Is Cadence Design Systems Inc. overvalued?

In our latest published analysis dated 2026-05-10, CDNS looks meaningfully overvalued. The price recorded at analysis is USD 363 versus a composite fair-value midpoint of USD 152 (range USD 110–USD 196), implying roughly 58.1% downside to the midpoint at that date.

What is CDNS's fair value?

Our latest published report, analyzed 2026-05-10, gives CDNS a composite fair-value range of USD 110–USD 196, with a midpoint of USD 152. The range is triangulated across multiple valuation models and weighted by reliability for Cadence Design Systems Inc.'s archetype; it is a dated research output, not a live price.

Should I buy CDNS now?

Our latest published rating for CDNS, analyzed 2026-05-10, is Sell with a confidence score of 88/100. Cadence Design Systems Inc. looks meaningfully overvalued at the analysis-date price of USD 363 versus a fair-value midpoint of USD 152. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for CDNS?

The top risks our latest published report dated 2026-05-10 flags for Cadence Design Systems Inc. are: Severe Multiple Compression; Geopolitical Restrictions; Semiconductor Cyclicality.

What is CDNS's rating?

Our latest published rating for CDNS, analyzed 2026-05-10, is Sell, with a confidence score of 88/100 and a moat score of 9/10. It reflects the composite fair-value range (USD 110–USD 196) versus the price recorded at analysis (USD 363).

What archetype is CDNS?

In the latest published report analyzed 2026-05-10, Cadence Design Systems Inc. is classified as a mature compounder stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for CDNS.

What does CDNS's income statement show?

Our financial-history view of Cadence Design Systems Inc. (CDNS) covers revenue, gross profit, operating income, and net income across the past five fiscal years, with year-over-year growth and margin context for each line.

Is CDNS's revenue growing?

The revenue trajectory is reported in the financial-history section with year-over-year growth rates. Direction and acceleration are summarised inline; the full table sits within the parent financials tab.

How do you read CDNS's operating income?

We track operating income alongside operating margin so the reader can separate top-line growth from operating leverage. The numbers analysis subsection flags one-offs, restructuring, and stock-based-compensation effects when material.

What is CDNS's net income trend?

Net income is shown together with EPS so dilution and buybacks are visible alongside profit. Where reported net income diverges materially from operating cash flow, the discrepancy is called out in the numbers-analysis subsection.

CDNS income statement: revenue, operating income, net income

Latest published researchAnalyzed 2026-05-10; report age: stale; sources: unverified. Age and source freshness are disclosed but do not remove the latest published report from discovery or indexing. Prices and valuation figures are the analysis-date snapshot, not a live quote.

Direct answer

Cadence Design Systems operates in a highly consolidated, sticky duopoly for EDA software. Increasing chip complexity ensures long-term secular demand, but current valuation is irrationally disconnected from fundamental realities. Fair value range: low $110, high $196, with mid-point at $152.

INCOME STATEMENT FAQ

CDNS income statement questions

Our financial-history view of Cadence Design Systems Inc. (CDNS) covers revenue, gross profit, operating income, and net income across the past five fiscal years, with year-over-year growth and margin context for each line.

FAQ

CDNS — frequently asked questions

In our latest published analysis dated 2026-05-10, CDNS looks meaningfully overvalued. The price recorded at analysis is USD 363 versus a composite fair-value midpoint of USD 152 (range USD 110–USD 196), implying roughly 58.1% downside to the midpoint at that date.

Metric	Current	Trigger threshold
Revenue growth decelerating below 10%.	Monitor	Deterioration versus the report thesis
Operating margins contracting from 32% peak.	Monitor	Deterioration versus the report thesis
Major customer shifts to rival Synopsys.	Monitor

Line item	2021-12-31	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	$2.99B	$3.56B+19.1%	$4.09B+14.9%	$4.64B+13.4%	$5.30B+14.2%	+15.4%
Gross profit	$2.68B	$3.19B	$3.65B	$3.99B	$4.57B	+14.3%
Operating income	$778.0M	$1.07B	$1.26B	$1.38B	$1.65B	+20.7%
Net income	$696.0M	$849.0M+22.0%	$1.04B+22.5%	$1.06B+1.9%	$1.11B+4.7%	+12.4%
EPS (diluted)	$2.50	$3.09	$3.82	$3.85	$4.06	+12.9%
EBITDA	$916.1M	$1.20B	$1.46B	$1.67B	$1.87B	+19.6%
R&D	$1.13B	$1.25B	$1.44B	$1.55B	$1.77B	+11.7%
SG&A	$749.3M	$846.3M	$932.7M	$1.03B	$1.12B	+10.5%

CDNS income statement questions

CDNS — frequently asked questions

CDNS Cadence Design Systems Inc. fair value $110–$196

§1 Executive summary

Names readers of CDNS also follow

§2 Bear case

Severe Multiple Compression

Geopolitical Restrictions

Semiconductor Cyclicality

§3 Financial history

Income statement — last six periods

Quality scores

Numbers analysis

Read the full analysis — 11 more sections.