Cadence is leading the agentic AI transformation in semiconductor and system design, pioneering the industry's most advanced and comprehensive agentic AI full-flow platform, AgentStack, integrated w…”
“Cadence introduced ChipStack, a groundbreaking agentic AI Super Agent for chip design and verification, built upon Cadence's foundational EDA platform.”
““With deepening strategic relationships across the AI ecosystem, Cadence is uniquely positioned to be the trusted partner to deliver AI-centric transformational solutions.””
““The strength and breadth of our products are enabling us to lead through the accelerating waves of the AI Supercycle, from AI infrastructure build-out, to physical AI in autonomous systems, to the e…”
“AI-driven Cadence Cerebrus continued its strong momentum with nearly 50 new logos in Q1 and more than 1,000 tapeouts to date.”
“Business Highlights • The Cadence.ai portfolio continued to gain momentum with market shaping customers, as Cadence's AI-driven optimization products including Cadence Cerebrus, Verisium SimAI and Al…”