Cadence Design Systems (NASDAQ: CDNS) is an electronic design automation (EDA) software and hardware company that provides tools, intellectual property, and services used by engineers to design semiconductors and electronic systems. Revenue comes primarily from software licenses, hardware sales, and related maintenance and services contracts. The 10-K filed February 19, 2026, covers fiscal year ended December 31, 2025. The filing references artificial intelligence as a factor in customer demand and product deployment, indicating AI-related workloads as a growing end market driver. Cadence occupies a position in the semiconductor design supply chain upstream of chip fabrication, supplying the design tools that engineers use before any physical manufacturing begins. High switching costs are inherent in EDA workflows, where design teams build years of methodology, libraries, and process design kits around a specific toolchain.

Revenue model

The filing excerpts do not provide a detailed breakdown of revenue streams, segment percentages, or specific dollar figures for FY2025. Based solely on the available excerpts, Cadence generates revenue from software licenses, hardware products, and maintenance and services, but precise segment splits are not supported by the provided text.

Products and services

The filing references AI-related products and services, software products, and hardware products, but specific product names, brands, or line-item revenue figures are not supported by the provided excerpts.

Customers and end markets

The filing references semiconductor and electronic systems designers as customers, with AI, macroeconomic conditions, and geopolitical factors cited as influences on customer demand and revenue mix. Specific customer names, concentration figures, or customer counts are not supported by the provided excerpts.

Value-chain role

Upstream semiconductor design toolchain supplier. Cadence sits between chip architects and semiconductor fabrication, providing the software and hardware tools required to design integrated circuits and electronic systems before manufacturing.

Geographic exposure

The filing references foreign currency exchange rate volatility, expanded trade controls, tariffs, and geopolitical conflicts as material risk factors, indicating meaningful international revenue exposure. Specific geographic revenue splits are not supported by the provided excerpts.

Source: SEC 10-K, filed 2026-02-19

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