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How Cadence Design Systems (CDNS) makes money
Cadence Design Systems (CDNS) made $1.6B of revenue in the third quarter 2026 (Q3 2026), +22% from a year earlier. Product and maintenance brought in $1.5B (91%); Service brought in $146M (9%). Of every dollar of revenue, 26¢ was left as operating profit, 18¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Product and maintenance | $1.5B | 91.1% | +4% | +23% |
| Service | $146M | 8.9% | -5% | +11% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $1.6B | 100.0% |
| Operating profit | $429M | 26.2% |
| Income tax | $119M | 7.3% |
| Net earnings | $290M | 17.7% |
| Operating cash flow | $424M | 25.9% |
| Free cash flow | $362M | 22.2% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $1.6B | +22% |
| Q2 2026 | $1.6B | +24% |
| Q1 2026 | $1.5B | +19% |
| Q4 2025 | $1.4B | +6% |
| Q3 2025 | $1.3B | +10% |
| Q2 2025 | $1.3B | +20% |
| Q1 2025 | $1.2B | +23% |
From Cadence Design Systems' 10-Q filed Oct 28, 2026 (on EDGAR).
Questions
How does Cadence Design Systems make money?
Cadence Design Systems (CDNS) made $1.6B of revenue in the third quarter 2026 (Q3 2026), +22% from a year earlier. Product and maintenance brought in $1.5B (91%); Service brought in $146M (9%). Of every dollar of revenue, 26¢ was left as operating profit, 18¢ was left as net earnings.
What is Cadence Design Systems' biggest business?
Product and maintenance: $1.5B in the third quarter 2026, 91% of revenue, +23% from a year earlier.
What is Cadence Design Systems' profit margin?
Net earnings were $290M, 17.7% of revenue, in the third quarter 2026; the operating margin was 26.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.