cdns-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________

FORM 10-Q

_____________________________________

(Mark One)


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-15867

_____________________________________

CADENCE DESIGN SYSTEMS, INC.

(Exact Name of Registrant as Specified in Its Charter)

_____________________________________

Delaware

00-0000000

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer
Identification No.)

2655 Seely Avenue, Building 5,

San Jose,

California

95134

(Address of Principal Executive Offices)

(Zip Code)

(408) 943-1234

Registrant’s Telephone Number, including Area Code

_____________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

CDNS

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Smaller Reporting Company

☐

Non-accelerated Filer

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On March 31, 2026, approximately 275,816,000 shares of the registrant’s common stock, $0.01 par value, were outstanding.

CADENCE DESIGN SYSTEMS, INC.

INDEX


		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements:

	Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025	1

	Condensed Consolidated Income Statements for the three months ended March 31, 2026 and March 31, 2025	2

	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and March 31, 2025	3

	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2026 and March 31, 2025	4

	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and March 31, 2025	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32

Item 4.	Controls and Procedures	34

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	35

Item 1A.	Risk Factors	35

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

Item 3.	Defaults Upon Senior Securities	37

Item 4.	Mine Safety Disclosures	37

Item 5.	Other Information	37

Item 6.	Exhibits	38

	Signatures	40

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CADENCE DESIGN SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)


	As of
	March 31, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	1,406,668	$	3,001,317
Receivables, net	1,033,814		944,939
Inventories	317,951		303,545
Prepaid expenses and other	421,967		419,872
Total current assets	3,180,400		4,669,673
Property, plant and equipment, net	536,903		517,004
Goodwill	4,929,581		2,749,143
Acquired intangibles, net	1,933,262		718,223
Deferred taxes	843,209		917,733
Other assets	674,999		581,372
Total assets	$	12,098,354	$	10,153,148
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Revolving credit facility	$	425,000	$	—

Accounts payable and accrued liabilities	863,910		856,856
Current portion of deferred revenue	873,598		778,435
Total current liabilities	2,162,508		1,635,291
Long-term liabilities:
Long-term portion of deferred revenue	146,574		155,997
Long-term debt	2,481,170		2,480,150
Other long-term liabilities	746,639		407,529
Total long-term liabilities	3,374,383		3,043,676
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock and capital in excess of par value	5,700,929		4,719,443
Treasury stock, at cost	(6,535,792)		(6,344,213)
Retained earnings	7,436,416		7,100,756
Accumulated other comprehensive loss	(40,090)		(1,805)
Total stockholders’ equity	6,561,463		5,474,181
Total liabilities and stockholders’ equity	$	12,098,354	$	10,153,148

See notes to condensed consolidated financial statements.

CADENCE DESIGN SYSTEMS, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

March 31,
2026

March 31,
2025

Revenue:

Product and maintenance

SEC Form 10-Q filed by Cadence Design Systems Inc.