Cadence Design Systems
ConvictionStrong
Recurring software (~80%+ of revenue is recurring time-based licenses + maintenance) sold to chip and systems designers, plus semiconductor IP royalties/licenses and emulation/prototyping hardware (Palladium/Protium); high-margin, sticky, backlog-driven.
Revenuefact
$1.474B Q1 FY26$5.297B FY25 (factRev growthfact
+19% YoY Q1 FY26+14% FY25 (factGross margin
~86–88% non-GAAPsoftware-led; est. from product mix — not separately disclosed in releaseOp margin
44.7% non-GAAP / 29.3% GAAPQ1 FY26, factCapex intensity
~3–4% of revenuecapex modest; ~$49M Q1 FY26 implied from $356M OCF less $307M FCF, factMarket cap
~$102B24 Jun 2026, factPrice · 1-year trend
real · weekly$374+16% 1yUSD
52-week range
$266 – $416
52w lowas of 2026-07-08 · Yahoo Finance52w high
Across the boards
The thesis on this name
opportunityStrong
AI Compute Value-Chain
Full context
position · longWeak
AI Compute Value-Chain
Full context
book · short
AI Compute Value-Chain
Full context
Primary source
Reported financials — SEC EDGAR
Audited GAAP figures pulled from SEC filings · latest filing 2026-02-19. The audited primary-source spine — not investment advice.
Revenue — annual (GAAP)
FY’21
$3.0B
FY’22
$3.6B+19%
FY’23
$4.1B+15%
FY’24
$4.6B+13%
FY’25
$5.3B+14%
Margins & balance sheet — FY’25
Operating margin28.2%
Net margin20.9%
Net cash$1.1B
The read
Where our coverage leans
Coverage leans bullish
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Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.
- Income statement & margin structure
- SWOT, moats & dependency map
- Supplier–customer ecosystem graph
- Signals, trends & valuation range
Not investment advice — analyst work product for a qualified professional.· intel vintage Jun 2026· sign in (free) for the analyst summary; Pro unlocks full intelligence