How does Cadence Design Systems (CDNS) make money?

Cadence Design Systems (CDNS) generates revenue primarily from Product and maintenance, which accounted for 91.1% of total revenue in TTM through Q2 2026. The company reported $5.84B in revenue and converted 23.6% of it into net profit, equivalent to roughly $1.38B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Cadence Design Systems (CDNS)?

Cadence Design Systems (CDNS) reported a gross profit margin of 88.5% in TTM through Q2 2026, equivalent to $5.17B in gross profit on $5.84B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Cadence Design Systems (CDNS)?

Cadence Design Systems (CDNS) reported an operating profit margin of 30.8% in TTM through Q2 2026, equivalent to $1.8B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Cadence Design Systems (CDNS)?

Cadence Design Systems (CDNS) reported a net profit margin of 23.6% in TTM through Q2 2026, equivalent to $1.38B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Cadence Design Systems (CDNS) profitable?

Yes. Cadence Design Systems (CDNS) reported $1.38B in net income for TTM through Q2 2026, with a net profit margin of 23.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Cadence Design Systems (CDNS) invest in research and development?

Cadence Design Systems (CDNS) invested $1.93B in research and development during TTM through Q2 2026, roughly 33.0% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Cadence Design Systems (CDNS) spend on capital expenditures?

Cadence Design Systems (CDNS) spent $176M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 3.0% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Cadence Design Systems (CDNS) generate?

Cadence Design Systems (CDNS) generated $1.68B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 28.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Cadence Design Systems (CDNS)?

Cadence Design Systems (CDNS) had an effective tax rate of 24.5% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Cadence Design Systems (CDNS)?

Cadence Design Systems (CDNS) reports revenue across 2 reportable product segments, led by Product & Maintenance at 91.1% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Cadence Design Systems (CDNS) generate most of its revenue?

UNITED STATES is the largest geographic market for Cadence Design Systems (CDNS), accounting for 25.7% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Cadence Design Systems Makes Money: 2026 Visual Revenue Map

Cadence Design Systems (CDNS) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 29, 2026).

Cadence Design Systems (CDNS) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Cadence Design Systems (CDNS), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Product & Maintenance	$5.32B	91.1%
Technology Service	$518M	8.9%
Total	$5.84B	100%

Product & Maintenance$5.32B
Technology Service$518M
Total$5.84B

Cadence Design Systems (CDNS) Revenue by Geography — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Cadence Design Systems (CDNS), TTM through Q2 2026
Region	Revenue (USD)	% of total
UNITED STATES	$2.98B	25.7%
Americas	$2.58B	22.3%
Asia	$2.19B	18.9%
Other Asia	$1.38B	11.9%
CHINA	$985M	8.5%
EMEA	$879M	7.6%
JAPAN	$385M	3.3%
Other America	$207M	1.8%
Total	$11.6B	100%

UNITED STATES
Americas
Asia
Other Asia
CHINA
EMEA
JAPAN
Other America
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Cadence Design Systems (CDNS) reports revenue across 2 reportable product segments; the largest segment was Product & Maintenance at 91.1%, followed by Technology Service (8.9%). Geographically, UNITED STATES accounted for 25.7% of revenue, followed by Americas (22.3%) and Asia (18.9%).

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