{"schemaVersion":1,"research":true,"symbol":"cdns","name":"Cadence Design Systems","topic":"moat","path":"/stock/cdns/moat","status":"published","version":4,"updatedAt":"2026-10-18T12:57:00.986Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"Cadence has a narrow moat supported by design-specific IP, customer training, continuously updated software, multiyear licenses and non-cancelable spending commitments. Continued investment by existing customers and repeat-demand disclosures support current switching friction. The passages do not establish exceptional durability or superiority over named competitors. Realized pricing power remains unproven. AI competition, stronger competing vendors, export restrictions and acquisition costs could erode the advantage.","advantages":[{"mechanism":"switching_costs","claim":"Design-specific IP, product-specific training and software arrangements combining licenses, updates and support create switching friction. Two-to-three-year licenses and some non-cancelable spending commitments reinforce that friction. Existing-customer investment and typically renewed short-term arrangements demonstrate repeat demand, although switching costs are not quantified.","durability":"The advantage extends across disclosed license terms and evolving customer designs. Continued updates support relevance as technical requirements change. Recurring revenue remained approximately four-fifths of revenue across recent trailing periods, but revenue recognition within contracts does not itself demonstrate renewal or indefinite customer dependence.","risks":"Stronger sole-source competitors and potentially superior or cheaper AI technologies could reduce workflow dependence. Export restrictions have already adversely affected business access. Customers retain some product-selection flexibility, and design-IP licenses are nonexclusive. Acquisitions expand the portfolio but have not yet demonstrated durable incremental economic benefits.","invalidation":"The thesis would weaken materially if successive renewal cycles showed declining existing-customer spending, widespread nonrenewals, replacement of Cadence workflows or embedded IP with limited migration effort, or sustained concessions needed to preserve demand. Persistent technological displacement or restrictions preventing support of important customer workflows would also undermine it. A change in recurring-revenue mix alone would not establish invalidation.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8"],"counterEvidenceIds":["e9","e10","e11","e13","e31"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Revenue recognition: time-based license duration","excerpt":"Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years."},{"id":"e2","sourceId":"filing-1","location":"Revenue recognition: updates and evolving customer designs","excerpt":"Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve."},{"id":"e3","sourceId":"filing-1","location":"Business: non-cancelable customer commitments","excerpt":"Some customers enter into non-cancelable commitments, whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of products or services."},{"id":"e4","sourceId":"filing-1","location":"Business: design-specific, nonexclusive IP licensing","excerpt":"We generally license our design IP under nonexclusive license agreements that provide usage rights for specific designs."},{"id":"e5","sourceId":"filing-1","location":"Technical support and maintenance: customer training","excerpt":"Our education services offerings can be customized and include training programs that are delivered online, through an app, or in a classroom setting."},{"id":"e6","sourceId":"filing-1","location":"Results of operations: 2025 revenue and existing-customer investment","excerpt":"2024 (In millions, except percentages) Product and maintenance $ 4,821.6 $ 4,213.5 $ 608.1 14 % Services 475.2 427.8 47.4 11 % Total revenue $ 5,296.8 $ 4,641.3 $ 655.5 14 % Product and maintenance revenue increased during fiscal 2025, as compared to fiscal 2024, primarily due to growth in revenue from our software, hardware and IP product offerings as a result of existing customers' continued investment in complex designs for their products."},{"id":"e7","sourceId":"filing-2","location":"Revenue recognition: typical renewals and fixed-dollar commitments","excerpt":"Other recurring revenue includes revenue recognized at a point in time for short-term software arrangements that are typically renewed at least annually and revenue recognized at varying points in time over the term of other arrangements with non-cancelable commitments, whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of products."},{"id":"e8","sourceId":"filing-2","location":"Business overview: recurring-revenue history through June 2026","excerpt":"The following table shows the percentage of our revenue that is classified as recurring or up-front for the three and six months ended June 30, 2026 and June 30, 2025: Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenue recognized over time 72 % 73 % 72 % 75 % Other recurring revenue 6 % 5 % 6 % 5 % Recurring revenue 78 % 78 % 78 % 80 % Up-front revenue 22 % 22 % 22 % 20 % Total revenue 100 % 100 % 100 % 100 % The following table shows the percentage of recurring revenue for the twelve-month periods ending concurrently with our five most recent fiscal quarters: Trailing Twelve Months Ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Recurring revenue 79 % 79 % 80 % 80 % 80 % Up-front revenue 21 % 21 % 20 % 20 % 20 % Total 100 % 100 % 100 % 100 % 100 % The percentage of revenue characterized as recurring compared to revenue characterized as up-front may vary between fiscal quarters."},{"id":"e9","sourceId":"filing-1","location":"Risk factors: stronger sole-source competition","excerpt":"Additionally, as the EDA industry has matured, stronger competition has emerged from companies better able to compete as sole source vendors."},{"id":"e10","sourceId":"filing-1","location":"Risk factors: potentially superior or cheaper competing AI technology","excerpt":"Such other companies may develop AI Technologies that are similar or superior to ours and/or are more cost-effective and/or quicker to develop, deploy and maintain."},{"id":"e11","sourceId":"filing-1","location":"Trade regulation: realized adverse effects of restrictions","excerpt":"These restrictions have had, and any subsequent restrictions may have, an adverse effect on our business, results of operations or financial condition, either directly or by impacting our customers’ products, and restrict our ability to license or support our products to certain companies in China."},{"id":"e12","sourceId":"filing-2","location":"Results of operations: quarterly and half-year operating margins","excerpt":"Our operating margin for the three and six months ended June 30, 2026 and the three and six months ended June 30, 2025 was as follows: Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Operating margin 28 % 19 % 29 % 24 % 31 Our operating margin may fluctuate from period to period depending on the mix of products and services sold during each period, the timing and magnitude of restructuring plans and other significant, infrequent expenses."},{"id":"e13","sourceId":"filing-2","location":"Results of operations: settlement comparison and acquisition expense drag","excerpt":"During the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, our operating margin increased, primarily due to the loss related to a contingent liability recognized during the three and six months ended June 30, 2025, partially offset by incremental expenses from our recent acquisitions, including amortization of acquired intangibles, that exceed incremental revenue for the periods presented."},{"id":"e14","sourceId":"filing-2","location":"Note 8: actual share repurchases","excerpt":"The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three and six months ended June 30, 2026 and June 30, 2025 were as follows: Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (In thousands) Shares repurchased 580 607 1,251 1,968 Total cost of repurchased shares $ 200,006 $ 175,009 $ 400,006 $ 525,016 15 NOTE 9."},{"id":"e15","sourceId":"filing-2","location":"Note 7: stock-based compensation expense and outstanding expense commitments","excerpt":"STOCK-BASED COMPENSATION Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and six months ended June 30, 2026 and June 30, 2025 as follows: Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (In thousands) Cost of product and maintenance $ 3,205 $ 2,122 $ 6,211 $ 4,276 Cost of services 3,660 2,449 7,081 4,915 Marketing and sales 26,285 22,857 50,387 44,528 Research and development 93,318 73,188 180,659 140,277 General and administrative 20,422 17,709 40,735 31,942 Total stock-based compensation expense $ 146,890 $ 118,325 $ 285,073 $ 225,938 Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $970.8 million as of June 30, 2026, which is expected to be recognized over a weighted average vesting period of 2.2 years."},{"id":"e16","sourceId":"filing-2","location":"Results of operations: interest expense and revolving borrowings","excerpt":"Interest Expense Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (In millions) Contractual cash interest expense: Senior Notes $ 27.8 $ 27.7 $ 55.5 $ 55.4 Revolving Credit Facility 5.6 0.2 8.1 0.5 Amortization of debt discount and debt issuance costs: Senior Notes 1.0 1.0 2.0 2.0 Revolving Credit Facility 0.1 0.1 0.2 0.2 Other 0.6 (0.1) 0.9 — Total interest expense $ 35.1 $ 28.9 $ 66.7 $ 58.1 Interest expense increased during the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, primarily due to incremental interest expense related to borrowings under our revolving credit facility at various times during the periods presented."},{"id":"e17","sourceId":"filing-2","location":"Liquidity: operating cash-flow improvement and timing effects","excerpt":"The increase in cash flows from operating activities for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily due to improved operating results, the timing of cash receipts from customers and the timing of cash disbursements for operating assets and liabilities."},{"id":"e18","sourceId":"filing-2","location":"Acquisitions: February 2026 completion of D&E acquisition","excerpt":"On February 23, 2026, we completed our acquisition of the design and engineering (“D&E”) business of Hexagon Smart Solutions AB."},{"id":"e19","sourceId":"filing-3","location":"Corporate governance highlights: independence, shareholder rights and ownership guidelines","excerpt":"Omnibus Equity Incentive Plan 115 Appendix B: Reconciliation of GAAP to Non-GAAP Financial Measures 129 Table of Contents CORPORATE GOVERNANCE CORPORATE GOVERNANCE HIGHLIGHTS Board of Directors: ✓ Independent director serving as chair of the Board of Directors of Cadence (the “Board” or the “Board of Directors”) ✓ Substantial majority of independent directors – ten of the eleven current directors are independent ✓ All Board committees comprised entirely of independent directors ✓ Regular executive sessions of the independent directors ✓ Annual Board and committee evaluations conducted by an independent third party and overseen by the Corporate Governance and Nominating Committee ✓ Board refreshment and succession planning ✓ Annual Chief Executive Officer (“CEO”) and senior leadership succession review ✓ Principled Worldwide Code of Business Conduct (the “Code of Business Conduct”) ✓ Robust insider trading and related party transaction policies and corporate governance guidelines ✓ Committee authority to retain independent advisors ✓ Stock Ownership Guidelines – each non-employee director required to hold Cadence shares valued at a minimum of $375,000 within five years of appointment or election ✓ Proactive, ongoing and responsive stockholder engagement program, including direct involvement by the Chair of the Board (“Board Chair”) and, as needed, Board committee chairs ✓ Board continuing education – new director orientation and continuing education on critical topics and issues ✓ Limits on the number of other public company boards on which directors may serve, including stricter limits on current executive officers Stockholder Rights: Executive Compensation: ✓ No stockholders’ rights plan ✓ No dual class common stock structure ✓ Ability to act by written consent ✓ Ability to call a special meeting ✓ Proxy access ✓ No supermajority voting requirements ✓ Robust stockholder engagement program ✓ Directors elected by majority vote in an uncontested election ✓ All directors elected annually (no classified Board structure) ✓ Annual Say-on-Pay stockholder vote ✓ Compensation Recovery (“Clawback”) Policy ✓ Prohibition on hedging or pledging of Cadence securities ✓ Use of an independent compensation consultant ✓ Stock Ownership Guidelines – (i) 3X the annual base salary for the CEO and (ii) 1X the annual base salary for all other executive officers, in each case within five years of appointment 1 Table of Contents CORPORATE GOVERNANCE Cadence is governed by the Board and the committees of the Board, which meet throughout the year."},{"id":"e20","sourceId":"filing-3","location":"Executive compensation: historical and March 2025 LTP grants","excerpt":"The Compensation Committee granted LTP Awards to all then-serving executive officers in fiscal 2016, 2019, 2022 and again in March 2025."},{"id":"e21","sourceId":"filing-3","location":"Executive compensation: actual 2025 award types and CEO grant values","excerpt":"Operating Income PSUs rTSR PSUs RSUs LTP Award Name Shares Per Share ($) Aggregate (based on Target Performance) ($) Aggregate (based on Maximum Performance) ($) Shares Per Share ($) Aggregate ($) Shares Per Share ($) Aggregate ($) Shares Per Share ($) Aggregate ($) Anirudh Devgan 21,659 255.11 5,525,427 11,050,855 21,659 345.29 7,478,695 43,319 255.11 11,051,110 282,000 107.65 30,357,300 John M."},{"id":"e22","sourceId":"filing-3","location":"Securities trading policy: hedging and pledging prohibitions","excerpt":"Cadence’s Securities Trading Policy restricts certain transactions in Cadence securities and prohibits Cadence’s directors, executive officers and all other Cadence employees (and their respective family and household members) from hedging or pledging their ownership of Cadence securities (regardless of whether such securities were granted as compensation or are otherwise held, directly or indirectly, by such employee or director), including by purchasing financial instruments such as prepaid variable forward contracts, equity swaps, collars and exchange funds, or trading in publicly-traded options, puts, calls or other derivative instruments related to Cadence securities."},{"id":"e23","sourceId":"filing-3","location":"Director ownership: compliance as of proxy record date","excerpt":"As of the Record Date, all directors met the Stock Ownership Guidelines applicable to them."},{"id":"e24","sourceId":"filing-1","location":"Export-control settlement: agreement to plead guilty","excerpt":"As part of the settlements, we entered into a plea agreement with the DOJ pursuant to which we agreed to plead guilty to one count of conspiracy to commit export controls violations."},{"id":"e25","sourceId":"filing-1","location":"Results of operations: settlement charge and actual penalties paid","excerpt":"As part of the settlements, we recorded a charge of $128.5 million in Loss related to contingent liability on our consolidated income statement and paid BIS and the DOJ aggregate net penalties and forfeitures of $140.6 million during fiscal 2025."},{"id":"e26","sourceId":"filing-3","location":"Appendix B: 2021–2025 GAAP operating income and expense reconciliation","excerpt":"128 Table of Contents APPENDIX B: Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation of GAAP Operating Income to Non-GAAP Operating Income and Non-GAAP Operating Income Adjusted for Stock-based Compensation (In Millions) 2021 2022 2023 2024 2025 GAAP operating income $ 779 $ 1,074 $ 1,251 $ 1,351 $ 1,492 Reconciling items to non-GAAP operating income Stock-based compensation expense 210 270 326 391 455 Amortization of acquired intangibles 67 60 62 90 105 Acquisition and integration-related costs 23 41 56 96 135 Restructuring (1 ) — 11 24 29 Non-qualified deferred compensation expenses (credits) 6 (8 ) 11 11 14 Special charges* 27 — — 3 2 Loss related to contingent liability** — — — 8 129 Non-GAAP operating income*** $ 1,111 $ 1,436 $ 1,717 $ 1,974 $ 2,361 Stock-based compensation expense (210 ) (270 ) (326 ) (391 ) (455 ) Non-GAAP operating income adjusted for stock-based compensation*** $ 901 $ 1,166 $ 1,391 $ 1,583 $ 1,906 Table may not foot due to rounding * 2021 includes costs related to a voluntary retirement program."},{"id":"e27","sourceId":"filing-3","location":"2025 business achievements: hardware customer additions and purchases","excerpt":"Hardware delivered another record year, adding more than 30 new customers, with seven of the top ten customers purchasing both Palladium Z3 and Protium X3 systems, reflecting strong AI and hyperscale demand."},{"id":"e28","sourceId":"filing-1","location":"Acquired intangible valuation: assumed customer retention","excerpt":"Projected income from existing customer relationships was determined using customer retention rates between 85% and 92%."},{"id":"e29","sourceId":"filing-2","location":"Trade controls: suspension expiration disclosed in July 2026","excerpt":"However, on November 11, 2025, BIS published a one-year suspension of the new rule that is currently set to expire on November 9, 2026, absent a future extension."},{"id":"e30","sourceId":"filing-1","location":"Public-sector contracts: termination rights and collection exposure","excerpt":"Our public sector customers may have contractual, statutory or regulatory rights to terminate contracts with us or our business partners for convenience, in which case we may not be able to collect fees for products or services delivered, or due to a default, in which case we may be liable for replacement costs incurred by the customer."},{"id":"e31","sourceId":"filing-1","location":"Revenue recognition: remix rights and additional product rights","excerpt":"In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement."}],"changes":["Retain the previous narrow-moat verdict; the supplied contractual and operating evidence supports switching friction without establishing exceptional durability.","Update acquisition status: the D&E acquisition completed on February 23, 2026. Subsequent disclosures show acquisition expenses exceeding incremental revenue during the reported periods.","Add actual proxy disclosures supporting assessment of incentives and governance, while weighing the export-control plea agreement and paid penalties as realized adverse evidence.","Retain the conclusion that revenue growth and recurring revenue do not isolate realized pricing."],"limitations":["All supplied evidence comes from issuer filings. Contract terms and reported operating outcomes support numerical assessments, while claims of leadership, essentiality and AI differentiation do not independently establish competitive superiority.","No product-market competitors are named in the supplied competition passages. Competitor arrays are empty; acquisition targets, compensation peers and financial counterparties are not treated as established product competitors.","No realized price changes, comparable-product pricing, discount trends or price-volume decomposition are supplied.","Retention is assessed indirectly from existing-customer investment, typical renewals and contractual arrangements. Recurring revenue is an accounting classification, not a measured retention rate; acquired-intangible retention assumptions are not realized company-wide retention.","The passages do not quantify migration costs, competitive win rates or long-term market-share stability. They do not establish network effects, a relative cost advantage or efficient scale.","Actual awards, ownership guidelines and director compliance are disclosed, but executive beneficial ownership and full award outcomes are not established. Proposed plan amendments are not treated as adopted or vested awards.","Source dates are filing dates, retaining dateKind=filed. The latest supplied filing is dated July 29, 2026; the disclosed November 2026 trade-rule suspension expiration is a scheduled condition, not an observed subsequent event."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Design-specific IP, multiyear software access, updates, customer training and some non-cancelable commitments jointly support meaningful switching friction. Existing-customer investment provides operating corroboration. Relative migration costs and competitor superiority remain unquantified.","evidenceIds":["e1","e2","e3","e4","e5","e6"]},{"criterion":"durability","grade":2,"rationale":"Multiyear contracts and persistent recurring demand provide demonstrated continuity. Durability beyond renewal cycles is mixed because technology must evolve and stronger competing vendors have emerged; exceptional long-term protection is not established.","evidenceIds":["e1","e2","e8","e9","e10"]},{"criterion":"customer_dependency","grade":3,"rationale":"Existing customers continued investing, short-term arrangements are typically renewed, and some customers make non-cancelable commitments. These support strong repeat demand and workflow dependence indirectly, without establishing a retention percentage or exclusive reliance.","evidenceIds":["e3","e4","e6","e7","e8"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Customer investment and a stable recurring-revenue profile demonstrate continuing demand despite challenges. Export restrictions have caused actual harm, while stronger vendors and competing AI remain prospective erosion risks rather than demonstrated displacement.","evidenceIds":["e6","e8","e9","e10","e11"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":null,"rationale":"Reported revenue growth reflects customer investment across software, hardware and IP but does not separate prices from volume or mix. No observed pricing outcome can be established.","evidenceIds":["e6"]},{"criterion":"retention","grade":3,"rationale":"Existing-customer investment, typically renewed short-term software arrangements and multiyear commitments demonstrate repeat demand. Assessment is indirect; recurring-revenue percentages are not renewal rates, and valuation retention assumptions are excluded as realized evidence.","evidenceIds":["e1","e3","e6","e7","e8","e28"]},{"criterion":"margin_resilience","grade":2,"rationale":"Half-year operating margin increased from 24% to 29%, but the improvement primarily reflects the prior-year settlement charge. Acquisitions generated expenses exceeding incremental revenue. Results support mixed resilience without establishing price-led margin protection.","evidenceIds":["e12","e13","e26"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Some fixed-dollar, non-cancelable commitments protect contracted spending. Multiyear access and updates, customer remix rights and public-sector termination rights constrain flexibility. These are mixed contractual protections; unilateral repricing authority is not disclosed.","evidenceIds":["e1","e3","e30","e31"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Actual repurchases and improved operating cash flow show capital deployment and cash generation. Rising stock compensation, increased borrowing costs, acquisition expense drag and paid settlement penalties offset those positives. Acquisition returns and net dilution outcomes are not sufficiently established for a strong grade.","evidenceIds":["e13","e14","e15","e16","e17","e25"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Actual grants include operating-income PSUs, relative-return PSUs and long-term equity awards. Hedging restrictions and demonstrated director ownership compliance support alignment. Large award values and rising stock compensation complicate the assessment; executive ownership and realized long-term award outcomes are missing.","evidenceIds":["e15","e19","e20","e21","e22","e23"]},{"criterion":"execution","grade":3,"rationale":"GAAP operating income increased from $779 million in 2021 to $1.492 billion in 2025, alongside 2025 revenue growth, existing-customer investment and reported hardware customer additions. These demonstrate strong operating execution, although acquisition expense drag and the export-control settlement prevent an exceptional assessment. Customer achievements are issuer-reported.","evidenceIds":["e6","e13","e18","e24","e25","e26","e27"]},{"criterion":"governance","grade":2,"rationale":"An independent chair, predominantly independent board, independent committees and substantial shareholder rights provide meaningful formal safeguards. The export-control plea agreement and $140.6 million of paid penalties demonstrate a material historical compliance failure, making the overall record mixed.","evidenceIds":["e19","e24","e25"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"6fcba61ca165b102b8cd2c2a005e8ab60aecab3c6cceb45317e59126990d2665","updatedAt":"2026-10-18T12:57:00.986Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367226000016/cdns-20251231.htm","publishedAt":"2026-02-19","sha256":"cca06b1d572a5a869f515efd788219faa8c28c4893caf4a80b81f810558bac2c","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367226000092/cdns-20260630.htm","publishedAt":"2026-07-29","sha256":"d9d8aab649bce680af87118dbe06ef614589a25f0af155de01e4fa8d5832522f","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/813672/000119312526124264/d932644ddef14a.htm","publishedAt":"2026-03-25","sha256":"7eb987317919918a8ac47cbd65b395e083dcb83f703abfdf7d5e57bd845a6e27","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367225000024/cdns-20241231.htm","publishedAt":"2025-02-21","sha256":"3b47e4bc78a2564d162871d341c4c375b4f39886cf9e413d00d25da17ed18202","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367224000034/cdns-20231231.htm","publishedAt":"2024-02-14","sha256":"6379305d48ecb19829714797bd94e0bcecf5368dff02b1993f626e6bf20a9fe1","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367226000047/cdns-20260331.htm","publishedAt":"2026-05-01","sha256":"fe51cbb529e98bd632a1d61c556130bce18295b7ab61ef03ba22c782cc14262a","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:ebb21d17d96564348d8f3ca0e9fd0e58a8480d85da19cccc1f251c902352b784","usage":{"input_tokens":85762,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3753,"reasoning_output_tokens":403},"basisSupplement":{"previousHash":"4d76920de77172920e18a0c1256994a792b50975f8e3015cf70cbaa3bee62cf1","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2021","end":"2022-01-01","values":{"gross_margin":null,"operating_margin":26.071800027039295,"roic":null,"fcf_margin":34.657812414247296,"sbc_revenue":7.030550383435891},"issues":{"ev_sales":"Reported borrowing balances are unavailable in the extracted statements for this period.","ev_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roiic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_equity":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_assets":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_fcf":"Reported borrowing balances are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":null,"operating_margin":30.1451715155439,"roic":null,"fcf_margin":31.408410211027377,"sbc_revenue":7.592936891691034},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roiic":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":null,"operating_margin":30.59240300578046,"roic":36.58034622444325,"fcf_margin":30.485165474894043,"sbc_revenue":7.9611763952248245},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2024","end":"2024-12-31","values":{"gross_margin":null,"operating_margin":29.10334339955667,"roic":null,"fcf_margin":24.08845952309543,"sbc_revenue":8.429147749406196},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","ev_sales":"Reported borrowing balances are unavailable in the extracted statements for this period.","ev_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roiic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_equity":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_assets":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_fcf":"Reported borrowing balances are unavailable in the extracted statements for this period."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":null,"operating_margin":28.168961434718852,"roic":null,"fcf_margin":29.96001894743559,"sbc_revenue":8.59346253057766},"issues":{"ev_sales":"Reported borrowing balances are unavailable in the extracted statements for this period.","ev_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roiic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_equity":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_assets":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_fcf":"Reported borrowing balances are unavailable in the extracted statements for this period."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367226000016/cdns-20251231.htm","publishedAt":"2026-02-19","sha256":"cca06b1d572a5a869f515efd788219faa8c28c4893caf4a80b81f810558bac2c","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367226000092/cdns-20260630.htm","publishedAt":"2026-07-29","sha256":"d9d8aab649bce680af87118dbe06ef614589a25f0af155de01e4fa8d5832522f","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/813672/000119312526124264/d932644ddef14a.htm","publishedAt":"2026-03-25","sha256":"7eb987317919918a8ac47cbd65b395e083dcb83f703abfdf7d5e57bd845a6e27","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367225000024/cdns-20241231.htm","publishedAt":"2025-02-21","sha256":"3b47e4bc78a2564d162871d341c4c375b4f39886cf9e413d00d25da17ed18202","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367224000034/cdns-20231231.htm","publishedAt":"2024-02-14","sha256":"6379305d48ecb19829714797bd94e0bcecf5368dff02b1993f626e6bf20a9fe1","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/813672/000081367226000047/cdns-20260331.htm","publishedAt":"2026-05-01","sha256":"fe51cbb529e98bd632a1d61c556130bce18295b7ab61ef03ba22c782cc14262a","dateKind":"filed"}],"history":[{"version":4,"updatedAt":"2026-10-18T16:49:32.080Z","verdict":"narrow","value":null},{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"narrow","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"narrow","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}