Cadence Design Systems' third-quarter revenue rose 22% year over year to $1.63 billion, just above guidance. The bigger news: management raised its 2026 revenue guide by about $100 million, roughly 4 times the quarter's beat, and guided fourth-quarter sales about 5% above our prior forecast.
With limited competition and products that are essential to the semiconductor industry, which generates more than $500 billion in annual revenue, Cadence’s moat is wide and durable.
The market is already giving Cadence full credit for the upcoming growth cycle. Any hiccups along the way will lead to declines in valuation.
Metric | CDNS | SIE | SNPS |
|---|---|---|---|
Price/Earnings (Normalized) | 53.20 | 26.26 | 33.02 |
Price/Book Value | 13.24 | 3.07 | 2.83 |
Price/Sales | 14.85 | 2.63 | 9.33 |
Price/Cash Flow | 39.94 | 17.89 | 29.46 |
Metric | CDNS | SIE | SNPS |
|---|---|---|---|
Quick Ratio | 1.04 | 1.14 | 0.99 |
Current Ratio | 1.36 | 1.44 | 1.34 |
Interest Coverage | 15.04 | 6.49 | 2.97 |
Metric | CDNS | SIE | SNPS |
|---|---|---|---|
Return on Assets (Normalized) | 15.24% | 5.28% | 5.58% |
Return on Equity (Normalized) | 27.63% | 13.71% | 8.97% |
Return on Invested Capital (Normalized) | 19.72% | 6.47% | 7.42% |
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