10-K annual report · filed Feb 19, 2026

Cadence Design Systems (CDNS) FY2025 10-K Annual Report

Short answer

Cadence Design Systems (CDNS) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $5.3B (+14.1% year over year) and net income of $1.1B.

  • Top risk flagged: Regulatory risk from Exchange Act Rule 10b5-1 compliance tied to share repurchase trading plans

FY2025 key financial metrics · XBRL

Revenue
$5.3B
+14.1% YoY
Net income
$1.1B
+5.1% YoY
Operating margin
28.2%
−0.9 pp YoY
EPS (diluted)
$4.06
+5.5% YoY
ROE
20.3%
−2.3 pp YoY
Operating cash flow
$1.7B
+37.1% YoY

Source: XBRL data from the Cadence Design Systems (CDNS) FY2025 10-K on SEC EDGAR. USD.

Cadence Design Systems FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business model: provider of AI-driven computational software, accelerated hardware, and IP solutions for semiconductor and electronic systems design
  • No new products or segments explicitly introduced or emphasized in fiscal 2026 filing
  • Continued strategic focus on innovation and complex system design support for technology companies; no major competitive shifts disclosed
  • Total revenue $5.297B in 2025, up from $4.641B in 2024; R&D expense increased to $1.769B (up 14% YoY) showing intensified innovation investment
  • Adoption of new accounting standards including ASU 2023-09 on income tax disclosures adopted prospectively in 2025 distinguishing this annual report

Management Discussion & Analysis

  • Revenue $5.297B, up 14% YoY from $4.641B driven by software, hardware, IP, and acquisitions
  • Operating margin 28% vs 29% YoY; decline due to $128.5M loss from BIS and DOJ settlement
  • Best segment Core EDA 70% of revenue ($3.707B est), worst growth Services up 11% ($475.2M revenue) but smallest share
  • Cash outflows: $140.6M paid for settlement, increased R&D $219.7M to $1.769B, capex not detailed, no buyback/dividend specifics given
  • Outlook cautious on geopolitical/export controls in China, ongoing monitoring of trade, global conflicts, and revenue mix impact

Risk Factors

  • Regulatory risk from Exchange Act Rule 10b5-1 compliance tied to share repurchase trading plans
  • Macroeconomic exposure through $1.5B share repurchase authorization impacted by market and business conditions
  • Operational reliance on employee stock vesting tied to share surrender for tax withholding, impacting share liquidity
  • Market disruption risk from Nasdaq Information Technology Index outperforming Cadence (258.38 vs 229.11 on 12/31/25)
  • Financial risk due to $1.5B incremental share repurchase authorization increasing leverage on balance sheet

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