CDNS Cadence Design Systems margins

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Relative Growth: Rel. Growth: 95
Relative Strength: Rel. Strength: 59
Relative Valuation: Rel. Valuation: 16
Relative Profitability: Rel. Profitability: 97
Gross margin
85.9%
Operating margin
30.3%
EBITDA margin
39%
Net margin
23.6%

Based on the latest figures, Cadence Design Systems reports a gross margin of 85.9%, an operating margin of 30.3%, an EBITDA margin of 39%, and a net margin of 23.6%. EBITDA margin had the largest improvement, expanding by 4.9 percentage points, while the other available margins also increased.

CDNS margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Cadence Design Systems recorded average margins of 86.95% gross, 28.92% operating, 35.8% EBITDA, and 22.85% net. Cadence Design Systems's current performance shows that operating, EBITDA, and net margins are above their three-year averages and gross margin is below its three-year average.

CDNS margin expansion

Year-over-year margin changes in percentage points

Gross margin expanded by 0.3 percentage points, operating margin by 2.6 percentage points, EBITDA margin by 4.9 percentage points, and net margin by 3.7 percentage points, led by EBITDA margin with an increase of 4.9 percentage points.

Gross margin expansion
0.3pp
Operating margin expansion
2.6pp
EBITDA margin expansion
4.9pp
Net margin expansion
3.7pp

CDNS Gross margin

Across the last 3 years, Cadence Design Systems's gross margin came to 86.95%. The current gross margin of 85.9% is 1.1 percentage points below its three-year average. Gross margin was highest at 89.4% in Dec 2023 and lowest at 85.5% in Sep 2025.

CDNS Operating margin

Reviewing the last 3 years, Cadence Design Systems recorded an average operating margin of 28.92%. Cadence Design Systems's current operating margin is 30.3% and is 1.4 percentage points above its three-year average. The highest operating margin for Cadence Design Systems was 30.6% in Dec 2023, while the lowest was 27.7% in Jun 2025.

CDNS EBITDA margin

Over the last 3 years, the average EBITDA margin for Cadence Design Systems was 35.8%. Against its three-year average, Cadence Design Systems's EBITDA margin is currently 39%, 3.2 percentage points above its three-year average. Cadence Design Systems's EBITDA margin ranged from a low of 34.1% in Jun 2025 to a high of 39% in Jun 2026.

CDNS Net margin

The average net margin for Cadence Design Systems was 22.85% in the last 3 years. Currently, the current net margin for Cadence Design Systems is 23.6%, 0.8 percentage points above its three-year average. The net margin for Cadence Design Systems moved between 19.9% in Jun 2025 and 25.7% in Mar 2024.

CDNS margin group comparison

Margins compared with peer-group, industry and sector averages

Cadence Design Systems's gross margin of 85.9% is higher than the Technology sector, the industry and its peers average. Looking at the Technology sector average of 52.1%, Cadence Design Systems's gross margin is 65% higher.

CDNS margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Cadence Design Systems's gross margin?

As of Jun 30, 2026, CDNS has a gross margin of 85.9%.

What is Cadence Design Systems's operating margin?

For the period ending Jun 30, 2026, CDNS recorded an operating margin of 30.3%.

What is Cadence Design Systems's EBITDA margin?

The current EBITDA margin for CDNS is 39% as of Jun 30, 2026.

What is Cadence Design Systems's net margin?

The current net margin for CDNS is 23.6% as of Jun 30, 2026.

What are the average margins of CDNS?

Looking back over 3 years, CDNS recorded average margins of 87.0% gross, 28.9% operating, 35.8% EBITDA, and 22.9% net.

What are the highest historical margins of CDNS?

Looking back across 5 years, CDNS reached 89.9% gross in Oct 2022, 30.8% operating in Oct 2022, 39% EBITDA in Jun 2026, and 25.7% net in Mar 2024.

What are the lowest historical margins of CDNS?

Within the 5-year period, CDNS recorded its lowest margins at 85.5% gross in Sep 2025, 26.1% operating in Jan 2022, 30.7% EBITDA in Jan 2022, and 19.9% net in Jun 2025.