CDNS
NASDAQ · Technology · Software - Application · US
Research · Oct 28, 2026
Semiconductor IP Licensing Gains Royalties From Hyperscaler Custom Silicon
Cadence says its design IP business now earns royalties and Rambus won pre-standard HBM IP deals as hyperscalers buy custom chip IP directly and early.
Research · Oct 28, 2026
Cadence (CDNS) Q3 2026 Earnings: Restructuring Pushes GAAP Margin Below Guidance
Cadence Q3 2026 revenue rose 22% to $1.633 billion and beat guidance, but a $42.16 million restructuring charge cut GAAP operating margin to 26.2%, below its guided floor.
Research · Sep 26, 2026
[CDNS] Cadence: Q3 2026 Earnings Test Whether IP Growth Can Last
Cadence grew Q2 2026 revenue 24% to $1.584 billion with backlog at $8.1 billion; Q3 results must show whether 40%-plus IP growth can hold near 15% of revenue.
Research · Sep 3, 2026
[CDNS] Cadence Design Thesis 2026: AI Compute Demand Drives EDA Duopoly Compounding
Cadence Design Systems Inc. FY2025 revenue ~$5.0-5.2B (+12-15%) with adj. EPS ~$6.40-6.70 reflecting continued AI compute design demand acceleration (selected ~30%+ YoY growth from selected AI chip designers + hyperscalers + selected NVIDIA/AMD/Broadcom customer demand) + selected continued IP cores growth + selected ~$11B BETA CAE Systems acquisition February 2024 (transformational simulation expansion) + selected operational excellence under continued CEO Anirudh Devgan. One of two leading global Electronic Design Automation (EDA) software firms (with Synopsys; selected duopoly controls ~75%+ of EDA market); founded 1988 via merger of SDA Systems + ECAD Systems (originally as combined Electronic Design Automation pioneer; IPO 1989 ~$60M raised); headquartered in San Jose California; ~13,000+ employees globally; ~$5.0-5.2B revenue. 3 categories: EDA Software 80% ($4.0B — Custom IC design selected Allegro + Virtuoso analog/mixed-signal + Digital IC design + verification selected Innovus + Genus + Xcelium + JasperGold formal verification + selected emulation hardware Palladium + Protium FPGA prototyping + selected GenAI tools Cadence.AI + Cerebrus; ~32%+ operating margin) + IP 13% ($0.65B — Tensilica DSP + selected design IP cores + interface IP PCIe + DDR + selected) + System Design & Analysis 7% ($0.35B — BETA CAE Systems acquired February 2024 $11B selected mechanical CAE simulation + Cadence Computational Software + selected systems-level analysis). Customer mix: top 10 customers ~30%+ of revenue (selected NVIDIA + AMD + Intel + Apple + Samsung + Broadcom + Marvell + selected hyperscaler chip designs); top 1 customer ~5-7%; selected long-term contract durations 3-5 years typical. CEO Anirudh Devgan since December 15, 2021 (succeeded Lip-Bu Tan CEO 2009-2021 transitioned to Executive Chair; Tan currently Intel CEO since March 2025; Devgan ex-Cadence President 2017-2021 + ex-Cadence Senior VP 2012-2017 + ex-Magma Design Automation General Manager acquired 2012 + ~25-year EDA executive career; PhD Carnegie Mellon University; Indian-American). Key transactions: 2012 Magma + selected ongoing M&A + 2023 Cadence.AI/Cerebrus GenAI launch + February 2024 BETA CAE Systems $11B all-cash (transformational simulation expansion). EDA duopoly economics: Cadence + Synopsys collectively control ~75%+ of global EDA software market; Synopsys-Ansys $35B merger announced January 2024 closing 2025 creates selected stronger #1 EDA + simulation peer. Capital return: no dividend policy; buybacks $1-1.5B (selected modest ~1-2%/yr share count reduction); investment-grade A3/A- credit rating; net cash position ~$2-3B. FY2026 thesis: AI compute design demand + EDA duopoly economics + BETA CAE integration + capital return. Risks: semiconductor design cyclicality, Synopsys-Ansys merger competitive intensity, GenAI commoditization, customer concentration (NVIDIA + AMD + Apple + hyperscaler).