What is the 13F Pro Quality Score for CDNS?

13F Pro ranks CADENCE DESIGN SYSTEMS INC (CDNS) on the 13F Pro Quality Score, a 0–100 composite of 32 fundamental signals including return on invested capital, free cash flow consistency, balance-sheet strength, earnings quality, growth durability, and valuation discipline. The score refreshes after each 10-K and 10-Q filing on SEC EDGAR. View CDNS's current score at https://13fpro.ai/company/CDNS (free sign-up required for the full ranking).

Which hedge funds own the most CDNS stock?

Based on the most recent Form 13F-HR filings on SEC EDGAR, the largest reported institutional holders of CDNS include BlackRock,, VANGUARD CAPITAL MANAGEMENT, STATE STREET. Holdings are reported quarterly within 45 days of quarter-end and updated on https://13fpro.ai/company/CDNS as soon as new 13F filings post.

Where does 13F Pro source CDNS data?

All CADENCE DESIGN SYSTEMS INC fundamentals and ownership data come directly from SEC EDGAR. CADENCE DESIGN SYSTEMS INC files with the SEC under CIK 813672. 13F Pro ingests XBRL financial facts from 10-K and 10-Q filings, Form 13F-HR institutional holdings, and Form 4 insider transactions, with no third-party rewrites or estimates.

What sector is CDNS in?

CADENCE DESIGN SYSTEMS INC (CDNS) is classified in the Technology sector. 13F Pro publishes sector-level fund flow analysis and quality leaders at https://13fpro.ai/research/sector/technology.

What drives CDNS's revenue?

Per CADENCE DESIGN SYSTEMS INC's latest 10-Q filed with the SEC on 2026-07-29, the biggest revenue drivers are: Product and maintenance ($1,430.7M, +22% YoY); Services ($153.8M, +47% YoY). Figures are extracted from the filing text and machine-verified against the document. Full breakdown at https://13fpro.ai/company/CDNS.

What are CDNS's largest expenses?

CADENCE DESIGN SYSTEMS INC's latest 10-Q reports these as the largest expense items: Research and development ($531.3M, +20% YoY); Marketing and sales ($241.0M, +20% YoY); Cost of product and maintenance ($175.2M, +26% YoY). Sourced directly from SEC EDGAR filing text for Q2 FY2026 (quarter ended June 30, 2026).

How often is CDNS research updated on 13F Pro?

CDNS's fundamentals refresh within hours of each new 10-K or 10-Q filing on SEC EDGAR. Institutional ownership updates after each quarterly 13F filing window. Insider transactions update after each Form 4 filing. The 13F Pro Quality Score recalculates after every fundamentals refresh.

CADENCE DESIGN SYSTEMS INC(CDNS)Stock Analysis

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13F Pro Quality Score

72.6/100

Rank #149 of 2,961 stocksTOP 10%

View Technology peers →

Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Nov 14, 2026.

Revenue Growth

74.4/100

Profitability

79.3/100

Balance Sheet

87.5/100

Earnings Quality

53.3/100

Free Cash Flow

79.7/100

Institutional Flow

87.1/100

Revenue Scale

79.3/100

Dilution Risk

18.0/100

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Why CDNS Scores 73/100

exact factor attribution · 2026-09-11

CDNS's composite is driven by revenue growth and free cash flow, held back by shareholder dilution. Bars show each factor's exact push vs. a median company, using the same weights the ranking engine applies.

Revenue growth

+4.9 pts

74th pct

Free cash flow

+4.5 pts

80th pct

Profitability

+4.4 pts

79th pct

Scale

+4.4 pts

79th pct

Capital efficiency

+3.8 pts

88th pct

Institutional flow

+1.9 pts

87th pct

Earnings quality

+0.3 pts

53th pct

Earnings growth

+0.1 pts

53th pct

Shareholder dilution

-1.6 pts

18th pct

Factor percentiles are cross-sectional ranks across the ~2,800-stock scored universe, computed from SEC EDGAR filings. Not investment advice.

CDNS Stock Analysis & AI Quality Score

Data updated 2026-09-11

AI stock analysis and institutional research for CADENCE DESIGN SYSTEMS INC (CDNS), a Technology sector company. 13F Pro's AI-powered ranking engine scores CDNS at 72.6/100 on a 32-signal composite quality model, placing it at rank #149 of 2,961 stocks — the top 10% of the AI-ranked universe. CDNS scores in the top quartile across balance sheet strength (87.5), institutional flow (87.1), free cash flow (79.7). Shareholder dilution risk is elevated at 18.0/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), CADENCE DESIGN SYSTEMS INC reports quarterly revenue of $1.5B, net income of $335.7M, an operating margin of 29.3%. Top institutional holders of CDNS by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. CDNS trades on the Nasdaq exchange and files with the SEC under CIK 813672. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CDNS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CADENCE DESIGN SYSTEMS INC directly from SEC EDGAR. CADENCE DESIGN SYSTEMS INC's 13F Pro composite quality score has ranged between 71 and 82 since 2021, currently 72.6 — a declining long-term trajectory across 67 quarterly and live scoring snapshots.

✦

Fun facts about CADENCE DESIGN SYSTEMS INC

Quirks, history, and lore behind CDNS — the kind of stuff that makes a stock memorable.

1
The Basics
U.S. enterprise software company · large-cap · listed on Nasdaq · headquartered in Silicon Valley.
2
The Numbers
Annual revenue of roughly $4 billion, with operating margins that make most software CEOs jealous — and a customer base that almost entirely consists of semiconductor and electronics companies.
3
The History
Born from a 1988 merger of two EDA pioneers, it has spent decades as one of a tiny oligopoly that controls the software without which no chip can be designed.
4
The Secret
Its tools essentially run on physics and math so complex that switching vendors is nearly impossible — giving it one of the stickiest customer bases in all of enterprise tech.
5
The Lore
When NVIDIA, Intel, or Apple needs to verify that a billion-transistor chip actually works before taping out, there's a very good chance this company's simulation and verification software is doing the heavy lifting.
6
The Giveaway
It's the other name — besides Synopsys — that every EDA (electronic design automation) engineer knows by heart, and its Virtuoso platform is the industry-standard tool for analog chip design.

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What's Driving CDNS's Business? Latest 10-Q Breakdown

✓ 34/34 datapoints verified

AI-extracted from CADENCE DESIGN SYSTEMS INC's 10-Q filed 2026-07-29 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Q2 revenue rose 24% YoY to $1,584.5M and operating margin expanded to 28% from 19%, aided by the absence of the prior-year $128.5M export-settlement charge.

Biggest Revenue Drivers

Product and maintenance$1,430.7M+22% YoY

Growth in software, hardware and IP offerings as existing customers continued investing in complex designs

Services$153.8M+47% YoY

Fluctuates with timing of fulfillment of services and IP performance obligations

Biggest Revenue Drivers

Total revenue: $1,584.5M+24% YoY

Product and maintenance$1,430.7M+22% YoY

Growth in software, hardware and IP offerings as existing customers continued investing in complex designs

Services$153.8M+47% YoY

Fluctuates with timing of fulfillment of services and IP performance obligations

Largest Expense Items

Research and development$531.3M+20% YoY

Salary and employee-related costs up $50.2M and stock-based compensation up $20.1M, including headcount from acquisitions

Marketing and sales$241.0M+20% YoY

Salary and employee-related costs up $26.6M for technical sales support, including additional headcount from acquisitions

Cost of product and maintenance$175.2M+26% YoY

Amortization of acquired intangibles rose $31.1M, primarily from the Hexagon D&E acquisition

General and administrative$88.5M+28% YoY

Professional services up $13.5M on increased consulting associated with acquisition-related activities

Margins: Operating margin rose to 28% from 19%, primarily due to the prior-year loss related to a contingent liability, partially offset by incremental acquisition expenses including amortization of acquired intangibles exceeding incremental revenue.

Watch Items from the Filing

China revenue grew 96% to $236.2M, 15% of total versus 9%; growth partly reflects BIS export license requirements that restricted China software delivery May–July 2025.
Hexagon D&E acquisition closed February 23, 2026 for $2.9B net of cash; goodwill rose to $4.9B and acquired intangibles to $1.87B, with preliminary purchase allocation.
Contracted but unsatisfied performance obligations of $8.1B, with 58% expected to be recognized as revenue over the next 12 months.
Cash fell to $1.44B from $3.0B; BIS/DOJ export settlement (guilty plea, $140.6M paid in Q3 2025) carries ongoing audit and compliance obligations.
Core EDA slipped to 68% of revenue from 71%; no single customer accounted for 10% or more of total revenue or receivables.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-Q on SEC EDGAR →Share on X

Revenue

Q1 2026

$1.5B

Net Income

Q1 2026

$335.7M

Free Cash Flow

Q1 2026

$307.0M

Operating Margin

Q1 2026

29.3%

ROIC

Q1 2026

26.3%

Period

Revenue & Net Income

Earnings Per Share

Key Financials Over Time

Export Financial Table · Pro

Revenue

+14.1% YoY

$5.30BFY 2025

FY22 $3.56BFY23 $4.09BFY24 $4.64BFY25 $5.30B

Net Income

+5.1% YoY

$1.11BFY 2025

FY22 $849.0MFY23 $1.04BFY24 $1.06BFY25 $1.11B

Operating Income

+10.5% YoY

$1.49BFY 2025

FY22 $1.07BFY23 $1.25BFY24 $1.35BFY25 $1.49B

EPS (Diluted)

+5.5% YoY

$4.06FY 2025

FY22 $3.09FY23 $3.82FY24 $3.85FY25 $4.06

Total Assets

+13.1% YoY

$10.15BFY 2025

FY22 $5.14BFY23 $5.67BFY24 $8.97BFY25 $10.15B

Op. Cash Flow

+37.1% YoY

$1.73BFY 2025

FY22 $1.24BFY23 $1.35BFY24 $1.26BFY25 $1.73B

Free Cash Flow

+41.9% YoY

$1.59BFY 2025

FY22 $1.12BFY23 $1.25BFY24 $1.12BFY25 $1.59B

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Revenue	$5.30B +14.1%	$4.64B +13.5%	$4.09B +14.8%	$3.56B +19.2%	$2.99B +11.4%	$2.68B
Net Income	$1.11B +5.1%	$1.06B +1.4%	$1.04B +22.6%	$849.0M +22.0%	$696.0M +17.8%	$590.6M
Operating Income	$1.49B +10.5%	$1.35B +8.0%	$1.25B +16.5%	$1.07B +37.8%	$779.1M +20.7%	$645.6M
EPS (Diluted)	$4.06 +5.5%	$3.85 +0.8%	$3.82 +23.6%	$3.09 +23.6%	$2.50 +18.5%	$2.11
Total Assets	$10.15B +13.1%	$8.97B +58.3%	$5.67B +10.4%	$5.14B +17.1%	$4.39B +11.0%	$3.95B
Operating Cash Flow	$1.73B +37.1%	$1.26B -6.6%	$1.35B +8.6%	$1.24B +12.8%	$1.10B +21.7%	$904.9M
Free Cash Flow	$1.59B +41.9%	$1.12B -10.3%	$1.25B +11.5%	$1.12B +8.0%	$1.04B +27.8%	$810.1M

AI Insight: CDNS Financial Trends

CDNS revenue growth accelerating into Q1 2026, but operating cash flow volatility masks underlying profitability strength.

• Revenue grew 26% from Q2 2024 ($1,061M) to Q1 2026 ($1,474M), with 3% sequential growth in latest quarter.

• Operating income expanded 47% over same period ($294M to $431M); operating margin stabilized ~29–30% last two quarters.

• Net income more than doubled from Q2 2024 ($230M) to Q4 2025 peak ($388M); Q1 2026 at $336M remains elevated.

⚠ Operating cash flow declined 36% Q4 2025 to Q1 2026 ($553M to $356M) — largest sequential drop in dataset.

⚠ Equity grew 54% from Q2 2024 to Q1 2026 ($4,261M to $6,561M); debt data unavailable — leverage picture unclear.

AI Insight: CDNS Ratio Trends

CDNS delivered strong Q4 2025 profitability (32.2% OpMargin, 27.0% NPM) but Q1 2026 shows typical seasonal pullback with ROIC contracting to 26.3%.

• Net profit margin improved from 21.6% (Q2 2024) to 27.0% (Q4 2025), reflecting operational leverage and pricing power.

• ROIC peaked at 39.1% in Q4 2024, moderated to 26.3% in Q1 2026 — within historical range but below recent highs.

• Operating margin at 29.3% in Q1 2026 (TTM: 28.2%) remains well above Q2 2025 trough of 19.0%, signaling recovery.

⚠ Q2 2025 saw sharp margin compression (OpMargin 19.0%, ROA 6.7%) — monitor for recurrence or structural drivers.

⚠ ROE declined from 28.4% (Q4 2025) to 20.5% (Q1 2026); watch if trend continues or reflects seasonal earnings dip.

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Available Research

13F Pro tracks comprehensive data for CADENCE DESIGN SYSTEMS INC including:

SEC EDGAR filings (10-K, 10-Q, 8-K)

XBRL financial facts (revenue, EPS, margins)

Insider transactions (Form 4)

Institutional 13F holdings

Quality rankings (32 signals)

AI analyst debates & daily meetings

Historical financial trends

Peer comparison & sector analysis

Top Institutional Holders of CDNS

BlackRock, Inc.
$10.0B26,660,845 sh
VANGUARD CAPITAL MANAGEMENT LLC
$6.8B18,016,381 sh
STATE STREET CORP
$4.9B13,031,391 sh
FMR LLC
$3.6B9,554,947 sh
Invesco Ltd.
$3.4B8,980,518 sh
JPMORGAN CHASE & CO
$2.9B7,865,907 sh
GEODE CAPITAL MANAGEMENT, LLC
$2.7B7,184,139 sh
VANGUARD PORTFOLIO MANAGEMENT LLC
$2.6B6,961,873 sh
VAN ECK ASSOCIATES CORP
$1.8B4,889,765 sh
Capital International Investors
$1.8B4,886,202 sh

Fund	Value	Shares
BlackRock, Inc.	$10.0B	26,660,845
VANGUARD CAPITAL MANAGEMENT LLC	$6.8B	18,016,381
STATE STREET CORP	$4.9B	13,031,391
FMR LLC	$3.6B	9,554,947
Invesco Ltd.	$3.4B	8,980,518
JPMORGAN CHASE & CO	$2.9B	7,865,907
GEODE CAPITAL MANAGEMENT, LLC	$2.7B	7,184,139
VANGUARD PORTFOLIO MANAGEMENT LLC	$2.6B	6,961,873
VAN ECK ASSOCIATES CORP	$1.8B	4,889,765
Capital International Investors	$1.8B	4,886,202

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Is CDNS a good stock to buy?

13F Pro's AI-powered analysis of CADENCE DESIGN SYSTEMS INC (CDNS) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for CDNS are available on the CDNS stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing. CDNS is classified as a large company.

Which hedge funds own CDNS?

Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling CDNS. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of CADENCE DESIGN SYSTEMS INC's investment landscape.