Cadence (CDNS): analysis in plain words
Is Cadence cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Cadence (CDNS) is listed on the Nasdaq and we classify it in software and cloud. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Cadence according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Cadence (CDNS) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $329.52 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 65.5x | Price over earnings per share |
| Revenue growth | +22.0% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 22.5% | Profit for every 100 of sales |
| Net debt / EBITDA | 0.6x | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $90.4 billion | What the stock market values it at |
The Cadence figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any CDNS figure that is not available shows as N/A: we do not estimate it.
How Cadence makes money
Cadence Design Systems provides software and hardware for designing and verifying chips and electronic systems. Its core is chip-design software, complemented by emulation and prototyping hardware, licensed intellectual property and system analysis tools. Customers include semiconductor firms plus consumer electronics, automotive and aerospace companies around the world.
Over the last 12 months, Cadence brought in revenue of $6.1 billion. For every 100 it sells, Cadence keeps 85.7 after the direct cost of what it sells (gross margin) and 28.9 after all operating costs (operating margin). With 13,800 full-time employees, that is about $444,000 of revenue per employee.
Cadence against its sector
To know whether a Cadence figure is high or low you have to put it next to similar companies. This table compares Cadence with the median of the 19 software and cloud companies Fintols covers, with data as of November 4, 2026.
| Figure | Cadence | software and cloud median |
|---|---|---|
| P/E | 65.5x | 29.0x (19) |
| Revenue growth | +22.0% | +20.5% (25) |
| Net margin | 22.5% | 16.0% (25) |
| Dividend yield | 0.00% | 0.00% (25) |
| Net debt / EBITDA | 0.6x | 0.1x (23) |
In short, against the typical software and cloud company, Cadence trades on a higher P/E, earns a wider margin and carries more debt. By size, Cadence ranks number 15 of 22 software and cloud companies quoted in USD on Fintols.
The bull case for Cadence
What works in favour of Cadence, according to its figures as of November 4, 2026:
- Analysts expect Cadence earnings to rise: its P/E on the next 12 months of estimated earnings is 33.5x, below the current 65.5x.
- Cadence grew sales +22.0% in its latest quarter against the same quarter a year earlier, while the median software and cloud company Fintols tracks grew +20.5%.
- Cadence keeps 22.5 of every 100 it sells as net profit, against 16.0 for the median software and cloud company: a margin like that leaves money to invest, buy back shares or pay dividends.
The main risk for Cadence
The price already assumes a lot: Cadence trades at 65.5x its last 12 months of earnings, against 29.0x for the software and cloud median. If growth disappoints, the multiple can shrink and the share price with it.
And, like the rest of software and cloud, Cadence is exposed to a competitor or AI making what it sells cheaper and forcing price cuts.
Frequently asked questions about Cadence
Is it a good time to buy Cadence stock?
Fintols does not tell you whether to buy or sell Cadence, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Cadence stock trades at $329.52, 21% below its 52-week high ($416.69) and 25% above its low ($262.75). Its P/E is 65.5x against a software and cloud median of 29.0x, and 33.5x on the earnings analysts expect over the next 12 months. With Cadence, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Cadence pay a dividend?
No. As of November 4, 2026, Cadence does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying Cadence today is counting on the share price rising, not on income.
Is Cadence stock expensive?
It depends on what you compare it with. On P/E, Cadence trades at 65.5x its last 12 months of earnings: more expensive than the software and cloud median (29.0x). Including its debt, Cadence is valued at 40.6x its EBITDA (EV/EBITDA). A high P/E alone does not make Cadence expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Cadence's competitors?
On Fintols we compare Cadence with Synopsys, Autodesk and Workday, which are also in software and cloud. As of November 4, 2026, Synopsys is worth $88.7 billion and trades on a P/E of 81.8; Autodesk is worth $56.4 billion and trades on a P/E of 35.0; Workday is worth $48.6 billion and trades on a P/E of 41.1. Each has a side-by-side comparison with Cadence below.
Cadence competitors
- Synopsys (SNPS) analysis · Cadence vs Synopsys comparison
- Autodesk (ADSK) analysis · Cadence vs Autodesk comparison
- Workday (WDAY) analysis · Cadence vs Workday comparison
To understand Cadence better
- Economic Moats Explained: From Warren Buffett to AI
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Cadence: software and cloud stocks and S&P 500 companies. Open the full CDNS analysis with its valuation and scenarios. Educational content about Cadence, not investment advice.