CDNS.US: EDA + system analysis

Snapshot

Price

USD 340

Mkt cap

USD 94.0B

Revenue

USD 4.6B

Bookings/recurring

1.15

Thesis

Cadence Design Systems EDA duopoly name; design complexity + AI chips drive long-term demand; cycle and customer concentration add volatility.

Business

Model: EDA licenses/subscriptions + IP. Flagships: digital/custom IC; system analysis; verification. Edge: toolchain lock-in. Strategy: system design + AI-assisted design.

Value chain

Chip design tools; upstream talent; downstream foundries/IDM/fabless. Risks: export controls; customer CapEx; Synopsys rivalry.

Valuation

High-quality semi software; long compounding narrative.

Financial trend (~24 months)

Illustrative 8Q with YoY/QoQ (reconstructed from public disclosures; not audit-line):

Revenue · last 8Q

Interactive chart available in the reader.

Gross margin · last 8Q

Interactive chart available in the reader.

Operations

Volume: seats/projects; price: suites; cost: R&D intensity.

Key financials

Key financials

Item	Value	YoY	Note
Revenue (approx)	~$4.5B+	+low-teens	Recurring heavy
Gross margin	~85%+	—	Software
R&D	High	—	Moat investment
Op. margin	High	—	Operating leverage

Competition

Peer strengths/weaknesses:

Peer map

Peer map

Company	Share/role	Margin	Strength	Weakness
Cadence (self)	EDA	~88% GM	Custom/system	Customer concentration
Synopsys	EDA+IP	High GM	Broader IP	Overlap
Keysight	Design/test	Mid-high	Measurement	Different mix
ASML	Lithography	Equip	Ecosystem	Not software

Management

Management (24m)

Management (24m)

Role	Name	Since	24m change
CEO	Anirudh Devgan	2021+	No material change
CFO	John Wall	long-tenured	No material change
CTO / products	Product leads	ongoing	AI design tools

Stability: Steady.

Outlook

Track semi design spend, China/export compliance, AI tool adoption.

Scenarios

Risks

Not investment advice; defer to latest company filings.