Cadence Design Systems (CDNS) FY2025 10-K Annual Report
Cadence Design Systems (CDNS) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 19, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Cadence Design Systems FY2025 10-K Analysis
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
Cadence Design Systems FY2025 Key Financial MetricsXBRL
Revenue
$5.3B
▲ +14.1% YoY
Net Income
$1.1B
▲ +5.1% YoY
Operating Margin
28.2%
▼ -93bp YoY
Net Margin
20.9%
▼ -181bp YoY
ROE
20.3%
▼ -233bp YoY
Total Assets
$10.2B
▲ +13.1% YoY
EPS (Diluted)
$4.06
▲ +5.5% YoY
Operating Cash Flow
$1.7B
▲ +37.1% YoY
Source: XBRL data from Cadence Design Systems FY2025 10-K filing on SEC EDGAR. All figures in USD.
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