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Cadence Design Systems (CDNS) earnings and revenue breakdown

Latest: Q3 2026 · 10-Q filed Oct 28, 2026 · Cadence Design Systems (CDNS) Q3 2026 earnings results →

Q3 2026 Revenue up 22% year over year to $1.6B · 18¢ of every $1 of revenue kept as net profit · operating margin 26.2%

Cadence Design Systems made $1.6B in Q3 2026 (+22% Y/Y): Product and maintenance $1.5B, Service $146M. Operating margin 26.2%, net earnings $290M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 28, 2026.

Revenue$1.6B
Year over year+22%
Operating margin26.2%
Net earnings$290M
Operating cash flow$424M

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Cadence Design Systems Q3 2026 revenue breakdown: Sankey diagram of revenue (Product and maintenance, Service), costs, profit and cash flow
Cadence Design Systems Q3 2026 revenue breakdown — free to use with credit and a link (terms). Share on X
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What changed this quarter

Revenue was $1.6B in Q3 2026, up 22% year over year and up 3% from the previous quarter. Product and maintenance was the largest line at 91% of revenue. Product and maintenance added $0.28B year over year (up 23%), 95% of the total change.

Operating profit was $0.43B, a 26.2% margin (down 5.5 points year over year). Of the extra revenue versus Q3 2025, 1% reached operating profit, below the 32% margin then. Total costs grew 32% against revenue growth of 22%. The fastest-growing cost line was General & admin (+45%). Net earnings were $0.29B, up 1% year over year. The effective tax rate was 29.0%.

Operating cash flow was $0.42B (up 36% year over year), 146% of net earnings. Non-cash charges added back $0.12B of depreciation and amortization and $0.14B of share-based compensation. Working capital and other items used $0.13B. Capital expenditures of $0.06B left free cash flow of $0.36B.

Quarterly history

Cadence Design Systems revenue by quarterCadence Design Systems revenue by quarter$1.2BQ1 2025$1.3BQ2 2025$1.3BQ3 2025$1.4BQ4 2025$1.5BQ1 2026$1.6BQ2 2026$1.6BQ3 2026
Cadence Design Systems net earnings by quarterCadence Design Systems net earnings by quarter$274MQ1 2025$160MQ2 2025$287MQ3 2025$388MQ4 2025$336MQ1 2026$367MQ2 2026$290MQ3 2026
QuarterFormFiledRevenueY/YOp. marginNet earningsOp. cash flow
Q3 202610-QOct 28, 2026$1.6B+22%26.2%$290M$424M
Q2 202610-QJul 29, 2026$1.6B+24%28.4%$367M$635M
Q1 202610-QMay 1, 2026$1.5B+19%29.3%$336M$356M
Q4 202510-KFeb 19, 2026$1.4B+6%32.2%$388M$553M
Q3 202510-QOct 29, 2025$1.3B+10%31.8%$287M$311M
Q2 202510-QJul 30, 2025$1.3B+20%19.0%$160M$378M
Q1 202510-QApr 30, 2025$1.2B+23%29.1%$274M$487M

Charts

Cadence Design Systems: revenue growth, year over year and quarter over quarterCadence Design Systems: revenue growth, year over year and quarter over quarterY/YQ/Q+23%Q1 2025+20%+3%Q2 2025+10%+5%Q3 2025+6%+8%Q4 2025+19%+2%Q1 2026+24%+7%Q2 2026+22%+3%Q3 2026
Latest (Q3 2026): Y/Y +22%, Q/Q +3%.
Cadence Design Systems: where the cash came from (+) and went (−), TTM to Q3 2026Cadence Design Systems: where the cash came from (+) and went (−), TTM to Q3 2026Acquisitions−$2.3BOperating cash flow$2.0BCash drawn (+) / kept (−)$1.3BBuybacks−$1.0BTaxes on employees’ shares−$217MCapital spending−$204MOther investing$192MNet borrowing (+) / repaid (−)$150MShares issued$147MExchange rates−$14.3M
From the cash-flow statement as filed (SEC XBRL). Cash is fungible: the bars do not say which dollar paid for what.
Cadence Design Systems: profit against cash, quarter by quarterCadence Design Systems: profit against cash, quarter by quarterNet incomeOperating cash flow$340M$441MQ4 2024$274M$487MQ1 2025$160M$378MQ2 2025$287M$311MQ3 2025$388M$553MQ4 2025$336M$356MQ1 2026$367M$635MQ2 2026$290M$424MQ3 2026
Latest (Q3 2026): Net income $290M, Operating cash flow $424M.
Cadence Design Systems: diluted shares by fiscal yearCadence Design Systems: diluted shares by fiscal year280MFY2021279MFY2022275MFY2022273MFY2023274MFY2024273MFY2025
-2.3% since FY2021: buybacks shrank the count.
Cadence Design Systems in its industry: growth against margin (192 companies, SIC 7372)Cadence Design Systems in its industry: growth against margin (192 companies, SIC 7372)revenue growth, year over year →↑ operating marginmedian +12%median 0%MSFTORCLCRMADBEXYZINTUNOWSHOPCRWVSNPSPLTRADSKElectronic Arts Inc.TEAMSSNCRBLXTWLOSNOWTTWOCRWDGENDDOGHUBSVEEVDOCUOKTANETMDBNTNXPTCTYLDBXUDTPAYCMBLYESTCPCTYZETARBRKACIWBSYGWREPATHPCORTDCOCTVFIGKVYOCOURBILLBOXCVLTDUOLSAILGTMMANHLIMEAPPFCCCYOUTTANBLKBSGTLBALRMTENBWKPRGSFRSHAPPNBANDNAVNBRZEQTWONTSKASANCXMVERXRPDSPSCBLFSLYVRNSQLYSFROGMQBBINTANCNOEVCMNABLVIAALKTAVPTSPTPDGDYNXPERAMPLDDDSKILCERTCCSICMRCMKTWHUCKCRNCPDFSWEAVSOUNINSEXZODHIIIVLiveperson IncAIMRDNMYPSUPLDKLTRBLZELAWDRTTFBBAIMAPSCCLDEXFYRDVTSSTIEGANNTWKRCATSNALFDCTSVCOMCHXAEYEZDGEADBTWFCFAISPDUOTIDNPDYNQUBTZSPCROCFATNAWRESMSIINLXBLINMSGMGEGSEGGMYSZCXAIGXAIPARAAITXBKYICYABAPCXSPAIDSNYEXYNIDAIATDSIVDAVPRBSKKYUMEWAIFFAUIDGlobal Arena Holding, Inc.ATHRVIDAQXLLIVGUPYYFNGRSVMBTransparentBusiness, Inc.SWMRAMSTTransit Pro Tech Inc.PXLWDNKCDPLSGYGYCDNS (+22%, 26%)
Services-Prepackaged Software; dot size is quarterly revenue; dashed lines are the industry's medians.

Interactive views

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💵Where each $1 goesinteractive

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🌏Named in Asian annual reportsinteractive

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🔄Rotation against the market and its industry (RRG)interactive

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🔍Earnings qualityinteractive

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⚖️Fair value by methodinteractive

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🔭Outlook & guidanceinteractive

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📈Investments: gains and what it boughtinteractive

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🏭Its industry’s money flow (input-output)interactive

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Customers and suppliers named in filings

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About Cadence Design Systems

This Annual Report and the documents incorporated by reference in this Annual Report contain statements that are not historical in nature, are predictive, or that depend upon or refer to future events or conditions or contain other forward-looking statements. Statements including, but not limited to, statements regarding artificial intelligence (“AI"), other technological and market advancements and their impacts on our business; the extent, timing and mix of future revenues and customer demand; the deployment of our products and services; the impact of the macroeconomic and geopolitical environment, including but not limited to, expanded trade controls, tariffs, conflicts around the world, volatility in foreign currency exchange rates, inflation and changes in interest rates; the impact of government actions; future costs, expenses, tax rates and uses of cash; pending legal,…

In its own words, from its 10-K, filed Feb 19, 2026.

Cadence Design Systems against its Services-Prepackaged Software peers

The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +22% against the peers' median +19%. Operating margin: 26.2% against the peers' median 20.5%.

CompanyQuarterRevenueY/YOp. margin
CDNS Cadence Design SystemsQ3 2026$1.6B+22%26.2%
MSFT MicrosoftQ1 FY27$92.3B+19%49.8%
ORCL OracleQ1 FY27$19.3B+30%34.8%
CRM SalesforceQ2 FY27$11.3B+11%20.5%
ADBE AdobeQ3 FY26$6.8B+13%34.8%
XYZ BlockQ3 2026$6.7B+10%6.4%
INTU IntuitQ4 FY26$4.4B+14%10.9%
NOW ServiceNowQ3 2026$4.1B+20%9.4%
SHOP ShopifyQ3 2026$3.7B+32%15.2%

Source: Cadence Design Systems 10-Q on SEC EDGAR · CIK 813672 · Services-Prepackaged Software

Guidance and outlook

Cadence Design Systems Revenue: guidance against what was reportedCadence Design Systems Revenue: guidance against what was reportedguided rangereported (above / within / below)Q1 2024Q2 2024Q3 2024FY2024$4.6BFY2025$5.3BFY2026
Met or beat 2 of 2 guided periods. Grey: the last range guided before the figures came out; dot: the reported figure.
Cadence Design Systems GAAP operating margin: guidance against what was reportedCadence Design Systems GAAP operating margin: guidance against what was reportedguided rangereported (above / within / below)Q1 2024Q2 2024Q3 2024FY202429.1%FY202528.2%FY2026
Met or beat 2 of 2 guided periods. Grey: the last range guided before the figures came out; dot: the reported figure.
Cadence Design Systems: what its forward-looking statements are about (10-Q filed 2026-07-29)Cadence Design Systems: what its forward-looking statements are about (10-Q filed 2026-07-29)Demand4Tax4Costs2Other2Legal & regulation1People1Deals1
15 statements; tone +0.07 (−1 all cautious, +1 all confident); 1 hedged.
Cadence Design Systems: outlook statements against the filing beforeCadence Design Systems: outlook statements against the filing beforeConfident2Cautious1

13F: who owns CDNS and who is buying

Largest holders of CDNS (13F)Largest holders of CDNS (13F)BlackRock$10.0BVanguard Group$8.5BVanguard Capital Management LLC$6.8BState Street$4.9BFMR LLC$3.6BInvesco$3.4BGeode Capital Management, LLC$2.7BVanguard Portfolio Management LLC$2.6BVan ECK Associates$1.8BCapital International Investors$1.8B
Funds' net buying of CDNS by quarter (13F)Funds' net buying of CDNS by quarter (13F)−$638M2024-09−$28.0M2024-12−$547M2025-03−$1.6B2025-06$526M2025-09$2.3B2025-12−$1.1B2026-03$678M2026-06
Value of shares 13F filers added minus the value they sold, each quarter (quarters with most filings in).

More on CDNS

History

Every quarter: Q3 2026 results · Q2 2026 results · Q1 2026 results · Q4 2025 results · Q3 2025 results · Q2 2025 results · Q1 2025 results

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