Cadence Design Systems, Inc.
cadence.comWhat Do They Do?
Develops software, accelerated hardware and reusable chip-design blocks for semiconductor companies and companies that design electronic systems.
10-K for FY2025, filed Feb 19, 2026Cadence® is a global technology leader that develops computational, AI-driven software, accelerated hardware, and silicon intellectual…View ↗
Our ISD strategy focuses on three key pillars: Design Excellence, System Innovation, and Pervasive Intelligence.View ↗
Aligned with our ISD strategy, we organize our offerings into three tightly integrated product categories: Core EDA, Semiconductor IP, and…View ↗
How Do They Make Money?
Product and maintenance is the main source: customers buy software and IP licenses, emulation hardware and maintenance; time-based licenses are paid in installments over their terms, and hardware payments generally follow delivery. Technology services include engineering work, fixed-fee custom IP and cloud-based offerings provided over a period.
10-K for FY2025, filed Feb 19, 2026Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on…View ↗
Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of…View ↗
Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an…View ↗
Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance…View ↗
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10-K for FY2025, filed Feb 19, 2026
FY2025 revenue by product or service ↗
$5.3B
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10-K for FY2025, filed Feb 19, 2026
$5.3B ↗
| Segment | Share | Revenue |
|---|---|---|
|
Product and maintenance
|
91%
FY2022: 94%
|
Product and maintenance, FY2025
$4.8B Sources
|
|
Technology Service
|
9.0%
FY2022: 6.2%
|
Technology Service, FY2025
$475.2M Sources
|
Who Are Their Customers?
Semiconductor makers and companies that build electronic systems buy mainly through Cadence’s direct sales team. OrCAD and certain Allegro products are sold mainly through resellers, and a third-party distributor licenses products and services to some customers in Japan.
Do Revenues Turn Into Profits?
Yes. It kept 21 cents of every revenue dollar as net income in FY2025 and turned 30 cents into free cash flow.
10-K for FY2025, filed Feb 19, 2026
$1.5BView ↗
10-K for FY2025, filed Feb 19, 2026
$1.1BView ↗
10-K for FY2025, filed Feb 19, 2026
$1.6BView ↗
How Are They Changing?
- Net income
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Sources
10-Q for Q2 FY2026, filed Jul 29, 2026
$367.1MView ↗
- ▲ +129%
- vs $160.1M in Q2 FY2025
10-Q for Q2 FY2026, filed Jul 29, 2026
Open tableView ↗
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Jul 27, 2026
Raises 2026 revenue-growth outlook to 19%
It also raised its outlook for non-GAAP earnings per share and operating cash flow.
Sources
8-K, filed Jul 27, 2026
Raising 2026 Revenue Outlook to 19% YoY GrowthView ↗
Growing. Revenue grew 77% in 4 years, from $3B in FY2021 to $5.3B in FY2025, about 15% a year.
Broader verification and prototyping
The earlier report describes chip-verification engines; the latest adds agentic AI for test planning, test generation and debugging, plus virtual prototyping for automotive software development.
10-K for FY2022, filed Feb 13, 2023 10-K for FY2025, filed Feb 19, 2026Our Verification Suite includes four primary verification engines, starting with the JasperGold® Formal Verification Platform and Xcelium™…View ↗
Who Do They Compete With?
Competes with Synopsys, Ansys, Siemens EDA, Keysight Technologies, Schrödinger, CEVA, Altium, Zuken, Huada Empyrean, Xpeedic Technology, X-EPIC, Primarius Technologies, Univista, and Giga Design Automation
10-K for FY2025, filed Feb 19, 2026Our competitors range from large, established providers to smaller, specialized firms, emerging companies, and internal design teams within…View ↗
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