Net Profit Margin
since 2005
Calculation
Cadence Design Systems Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 20.94% | = | 100 | × | 1,108,888) | ÷ | 5,296,759) |
| Dec 31, 2024 | 22.74% | = | 100 | × | 1,055,484) | ÷ | 4,641,264) |
| Dec 31, 2023 | 25.46% | = | 100 | × | 1,041,144) | ÷ | 4,089,986) |
| Dec 31, 2022 | 23.84% | = | 100 | × | 848,952) | ÷ | 3,561,718) |
| Dec 31, 2021 | 23.29% | = | 100 | × | 695,955) | ÷ | 2,988,244) |
| Dec 31, 2020 | 22.02% | = | 100 | × | 590,644) | ÷ | 2,682,891) |
| Dec 28, 2019 | 42.33% | = | 100 | × | 988,979) | ÷ | 2,336,319) |
| Dec 29, 2018 | 16.17% | = | 100 | × | 345,777) | ÷ | 2,138,022) |
| Dec 30, 2017 | 10.50% | = | 100 | × | 204,101) | ÷ | 1,943,032) |
| Dec 31, 2016 | 11.18% | = | 100 | × | 203,086) | ÷ | 1,816,083) |
| Dec 31, 2015 | 14.83% | = | 100 | × | 252,417) | ÷ | 1,702,091) |
| Dec 31, 2014 | 10.05% | = | 100 | × | 158,898) | ÷ | 1,580,932) |
| Dec 28, 2013 | 11.25% | = | 100 | × | 164,243) | ÷ | 1,460,116) |
| Dec 29, 2012 | 33.17% | = | 100 | × | 439,948) | ÷ | 1,326,424) |
| Dec 31, 2011 | 6.28% | = | 100 | × | 72,229) | ÷ | 1,149,835) |
| Dec 31, 2010 | 13.52% | = | 100 | × | 126,538) | ÷ | 935,954) |
| Dec 31, 2009 | -17.58% | = | 100 | × | (149,871) | ÷ | 852,632) |
| Dec 31, 2008 | -178.51% | = | 100 | × | (1,854,038) | ÷ | 1,038,614) |
| Dec 29, 2007 | 18.34% | = | 100 | × | 296,252) | ÷ | 1,615,013) |
| Dec 30, 2006 | 9.61% | = | 100 | × | 142,592) | ÷ | 1,483,895) |
| Dec 31, 2005 | 3.71% | = | 100 | × | 49,343) | ÷ | 1,329,192) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The net profit margin exhibited significant fluctuations over the observed period, spanning from 2005 to 2025. Initially, the margin demonstrated a strong upward trend, followed by a period of substantial volatility and a subsequent recovery culminating in a relatively stable position in recent years.
- Initial Growth (2005-2007)
- From 2005 to 2007, the net profit margin increased consistently, rising from 3.71% to 18.34%. This indicates improving profitability during this period, potentially driven by revenue growth and effective cost management. The increase suggests a strengthening competitive position or successful product launches.
- Significant Volatility (2008-2010)
- The years 2008 through 2010 were marked by extreme volatility. A dramatic decline occurred in 2008, with the margin plummeting to -178.51%, reflecting a substantial net loss. This was followed by another negative margin in 2009 (-17.58%), before a recovery to 13.52% in 2010. The 2008 result likely reflects a significant adverse event impacting revenue or incurring substantial costs.
- Recovery and Moderate Fluctuations (2011-2016)
- Following 2010, the net profit margin stabilized somewhat, fluctuating between approximately 6.28% and 14.83% from 2011 to 2016. While not exhibiting the strong growth of the 2005-2007 period, this represents a return to profitability and a more predictable financial performance. The range suggests some sensitivity to operational factors or market conditions.
- Recent Performance and Peak (2017-2023)
- From 2017 to 2023, the net profit margin generally trended upwards, reaching a peak of 42.33% in 2019. This period demonstrates a strong improvement in profitability, potentially due to increased demand for products or services, improved operational efficiency, or favorable pricing strategies. The margin remained strong through 2023, fluctuating between 22.02% and 25.46%.
- Recent Stabilization (2024-2025)
- The most recent two years, 2024 and 2025, show a slight decrease and stabilization of the net profit margin, at 22.74% and 20.94% respectively. While still representing healthy profitability, this suggests a potential plateauing of growth or increased cost pressures. Further investigation would be needed to determine the underlying causes of this recent trend.
Overall, the net profit margin demonstrates a complex history. While significant volatility was experienced, particularly around 2008, the company has demonstrated an ability to recover and achieve substantial profitability in more recent years. The recent stabilization warrants monitoring to assess whether it represents a temporary fluctuation or a longer-term trend.
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Comparison to Competitors
Cadence Design Systems Inc., net profit margin, long-term trends, comparison to competitors
| Cadence Design Systems Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 20.94% | 11.02% | 30.00% | 60.83% | -0.49% | 3.14% | 15.69% | 20.55% | 36.15% | 21.68% | 36.31% | 12.30% | 16.35% | 13.16% | 18.89% | 6.23% |
| Dec 31, 2024 | 22.74% | 11.19% | 25.85% | 33.55% | 2.92% | 6.85% | 9.60% | 18.19% | 35.96% | 19.76% | 16.13% | 32.11% | 11.87% | 12.97% | 36.94% | 19.02% |
| Dec 31, 2023 | 25.46% | 10.72% | 27.97% | 10.87% | -8.18% | 2.28% | 12.13% | 16.59% | 34.15% | 17.02% | 9.43% | 6.38% | 0.66% | 19.30% | 21.05% | -5.90% |
| Dec 31, 2022 | 23.84% | 11.17% | 27.01% | -6.84% | -16.18% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 19.38% | 0.57% |
| Dec 31, 2021 | 23.29% | 11.69% | 30.55% | 1.27% | -10.59% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Dec 31, 2020 | 22.02% | 11.52% | 40.88% | — | -29.45% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Dec 28, 2019 | 42.33% | 11.06% | 26.42% | — | — | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
| Dec 29, 2018 | 16.17% | 9.76% | 28.69% | — | — | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | 13.86% | -14.99% |
| Dec 30, 2017 | 10.50% | 9.37% | 23.20% | — | — | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | 5.01% | -26.01% |
| Dec 31, 2016 | 11.18% | 11.82% | 19.96% | — | — | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Dec 31, 2015 | 14.83% | 9.28% | 13.13% | — | — | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Dec 31, 2014 | 10.05% | 9.23% | 6.47% | — | — | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Dec 28, 2013 | 11.25% | 10.80% | 7.15% | — | — | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Dec 29, 2012 | 33.17% | 8.58% | 18.91% | — | — | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Dec 31, 2011 | 6.28% | 8.33% | 19.75% | — | — | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Dec 31, 2010 | 13.52% | 7.71% | 20.39% | — | — | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Dec 31, 2009 | -17.58% | 6.86% | 13.12% | — | — | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
| Dec 31, 2008 | -178.51% | 6.68% | 24.35% | — | — | — | 11.90% | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | 14.21% | — |
| Dec 29, 2007 | 18.34% | 5.79% | 22.92% | — | — | — | 10.55% | 16.46% | 27.51% | 23.75% | — | — | 0.10% | — | 10.76% | — |
| Dec 30, 2006 | 9.61% | 5.34% | 19.64% | — | — | — | 10.38% | 17.80% | 28.45% | 23.51% | — | — | 9.19% | — | 2.26% | — |
| Dec 31, 2005 | 3.71% | 5.50% | 30.66% | — | — | — | 8.71% | 18.73% | 30.80% | 24.46% | — | — | 4.16% | — | -1.56% | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Cadence Design Systems Inc., net profit margin, long-term trends, comparison to sector (software & services)
| Cadence Design Systems Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2025 | 20.94% | 26.02% |
| Dec 31, 2024 | 22.74% | 24.71% |
| Dec 31, 2023 | 25.46% | 21.78% |
| Dec 31, 2022 | 23.84% | 21.43% |
| Dec 31, 2021 | 23.29% | 25.04% |
| Dec 31, 2020 | 22.02% | 20.02% |
| Dec 28, 2019 | 42.33% | 21.61% |
| Dec 29, 2018 | 16.17% | 12.10% |
| Dec 30, 2017 | 10.50% | 15.36% |
| Dec 31, 2016 | 11.18% | 16.49% |
| Dec 31, 2015 | 14.83% | 14.57% |
| Dec 31, 2014 | 10.05% | 18.21% |
| Dec 28, 2013 | 11.25% | 20.55% |
| Dec 29, 2012 | 33.17% | 18.62% |
| Dec 31, 2011 | 6.28% | 20.48% |
| Dec 31, 2010 | 13.52% | 19.41% |
| Dec 31, 2009 | -17.58% | 17.17% |
| Dec 31, 2008 | -178.51% | 16.67% |
| Dec 29, 2007 | 18.34% | 15.91% |
| Dec 30, 2006 | 9.61% | 15.65% |
| Dec 31, 2005 | 3.71% | 15.06% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Cadence Design Systems Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Cadence Design Systems Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2025 | 20.94% | 25.77% |
| Dec 31, 2024 | 22.74% | 20.64% |
| Dec 31, 2023 | 25.46% | 20.33% |
| Dec 31, 2022 | 23.84% | 22.35% |
| Dec 31, 2021 | 23.29% | 23.54% |
| Dec 31, 2020 | 22.02% | 19.65% |
| Dec 28, 2019 | 42.33% | 19.85% |
| Dec 29, 2018 | 16.17% | 18.58% |
| Dec 30, 2017 | 10.50% | 17.86% |
| Dec 31, 2016 | 11.18% | 17.79% |
| Dec 31, 2015 | 14.83% | 18.38% |
| Dec 31, 2014 | 10.05% | 19.38% |
| Dec 28, 2013 | 11.25% | 20.21% |
| Dec 29, 2012 | 33.17% | 20.08% |
| Dec 31, 2011 | 6.28% | 20.68% |
| Dec 31, 2010 | 13.52% | 20.24% |
| Dec 31, 2009 | -17.58% | 14.53% |
| Dec 31, 2008 | -178.51% | 15.21% |
| Dec 29, 2007 | 18.34% | 15.81% |
| Dec 30, 2006 | 9.61% | 16.24% |
| Dec 31, 2005 | 3.71% | 16.66% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).