The series is stated in the current share scale after splits; dividends are not included in the price
Cadence is the second of the two chip-design tool vendors, operating in the same near-closed market.
The tools cover the whole path from logic to die layout and sign-off verification before manufacturing. As with its competitor, value lies in trust and in engineers' habits: verification methodologies are certified by the foundry, and switching environments means requalifying from scratch.
A separate line is multiphysics simulation: heat, electromagnetics, mechanics. It widens the market beyond chips to whole systems — boards, enclosures, automotive electronics — and grows faster than the core.
The model is subscription-based, revenue is predictable, margins are high and capital needs minimal. Risks: export controls on China, customer investment cycles and competition for engineers. The company pays no dividend, directing cash into buybacks.
Based on the last 12 months of reports, through 30 June 2026
The sector median covers every company in the sector on the US market, loss-making ones included.
