CDNSMEDIUM SIGNALFINANCIAL10-K

Cadence delivered strong operational performance with 37% operating cash flow growth and 14% revenue increase, while significantly ramping up shareholder returns through 68% higher share buybacks.

The combination of strong cash generation and aggressive capital returns signals management's confidence in the business and commitment to shareholder value creation. However, the 53% increase in interest expense suggests rising debt levels that warrant monitoring, though this appears manageable given the robust cash flow growth.

Comparing 2026-02-19 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

Cadence showed broad-based financial strength with revenue growing 14% to $5.3B and operating cash flow surging 37% to $1.7B, demonstrating improved operational efficiency. The company significantly increased shareholder returns with share buybacks jumping 68% to $925M, contributing to a 17% increase in stockholders' equity despite fewer shares outstanding. While interest expense rose 53% indicating higher debt levels, the strong cash generation and healthy balance sheet growth (total assets up 13% with cash increasing to $3.0B) suggest the company is successfully investing for growth while maintaining financial flexibility.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+68.2%
$550.0M$925.0M

Share repurchases increased 68.2% — management returning capital, signals confidence in intrinsic value.

Interest Expense
P&L
+53.3%
$76.0M$116.5M

Interest expense surged 53.3% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
+37.1%
$1.3B$1.7B

Operating cash flow surged 37.1% — exceptional cash generation, highest quality earnings signal.

Current Liabilities
Balance Sheet
+19.4%
$1.4B$1.6B

Current liabilities rose 19.4% — increased short-term obligations, watch current ratio.

Inventory
Balance Sheet
+17.8%
$257.7M$303.5M

Inventory built 17.8% — monitor whether demand supports this build or if write-downs may follow.

Stockholders Equity
Balance Sheet
+17.1%
$4.7B$5.5B

Equity base grew 17.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
+16.3%
$4.0B$4.7B

Current assets grew 16.3% — improving short-term liquidity or inventory/receivables build.

Revenue
P&L
+14.1%
$4.6B$5.3B

Revenue growing 14.1% — solid top-line momentum, watch margins for quality of growth.

Cash & Equivalents
Balance Sheet
+13.5%
$2.6B$3.0B

Cash grew 13.5% — improving liquidity position supports investment and shareholder returns.

Total Assets
Balance Sheet
+13.1%
$9.0B$10.2B

Asset base grew 13.1% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-21
ADDED
On January 31, 2026, approximately 272,651,000 shares of the registrant s common stock, $0.01 par value, were outstanding.
Overview Cadence is a global technology leader that develops computational, AI-driven software, accelerated hardware, and silicon intellectual property ( IP ) products and solutions.
Our customers include semiconductor companies that design and manufacture integrated circuits ( ICs ), as well as systems companies that design and manufacture electromechanical systems containing various types of semiconductor and other electronics.
Our products and solutions empower our customers to design and verify and bring to life new and innovative products.
Our mission is to empower the world s most innovative companies to deliver extraordinary electronic products that drive the global economy and improve everyday life.
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REMOVED
On January 31, 2025, approximately 274,108,000 shares of the registrant s common stock, $0.01 par value, were outstanding.
Overview Cadence is a global market leader that develops computational, AI-driven software, accelerated hardware, and intellectual property ( IP ) solutions for engineers and scientists to bring new and innovative products to life.
The world s most innovative technology companies use our solutions and services to deliver transformational products to multiple industries that drive the global economy.
The products these companies develop are some of the most complex systems in the world.
Since our inception, we have been at the forefront of technology innovation.
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