Cadence Design Systems, Inc. (CDNS)
Cadence Design Systems provides the essential software and hardware tools that engineers use to design the complex microchips found in everything from smartphones to AI servers.
Is Cadence Design Systems, Inc. a good stock for a UK beginner?
The honest version: Cadence Design Systems provides the essential software and hardware tools that engineers use to design the complex microchips found in everything from smartphones to AI servers.
Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Cadence becomes the industry standard for all next-generation computing architectures.
A major shift in how chips are designed that renders current software less relevant.
What does Cadence Design Systems, Inc. do?
Think of Cadence as the architect's toolkit for the digital age; they create the sophisticated software that allows companies to map out and test microchips before they are ever physically manufactured. Revenue comes from subscription fees for this software plus the technical support it provides to the world's biggest tech firms. What really moves the needle here is how global demand for artificial intelligence continues to drive the need for ever-more powerful and efficient chip designs.
On our factor screen it looks strongest on growth and quality, and weakest on value.
- !Pays no dividend - the whole return rides on the share price
- ✓Growing - revenue up about 24% over the year
- ✓Very profitable - turns about 24% of sales into profit
- !High P/E of 66 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 23%)
- Quality screens high (79/100)
- Growth screens high (84/100)
- Extremely high profit margins typical of software businesses
- Essential role in the global semiconductor supply chain
- Strong recurring revenue from subscription models
- Value screens low (10/100)
- Income screens low (16/100)
- Potential for a slowdown in global tech capital expenditure
- Intellectual property theft or security breaches
- Rapid technological shifts that could disrupt existing software tools
What do Cadence Design Systems, Inc.'s numbers mean?
How much money does Cadence Design Systems, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Cadence Design Systems, Inc. pay a dividend?
No - Cadence Design Systems, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.
When does Cadence Design Systems, Inc. report earnings, and how did recent quarters go?
Cadence Design Systems, Inc. is next scheduled to report on about 2026-10-26 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-27 | $2.06 | $2.11 | Beat +3% |
| 2026-04-27 | $1.89 | $1.96 | Beat +4% |
| 2026-02-17 | $1.91 | $1.99 | Beat +4% |
| 2025-10-27 | $1.79 | $1.93 | Beat +8% |
| 2025-07-28 | $1.56 | $1.65 | Beat +6% |
| 2025-04-28 | $1.50 | $1.57 | Beat +5% |
Across the last 6 quarters here, Cadence Design Systems, Inc. came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Cadence Design Systems, Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Cadence Design Systems, Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Extremely high profit margins typical of software businesses
- Essential role in the global semiconductor supply chain
- Strong recurring revenue from subscription models
- High valuation multiples compared to the broader market
- No dividend payments for those seeking regular income
- Heavy reliance on the cyclical semiconductor industry
- Potential for a slowdown in global tech capital expenditure
- Intellectual property theft or security breaches
- Rapid technological shifts that could disrupt existing software tools
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in semiconductor industry research and development spending
- The emergence of a dominant, lower-cost open-source alternative for chip design
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.