Cadence
Cadence® is a global technology leader that develops computational, AI-driven software, accelerated hardware, and silicon intellectual property (“IP”) products and solutions.
10-K, Feb 19, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
Business
How does Cadence make money?
Productandmaintenance is 91.0% of revenue.
Source and method
Revenue by revenue types, FY2025.
annual report FY2025 · 0000813672-26-000016 · shares derived = part / total revenue
Calculated: share = part revenue ÷ total revenue ($5.3B).
- Productandmaintenance: $4.8B · 91.0%
- Technology Service: $475M · 9.0%
What is left of every $100?
Of every $100 in revenue, $21 is net income.
Source and method
Of every $100 of revenue, FY2025.
Calculated: amount ÷ revenue × 100.
- Revenue: $5.3B
- Gross profit: not reported (not reported for this fiscal year, nothing estimated)
- Operating income: $1.5B
- Net income: $1.1B
- Free cash flow: $1.6B
Where do customers sit?
The region figures in the latest annual report overlap (regions and countries mixed) and do not add up to total revenue, so no chart is shown (nothing estimated).
In the company’s words ›
“Our customers include semiconductor companies that design and manufacture integrated circuits (“ICs”), as well as systems companies that design and manufacture electromechanical systems containing various types of semiconductor and other electronics.”
“Our products and solutions empower our customers to design and verify and bring to life new and innovative products.”
“Our mission is to empower the world’s most innovative companies to deliver extraordinary electronic products that drive the global economy and improve everyday life.”
Item 1 · Business · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
Where did the growth actually come from?
Productandmaintenance drove 90% of growth.
Source & method
- Counted
- Segment revenue as filed, first and last fiscal year of the range.
- Formulas
- Change = segment revenue (to) − segment revenue (from); share of growth = change / total revenue change (calculated). Not allocated = total revenue − sum of reported segments (calculated, never filled in).
- Guards
- Segment break: if the company redrew its segments inside the range, no share of growth is claimed. No segment break reported for this company. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Thesis
Why do people invest?
1 reason in the company’s own words.
Position (in the company’s words)
“Our business is also propelled by the differentiation and measurable value our products and solutions deliver to our customers and partners.”
Item 1 · Business · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
1 of 2 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
- Product and maintenance revenue growth: no stored value to check the quoted number against.
KPIs
How fast is revenue growing?
Revenue grew 14% to $5.3B.
Revenue grew 19% YoY to $1.5B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 49.6%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
28.2% operating margin, down from 29.1%.
Operating income grew 10% to $1.5B.
Net income grew 5.1% to $1.1B.
SG&A grew 8.2% to $1.1B.
EPS diluted grew 5.5% to $4.06.
29.3% operating margin, up from 29.1%.
Operating income grew 19% YoY to $431M.
Net income grew 23% YoY to $336M.
R&D grew 16% YoY to $508M.
SG&A grew 13% YoY to $300M.
EPS diluted grew 23% YoY to $1.23.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Keeps $30 of every $100 as free cash.
Operating cash flow grew 37% to $1.7B.
Capex fell 0.5% to $142M.
Buybacks grew 68% to $925M.
Stock-based compensation grew 16% to $455M.
Free cash flow fell 34% YoY to $307M.
Operating cash flow fell 27% YoY to $356M.
Capex grew 112% YoY to $48.8M.
Buybacks fell 43% YoY to $200M.
Stock-based compensation grew 28% YoY to $138M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$3.0B cash vs $2.5B debt.
Total debt grew 0.2% to $2.5B.
Interest expense grew 53% to $117M.
Total assets grew 13% to $10.2B.
Equity grew 17% to $5.5B.
Cash fell 49% YoY to $1.4B.
Total debt grew 0.2% YoY to $2.5B.
Interest expense grew 8.6% YoY to $31.6M.
Total assets grew 34% YoY to $12.1B.
Equity grew 37% YoY to $6.6B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
Who does Cadence depend on?
No customer above the disclosure threshold.
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (Cadence annual report)
No customer with a reported share of revenue (the 10-K names none above the disclosure threshold).
Suppliers named by Cadence
No supplier among the covered companies is named in the filings.
Cadence holds stakes in
No stake in a covered company found in SEC filings.
Others name Cadence
3 partner mentions (e.g. Arm, Tower Semiconductor, UMC) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 48 risk factors, one per theme.
Trade, government policy and geopolitics
“We are subject to governmental export and import controls that subject us to liability and impair our ability to compete in global markets as well as a variety of other laws and regulations.”
Item 1A · Risk Factors · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
AI and new products
“We may not realize opportunities presented by AI and may incur reputational and financial harm and liability as a result of issues in the development and use of AI.”
Item 1A · Risk Factors · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
Security, defects and outages
“Cyberattacks that compromise the confidentiality, integrity or availability of our or our third-party providers' information technology systems or confidential information could materially harm our reputation, business, financial condition and results of operations.”
Item 1A · Risk Factors · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
Acquisitions
“As we continue to acquire and invest in companies or technologies, we may not realize the expected business or financial benefits and these acquisitions could prove difficult to integrate, disrupt our business, dilute stockholder value and adversely affect our operating results and the market value of our common stock.”
Item 1A · Risk Factors · 10-K · 0000813672-26-000016 · filed Feb 19, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
BlackRock, Inc. holds 8%.
BlackRock, Inc.8%
13G/A · as of Mar 31, 2025 · filed Apr 24, 2025
Vanguard Capital Management LLC7.43%
13G · as of Mar 31, 2026 · filed Apr 29, 2026
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only.
3 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.11.0%
26.7M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC7.4%
18.0M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.4%
13.0M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Fmr LLC3.9%
9.6M shares · 13F filed Aug 13, 2026 · share of 13F-reported
Invesco Ltd.3.7%
9.0M shares · 13F filed Aug 14, 2026 · share of 13F-reported
1,503 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding.
Insiders, last 12 months (Form 4, open market)
0 purchases · 114 sales · $104M sold
Grants, gifts and tax withholding counted separately · window Oct 13, 2025 – Oct 13, 2026
All metrics
All metrics · 30 SEC metrics, FY2016–FY2025
Income statement 9
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| D&A | ||||||||||
| G&A | ||||||||||
| Income taxes | ||||||||||
| Interest expense | ||||||||||
| Net income | ||||||||||
| Operating income | ||||||||||
| Revenue | ||||||||||
| SG&A calc. | ||||||||||
| Sales & marketing | ||||||||||
Balance sheet 9
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | not reported | not reported | not reported | not reported | not reported | not reported | ||||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | ||||||||||
| Total assets | ||||||||||
| Total debt calc. | ||||||||||
| Total liabilities & equity | ||||||||||
Cash flow 6
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | ||||||||||
| Capex | ||||||||||
| Free cash flow calc. | ||||||||||
| Interest paid | ||||||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 2
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Other income (incl. interest) calc. | ||||||||||
| Pretax income | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values