CADENCE DESIGN SYSTEMS INC, 10-K filed on 2/19/2026
Annual Report
v3.25.4
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2025
Jan. 31, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 000-15867    
Entity Registrant Name CADENCE DESIGN SYSTEMS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 00-0000000    
Entity Address, Address Line One 2655 Seely Avenue, Building 5,    
Entity Address, City or Town San Jose,    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95134    
City Area Code (408)    
Local Phone Number 943-1234    
Title of 12(b) Security Common Stock, $0.01 par value per share    
Trading Symbol CDNS    
Security Exchange Name NASDAQ    
Entity Central Index Key 0000813672    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 83,968,000,000
Entity Common Stock, Shares Outstanding   272,651,000  
Current Fiscal Year End Date --12-31    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location San Jose, California
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 3,001,317 $ 2,644,030
Receivables, net 944,939 680,460
Inventories 303,545 257,711
Prepaid expenses and other 419,872 433,878
Total current assets 4,669,673 4,016,079
Property, plant and equipment, net 517,004 458,200
Goodwill 2,749,143 2,378,671
Acquired intangibles, net 718,223 594,734
Deferred taxes 917,733 982,057
Other assets 581,372 544,741
Total assets 10,153,148 8,974,482
Current liabilities:    
Accounts payable and accrued liabilities 856,856 632,692
Current portion of deferred revenue 778,435 737,413
Total current liabilities 1,635,291 1,370,105
Long-term liabilities:    
Long-term portion of deferred revenue 155,997 115,168
Long-term debt 2,480,150 2,476,183
Other long-term liabilities 407,529 339,448
Total long-term liabilities 3,043,676 2,930,799
Commitments and contingencies
Stockholders' equity:    
Preferred stock – $0.01 par value; authorized 400 shares, none issued or outstanding 0 0
Common stock – $0.01 par value; authorized 600,000 shares; issued and outstanding shares: 271,799 and 273,851, respectively 4,719,443 4,181,737
Treasury stock, at cost; 59,101 shares and 57,049 shares, respectively (6,344,213) (5,309,579)
Retained earnings 7,100,756 5,991,868
Accumulated other comprehensive loss (1,805) (190,448)
Total stockholders’ equity 5,474,181 4,673,578
Total liabilities and stockholders’ equity $ 10,153,148 $ 8,974,482
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock par value (in usd per share) $ 0.01 $ 0.01
Preferred stock shares authorized (in shares) 400 400
Preferred stock, shares outstanding (in shares) 0 0
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 600,000 600,000
Common stock shares issued (in shares) 271,799 273,851
Common stock shares outstanding (in shares) 271,799 273,851
Treasury Stock, Common, Shares 59,101 57,049
v3.25.4
Consolidated Income Statements - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue:      
Total revenue $ 5,296,759 $ 4,641,264 $ 4,089,986
Costs and expenses:      
Marketing and sales 802,633 757,483 690,319
Research and development 1,768,772 1,549,093 1,441,796
General and administrative 313,387 273,961 242,430
Amortization of acquired intangibles 39,937 30,375 18,162
Loss related to contingent liability 128,545 8,322 0
Restructuring 29,194 23,765 11,013
Total costs and expenses 3,804,717 3,290,501 2,838,761
Income from operations 1,492,042 1,350,763 1,251,225
Interest expense (116,541) (75,999) (36,185)
Other income, net 146,542 121,055 66,886
Income before provision for income taxes 1,522,043 1,395,819 1,281,926
Provision for income taxes 413,155 340,335 240,782
Net income $ 1,108,888 $ 1,055,484 $ 1,041,144
Net income per share - basic (in usd per share) $ 4.09 $ 3.89 $ 3.86
Net income per share - diluted (in usd per share) $ 4.06 $ 3.85 $ 3.82
Weighted average common shares outstanding - basic (shares) 271,333 271,212 269,381
Weighted average common shares outstanding - diluted (shares) 273,312 273,833 272,748
Product and maintenance      
Revenue:      
Total revenue $ 4,821,589 $ 4,213,509 $ 3,834,359
Costs and expenses:      
Cost of sales 518,673 436,600 331,760
Services      
Revenue:      
Total revenue 475,170 427,755 255,627
Costs and expenses:      
Cost of sales $ 203,576 $ 210,902 $ 103,281
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 1,108,888 $ 1,055,484 $ 1,041,144
Other comprehensive income (loss), net of tax effects:      
Foreign currency translation adjustments 192,877 (87,933) (4,815)
Changes in defined benefit plan liabilities (5,846) (239) 1,566
Unrealized losses on derivatives designated as hedging instruments 0 (7,038) 0
Reclassification of losses on derivatives designated as hedging instruments 607 0 0
Unrealized gains (losses) on investments 1,005 (484) 132
Total other comprehensive income (loss), net of tax effects 188,643 (95,694) (3,117)
Comprehensive income $ 1,297,531 $ 959,790 $ 1,038,027
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock, Shares
Common Stock, Par Value and Capital in Excess of Par
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Beginning balance, shares at Dec. 31, 2022   272,675        
Beginning balance at Dec. 31, 2022 $ 2,745,113   $ 2,765,673 $ (3,824,163) $ 3,895,240 $ (91,637)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 1,041,144       1,041,144  
Other comprehensive loss, net of taxes $ (3,117)         (3,117)
Purchase of treasury stock, shares (3,145) [1] (3,145)        
Purchase of treasury stock $ (641,041)     641,041    
Equity forward contract (60,000)   1,688 (61,688)    
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares   2,704        
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, value 132,957   97,050 35,907    
Stock received for payment of employee taxes on vesting of restricted stock, shares   (528)        
Stock received for payment of employee taxes on vesting of restricted stock, value (136,396)   (23,058) (113,338)    
Stock-based compensation expense 325,611   325,611      
Ending balance, shares at Dec. 31, 2023   271,706        
Ending balance at Dec. 31, 2023 3,404,271   3,166,964 (4,604,323) 4,936,384 (94,754)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 1,055,484       1,055,484  
Other comprehensive loss, net of taxes $ (95,694)         (95,694)
Purchase of treasury stock, shares (1,930) (1,930)        
Purchase of treasury stock $ (550,026)     (550,026)    
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares   3,035        
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, value 204,237   154,233 50,004    
Stock Issued During Period, Shares, Acquisitions   1,741        
Stock Issued During Period, Value, Acquisitions 501,824   501,824      
Stock received for payment of employee taxes on vesting of restricted stock, shares   (701)        
Stock received for payment of employee taxes on vesting of restricted stock, value (237,737)   (32,503) (205,234)    
Stock-based compensation expense $ 391,219   391,219      
Ending balance, shares at Dec. 31, 2024 273,851 273,851        
Ending balance at Dec. 31, 2024 $ 4,673,578   4,181,737 (5,309,579) 5,991,868 (190,448)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 1,108,888       1,108,888  
Other comprehensive loss, net of taxes $ 188,643         188,643
Purchase of treasury stock, shares (3,165) (3,165)        
Purchase of treasury stock $ (928,162)     (928,162)    
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares   1,477        
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, value 145,901   138,723 7,178    
Stock received for payment of employee taxes on vesting of restricted stock, shares   (364)        
Stock received for payment of employee taxes on vesting of restricted stock, value (169,842)   (56,192) (113,650)    
Stock-based compensation expense $ 455,175   455,175      
Ending balance, shares at Dec. 31, 2025 271,799 271,799        
Ending balance at Dec. 31, 2025 $ 5,474,181   $ 4,719,443 $ (6,344,213) $ 7,100,756 $ (1,805)
[1] Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023, and excludes $0.9 million of excise tax.
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Cash Flows [Abstract]      
Cash and cash equivalents at beginning of year $ 2,644,030 $ 1,008,152 $ 882,325
Cash flows from operating activities:      
Net income 1,108,888 1,055,484 1,041,144
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 227,828 196,935 145,292
Stock-based compensation 455,175 391,219 325,611
Gain on divestitures and investments, net (69,089) (49,593) (34,602)
Deferred income taxes 66,048 (128,737) (36,512)
ROU asset amortization and change in operating lease liabilities 6,016 (1,920) 451
Other non-cash items 7,166 6,138 6,570
Changes in operating assets and liabilities, net of effect of acquired businesses:      
Receivables (274,894) (180,287) (11,748)
Inventories (91,029) (82,771) (65,895)
Prepaid expenses and other 43,382 (81,529) 39,015
Other assets (18,569) 11,866 (45,784)
Accounts payable and accrued liabilities 184,897 33,676 5,415
Deferred revenue 69,411 66,478 (21,583)
Other long-term liabilities 13,551 23,592 1,802
Net cash provided by operating activities 1,728,781 1,260,551 1,349,176
Cash flows from investing activities:      
Purchases of investments (40,895) (4,982) (176,170)
Proceeds from the sale and maturity of investments 140,281 47,980 64,775
Proceeds from the sale of IP and other assets 11,500 0 0
Purchases of property, plant and equipment (141,871) (142,542) (102,337)
Purchases of intangible assets 0 0 (166)
Cash paid in business combinations, net of cash acquired (429,538) (737,574) (198,351)
Net cash used for investing activities (460,523) (837,118) (412,249)
Cash flows from financing activities:      
Proceeds from revolving credit facility 0 0 50,000
Payments on revolving credit facility 0 0 (150,000)
Proceeds from the issuance of debt 0 3,196,595 0
Payments of debt 0 (1,350,000) 0
Payments of debt issuance costs 0 (23,828) 0
Proceeds from issuance of common stock 145,901 204,237 132,957
Stock received for payment of employee taxes on vesting of restricted stock (169,842) (237,737) (136,396)
Payments for repurchases of common stock (925,034) (550,026) (700,134)
Net cash provided by (used for) financing activities (948,975) 1,239,241 (803,573)
Effect of exchange rate changes on cash and cash equivalents 38,004 (26,796) (7,527)
Increase in cash and cash equivalents 357,287 1,635,878 125,827
Cash and cash equivalents at end of year 3,001,317 2,644,030 1,008,152
Supplemental cash flow information:      
Cash paid for interest $ 111,951 $ 43,219 $ 34,934
v3.25.4
Business Overview
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
BUSINESS OVERVIEW BUSINESS OVERVIEWCadence® is a global market leader that develops computational, AI-driven software, accelerated hardware, and IP solutions for engineers and scientists to bring new and innovative products to life. The world’s most innovative technology companies use Cadence 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 its inception, Cadence has been at the forefront of technology innovation with its customers, helping them solve their most complex challenges in the semiconductor and electronic systems industries to unlock limitless opportunities.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Certain prior year information has been reclassified to conform to the current year presentation.
Cadence’s fiscal year end is December 31, and its fiscal quarters end on March 31, June 30, and September 30.
Use of Estimates
Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Recently Adopted Accounting Standards
Income Taxes
In December 2023, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” (“ASU 2023-09”) which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. Cadence adopted this ASU prospectively during fiscal 2025. See Note 8 in the notes to the consolidated financial statements for further details.
New Accounting Standards Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires additional disclosure of certain costs and expenses in the notes to the financial statements. The updated standard is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and will be applied prospectively with the option for retrospective application. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Measurements of Credit Losses for Accounts Receivable and Contract Assets
In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets.” This ASU provides a practical expedient that allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. This standard is effective for annual and interim periods beginning after December 15, 2025. Cadence does not expect the adoption of this ASU to have a material impact on its consolidated financial statements and disclosures.
Accounting for Internal-Use Software
In September 2025, the FASB issued ASU No. 2025‑06, “Intangibles—Goodwill and Other—Internal‑Use Software (Subtopic 350‑40): Simplifying the Accounting for Internal‑Use Software.” The updated guidance changes the capitalization criteria for internal‑use software by replacing the existing stage‑based model with a principles‑based approach focused on the point at which management authorizes the software project, funding is approved, and it is probable that the software will be completed and used as intended. Costs that do not directly relate to the development of internal‑use software, such as training, data conversion, and ongoing maintenance, will continue to be expensed as incurred. This standard is effective for annual and interim periods beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted and the standard will be applied prospectively. Cadence does not expect the adoption of this ASU to have a material impact on its consolidated financial statements or disclosures.
Interim Reporting
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270) Narrow-Scope Improvements,” which provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. The guidance is effective for annual and interim periods beginning after December 15, 2027. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Foreign Operations
Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency.
Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income (expense), net, in the consolidated income statements.
Concentrations of Credit Risk
Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts.
Cash and Cash Equivalents
Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents.
Receivables
Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date.
Allowances for Doubtful Accounts
Cadence assesses its ability to collect outstanding receivables and provides customer-specific allowances, allowances for credit losses and general allowances for the portion of its receivables that are estimated to be uncollectible. The allowances are based on the current creditworthiness of its customers, historical experience, expected credit losses, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions for these allowances are recorded in general and administrative expense in Cadence’s consolidated income statements.
Inventories
Inventories are computed at standard costs which approximate actual costs and are valued at the lower of cost or net realizable value based on the first-in, first-out method. Cadence’s inventories include high technology parts and components for complex accelerated hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to manage the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term. Cadence’s policy is to reserve for inventory in excess of future demand forecasts or for other known obsolescence or realization issues. Provisions for obsolescence reserves are recorded as a component of cost of product and maintenance in Cadence’s consolidated income statements.
Property, Plant and Equipment
Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows:
Equipment and internal-use software
2-7 years
Buildings
25-32 years
Leasehold improvementsShorter of the lease term or the estimated useful life
Building improvements and land improvements
Up to 32 years
Furniture and fixtures
3-5 years
Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life. Capitalized costs were not material during fiscal 2025, 2024 or 2023.
Cadence recorded depreciation and amortization expense of $111.4 million, $96.9 million and $78.4 million during fiscal 2025, 2024 and 2023, respectively, for property, plant and equipment.
Software Development Costs
Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2025, 2024 and 2023 were not material.
Deferred Sales Commissions
Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs were $53.1 million and $51.9 million as of December 31, 2025, and December 31, 2024, respectively, and are included in other assets in Cadence’s consolidated balance sheets. Amortization of these assets was $50.0 million, $47.6 million and $41.4 million during fiscal 2025, 2024 and 2023, respectively, and is included in sales and marketing expense in Cadence’s consolidated income statements.
Goodwill
Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. To assess for impairment, Cadence compares the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired, and no further analysis is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to record an impairment charge.
Long-Lived Assets, Including Acquired Intangibles
Cadence’s long-lived assets consist of property, plant and equipment, and acquired intangibles. Acquired intangibles consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, capitalized software, and in-process research and development. These acquired intangibles are acquired through business combinations or direct purchases. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from one year to fifteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired.
Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value.
Leases
Lessee Considerations
Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to thirteen years. Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years. Renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options.
At inception of a contract, Cadence determines an arrangement contains a lease if the arrangement conveys the right to use an identified asset and Cadence obtains substantially all of the economic benefits from the asset and has the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of ASU 2016-02, “Leases (Topic 842),” Cadence combines the lease and non-lease components in determining the lease liabilities and right-of-use (“ROU”) assets. Non-lease components primarily include common-area maintenance and other management fees.
Operating lease expense is generally recognized evenly over the term of the lease. Payments under Cadence’s lease agreements are primarily fixed; however, certain agreements contain rental payments that are adjusted periodically based on changes in consumer price and other indices. Changes to payments resulting from changes in indices are expensed as incurred and not included in the measurement of lease liabilities and ROU assets. Cadence’s lease agreements do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The incremental borrowing rate represents a comparable rate to borrow on a collateralized basis over a similar term and in the economic environment where the leased asset is located.
Lessor Considerations
Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. 
Cadence’s leases range in duration up to three years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three years and are classified as sales-type leases with revenue and cost of sales recognized upon installation.
Cadence’s operating leases and sales-type leases contain both lease and non-lease components. Because the pattern of revenue recognition is the same for both the lease and non-lease components in Cadence’s operating leases, Cadence has elected the practical expedient to not separate lease and related non-lease components and accounts for both components under Topic 842. Cadence allocates value to the lease and non-lease components in its sales-type leases using standalone selling prices (“SSPs”) similar to those used under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” the current accounting standard governing revenue recognition. When Cadence leases its hardware in the same arrangement as software or IP, Cadence allocates value to each performance obligation using SSPs.
Investments in Equity Securities
Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income (expense), net in the consolidated income statements.
Cadence’s non-marketable investments include its investments in privately held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable, and Cadence does not have the ability to exercise significant influence, or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income (expense), net on a one-quarter lag in Cadence’s consolidated income statements.
Cadence reviews its non-marketable investments for impairment on a regular basis by considering investee financial performance and other information received from the investee companies that indicates a decline in value has occurred. For non-marketable equity investments accounted for using the measurement alternative, the carrying amount may also be adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments to the carrying amounts of non-marketable investments are recorded in other income (expense), net in the consolidated income statements. There were no material events or circumstances impacting the carrying amount of our non-marketable investments during the periods presented.
Investments in Debt Securities
Cadence’s investments in debt securities are comprised of investments in mortgage-backed and asset backed-securities and are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence classifies its investment in debt securities as available-for-sale, and gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on its consolidated balance sheets.
Cadence assesses its portfolio of debt securities for impairment at least quarterly. Cadence records an allowance for credit losses on debt securities when the fair value of a debt security is below its amortized cost, and it is more likely than not that Cadence will either sell the impaired security before recovery of its amortized basis or has the intention to sell the security. Provisions for credit losses on impaired debt securities are recorded as a component of other income (expense), net in the consolidated income statements.
Derivative Financial Instruments
Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income (expense), net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less.
Nonqualified Deferred Compensation Trust
Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC.
The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income (expense), net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations.
Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements.
Treasury Stock
Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded as a component of retained earnings by Cadence on the reissuance of treasury stock during fiscal 2025, 2024 or 2023.
The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. During fiscal 2025 and 2023, Cadence recorded excise tax of $3.1 million and $0.9 million, respectively, as a component of treasury stock to account for the incremental cost of the shares repurchased. Cadence did not incur any excise tax on the net value of stock repurchases during fiscal 2024.
Revenue Recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time.
Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on these licenses and sales.
Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software, hardware and services over a period of time.
Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its SSP. Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities.
Some customers enter into non-cancelable commitments whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of products or services. These arrangements do not meet the definition of a revenue contract until the customer executes a separate selection form to identify the products and services that they are purchasing. Each separate selection form under the arrangement is treated as an individual contract and accounted for based on the respective performance obligations. Cadence records a customer deposit liability for amounts received from customers prior to the arrangement meeting the definition of a revenue contract.
Software Revenue Recognition
Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement.
Multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer.
For certain software arrangements where the updates are not critical to maintaining the utility of the software, Cadence considers the license, related updates and technical support as separate performance obligations. In these instances, the total consideration is allocated across the separate performance obligations using SSPs and the license revenue is recognized upon the later of the delivery or effective date of the contract and the revenue related to the updates and technical support is recognized over the term of the arrangement.
Hardware Revenue Recognition
Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. The transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received subsequent to delivery of the hardware product. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements.
IP Revenue Recognition
Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations—transferring the licensed IP and associated maintenance, which includes rights to technical support, and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer.
Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received subsequent to delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as services revenue as described below.
Services Revenue Recognition
Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources.
Stock-Based Compensation
Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur.
The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future.
The fair value of market-based performance stock awards is calculated using a Monte Carlo simulation model and takes into account the same input assumptions as the Black-Scholes model, as well as the possibility that the market conditions may not be satisfied. Cadence recognizes stock-based compensation expense on the graded-vesting method for market-based performance stock awards.
Advertising
Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $15.2 million, $23.2 million and $21.7 million during fiscal 2025, 2024 and 2023, respectively, and is included in marketing and sales in the consolidated income statements.
Restructuring
Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence generally begins recording facilities-related restructuring charges in the period in which a formal plan to vacate an affected facility is established. In connection with facilities-related restructuring plans, Cadence has made certain assumptions and estimates related to facilities, particularly the timing of exit and the ability to sublease. Facility closure costs in restructuring charges primarily includes accelerated ROU asset amortization, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment.
Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its restructuring liabilities and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified as restructuring in the consolidated income statements.
Accounting for Income Taxes
Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. Cadence accounts for the United States global intangible low-taxed income as a period expense.
Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following:
•the nature and history of current or cumulative financial reporting income or losses;
•sources of future taxable income;
•the anticipated reversal or expiration dates of the deferred tax assets; and
•tax planning strategies.
Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit.
For additional discussion of income taxes, see Note 8 in the notes to the consolidated financial statements.
v3.25.4
REVENUE
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Cadence groups its products and services into categories related to major design activities. The following table shows the percentage of revenue contributed by each of Cadence’s product categories for fiscal 2025, 2024 and 2023:
 202520242023
Core EDA*
70 %71 %76 %
Semiconductor IP (“IP”)14 %13 %12 %
System Design and Analysis16 %16 %12 %
Total100 %100 %100 %
_____________
* Includes immaterial amount of revenue accounted for under leasing arrangements.
Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Certain of Cadence’s licensing arrangements allow customers the ability to remix among software products. Cadence also has arrangements with customers that include a combination of products, with the actual product selection and number of licensed users to be determined at a later date. For these arrangements, Cadence estimates the allocation of the revenue to product categories based upon the expected usage of products. Revenue by product category fluctuates from period to period based on demand for products and services, and Cadence’s available resources to deliver them. No single customer accounted for 10% or more of total revenue during fiscal 2025, 2024 or 2023.
Recurring revenue includes revenue recognized over time from certain of Cadence’s software licensing arrangements, services, royalties, maintenance on IP licenses and hardware, and operating leases of hardware. Other recurring revenue includes revenue recognized at a point in time for certain short-term software arrangements that are typically renewed at least annually and revenue recognized at varying points in time over the term of other arrangements with non-cancelable commitments, whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of products. Arrangements that require future decisions on the performance obligations to be delivered do not meet the definition of a revenue contract until the customer executes a separate selection form to identify the products and services that they are purchasing. Each separate selection form under the arrangement is treated as an individual contract and accounted for based on the respective performance obligations.
The remainder of Cadence’s revenue is recognized at a point in time and is characterized as up-front revenue. Up-front revenue is primarily generated by sales of hardware, individual IP licenses and certain software licenses with a term greater than one year. The percentage of Cadence’s recurring and up-front revenue in any single fiscal period is primarily impacted by delivery of hardware and IP products to its customers.
The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for fiscal 2025, 2024 and 2023:
 202520242023
Revenue recognized over time76 %80 %81 %
Other recurring revenue
4 %3 %3 %
Recurring revenue80 %83 %84 %
Up-front revenue20 %17 %16 %
Total100 %100 %100 %
Significant Judgments
Cadence’s contracts with customers often include promises to transfer to a customer multiple software and/or IP licenses and services, including professional services, technical support services, and rights to unspecified updates. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of Cadence’s IP license arrangements and the license of certain software, Cadence has concluded that the licenses and the related updates and technical support are distinct from each other. In others, like Cadence’s time-based software arrangements, the licenses and certain services are not distinct from each other. These time-based software arrangements include multiple software licenses and updates to the licensed software products, as well as technical support, and Cadence has concluded that these promised goods and services are a single, combined performance obligation.
The accounting for contracts with multiple performance obligations requires the contract’s transaction price to be allocated to each distinct performance obligation based on relative SSP. Judgment is required to determine the SSP for each distinct performance obligation because Cadence rarely licenses or sells products on a standalone basis. In instances where the SSP is not directly observable because Cadence does not sell the license, product or service separately, Cadence determines the SSP using information that maximizes the use of observable inputs and may include market conditions. Cadence typically has more than one SSP for individual performance obligations due to the stratification of those items by classes of customers and circumstances. In these instances, Cadence may use information such as the size of the customer and geographic region of the customer in determining the SSP.
Revenue is recognized over time for Cadence’s combined performance obligations that include software licenses, updates, technical support and maintenance that are separate performance obligations with the same term. For Cadence’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. For Cadence’s other performance obligations recognized over time, revenue is generally recognized using a time-based measure of progress reflecting generally consistent efforts to satisfy those performance obligations throughout the arrangement term.
If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. Cadence exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. Cadence’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved.
Cadence is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on Cadence’s expectations of the term of the contract. Generally, Cadence has not experienced significant returns or refunds to customers. These estimates require significant judgment and a change in these estimates could have an effect on its results of operations during the periods involved.
Contract Balances
The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on Cadence’s consolidated balance sheets. For certain software, hardware and IP agreements with payment plans, Cadence records an unbilled receivable related to revenue recognized upon transfer of control because it has an unconditional right to invoice and receive payment in the future related to those transferred products or services. Cadence records a contract asset when revenue is recognized prior to invoicing and Cadence does not have the unconditional right to invoice or retains performance risk with respect to that performance obligation. Cadence records deferred revenue when revenue is recognized subsequent to invoicing. For Cadence’s time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers prefer to be invoiced in single or annual amounts.
The contract assets indicated below are included in prepaid expenses and other in the consolidated balance sheets and primarily relate to Cadence’s rights to consideration for work completed but not billed as of the balance sheet date on services and customized IP contracts. The contract assets are transferred to receivables when the rights become unconditional, usually upon completion of a milestone.
Cadence’s contract balances as of December 31, 2025, and December 31, 2024, were as follows:
 As of
 December 31,
2025		December 31,
2024
 (In thousands)
Contract assets$67,764 $29,339 
Deferred revenue934,432 852,581 
Cadence recognized revenue of $737.9 million, $669.9 million and $689.7 million during fiscal 2025, 2024 and 2023, respectively, that was included in the deferred revenue balance at the beginning of each respective fiscal year. All other activity in deferred revenue, with the exception of deferred revenue assumed from acquisitions, is due to the timing of invoices in relation to the timing of revenue as described above.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, Cadence has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing Cadence’s products and services, and not to facilitate financing arrangements.
Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Cadence has elected to exclude the potential future royalty receipts from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $7.8 billion as of December 31, 2025, which included $0.6 billion of non-cancelable commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date.
Cadence estimates its remaining performance obligations at a point in time. Actual amounts and timing of revenue recognition may differ from these estimates largely due to changes in actual installation and delivery dates, as well as contract renewals, modifications and terminations. As of December 31, 2025, Cadence expected to recognize 53% of the contracted but unsatisfied performance obligations, excluding non-cancelable commitments, as revenue over the next 12 months, 43% over the next 13 to 36 months and the remainder thereafter.
Cadence recognized revenue of $87.3 million, $68.0 million and $55.0 million during fiscal 2025, 2024 and 2023, respectively, from performance obligations satisfied in previous periods. These amounts represent royalties earned during the period and exclude contracts with nonrefundable prepaid royalties. Nonrefundable prepaid royalties are recognized upon delivery of the IP because Cadence’s right to the consideration is not contingent upon customers’ future shipments.
v3.25.4
RECEIVABLES, NET
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
RECEIVABLES, NET RECEIVABLES, NET
Cadence’s current and long-term receivables balances as of December 31, 2025, and December 31, 2024, were as follows:
 As of
 December 31,
2025		December 31,
2024
 (In thousands)
Accounts receivable$492,834 $393,017 
Unbilled accounts receivable455,993 293,251 
Long-term receivables52,451 24,179 
Total receivables1,001,278 710,447 
Less allowance for doubtful accounts(3,888)(5,808)
Total receivables, net$997,390 $704,639 
Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of December 31, 2025, no single customer accounted for 10% or more of Cadence’s total receivables. As of December 31, 2024, one customer accounted for approximately 11% of Cadence’s total receivables.
Allowance for doubtful accounts
Cadence’s provisions for losses on its accounts receivable during fiscal 2025, 2024 and 2023 were as follows:
Balance at Beginning of PeriodCharged to Costs and ExpensesUncollectible Accounts Written Off, NetBalance at End of Period
Year ended December 31, 2025$5,808 $829 $(2,749)$3,888 
Year ended December 31, 20244,553 2,078 (823)5,808 
Year ended December 31, 2023$2,290 $3,325 $(1,062)$4,553 
v3.25.4
DEBT
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Cadence’s outstanding debt as of December 31, 2025, and December 31, 2024, was as follows:
 December 31, 2025December 31, 2024
 (In thousands)
Principal
Unamortized Discount and Issuance Costs
Carrying ValuePrincipal
Unamortized Discount and Issuance Costs
Carrying Value
2027 Notes500,000 (2,073)497,927 500,000 (3,206)496,794 
2029 Notes1,000,000 (7,747)992,253 1,000,000 (9,666)990,334 
2034 Notes1,000,000 (10,030)989,970 1,000,000 (10,945)989,055 
Total outstanding debt$2,500,000 $(19,850)$2,480,150 $2,500,000 $(23,817)$2,476,183 
Senior Notes
In September 2024, Cadence issued $500.0 million aggregate principal amount of 4.200% Senior Notes due September 10, 2027 (the “2027 Notes”). Cadence received net proceeds of $496.5 million from the issuance of the 2027 Notes, net of a discount of $0.1 million and issuance costs of $3.5 million. As of December 31, 2025, the fair value of the 2027 Notes was approximately $503 million.
In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.300% Senior Notes due September 10, 2029 (the “2029 Notes”). Cadence received net proceeds of $989.8 million from the issuance of the 2029 Notes, net of a discount of $1.4 million and issuance costs of $8.8 million. As of December 31, 2025, the fair value of the 2029 Notes was approximately $1 billion.
In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.700% Senior Notes due September 10, 2034 (the “2034 Notes,” and together with the 2027 Notes and the 2029 Notes, the “Senior Notes”). Cadence received net proceeds of $988.8 million from the issuance of the 2034 Notes, net of a discount of $1.9 million and issuance costs of $9.3 million. As of December 31, 2025, the fair value of the 2034 Notes was approximately $1 billion.
Cadence used a portion of the net proceeds from the Senior Notes to fully extinguish the principal and accrued interest of other debt instruments that were outstanding at various points in time during fiscal 2024.
Cadence may redeem the Senior Notes, in whole or in part, at any time or from time to time, at redemption prices specified in the governing indenture. In addition, Cadence may be required to repurchase Senior Notes upon occurrence of a change of control triggering event, as set forth in the governing indenture.
The indentures governing the Senior Notes include customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on Cadence’s ability to grant liens on certain assets, enter into certain sale and lease-back transactions, or merge, consolidate or sell assets, and also include customary events of default. As of December 31, 2025, Cadence was in compliance with all covenants associated with the Senior Notes.
Both the discount and issuance costs are being amortized to interest expense over the term of the Senior Notes using the effective interest method. Interest on the Senior Notes is payable semi-annually in arrears in March and September of each year. Cadence’s Senior Notes are unsecured and rank equal in right of payment to all of Cadence’s existing and future senior indebtedness.
Revolving Credit Facility
In August 2024, Cadence terminated its existing revolving credit facility, dated June 30, 2021, and amended in September 2022, and entered into a five-year senior unsecured revolving credit facility with a group of lenders led by Bank of America, N.A., as administrative agent (the “2024 Credit Facility”). The 2024 Credit Facility provides for borrowings up to $1.25 billion, with the right to request increased capacity up to an additional $500.0 million upon the receipt of lender commitments, for total maximum borrowings of $1.75 billion. The 2024 Credit Facility expires on August 14, 2029. Any outstanding loans drawn under the 2024 Credit Facility are due at maturity on August 14, 2029, subject to an option to extend the maturity date. Outstanding borrowings may be repaid at any time prior to maturity. Cadence paid debt issuance costs of $1.3 million that were recorded to other assets in Cadence’s consolidated balance sheet at the inception of the agreement. The debt issuance costs will be amortized to interest expense over the term of the 2024 Credit Facility. As of December 31, 2025, there were no outstanding borrowings under the 2024 Credit Facility.
Interest accrues on borrowings under the 2024 Credit Facility at a rate equal to, at Cadence’s option, either (1) secured overnight financing rate (“SOFR”) plus a margin between 0.625% and 1.125% per annum, determined by reference to the credit rating of Cadence’s unsecured debt, plus a SOFR adjustment of 0.10% or (2) the base rate plus a margin between 0.000% and 0.125% per annum, determined by reference to the credit rating of Cadence’s unsecured debt. Interest is payable quarterly. A commitment fee ranging from 0.050% to 0.125% is assessed on the daily average undrawn portion of revolving commitments. Borrowings bear interest at what is estimated to be current market rates of interest. Accordingly, the carrying value of the 2024 Credit Facility approximates fair value.
The 2024 Credit Facility contains customary negative covenants that, among other things, restrict Cadence’s ability to incur additional indebtedness, grant liens and make certain asset dispositions. In addition, the 2024 Credit Facility contains financial covenants that require Cadence to maintain a funded debt to EBITDA ratio not greater than 3.5 to 1, with a step up to 4 to 1 for one year following an acquisition by Cadence of at least $250.0 million that results in a pro forma leverage ratio between 3.25 to 1 and 3.75 to 1. As of December 31, 2025, Cadence was in compliance with all covenants associated with the 2024 Credit Facility.
v3.25.4
ACQUISITIONS
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
Pending Acquisition of Hexagon Design and Engineering Business
On September 4, 2025, Cadence entered into a definitive agreement (the “purchase agreement”) with Hexagon Smart Solutions AB (“Hexagon”) to fully acquire Hexagon’s design and engineering business. This acquisition is expected to accelerate Cadence’s Intelligent System Design™ strategy by expanding its System Design & Analysis portfolio, building upon Cadence’s acquisition of BETA CAE in fiscal 2024.
Under the terms of the purchase agreement, Cadence will pay Hexagon aggregate consideration of approximately €2.70 billion. Approximately €1.89 billion of the aggregate consideration will be paid in the form of cash, subject to customary purchase price adjustments in accordance with the purchase agreement. Cadence intends to fund the cash consideration through a combination of cash on hand and borrowings under existing debt facilities. Approximately €810 million of the aggregate consideration will be paid in the form of newly issued shares of Cadence’s common stock, par value $0.01 per share. The number of shares of Cadence common stock to be issued will be determined using a per share value calculated as the average of the daily volume weighted average sale price per share (converted to the daily Euro spot rate) of Cadence common stock on Nasdaq for each of the 20 consecutive trading days ending on and including the third trading day immediately prior to the closing date.
The purchase agreement contains representations and warranties, covenants, closing conditions and indemnities customary for acquisitions of this nature. The acquisition includes substantially all of the subsidiaries and related assets comprising Hexagon's design and engineering business. Among other conditions, closing is conditioned on the expiration or termination of the applicable waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and receipt of other required approvals under antitrust and foreign direct investment laws of certain other jurisdictions.
The purchase agreement also provides for customary termination rights for the parties, including the right to terminate the purchase agreement due to the failure to obtain required regulatory approvals on or prior to September 4, 2026 (subject to two three-month extensions, at Cadence’s election, until March 4, 2027) or if a governmental authority has issued a final and non-appealable order or injunction prohibiting closing. Under the purchase agreement, Cadence will be required to pay a reverse termination fee of up to €175 million if the purchase agreement is terminated due to the failure to obtain required regulatory approvals on or prior to March 4, 2027, or following an injunction arising from certain antitrust or foreign investment laws.
In connection with its pending acquisition of Hexagon’s design and engineering business, Cadence entered into foreign currency forward exchange contracts with an aggregate notional value of €1.89 billion to mitigate the impact of currency price fluctuations of the European Union euro relative to the U.S. dollar on the contractual cash consideration payable to Hexagon at close. These forward contracts are not designated as accounting hedges, so the unrealized gains and losses from the change in the fair value of these contracts are recognized in other income, net, in Cadence’s consolidated income statements. During fiscal 2025, Cadence recognized losses associated with these foreign currency forward contracts of $29.2 million. As of December 31, 2025, the fair value of these forward contracts was not material and was included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheets.
2025 Acquisitions
Acquisition of Secure-IC
On October 30, 2025, Cadence acquired all of the outstanding equity of Secure-IC SAS ("Secure-IC"). The aggregate purchase consideration for Cadence’s acquisition of Secure-IC, net of cash acquired of $13.1 million, was $139.6 million. The acquisition of Secure-IC strengthens Cadence's embedded security capabilities. By combining Secure-IC’s expertise in cybersecurity with Cadence’s experience in IP and subsystem design, Cadence is able to deliver comprehensive system solutions that accelerate customers' time to market and are designed to meet stringent security and regulatory requirements. These solutions address critical challenges in key markets, including automotive, data center, aerospace and defense, mobile, IoT, and consumer electronics.
In connection with its acquisition of Secure-IC, Cadence paid an additional immaterial amount to a third-party escrow agent that will be released to certain former Secure-IC shareholders, subject to continued employment with Cadence, through the fourth quarter of fiscal 2028. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements.
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Secure-IC based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$33,400 
Goodwill80,477 
Acquired intangibles61,800 
Other long-term assets11,420 
Total assets acquired187,097 
Current liabilities14,184 
Long-term liabilities20,194 
Total liabilities assumed34,378 
Total purchase consideration$152,719 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce and expected synergies, and is not expected to be deductible for U.S. income tax purposes.
Definite-lived intangible assets acquired with Cadence’s acquisition of Secure-IC were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$37,000 7.0 years
Agreements and relationships22,900 10.0 years
Tradenames, trademarks and patents1,900 7.0 years
Total acquired intangibles with definite lives$61,800 8.1 years
As of December 31, 2025, the allocation of purchase consideration to the acquired assets and assumed liabilities from Secure-IC was preliminary. Cadence will continue to evaluate the estimates and assumptions used to derive the fair value of certain acquired assets and assumed liabilities, including income tax-related assets and liabilities, during the measurement period (up to one year from the acquisition date). The allocation of purchase consideration may change materially as additional information about conditions existing at the acquisition date becomes available.
Acquisition of Arm Artisan Foundation IP
On August 26, 2025, Cadence acquired the Artisan foundation IP business from Arm Limited. Cadence paid aggregate purchase consideration of $128.5 million. The acquisition of Artisan foundation IP is intended to accelerate Cadence’s Intelligent System Design™ (“ISD”) strategy by expanding its design IP offerings with standard cell libraries, memory compilers, and general purpose I/Os (“GPIOs”) optimized for advanced process nodes at leading foundries.
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of the Artisan foundation IP business based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$936 
Goodwill49,671 
Acquired intangibles80,800 
Other long-term assets948 
Total assets acquired132,355 
Current liabilities3,089 
Long-term liabilities775 
Total liabilities assumed3,864 
Total purchase consideration$128,491 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce and expected synergies, and is deductible for U.S. income tax purposes.
Definite-lived intangible assets acquired with Cadence’s acquisition of the Artisan foundation IP business were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$45,400 4.5 years
Agreements and relationships27,100 10.0 years
Tradenames, trademarks and patents8,300 6.5 years
Total acquired intangibles with definite lives$80,800 6.6 years
Acquisition of VLAB Works
On May 29, 2025, Cadence acquired all of the outstanding equity of a holding company containing the VLAB Works business (“VLAB Works”). The aggregate purchase consideration for Cadence’s acquisition of VLAB Works, net of cash acquired of $5.2 million, was $121.1 million. The addition of VLAB Works’ technologies and talent is intended to accelerate Cadence’s ISD strategy by enhancing system verification full flow, while strengthening its capabilities in virtual and hybrid pre-silicon software validation. In connection with the acquisition of VLAB Works, Cadence paid an additional immaterial amount to a third-party escrow agent that will be released to a former VLAB Works shareholder, subject to continued employment with Cadence, through the fourth quarter of fiscal 2026. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements.
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of VLAB Works based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$9,343 
Goodwill93,068 
Acquired intangibles27,700 
Other long-term assets1,322 
Total assets acquired131,433 
Current liabilities4,222 
Long-term liabilities898 
Total liabilities assumed5,120 
Total purchase consideration$126,313 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce and expected synergies, and is deductible for U.S. income tax purposes.
Definite-lived intangible assets acquired with Cadence’s acquisition of VLAB Works were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$18,300 6.0 years
Agreements and relationships9,000 7.0 years
Tradenames, trademarks and patents400 3.0 years
Total acquired intangibles with definite lives$27,700 6.3 years
Other 2025 Acquisitions
During fiscal 2025, Cadence completed three other business combinations for aggregate cash consideration of $38.9 million, net of cash acquired. The total purchase consideration was allocated to assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded $14.1 million of definite-lived intangible assets with a weighted average amortization period of 3.4 years. Cadence also recognized $26.5 million of goodwill, which is primarily attributed to the assembled workforce of the acquired businesses. The goodwill recognized with these acquisitions is not expected to be deductible for tax purposes.
In connection with these acquisitions, Cadence paid additional immaterial amounts to third-party escrow agents that will be released to certain former shareholders, subject to continued employment with Cadence, through the fourth quarter of fiscal 2028. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements.
As of December 31, 2025, the allocation of purchase consideration to the acquired assets and assumed liabilities from these acquisitions was preliminary. Cadence will continue to evaluate the estimates and assumptions used to derive the fair value of certain acquired assets and assumed liabilities during the measurement period (up to one year from the acquisition date). The allocation of purchase consideration may change materially as additional information about conditions existing at the acquisition date becomes available.
2024 Acquisitions
Acquisition of BETA CAE
On May 30, 2024, Cadence acquired all of the outstanding equity of BETA CAE, a system analysis platform provider of multi-domain, engineering simulation solutions. The aggregate purchase consideration for Cadence’s acquisition of BETA CAE, net of cash acquired of $91.3 million, was $1.14 billion. The aggregate purchase consideration was comprised of $638.2 million of cash and non-cash consideration of 1.74 million shares of Cadence common stock with an aggregate acquisition date fair value of $501.8 million. The addition of BETA CAE’s technologies and talent is expected to accelerate Cadence’s ISD strategy by expanding its multiphysics system analysis portfolio and enabling entry into the structural analysis space.
In connection with its acquisition of BETA CAE, Cadence paid an additional $55.8 million to a third-party escrow agent that will be released to certain former BETA CAE shareholders, subject to continued employment with Cadence, through the second quarter of fiscal 2026. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements.
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of BETA CAE based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$118,676 
Goodwill822,129 
Acquired intangibles345,000 
Other long-term assets18,198 
Total assets acquired1,304,003 
Current liabilities36,465 
Long-term liabilities36,250 
Total liabilities assumed72,715 
Total purchase consideration$1,231,288 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is deductible for U.S. income tax purposes.
Definite-lived intangible assets acquired with Cadence’s acquisition of BETA CAE were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$140,000 6.0 years
Agreements and relationships190,000 15.0 years
Tradenames, trademarks and patents15,000 7.0 years
Total acquired intangibles with definite lives$345,000 11.0 years
Acquisition of Invecas, Inc.
On January 8, 2024, Cadence acquired all of the outstanding equity of Invecas, Inc. (“Invecas”), a provider of design engineering, embedded software and system-level solutions. The aggregate cash consideration for Cadence’s acquisition of Invecas, net of cash acquired of $23.8 million, was $71.2 million. The acquisition adds a skilled system design engineering team to Cadence, with expertise in providing customers with custom solutions across chip design, product engineering, advanced packaging and embedded software. In connection with the acquisition of Invecas, Cadence paid an additional amount to a third-party escrow agent that will be released to certain former Invecas shareholders, subject to continued employment with Cadence, through the first quarter of fiscal 2028. The release of these funds is subject to continuous service and other conditions and is accounted for over the required service period as post-acquisition compensation expense in Cadence’s consolidated income statements.
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Invecas based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$50,608 
Goodwill42,209 
Acquired intangibles15,500 
Other long-term assets7,414 
Total assets acquired115,731 
Current liabilities17,114 
Long-term liabilities3,647 
Total liabilities assumed20,761 
Total purchase consideration$94,970 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and will not be deductible for tax purposes.
The definite-lived intangible assets acquired with Cadence’s acquisition of Invecas include agreements and relationships of $15.0 million and tradenames of $0.5 million. These assets will be amortized over a weighted average life of 6.8 years.
Other 2024 Acquisitions
During fiscal 2024, Cadence completed two other business combinations for aggregate cash consideration of $28.3 million, net of cash acquired. The total purchase consideration was allocated to assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates. Cadence recorded $5.5 million of definite-lived intangible assets with a weighted average amortization period of 4.9 years. Cadence also recognized $25.2 million of goodwill, which is primarily attributed to the assembled workforce of the acquired businesses. The goodwill recognized with these acquisitions is not deductible for tax purposes.
2023 Acquisitions
Acquisition of IP Assets from Rambus Inc.
On September 6, 2023, Cadence acquired the serializer/deserializer (“SerDes”) and memory interface physical layer (“Memory”) IP business from Rambus Inc. (“Rambus”) for an aggregate cash consideration of $108.6 million. Memory and SerDes IP design and integration continues to be integral to the design of artificial intelligence, data center and hyperscale applications, CPU architectures and networking devices. The addition of the Rambus IP and seasoned team accelerates Cadence’s ISD strategy and strengthens Cadence's IP technology portfolio.
The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$1,460 
Goodwill80,999 
Acquired intangibles26,000 
Other long-term assets2,798 
Total assets acquired111,257 
Current liabilities2,531 
Long-term liabilities142 
Total liabilities assumed2,673 
Total purchase consideration$108,584 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and will be deductible for tax purposes.
Definite-lived intangible assets acquired with Cadence’s acquisition of the SerDes and Memory business from Rambus were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$16,700 5.0 years
Agreements and relationships9,300 7.0 years
Total acquired intangibles with definite lives$26,000 5.7 years
Acquisition of Pulsic, Ltd.
On May 4, 2023, Cadence acquired all of the outstanding equity of Pulsic, Ltd. (“Pulsic”), a longtime provider of production-proven technology for floor-planning, placement, and routing of custom ICs. The addition of Pulsic’s technologies and experienced team supports Cadence’s ISD strategy and strengthens Cadence’s Custom IC Design and Simulation technology portfolio. The aggregate cash consideration for Cadence’s acquisition of Pulsic, net of cash acquired of $3.8 million, was $56.1 million. Subject to service and other conditions, Cadence recognized expense for consideration paid to certain former Pulsic shareholders, subject to continued employment with Cadence, through the second quarter of fiscal 2025.
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Pulsic based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$4,369 
Goodwill47,448 
Acquired intangibles12,400 
Other long-term assets89 
Total assets acquired64,306 
Current liabilities1,553 
Long-term liabilities2,885 
Total liabilities assumed4,438 
Total purchase consideration$59,868 
The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is not deductible for tax purposes.
Definite-lived intangible assets acquired with Cadence’s acquisition of Pulsic were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$8,000 6.2 years
Agreements and relationships4,100 8.0 years
Tradenames, trademarks and patents300 6.0 years
Total acquired intangibles with definite lives$12,400 6.8 years
Acquisition of Intrinsix Corporation
On October 2, 2023, Cadence acquired all of the outstanding equity of Intrinsix Corporation (“Intrinsix”) from CEVA, Inc. The acquisition enhances Cadence’s system and IC design services resources with the addition of a team with expertise in advanced nodes, radio frequency, mixed-signal and security algorithms. The acquisition also expands Cadence’s reach in key high-growth vertical sectors, including aerospace and defense. The aggregate cash consideration for Cadence’s acquisition of Intrinsix was $34.6 million, net of cash acquired of $0.5 million. With its acquisition of Intrinsix, Cadence recorded $2.6 million of definite-lived intangible assets, $31.6 million of goodwill and $0.9 million net assets. The weighted average amortization period for the definite-lived intangible assets acquired with Cadence’s acquisition of Intrinsix was 5.0 years. The recorded goodwill is attributed to intangible assets that do not qualify for separate recognition, including the acquired assembled workforce, and is not deductible for tax purposes.
Pro Forma Financial Information
Cadence has not presented pro forma financial information for any of the businesses it acquired during fiscal 2025, 2024 and fiscal 2023 because the results of operations for these businesses are not material to Cadence’s consolidated financial statements.
Acquisition-Related Transaction Costs
Transaction costs associated with acquisitions, which consist of professional fees and administrative costs, are expensed as incurred and are included in general and administrative expense in Cadence’s consolidated income statement. During fiscal 2025, 2024 and 2023, transaction costs associated with acquisitions were $30.5 million, $14.6 million and $12.1 million, respectively.
v3.25.4
GOODWILL AND ACQUIRED INTANGIBLES
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND ACQUIRED INTANGIBLES GOODWILL AND ACQUIRED INTANGIBLES
Goodwill
The changes in the carrying amount of goodwill during fiscal 2025 and 2024 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of December 31, 2023$1,535,845 
Goodwill resulting from acquisitions889,585 
Effect of foreign currency translation(46,759)
Balance as of December 31, 20242,378,671 
Goodwill resulting from acquisitions249,712 
Effect of foreign currency translation120,760 
Balance as of December 31, 2025$2,749,143 
Cadence completed its annual goodwill impairment test during the third quarter of fiscal 2025 and determined that the fair value of Cadence’s single reporting unit exceeded the carrying amount of its net assets and that no impairment existed.
Acquired Intangibles, Net
Acquired intangibles as of December 31, 2025, were as follows, excluding intangibles that were fully amortized as of December 31, 2024:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$590,211 $(256,589)$333,622 
Agreements and relationships470,334 (114,697)355,637 
Tradenames, trademarks and patents40,984 (12,020)28,964 
Total acquired intangibles$1,101,529 $(383,306)$718,223 
Acquired intangibles as of December 31, 2024, were as follows, excluding intangibles that were fully amortized as of December 31, 2023:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$465,453 $(199,126)$266,327 
Agreements and relationships386,365 (78,605)307,760 
Tradenames, trademarks and patents28,113 (7,466)20,647 
Total acquired intangibles$879,931 $(285,197)$594,734 
Amortization expense from existing technology is included in cost of product and maintenance. Amortization expense for fiscal 2025, 2024 and 2023, by consolidated income statement caption, was as follows:
202520242023
 (In thousands)
Cost of product and maintenance$65,395 $60,074 $43,808 
Amortization of acquired intangibles39,937 30,375 18,162 
Total amortization of acquired intangibles$105,332 $90,449 $61,970 
As of December 31, 2025, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2026$125,335 
2027117,035 
2028112,320 
202997,511 
203062,280 
Thereafter203,742 
Total estimated amortization expense$718,223 
v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2025, 2024 and 2023, was as follows:
202520242023
(In thousands)
United States$535,551 $600,088 $533,442 
Foreign subsidiaries986,492 795,731 748,484 
Total income before provision for income taxes$1,522,043 $1,395,819 $1,281,926 
Cadence’s provision for income taxes was comprised of the following items for fiscal 2025, 2024 and 2023:
202520242023
(In thousands)
Current:
Federal$133,235 $281,674 $156,495 
State and local67,323 50,430 15,933 
Foreign146,549 136,968 104,866 
Total current347,107 469,072 277,294 
Deferred:
Federal31,079 (130,490)(87,851)
State and local8,805 (5,127)25,440 
Foreign26,164 6,880 25,899 
Total deferred66,048 (128,737)(36,512)
Total provision for income taxes$413,155 $340,335 $240,782 
During fiscal 2025, the United States enacted the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions including the immediate expensing of United States research and development expenditures. The legislation has multiple effective dates, with certain provisions effective in fiscal 2025 and others effective from fiscal 2026. Cadence’s consolidated net deferred tax assets as of December 31, 2025 and December 31, 2024 were $870.2 million and $951.7 million, respectively. The decrease was principally due to the immediate expensing of United States research and development expenditures.
During fiscal 2024, the State of California enacted legislation that, for a three-year period beginning in fiscal 2024, will limit Cadence's utilization of California research and development tax credits to $5 million annually and provides the ability to receive a refund of credits that would have otherwise been used to reduce the California tax liability. The legislation increased the cash paid for income taxes and long-term receivables for fiscal 2024 by approximately $33 million and $21 million, respectively.
During fiscal 2023, Cadence recognized a tax benefit of approximately $24.8 million due to the recognition of previously unrecognized tax benefits from the expiration of the applicable statute of limitations and a tax benefit of approximately $14.0 million primarily related to a change in R&D expenses that were capitalized in fiscal 2022.
The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the provision computed at the U.S. federal statutory income tax rate to the provision for income taxes for fiscal 2025.
2025
(In thousands)(%)
Provision computed at federal statutory income tax rate$319,629 21.0 %
State and local income tax, net of federal tax effect*
68,258 4.5 %
Foreign tax effects
Ireland
Statutory tax rate difference between Ireland & United States(45,716)(3.0)%
Other
(16,302)(1.1)%
Other foreign jurisdictions
66,259 4.4 %
Effect of cross-border tax laws
Global intangible low-taxed income
131,254 8.6 %
Foreign-derived intangible income
(7,342)(0.5)%
Subpart F
22,040 1.4 %
Tax credits
Research and development tax credits
(20,556)(1.4)%
Foreign tax credits
(110,079)(7.2)%
Change in deferred tax asset valuation allowance
(11)— %
Nontaxable or nondeductible items
Stock based compensation
(29,013)(1.9)%
Settlements with BIS and the DOJ
26,994 1.8 %
Acquisition-related costs
14,105 0.9 %
Decrease in unrecognized tax benefits
(4,837)(0.3)%
Other
(1,528)(0.1)%
Provision for income taxes$413,155 27.1 %
_____________
*State taxes in California make up the majority (greater than 50 percent) of the tax effect in this category.
The following table presents the required disclosures prior to the adoption of ASU 2023-09 and reconciles the provision computed at the U.S. federal statutory income tax rate to the provision for income taxes for fiscal 2024 and fiscal 2023.
20242023
(In thousands)
Provision computed at federal statutory income tax rate$293,122 $269,205 
State and local income tax, net of federal tax effect50,130 40,304 
Intercompany transfers of intangible property rights7,833 23,826 
Foreign income tax rate differential(62,798)(54,210)
Foreign-derived intangible income deduction(13,344)(14,253)
U.S. tax on foreign entities144,222 113,011 
Stock-based compensation(6,181)(26,805)
Change in deferred tax asset valuation allowance11,441 9,077 
Tax credits(135,344)(130,383)
Non-deductible acquisition-related costs
11,770 6,709 
Withholding taxes20,175 15,300 
Tax settlements, foreign— 4,034 
Increase (decrease) in unrecognized tax benefits9,061 (19,660)
Other10,248 4,627 
Provision for income taxes$340,335 $240,782 
Effective tax rate24 %19 %
The components of deferred tax assets and liabilities consisted of the following as of December 31, 2025, and December 31, 2024:
As of
December 31,
2025		December 31,
2024
(In thousands)
Deferred tax assets:
Tax credit carryforwards$125,267 $110,031 
Reserves and accruals110,634 103,731 
Intangible assets472,393 487,947 
Capitalized research and development expense for income tax purposes305,835 368,085 
Operating loss carryforwards12,801 9,781 
Deferred income84,309 79,195 
Capital loss carryforwards16,601 16,861 
Stock-based compensation costs38,610 34,045 
Depreciation and amortization33,759 17,228 
Investments22,826 20,757 
Lease liability39,606 33,341 
Total deferred tax assets1,262,641 1,281,002 
Valuation allowance(104,782)(90,603)
Net deferred tax assets1,157,859 1,190,399 
Deferred tax liabilities:
Intangible assets(139,761)(107,251)
Undistributed foreign earnings(92,954)(76,045)
ROU assets(39,606)(33,341)
Investments
(11,422)(14,171)
Other(3,950)(7,869)
Total deferred tax liabilities(287,693)(238,677)
Total net deferred tax assets$870,166 $951,722 
During fiscal 2025, 2024 and 2023 Cadence maintained valuation allowances of $104.8 million, $90.6 million, and $79.2 million, respectively, on certain federal, state and foreign deferred tax assets because the realization of these deferred tax assets requires future income of a specific character or amount that Cadence considered uncertain. The valuation allowance primarily relates to the following:
•Tax credits in certain states that are accumulating at a rate greater than Cadence’s capacity to utilize the credits and tax credits in certain states where it is likely the credits will expire unused;
•Federal, state and foreign deferred tax assets related to investments and capital losses that can only be utilized against gains that are capital in nature; and
•Foreign tax credits that can only be fully utilized if Cadence has sufficient income of a specific character in the future.
The valuation allowance increased by $14.2 million and $11.4 million during fiscal 2025 and fiscal 2024, respectively, and decreased by $9.1 million during fiscal 2023. The valuation allowance activity was primarily related to state research and development tax credits and certain foreign tax credits.
As of December 31, 2025, Cadence’s operating loss carryforwards were as follows:
AmountExpiration Periods
(In thousands)
Federal$41 
2033
California31,209 
from 2026 through 2046
Other states (tax effected, net of federal benefit)164 from 2028 through indefinite
Foreign (tax effected)10,334 indefinite
As of December 31, 2025, Cadence had tax credit carryforwards of:
AmountExpiration Periods
(In thousands)
Federal*$60,773 
from 2031
California— indefinite
Other states 10,261 
from 2034 through 2045
Foreign 54,234 
from 2045 through indefinite
_____________
*Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period.
Examinations by Tax Authorities
Taxing authorities regularly examine Cadence’s income tax returns. As of December 31, 2025, Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include:
JurisdictionEarliest Tax Year Open to Examination
United States – Federal2020
United States – California2020
Ireland2021
Israel2017
Unrecognized Tax Benefits
The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2025, 2024 and 2023 are as follows:
202520242023
(In thousands)
Unrecognized tax benefits at the beginning of the fiscal year$107,388 $94,311 $126,073 
Gross amount of the increase (decrease) in unrecognized tax benefits of tax positions taken during a prior year*
232 10,109 (1,401)
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year4,118 6,669 2,565 
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes(6,598)— (8,000)
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations(4,118)(3,173)(24,768)
Effect of foreign currency translation(81)(528)(158)
Unrecognized tax benefits at the end of the fiscal year$100,941 $107,388 $94,311 
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate$99,944 $106,420 $93,398 
_____________
* Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions
The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision for income taxes for fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands)
Interest$1,984 $3,893 $2,282 
Penalties(308)143 267 
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 31, 2025, and December 31, 2024, were as follows:
As of
December 31,
2025		December 31,
2024
(In thousands)
Interest$9,050 $9,010 
Penalties891 1,261 
Cash Taxes Paid
Cadence adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025. Total income taxes paid (net of refunds) for fiscal 2025 include:
2025
(In thousands)
U.S. Federal
$76,724 
U.S. State & Local29,980 
Foreign140,663 
Total$247,367 
Individual jurisdictions equaling 5% or more of the total income taxes paid (net of refunds) for fiscal 2025 include U.S. Federal at $76.7 million, California at $13.1 million, China at $27.2 million, India at $23.6 million, Israel at $22.4 million, and Taiwan at $18.3 million.
Cash paid for income taxes, net of refunds, for fiscal 2024 and 2023 were $510.0 million and $253.7 million, respectively.
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION
Equity Incentive Plans
Cadence’s Omnibus Plan provides for the issuance of both incentive and non-qualified options, restricted stock awards, restricted stock units, stock bonuses and the rights to acquire restricted stock to both executive and non-executive employees. During fiscal 2023, Cadence’s stockholders approved an amendment to the Omnibus Plan to increase the number of shares of common stock authorized for issuance by 6.5 million. As of December 31, 2025, the total number of shares available for future issuance under the Omnibus Plan was 12.1 million. Options granted under the Omnibus Plan have an exercise price not less than the fair market value of the stock on the date of grant. Options and restricted stock generally vest over a period of three years to four years. Options granted under the Omnibus Plan expire seven years from the date of grant. Vesting of restricted stock awards granted under the Omnibus Plan may require the attainment of specified performance criteria.
Cadence’s 1995 Directors Stock Incentive Plan (the “Directors Plan”) provides for the issuance of non-qualified options, restricted stock awards and restricted stock units to its non-employee directors. Options granted under the Directors Plan have an exercise price not less than the fair market value of the stock on the date of grant. As of December 31, 2025, the total number of shares available for future issuance under the Directors Plan was 0.4 million. Options granted under the Directors Plan expire after ten years, and options, restricted stock awards and restricted stock units vest one year from the date of grant.
Stock-Based Compensation
Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands)
Stock options$16,101 $18,610 $15,939 
Restricted stock400,699 338,082 278,567 
ESPP38,375 34,527 31,105 
Total stock-based compensation expense$455,175 $391,219 $325,611 
Income tax benefit$76,978 $66,080 $50,994 
Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2025, 2024 and 2023 as follows:
202520242023
(In thousands)
Cost of product and maintenance$8,216 $6,402 $4,500 
Cost of services9,498 8,149 5,728 
Marketing and sales87,150 77,195 66,304 
Research and development278,489 241,730 194,709 
General and administrative71,822 57,743 54,370 
Total stock-based compensation expense$455,175 $391,219 $325,611 
Stock Options
The exercise price of each stock option granted under Cadence’s employee equity incentive plans is equal to or greater than the closing price of Cadence’s common stock on the date of grant. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. No stock options were granted in fiscal 2025. The weighted average grant date fair value of options granted, and the weighted average assumptions used in the model for fiscal 2024 and 2023 were as follows:
20242023
Dividend yieldNoneNone
Expected volatility31.9 %32.6 %
Risk-free interest rate4.3 %3.6 %
Expected term (in years)4.85.0
Weighted average fair value of options granted$103.79 $71.83 
A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2025 is presented below:
Weighted
Average
Weighted
Average
Remaining
Contractual
Terms



Aggregate
Intrinsic
SharesExercise Price(Years)Value
(In thousands)(In thousands)
Options outstanding as of December 31, 20241,322 $171.08 
Granted— — 
Exercised(289)93.81 
Forfeited(26)230.93 
Options outstanding as of December 31, 20251,007 $191.75 3.5$121,643 
Options vested as of December 31, 2025806 $176.62 3.2$109,590 
Cadence had total unrecognized compensation expense related to stock option grants of $16.6 million as of December 31, 2025, which will be recognized over the remaining vesting period. The remaining weighted average vesting period of unvested awards is 1.7 years.
The total intrinsic value of and cash received from options exercised during fiscal 2025, 2024 and 2023 was:
202520242023
(In thousands)
Intrinsic value of options exercised$65,864 $266,336 $139,125 
Cash received from options exercised27,125 88,903 30,940 
Restricted Stock
Generally, restricted stock, which includes restricted stock awards and restricted stock units, vests over three years to four years and is subject to the employee’s continuing service to Cadence. Stock-based compensation expense is recognized ratably over the vesting term. The vesting of certain restricted stock grants is subject to attainment of specified performance criteria. Each fiscal quarter, Cadence estimates the probability of the achievement of these performance goals and recognizes any related stock-based compensation expense using the graded-vesting method. The amount of stock-based compensation expense recognized in any one period can vary based on the attainment or expected attainment of the various performance goals. If such performance goals are not ultimately met, no compensation expense is recognized and any previously recognized compensation expense is reversed.
Certain long-term, market-based stock awards granted to executives vest over three to five years and are subject to certain market conditions and the executive’s continuing service to Cadence. Vesting of the market-based awards is contingent upon achieving market conditions of total shareholder return relative to a peer index. Stock-based compensation expense is recognized using the graded-vesting method over the vesting term. If the market-based conditions are not ultimately met, compensation expense previously recognized is not reversed. As of December 31, 2025, Cadence had 2.6 million shares of unvested long-term, market-based stock awards outstanding.
Cadence granted market-based awards in fiscal 2025 and 2023. No market-based awards were granted in fiscal 2024. Compensation expense is calculated using the fair value of the market-based stock awards under Monte Carlo simulation model. The weighted average assumptions used in the model for fiscal 2025 and 2023 were as follows:
20252023
Dividend yieldNoneNone
Expected volatility33.5 %33.6 %
Risk-free interest rate4.0 %3.6 %
Expected term (in years)4.93.8
Weighted average fair value of market-based awards granted
$128.47 $132.20 
Stock-based compensation expense related to performance-based restricted stock grants and market-based restricted stock grants for fiscal 2025, 2024 and 2023 was as follows:
202520242023
(In thousands)
Stock-based compensation expense related to performance-based restricted stock$27,557 $29,178 $22,922 
Stock-based compensation expense related to market-based stock awards
57,753 19,934 30,095 
A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2025 is presented below:
Weighted
Average Grant Date


Aggregate
Intrinsic
SharesFair ValueValue
(In thousands)(In thousands)
Unvested shares as of December 31, 20244,557 $186.79 
Granted2,341 181.08 
Vested(2,049)185.75 
Forfeited(203)229.50 
Unvested shares as of December 31, 20254,646 $182.50 $779,350 
As of December 31, 2025, Cadence had total unrecognized compensation expense related to restricted stock grants of $641.9 million, which will be recognized over a weighted average vesting period of 1.9 years.
The total fair value realized by employees upon vesting of restricted stock during fiscal 2025, 2024 and 2023 was:
202520242023
(In thousands)
Fair value of restricted stock realized upon vesting$610,406 $649,152 $442,556 
Employee Stock Purchase Plan
Cadence provides an ESPP that enables eligible employees to purchase shares of its common stock. Offering periods under the plan last a duration of six months beginning on either February 1 or August 1, with the purchase dates falling on the last day of the six-month offering period. For the offering periods commencing after February 1, 2022, eligible employees may purchase Cadence’s common stock at a price equal to 85% of the lower of the fair market value at the beginning or the end of the applicable offering period, in an amount not to exceed 15% of their annual base earnings plus bonuses and commissions, and subject to a limit in any calendar year of $25,000. The ESPP may be amended from time to time. During fiscal 2024, Cadence's stockholders approved an amendment to Cadence's Employee Stock Purchase Plan to increase the number of shares of common stock authorized for issuance by 3.5 million. As of December 31, 2025, the total number of shares available for future issuance under the ESPP was 5.7 million.
Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes option pricing model. The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2025, 2024 and 2023 were as follows:
202520242023
Dividend yieldNoneNoneNone
Expected volatility38.8 %32.1 %29.9 %
Risk-free interest rate4.2 %5.1 %4.5 %
Expected term (in years)0.50.50.5
Weighted average fair value of purchase rights granted
$87.92 $65.50 $50.95 
Shares of common stock issued under the ESPP for fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands, except per share amounts)
Cadence shares purchased under the ESPP507 548 647 
Cash received for the purchase of shares under the ESPP$118,776 $115,335 $102,017 
Weighted average purchase price per share$234.08 $210.31 $157.70 
Reserved for Future Issuance
As of December 31, 2025, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:
Shares
(In thousands)
Employee equity incentive plans*16,748 
Employee stock purchase plans5,724 
Directors stock plans*424 
    Total22,896 
_____________
*Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.
v3.25.4
STOCK REPURCHASE PROGRAMS
 12 Months Ended
Dec. 31, 2025
Class of Stock Disclosures [Abstract]  
STOCK REPURCHASE PROGRAMS STOCK REPURCHASE PROGRAMS
Cadence is authorized to repurchase shares of its common stock under a publicly announced program that was most recently increased by its Board of Directors in May 2025. The actual timing and amount of repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. During fiscal 2025, Cadence repurchased approximately 3.2 million shares on the open market for an aggregate purchase price of $925.0 million. As of December 31, 2025, approximately $1.4 billion of the share repurchase authorization remained available to repurchase shares of Cadence common stock.
During fiscal 2024, Cadence repurchased approximately 1.9 million shares on the open market for an aggregate purchase price of $550.0 million.
During fiscal 2023, Cadence repurchased approximately 2.3 million shares on the open market for an aggregate purchase price of $500.0 million. In June 2023, Cadence also entered into an accelerated share repurchase (“ASR”) agreement with HSBC Bank USA, National Association (“HSBC”) to repurchase an aggregate of $200.0 million of Cadence common stock. The ASR agreement was accounted for as two separate transactions (1) a repurchase of common stock and (2) an equity-linked contract on Cadence’s own stock. In June 2023, Cadence received an initial share delivery of approximately 0.6 million shares, which represented the number of shares at a market price equal to $140.0 million. An equity-linked contract for $60.0 million, representing the remaining shares to be delivered by HSBC under the ASR agreement, was recorded to stockholders' equity as of June 30, 2023. In August 2023, the ASR agreement settled and resulted in a delivery of approximately 0.3 million additional shares to Cadence. In total, Cadence received approximately 0.9 million shares under the ASR agreement at an average price per share of $228.26. The shares received were treated as repurchased common stock for purposes of calculating earnings per share.
The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during fiscal 2025, 2024 and 2023 were as follows:
2025*
2024
2023**
(In thousands)
Shares repurchased3,165 1,930 3,145 
Total cost of repurchased shares$925,034 $550,026 $700,134 
_____________
*    Excludes $3.1 million of excise tax.
**    Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023, and excludes $0.9 million of excise tax.
v3.25.4
RESTRUCTURING AND OTHER CHARGES
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES
From time to time, Cadence has initiated various restructuring plans in an effort to better align its resources with its business strategy. The most recent of these plans was initiated in September 2025 (the “2025 Restructuring Plan”). The charges incurred with the 2025 Restructuring Plan were comprised of severance payments and termination benefits related to headcount reductions and are included in restructuring on Cadence’s consolidated income statements.
The following table presents activity for Cadence’s restructuring plans during fiscal 2025, 2024 and 2023:
Severance
and
Benefits
Excess
Facilities
Total
(In thousands)
Balance, December 31, 2022$— $— $— 
Restructuring10,935 78 11,013 
Non-cash changes
— (78)(78)
Cash payments(8,211)— (8,211)
Effect of foreign currency translation(121)— (121)
Balance, December 31, 2023$2,603 $— $2,603 
Restructuring22,735 1,030 23,765 
Non-cash changes
— (1,030)(1,030)
Cash payments(20,464)— (20,464)
Effect of foreign currency translation(147)— (147)
Balance, December 31, 2024$4,727 $— $4,727 
Restructuring 25,808 3,386 29,194 
Non-cash changes
— (3,386)(3,386)
Cash payments(15,957)— (15,957)
Effect of foreign currency translation(111)— (111)
Balance, December 31, 2025$14,467 $— $14,467 
All liabilities for severance and related benefits under the 2025 Restructuring Plan are included in accounts payable and accrued liabilities on Cadence’s consolidated balance sheet as of December 31, 2025. Cadence expects to make cash payments to settle these liabilities through fiscal 2026.
v3.25.4
OTHER INCOME, NET
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
OTHER INCOME (EXPENSE), NET OTHER INCOME, NET
Cadence’s other income, net, for fiscal 2025, 2024 and 2023 was as follows:
 202520242023
 (In thousands)
Interest income$101,584 $62,484 $29,637 
Gain on sale of IP and other assets
11,500 — — 
Gains on investments
57,589 49,593 34,602 
Gains on securities in NQDC trust
14,029 11,145 10,851 
Losses on foreign exchange(36,090)(965)(5,490)
Other expense, net(2,070)(1,202)(2,714)
Total other income, net
$146,542 $121,055 $66,886 
For additional information relating to the gains from Cadence’s investment activity, see Note 14 in the notes to consolidated financial statements.
In September 2025, Cadence entered into foreign currency forward exchange contracts with an aggregate notional value of €1.89 billion to mitigate the impact of currency price fluctuations of the European Union euro relative to the U.S. dollar for its pending acquisition of Hexagon’s design and engineering business. These forward contracts were not designated as accounting hedges, so the unrealized gains and losses from the change in the fair value of these contracts were included as a component of other income (expense), net as gains or losses on foreign exchange. During fiscal 2025, Cadence recognized losses associated with these foreign currency forward contracts of $29.2 million.
v3.25.4
NET INCOME PER SHARE
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting.
The calculations for basic and diluted net income per share for fiscal 2025, 2024 and 2023 are as follows:
 202520242023
 (In thousands, except per share amounts)
Net income$1,108,888 $1,055,484 $1,041,144 
Weighted average common shares used to calculate basic net income per share271,333 271,212 269,381 
Stock-based awards1,979 2,621 3,367 
Weighted average common shares used to calculate diluted net income per share273,312 273,833 272,748 
Net income per share – basic$4.09 $3.89 $3.86 
Net income per share – diluted$4.06 $3.85 $3.82 
The following table presents shares of Cadence’s common stock outstanding for fiscal 2025, 2024 and 2023 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: 
 202520242023
 (In thousands)
Long-term market-based awards1,168 — 1,381 
Options to purchase shares of common stock 207 184 345 
Non-vested shares of restricted stock70 258 232 
Total potential common shares excluded1,445 442 1,958 
v3.25.4
INVESTMENTS
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Investments in Equity Securities
Marketable Equity Investments
Cadence’s investments in marketable equity securities consist of purchased shares of publicly held companies and are included in prepaid expenses and other in Cadence’s consolidated balance sheets. Changes in the fair value of these investments are recorded to other income, net in Cadence’s consolidated income statements. The carrying value of marketable equity investments was $83.2 million and $90.4 million as of December 31, 2025, and December 31, 2024, respectively.
Non-Marketable Equity Investments
Cadence’s investments in non-marketable equity securities generally consist of stock or other instruments of privately held entities and are included in other assets on Cadence’s consolidated balance sheets. As of December 31, 2025, Cadence held a 10.5% interest in a privately held company that was accounted for using the equity method of accounting. Cadence records its proportionate share of net income from the investee, offset by amortization of basis differences, to other income, net in Cadence’s consolidated income statements. During the fourth quarter of fiscal 2025, Cadence liquidated a portion of its holdings through a share buyback for total cash consideration of $56.0 million, which resulted in a gain, net of basis differences, of $15.9 million. During fiscal 2025, Cadence recognized a net gain on this investment of $12.2 million, inclusive of the gain on the liquidation of a portion of its holdings during the fourth quarter. During fiscal 2024 and 2023, Cadence recognized net losses on this investment of $2.5 million and $2.7 million, respectively. The carrying value of this investment was $51.0 million and $97.5 million as of December 31, 2025 and December 31, 2024, respectively.
Cadence also holds other non-marketable equity investments in privately held companies where Cadence does not have the ability to exercise significant influence and the fair value of the investments is not readily determinable. During fiscal 2025, Cadence recognized net gains on its portfolio of other non-marketable equity investments of $53.4 million. During fiscal 2024 and 2023, gains and losses on these investments were not material to Cadence’s consolidated financial statements. The carrying value of these investments was $16.6 million and $26.6 million as of December 31, 2025 and December 31, 2024, respectively.
The portion of gains and losses included in Cadence’s consolidated income statements related to equity securities still held at the end of the period were as follows:
202520242023
(In thousands)
Net gains recognized on equity securities
$57,777 $49,653 $34,651 
Less: Net gains recognized on equity securities sold
(66,171)(20,367)(12,283)
Net gains (losses) recognized on equity securities still held
$(8,394)$29,286 $22,368 
Investments in Debt Securities
The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on its consolidated balance sheets:
 As of December 31, 2025
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$70,317 $852 $(199)$70,970 
Total available-for-sale securities$70,317 $852 $(199)$70,970 
 As of December 31, 2024
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$50,604 $230 $(582)$50,252 
Total available-for-sale securities$50,604 $230 $(582)$50,252 
Gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on Cadence’s consolidated balance sheets. As of December 31, 2025, the fair value of available-for-sale debt securities in a continuous unrealized loss position for greater than 12 months was $6.6 million, and the unrealized losses on these securities were not material.
As of December 31, 2025, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:
 (In thousands)
Due within 1 year
$1,150 
Due after 1 year through 5 years15,481 
Due after 5 years through 10 years26,916 
Due after 10 years27,423 
Total$70,970 
As of December 31, 2025, Cadence did not intend to sell any of its available-for-sale debt securities in an unrealized loss position, and it was more likely than not that Cadence will hold the securities until maturity or a recovery of the cost basis.
v3.25.4
FAIR VALUE
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy:
•Level 1 – Quoted prices for identical instruments in active markets;
•Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the fiscal years presented.
On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets and liabilities was determined using the following levels of inputs as of December 31, 2025, and December 31, 2024:
 Fair Value Measurements as of December 31, 2025
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$2,100,210 $2,100,210 $— $— 
Marketable securities:
Marketable equity securities83,244 83,244 — — 
Mortgage-backed and asset-backed securities70,970 — 70,970 — 
Securities held in NQDC trust117,732 117,732 — — 
Total Assets$2,372,156 $2,301,186 $70,970 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts25,999 — 25,999 — 
Total Liabilities$25,999 $— $25,999 $— 
 Fair Value Measurements as of December 31, 2024
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,700,084 $1,700,084 $— $— 
Marketable securities:
Marketable equity securities90,374 90,374 — — 
Mortgage-backed and asset-backed securities50,252 — 50,252 — 
Securities held in NQDC trust96,450 96,450 — — 
Total Assets$1,937,160 $1,886,908 $50,252 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts7,533 — 7,533 — 
Total Liabilities$7,533 $— $7,533 $— 
Level 1 Measurements
Cadence’s cash equivalents held in money market funds, marketable equity securities and the trading securities held in Cadence’s NQDC trust are measured at fair value using Level 1 inputs.
Level 2 Measurements
The valuation techniques used to determine the fair value of Cadence’s investments in marketable debt securities, foreign currency forward exchange contracts and Senior Notes are classified within Level 2 of the fair value hierarchy. For additional information relating to Cadence’s debt arrangements, see Note 5 in the notes to consolidated financial statements.
Level 3 Measurements
During fiscal 2025, Cadence acquired intangible assets of $184.4 million primarily through its acquisitions of VLAB Works, Artisan foundation IP business from Arm Limited and Secure-IC. The fair value of the intangible assets acquired was determined using variations of the income approach that utilizes unobservable inputs classified as Level 3 measurements.
For existing technology, the fair value was determined by applying the relief-from-royalty method. This method is based on the application of a royalty rate to forecasted revenue to quantify the benefit of owning the intangible asset rather than paying a royalty for use of the asset. To estimate royalty savings over time, Cadence projected revenue from the acquired existing technology over the estimated remaining life of the technology, including the effect of assumed technological obsolescence, before applying an assumed royalty rate. Cadence assumed technological obsolescence at rates between 8% and 13% annually, before applying an assumed royalty rate between 25% and 30% and discount rates between 10% and 13%.
For agreements and relationships, the fair value was determined by using the multi-period excess earnings method. This method reflects the present value of the projected cash flows that are expected to be generated from existing customers, less charges representing the contribution of other assets to those cash flows. Projected income from existing customer relationships was determined using a customer retention rate between 85% and 90%. The present value of operating cash flows from existing customers was determined using a discount rate between 10% and 13%.
During fiscal 2024, Cadence acquired intangible assets of $366.0 million, primarily through its acquisitions of BETA CAE and Invecas. The fair value of the intangible assets acquired was determined using variations of the income approach that utilizes unobservable inputs classified as Level 3 measurements.
For existing technology, the fair value was determined by applying the relief-from-royalty method. This method is based on the application of a royalty rate to forecasted revenue to quantify the benefit of owning the intangible asset rather than paying a royalty for use of the asset. To estimate royalty savings over time, Cadence projected revenue from the acquired existing technology over the estimated remaining life of the technology, including the effect of assumed technological obsolescence, before applying an assumed royalty rate. Cadence assumed technological obsolescence at a rate of 10% annually, before applying an assumed royalty rate of 30% and a discount rate of 10%.
For agreements and relationships, the fair value was determined by using the multi-period excess earnings method. This method reflects the present value of the projected cash flows that are expected to be generated from existing customers, less charges representing the contribution of other assets to those cash flows. Projected income from existing customer relationships was determined using customer retention rates between 85% and 92%. The present value of operating cash flows from existing customers was determined using discount rates between 10% and 14%.
Cadence believes that its estimates and assumptions related to the fair value of its acquired intangible assets and assumed liabilities are reasonable, but significant judgment is involved.
v3.25.4
BALANCE SHEET COMPONENTS
 12 Months Ended
Dec. 31, 2025
Disclosure Text Block Supplement [Abstract]  
Balance Sheet Components [Text Block] BALANCE SHEET COMPONENTS
A summary of certain balance sheet components as of December 31, 2025, and December 31, 2024, is as follows:
As of
December 31,
2025		December 31,
2024
(In thousands)
Inventories:
Raw materials$245,487 $243,244 
Work-in-process
14,665 1,216 
Finished goods43,393 13,251 
Inventories$303,545 $257,711 
Prepaid expenses and other:
Short-term investments
154,213 140,625 
Other prepaid expenses and other assets265,659 293,253 
Prepaid expenses and other$419,872 $433,878 
Property, plant and equipment:
Equipment and internal-use software
$990,700 $875,399 
Buildings137,597 137,781 
Land57,413 57,687 
Leasehold, building and land improvements298,417 245,669 
Furniture and fixtures51,189 43,517 
In-process capital assets3,193 14,879 
Total cost1,538,509 1,374,932 
Less: Accumulated depreciation and amortization(1,021,505)(916,732)
Property, plant and equipment, net$517,004 $458,200 
Other assets:
Long-term investments
$67,517 $124,086 
ROU lease assets175,964 146,190 
Other long-term assets337,891 274,465 
Other assets$581,372 $544,741 
Accounts payable and accrued liabilities:
Trade accounts payable
$93,491 $5,555 
Payroll and payroll-related accruals384,424 335,232 
Other accrued operating liabilities378,941 291,905 
Accounts payable and accrued liabilities$856,856 $632,692 
Other long-term liabilities:
Operating lease liabilities$136,289 $108,893 
Other accrued liabilities271,240 230,555 
Other long-term liabilities$407,529 $339,448 
v3.25.4
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Lessee, Operating Leases LEASES
Operating lease expense, which includes immaterial amounts of short-term leases, variable lease costs and sublease income, was as follows during fiscal 2025, 2024 and 2023:
202520242023
(In thousands)
Operating lease expense$70,846 $61,827 $56,805 
Additional activity related to Cadence’s leases during fiscal 2025, 2024 and 2023 was as follows:
202520242023
(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities$55,244 $49,978 $46,069 
ROU assets obtained in exchange for operating lease obligations79,567 42,614 32,597 
ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the consolidated balance sheets as follows:
As of
December 31,
2025		December 31,
2024
(In thousands)
Other assets$175,964 $146,190 
Accounts payable and accrued liabilities49,889 41,554 
Other long-term liabilities136,289 108,893 
Total lease liabilities$186,178 $150,447 
Weighted average remaining lease term (in years)5.65.3
Weighted average discount rate5 %4 %
Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of December 31, 2025, for the following five fiscal years and thereafter were as follows:
Operating
 Leases
(In thousands)
2026$55,588 
202738,885 
202831,555 
202925,575 
203017,385 
Thereafter44,761 
Total future lease payments213,749 
Less imputed interest(27,571)
Total lease liability balance$186,178 
As of December 31, 2025, Cadence had additional operating lease obligations of approximately $33.3 million for facility leases that will commence in 2026.
v3.25.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Purchase Obligations
Cadence had purchase obligations of $162.1 million as of December 31, 2025, that were associated with agreements or commitments for purchases of goods or services. Cadence expects to settle these obligations in the following five fiscal years and thereafter as follows:
Purchase
Obligations
(In thousands)
2026$99,629 
202727,319 
202820,939 
20297,181 
20307,015 
Thereafter— 
Total
$162,083 
Legal Proceedings
From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. Cadence is also subject from time to time to inquiries, investigations and regulatory proceedings involving governments and regulatory agencies in the jurisdictions in which Cadence operates. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates.
As previously disclosed, on July 27, 2025, Cadence reached a settlement with each of BIS and DOJ that resolved matters relating to export violations that took place between 2015 and 2021 primarily involving sales initiated by a Cadence subsidiary of products and services valued at $45.3 million in total over that period to a customer in China, as well as the subsequent transfer of technology involved in those sales to a third party in China, without the requisite authorization from BIS.
As part of the settlements, Cadence entered into a plea agreement with the DOJ pursuant to which Cadence agreed to plead guilty to one count of conspiracy to commit export controls violations. In addition, Cadence entered into an administrative settlement agreement with BIS. Both agreements include ongoing audit, compliance and other obligations. Under these agreements, Cadence recorded a charge of $128.5 million in Loss related to contingent liability in its consolidated income statement and paid BIS and the DOJ aggregate net penalties and forfeitures of $140.6 million during fiscal 2025.
Tax Proceedings
In December 2022, Cadence received a tax audit assessment, primarily related to value-added taxes, of approximately $49 million from the Korea taxing authorities for years 2017-2019. Cadence was required to pay these assessed taxes, prior to being allowed to contest or litigate the assessment in administrative and judicial proceedings. The assessment was paid by Cadence in January 2023 and was recorded as a component of other assets in the consolidated balance sheets. During August 2024, the Tax Tribunal cancelled the entire tax audit assessment, and during the fourth quarter of fiscal 2024, Cadence received a refund of the payment previously made to the Korea taxing authorities plus interest.
Other Contingencies
Cadence provides its customers with a warranty on sales of hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during fiscal 2025, 2024 or 2023.
Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s IP. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss.
Cadence did not incur any material losses from indemnification claims during fiscal 2025, 2024 or 2023.
v3.25.4
EMPLOYEE AND DIRECTOR BENEFIT PLANS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
EMPLOYEE AND DIRECTOR BENEFIT PLANS EMPLOYEE AND DIRECTOR BENEFIT PLANS
Cadence maintains various defined contribution plans for its eligible U.S. and non-U.S. employees. For employees in the United States, Cadence maintains a 401(k) savings plan to provide retirement benefits through tax-deferred salary deductions and may make discretionary contributions, as determined by the Board of Directors, which cannot exceed a specified percentage of the annual aggregate salaries of those employees eligible to participate. Cadence’s total contributions made to these plans during fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands)
Contributions to defined contribution plans$51,104 $45,164 $39,651 
Executive Officers and Directors may also elect to defer compensation payable to them under Cadence’s NQDC. Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC. These investments are classified in other assets in the consolidated balance sheets and gains and losses are recognized as other income (expense), net in the consolidated income statements.
Certain of Cadence’s international subsidiaries sponsor defined benefit retirement plans. The unfunded projected benefit obligation for Cadence’s defined benefit retirement plans is recorded in other long-term liabilities in the consolidated balance sheets.
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS
 12 Months Ended
Dec. 31, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE LOSS
Cadence’s accumulated other comprehensive loss is comprised of the aggregate impact of foreign currency translation gains and losses, changes in defined benefit plan liabilities and unrealized gains and losses on investments and is presented in Cadence’s consolidated statements of comprehensive income.
Accumulated other comprehensive loss was comprised of the following as of December 31, 2025, and December 31, 2024:
As of
December 31,
2025		December 31,
2024
 (In thousands)
Foreign currency translation loss$14,266 $(178,611)
Changes in defined benefit plan liabilities(10,293)(4,447)
Unrealized losses on derivatives designated as hedging instruments, net of taxes
(6,431)(7,038)
Unrealized gains (losses) on available-for-sale debt securities
653 (352)
Total accumulated other comprehensive loss$(1,805)$(190,448)
During fiscal 2024, in anticipation of issuing the Senior Notes, Cadence entered into a series of treasury lock agreements which fixed benchmark U.S. Treasury rates for an aggregate notional amount of $850 million to hedge the impact of changes in the benchmark interest rate on future interest payments. Upon issuance of the Senior Notes in September 2024, Cadence settled the treasury lock agreements and incurred a loss of $9.7 million, which is being amortized to interest expense using the effective interest method over the term of the 2034 Notes.
For fiscal 2025, 2024 and 2023, there were no significant amounts related to foreign currency translation loss or changes in defined benefit plan liabilities reclassified to net income from accumulated other comprehensive loss.
v3.25.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence operates as one operating segment. Cadence’s chief operating decision maker (“CODM”) is its CEO. The CODM makes decisions on resource allocation and assesses performance of the business based on Cadence’s consolidated results, including net income.
For additional information on Cadence’s revenue, including the nature and timing of revenue from contracts with customers, see Note 3 in the notes to consolidated financial statements. The following table presents revenue, significant expenses and net income for fiscal 2025, 2024 and 2023:
 202520242023
 (In thousands)
Revenue
5,296,759 4,641,264 4,089,986 
Costs and Expenses:
Salary, benefits and other employee-related costs
2,132,023 1,936,542 1,754,223 
Stock based compensation
455,175 391,219 325,611 
Manufacturing costs
376,610 330,903 232,012 
Facilities and other infrastructure costs
192,719 174,102 156,977 
Depreciation and amortization
227,828 196,935 145,292 
Professional services
169,290 153,439 117,752 
Loss related to contingent liability (1)
128,545 8,322 — 
Restructuring
29,194 23,765 11,013 
Other segment items (2)
48,375 16,703 58,632 
Interest income(101,584)(62,484)(29,637)
Interest expense116,541 75,999 36,185 
Provision for income taxes413,155 340,335 240,782 
Net income$1,108,888 $1,055,484 $1,041,144 
_____________
(1) For information regarding the loss related to a contingent liability, see Note 18 in the notes to the consolidated financial statements.
(2) Other segment items includes direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used, or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located.
The following table presents a summary of revenue by geography for fiscal 2025, 2024 and 2023:
 202520242023
 (In thousands)
Americas:
United States$2,310,965 $2,159,703 $1,694,529 
Other Americas168,349 93,101 65,259 
Total Americas2,479,314 2,252,804 1,759,788 
Asia:
China679,971 573,096 679,538 
Other Asia1,005,232 855,919 766,409 
Total Asia1,685,203 1,429,015 1,445,947 
Europe, Middle East and Africa790,569 699,241 655,078 
Japan341,673 260,204 229,173 
Total$5,296,759 $4,641,264 $4,089,986 
The following table presents a summary of long-lived assets by geography as of December 31, 2025, December 31, 2024, and December 31, 2023: 
 As of
 December 31,
2025		December 31,
2024		December 31,
2023
 (In thousands)
Americas:
United States$439,902 $412,339 $383,807 
Other Americas10,114 7,437 10,219 
Total Americas450,016 419,776 394,026 
Asia:
China23,014 22,929 29,598 
Other Asia110,844 83,951 71,365 
Total Asia133,858 106,880 100,963 
Europe, Middle East and Africa105,015 73,551 56,449 
Japan4,079 4,183 2,572 
Total$692,968 $604,390 $554,010 
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the fiscal quarter ended December 31, 2025, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated the contracts, instructions or written plans for the purchase or sale of our securities set forth in the table below.
Type of Trading Arrangement
Name and PositionActionAdoption/ Termination
Date		Rule 10b5-1*Total Shares of Common Stock to be SoldExpiration Date
Ita Brennan, Director
Adoption(1)
11/24/2025
X
Up to 720
3/18/2027
* Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

(1) Ms. Brennan previously adopted a Rule 10b5-1 trading arrangement on December 12, 2024, that expires on March 16, 2026, or, if earlier, upon completion of all authorized transactions under such plan (the "Prior Plan"). Trading under the new plan adopted on November 24, 2025 may not begin until after all trades under Ms. Brennan's Prior Plan are completed or expired without execution.
Name Ita Brennan
Title Director
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Ita Brennan [Member]  
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted true
Adoption Date 11/24/2025
Expiration Date 3/18/2027
Arrangement Duration 459 days
Aggregate Available 720
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity and availability of our critical systems and information, including our customers’, vendors’, partners’ and employees’ data, including personal information.
Our cybersecurity risk management program is guided by frameworks and standards promulgated by the EU, National Institute of Standards and Technology, Cloud Security Alliance (“CSA”) and International Organization for Standardization/International Electrotechnical Commission (“ISO/IEC”). While we seek to maintain ISO/IEC 27001:2013 and ISO/IEC 27017:2015 certifications, and seek to achieve the SOC 2 Type 1 and Type 2 attestations, this does not imply that we specifically or comprehensively comply with technical specification or requirements, only that we use all the above-mentioned standards and regulations as a guide to help us identify, assess and manage cybersecurity risks relevant to our business.
Our cybersecurity risk management program is integrated into our overall risk oversight strategy and utilizes common reporting channels and governance processes that apply across other risk areas. We have a dedicated Chief Information Security Officer (“CISO”), who leads our Information Security team responsible for managing our cybersecurity processes, strategy and controls. Certain members of our Information Security team hold cybersecurity certifications, including the Certified Information Systems Security Professional (“CISSP”) and the Certified Information Systems Auditor (“CISA”) designations.
Our cybersecurity risk management program includes:
•a security incident response plan that includes procedures for responding to and escalating cybersecurity incidents;
•risk assessment processes designed to help identify cybersecurity risks to our critical systems, information, products, services and our broader enterprise IT environment;
•our Information Security team, principally responsible for identifying and mitigating cybersecurity risks, and managing our security controls and our response to cybersecurity incidents;
•the use of external service providers, where appropriate, to assess, test (including penetration test) or otherwise assist with certain aspects of our security controls and processes;
•global security operations center services through certain service providers;
•implementation of new hire and annual data privacy and cybersecurity training of employees, including senior management, and cybersecurity governance training for our Board of Directors;
•a cybersecurity insurance policy to cover certain types of costs and losses from cybersecurity incidents; and
•a third-party risk management process, including risk assessment and risk rating (using common vulnerability scoring system or similar methodologies based on industry practices), for certain service providers, suppliers and vendors.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our business strategy, results of operations, or financial condition. See Item 1A, “Risk Factors,” for descriptions of certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our cybersecurity risk management program is integrated into our overall risk oversight strategy and utilizes common reporting channels and governance processes that apply across other risk areas.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and our Board committees assist with certain aspects of risk oversight. With respect to cybersecurity risk, our Board of Directors shares certain of the oversight responsibility and processes with the Audit Committee of the Board of Directors (“Audit Committee”).
The Audit Committee, comprised entirely of independent directors, reviews and discusses with management our guidelines, policies and practices regarding risk assessment and risk management as they relate to our financial condition, and oversees our financial risk exposures, including planning regarding business continuity and cybersecurity. In addition, the Audit Committee oversees our annual enterprise business risk assessment, which includes the review of cybersecurity risks we face and our associated risk mitigation measures, and receives semi-annual reports from management on cybersecurity matters, including areas such as threat intelligence, major cybersecurity risk areas, regulations and cybersecurity incidents. In addition, management updates the Audit Committee, as necessary, regarding significant cybersecurity incidents, as well as any incidents with lesser impact potential.
The Audit Committee reports to the Board of Directors regarding its activities related to cybersecurity. In addition, the Board of Directors also directly receives reports from management on our cybersecurity risk profile and on the performance of our data privacy and cybersecurity risk management program, semi-annually in alternating quarters with the Audit Committee.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee, comprised entirely of independent directors, reviews and discusses with management our guidelines, policies and practices regarding risk assessment and risk management as they relate to our financial condition, and oversees our financial risk exposures, including planning regarding business continuity and cybersecurity.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Audit Committee reports to the Board of Directors regarding its activities related to cybersecurity. In addition, the Board of Directors also directly receives reports from management on our cybersecurity risk profile and on the performance of our data privacy and cybersecurity risk management program, semi-annually in alternating quarters with the Audit Committee.
Cybersecurity Risk Role of Management [Text Block]
Our Chief Information Officer (“CIO”) and CISO, who are members of the management team, are primarily responsible for assessing and managing material risks from cybersecurity threats, including supervision of our internal security incident response team and external cybersecurity service providers. Our Disclosure Committee comprised of certain of our employees (including any applicable subcommittees thereof) participates in incident escalations and analyses. Our management team has relevant expertise in the following: (i) understanding of cybersecurity risks in enterprise operations, including information technology, information security, product security, physical security and legal, (ii) experience in overseeing risk management and understanding risks faced by enterprise operations and (iii) significant operating experience allowing them to provide insight into developing, implementing and assessing our operating plan. In addition, our CIO has over 25 years of experience in managing enterprise information technology, with a background in software development and technologies, and holds a Bachelor of Engineering (BE) in electrical engineering, and our CISO has over 30 years of broad cybersecurity and information technology risk management experience, is a Certified Information Security Manager (“CISM”) and holds a Master's Degree in computer science and information systems.
Our management team, led by our CIO and CISO, stays informed about and monitors efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents, and is responsible for oversight and management of our cybersecurity risk management program. Our management team receives briefings from our internal Information Security team and the Disclosure Committee whenever applicable. Such briefings include information regarding threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in our information technology environment. Our CIO and CISO, as well as other management team members, also provide quarterly cybersecurity risk management program updates, to the Board of Directors or to the Audit Committee, in alternating quarters.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Chief Information Officer (“CIO”) and CISO, who are members of the management team, are primarily responsible for assessing and managing material risks from cybersecurity threats, including supervision of our internal security incident response team and external cybersecurity service providers. Our Disclosure Committee comprised of certain of our employees (including any applicable subcommittees thereof) participates in incident escalations and analyses.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our management team has relevant expertise in the following: (i) understanding of cybersecurity risks in enterprise operations, including information technology, information security, product security, physical security and legal, (ii) experience in overseeing risk management and understanding risks faced by enterprise operations and (iii) significant operating experience allowing them to provide insight into developing, implementing and assessing our operating plan. In addition, our CIO has over 25 years of experience in managing enterprise information technology, with a background in software development and technologies, and holds a Bachelor of Engineering (BE) in electrical engineering, and our CISO has over 30 years of broad cybersecurity and information technology risk management experience, is a Certified Information Security Manager (“CISM”) and holds a Master's Degree in computer science and information systems.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our management team receives briefings from our internal Information Security team and the Disclosure Committee whenever applicable. Such briefings include information regarding threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in our information technology environment.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of Cadence and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly owned by Cadence. Certain prior year information has been reclassified to conform to the current year presentation.
Cadence’s fiscal year end is December 31, and its fiscal quarters end on March 31, June 30, and September 30.
Use of Estimates
Preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
New Accounting Pronouncements
Recently Adopted Accounting Standards
Income Taxes
In December 2023, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” (“ASU 2023-09”) which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. Cadence adopted this ASU prospectively during fiscal 2025. See Note 8 in the notes to the consolidated financial statements for further details.
New Accounting Standards Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires additional disclosure of certain costs and expenses in the notes to the financial statements. The updated standard is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and will be applied prospectively with the option for retrospective application. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Measurements of Credit Losses for Accounts Receivable and Contract Assets
In July 2025, the FASB issued ASU No. 2025-05, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets.” This ASU provides a practical expedient that allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. This standard is effective for annual and interim periods beginning after December 15, 2025. Cadence does not expect the adoption of this ASU to have a material impact on its consolidated financial statements and disclosures.
Accounting for Internal-Use Software
In September 2025, the FASB issued ASU No. 2025‑06, “Intangibles—Goodwill and Other—Internal‑Use Software (Subtopic 350‑40): Simplifying the Accounting for Internal‑Use Software.” The updated guidance changes the capitalization criteria for internal‑use software by replacing the existing stage‑based model with a principles‑based approach focused on the point at which management authorizes the software project, funding is approved, and it is probable that the software will be completed and used as intended. Costs that do not directly relate to the development of internal‑use software, such as training, data conversion, and ongoing maintenance, will continue to be expensed as incurred. This standard is effective for annual and interim periods beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted and the standard will be applied prospectively. Cadence does not expect the adoption of this ASU to have a material impact on its consolidated financial statements or disclosures.
Interim Reporting
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270) Narrow-Scope Improvements,” which provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. The guidance is effective for annual and interim periods beginning after December 15, 2027. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Foreign Operations
Cadence transacts business in various foreign currencies. The United States dollar is the functional currency of Cadence’s consolidated entities operating in the United States and certain of its consolidated subsidiaries operating outside the United States. The functional currency for Cadence’s other consolidated entities operating outside of the United States is generally the country’s local currency.
Cadence translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. Cadence translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using an average exchange rate for the period. Cadence includes adjustments from translating assets and liabilities into United States dollars, and the effect of exchange rate changes on intercompany transactions of a long-term investment nature in stockholders’ equity as a component of accumulated other comprehensive income. Cadence reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from foreign currency transactions of a monetary nature in other income (expense), net, in the consolidated income statements.
Concentrations of Credit Risk Financial instruments, including derivative financial instruments, that may potentially subject Cadence to concentrations of credit risk, consist principally of cash and cash equivalents, accounts receivable, investments and forward contracts. Credit exposure related to Cadence’s foreign currency forward contracts is limited to the realized and unrealized gains on these contracts.
Cash and Cash Equivalents
Cadence considers all highly liquid investments with original maturities of three months or less on the date of purchase to be cash equivalents.
Receivables Cadence’s receivables, net includes invoiced accounts receivable and the current portion of unbilled receivables. Unbilled receivables represent amounts Cadence has recorded as revenue for which payments from a customer are due over time and Cadence has an unconditional right to the payment. Cadence’s accounts receivable and unbilled receivables were initially recorded at the transaction value. Cadence’s long-term receivables balance includes receivable balances to be invoiced more than one year after each balance sheet date.
Allowances for Doubtful Accounts
Cadence assesses its ability to collect outstanding receivables and provides customer-specific allowances, allowances for credit losses and general allowances for the portion of its receivables that are estimated to be uncollectible. The allowances are based on the current creditworthiness of its customers, historical experience, expected credit losses, changes in customer demand and the overall economic climate in the industries that Cadence serves. Provisions for these allowances are recorded in general and administrative expense in Cadence’s consolidated income statements.
Inventories Inventories are computed at standard costs which approximate actual costs and are valued at the lower of cost or net realizable value based on the first-in, first-out method. Cadence’s inventories include high technology parts and components for complex accelerated hardware systems. These parts and components are specialized in nature and may be subject to rapid technological obsolescence. While Cadence has programs to manage the required inventories on hand and considers technological obsolescence when estimating required reserves to reduce recorded amounts to market values, it is reasonably possible that such estimates could change in the near term.
Inventory Impairment Cadence’s policy is to reserve for inventory in excess of future demand forecasts or for other known obsolescence or realization issues. Provisions for obsolescence reserves are recorded as a component of cost of product and maintenance in Cadence’s consolidated income statements.
Property, Plant and Equipment
Property, plant and equipment is stated at historical cost. Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows:
Equipment and internal-use software
2-7 years
Buildings
25-32 years
Leasehold improvementsShorter of the lease term or the estimated useful life
Building improvements and land improvements
Up to 32 years
Furniture and fixtures
3-5 years
Cadence capitalizes certain costs of software developed for internal use. Capitalization of software developed for internal use begins at the application development phase of the project. Amortization begins when the computer software is substantially complete and ready for its intended use. Amortization is recorded on a straight-line basis over the estimated useful life.
Software Development Costs Software development costs are capitalized beginning when a product’s technological feasibility has been established by completion of a working model of the product and amortization begins when a product is available for general release to customers. The period between the achievement of technological feasibility and the general release of Cadence’s products has typically been of short duration. Costs incurred during fiscal 2025, 2024 and 2023 were not material.
Deferred Sales Commisions
Cadence records an asset for the incremental costs of obtaining a contract with a customer, including direct sales commissions that are earned upon execution of the contract. Cadence uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over a period associated with the revenue of the related portfolio, which is generally two to three years for Cadence’s software arrangements and upon delivery for its hardware and IP arrangements. Incremental costs related to initial contracts and renewals are amortized over the period of the arrangement in each case because Cadence pays the same commission rate for both new contracts and renewals. Deferred sales commissions are tested for impairment on an ongoing basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized to the extent that the amount of deferred sales commission exceeds the remaining expected gross margin (remaining revenue less remaining direct costs) on the goods and services to which the deferred sales commission relates. Total capitalized costs were $53.1 million and $51.9 million as of December 31, 2025, and December 31, 2024, respectively, and are included in other assets in Cadence’s consolidated balance sheets. Amortization of these assets was $50.0 million, $47.6 million and $41.4 million during fiscal 2025, 2024 and 2023, respectively, and is included in sales and marketing expense in Cadence’s consolidated income statements.
Goodwill Cadence conducts a goodwill impairment analysis annually and as necessary if changes in facts and circumstances indicate that the fair value of Cadence’s single reporting unit may be less than its carrying amount. To assess for impairment, Cadence compares the estimated fair value of its single reporting unit to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired, and no further analysis is required. If the fair value of the reporting unit is less than the carrying value of its net assets, Cadence would be required to record an impairment charge.
Long-Lived Assets, Including Acquired Intangibles
Cadence’s long-lived assets consist of property, plant and equipment, and acquired intangibles. Acquired intangibles consist of acquired technology, certain contract rights, customer relationships, trademarks and trade names, capitalized software, and in-process research and development. These acquired intangibles are acquired through business combinations or direct purchases. Acquired intangibles with definite lives are amortized on a straight-line basis over the estimated economic life of the underlying products and technologies, which range from one year to fifteen years. Acquired intangibles with indefinite lives, or in-process technology, consists of projects that had not reached technological feasibility by the date of acquisition. Upon completion of the project, the assets are amortized over their estimated useful lives. If the project is abandoned rather than completed, the asset is written off. In-process technology is tested for impairment annually and as necessary if changes in facts and circumstances indicate that the assets might be impaired.
Cadence reviews its long-lived assets, including acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or asset group may not be recoverable. Recoverability of an asset or asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset or asset group is expected to generate. If it is determined that the carrying amount of an asset group is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset or asset group exceeds its fair value.
Leases, Lessee Considerations
Lessee Considerations
Cadence has operating leases primarily consisting of facilities with remaining lease terms of approximately one year to thirteen years. Cadence has options to terminate many of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that Cadence will not exercise the early termination option. For certain leases, Cadence has options to extend the lease term for additional periods ranging from one year to ten years. Renewal options are not considered in the remaining lease term unless it is reasonably certain that Cadence will exercise such options.
At inception of a contract, Cadence determines an arrangement contains a lease if the arrangement conveys the right to use an identified asset and Cadence obtains substantially all of the economic benefits from the asset and has the ability to direct the use of the asset. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of ASU 2016-02, “Leases (Topic 842),” Cadence combines the lease and non-lease components in determining the lease liabilities and right-of-use (“ROU”) assets. Non-lease components primarily include common-area maintenance and other management fees.
Operating lease expense is generally recognized evenly over the term of the lease. Payments under Cadence’s lease agreements are primarily fixed; however, certain agreements contain rental payments that are adjusted periodically based on changes in consumer price and other indices. Changes to payments resulting from changes in indices are expensed as incurred and not included in the measurement of lease liabilities and ROU assets. Cadence’s lease agreements do not provide an implicit borrowing rate, therefore an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The incremental borrowing rate represents a comparable rate to borrow on a collateralized basis over a similar term and in the economic environment where the leased asset is located.
Leases, Lessor Considerations
Lessor Considerations
Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Cadence determines the existence of a lease when the customer controls the use of the identified hardware for a period of time defined in the lease agreement. 
Cadence’s leases range in duration up to three years with payments generally collected in equal quarterly installments. Cadence’s leases do not include termination rights or variable pricing and typically do not include purchase rights at the end of the lease. Short-term leases are usually less than two years and are classified as operating leases with revenue recognized and depreciation expensed on a straight-line basis over the term of the lease. Long-term leases are typically for three years and are classified as sales-type leases with revenue and cost of sales recognized upon installation.
Cadence’s operating leases and sales-type leases contain both lease and non-lease components. Because the pattern of revenue recognition is the same for both the lease and non-lease components in Cadence’s operating leases, Cadence has elected the practical expedient to not separate lease and related non-lease components and accounts for both components under Topic 842. Cadence allocates value to the lease and non-lease components in its sales-type leases using standalone selling prices (“SSPs”) similar to those used under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” the current accounting standard governing revenue recognition. When Cadence leases its hardware in the same arrangement as software or IP, Cadence allocates value to each performance obligation using SSPs.
Investments in Marketable Equity Securities
Cadence’s investments in marketable equity securities are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence records realized and unrealized holding gains or losses as part of other income (expense), net in the consolidated income statements.
Investments in Non-Marketable Equity Securities
Cadence’s non-marketable investments include its investments in privately held companies. These investments are initially recorded at cost and are included in other assets in the consolidated balance sheets. Cadence accounts for these investments using the measurement alternative when the fair value of the investment is not readily determinable, and Cadence does not have the ability to exercise significant influence, or the equity method of accounting when it is determined that Cadence has the ability to exercise significant influence. For investments accounted for using the equity method of accounting, Cadence records its proportionate share of the investee’s income or loss, net of the effects of any basis differences, to other income (expense), net on a one-quarter lag in Cadence’s consolidated income statements.
Cadence reviews its non-marketable investments for impairment on a regular basis by considering investee financial performance and other information received from the investee companies that indicates a decline in value has occurred. For non-marketable equity investments accounted for using the measurement alternative, the carrying amount may also be adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments to the carrying amounts of non-marketable investments are recorded in other income (expense), net in the consolidated income statements. There were no material events or circumstances impacting the carrying amount of our non-marketable investments during the periods presented.
Investments in Debt Securities
Cadence’s investments in debt securities are comprised of investments in mortgage-backed and asset backed-securities and are carried at fair value as a component of prepaid expenses and other in the consolidated balance sheets. Cadence classifies its investment in debt securities as available-for-sale, and gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on its consolidated balance sheets.
Cadence assesses its portfolio of debt securities for impairment at least quarterly. Cadence records an allowance for credit losses on debt securities when the fair value of a debt security is below its amortized cost, and it is more likely than not that Cadence will either sell the impaired security before recovery of its amortized basis or has the intention to sell the security. Provisions for credit losses on impaired debt securities are recorded as a component of other income (expense), net in the consolidated income statements.
Derivative Financial Instruments Cadence enters into foreign currency forward exchange contracts with financial institutions to protect against currency exchange risks associated with existing assets and liabilities. A foreign currency forward exchange contract acts as a hedge by increasing in value when underlying assets decrease in value or underlying liabilities increase in value due to changes in foreign exchange rates. Conversely, a foreign currency forward exchange contract decreases in value when underlying assets increase in value or underlying liabilities decrease in value due to changes in foreign exchange rates. The forward contracts are not designated as accounting hedges and, therefore, the unrealized gains and losses are recognized in other income (expense), net, in advance of the actual foreign currency cash flows. The fair value of these forward contracts is recorded in accrued liabilities or in other current assets. These forward contracts generally have maturities of 90 days or less.
Nonqualified Deferred Compensation Trust
Executive officers, senior management and members of Cadence’s Board of Directors may elect to defer compensation payable to them under Cadence’s Nonqualified Deferred Compensation Plan (“NQDC”). Deferred compensation payments are held in investment accounts and the values of the accounts are adjusted each quarter based on the fair value of the investments held in the NQDC.
The selected investments held in the NQDC accounts are carried at fair value, with the unrealized gains and losses recognized in the consolidated income statements as other income (expense), net. These securities are classified in other assets in the consolidated balance sheets because they are not available for Cadence’s use in its operations.
Cadence’s obligation with respect to the NQDC trust is recorded in other long-term liabilities on the consolidated balance sheets. Increases and decreases in the NQDC trust liability are recorded as compensation expense in the consolidated income statements.
Treasury Stock
Cadence generally issues shares related to its stock-based compensation plans from shares held in treasury. When treasury stock is reissued at an amount higher than its cost, the difference is recorded as a component of capital in excess of par in the consolidated statements of stockholders’ equity. When treasury stock is reissued at an amount lower than its cost, the difference is recorded as a component of capital in excess of par to the extent that gains exist to offset the losses. If there are no accumulated treasury stock gains in capital in excess of par, the losses upon reissuance of treasury stock are recorded as a component of retained earnings in the consolidated statements of stockholders’ equity. There were no losses recorded as a component of retained earnings by Cadence on the reissuance of treasury stock during fiscal 2025, 2024 or 2023.
The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. During fiscal 2025 and 2023, Cadence recorded excise tax of $3.1 million and $0.9 million, respectively, as a component of treasury stock to account for the incremental cost of the shares repurchased. Cadence did not incur any excise tax on the net value of stock repurchases during fiscal 2024.
Revenue Recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which Cadence expects to be entitled in exchange for promised goods or services. Cadence’s performance obligations are satisfied either over time or at a point in time.
Product and maintenance revenue includes Cadence’s licenses of software and IP, sales of emulation hardware and the related maintenance on these licenses and sales.
Services revenue includes revenue received for performing engineering services (which are generally not related to the functionality of other licensed products), customized IP on a fixed fee basis, and sales from cloud-based solutions that provide customers with software, hardware and services over a period of time.
Cadence enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, Cadence allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its SSP. Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities.
Some customers enter into non-cancelable commitments whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of products or services. These arrangements do not meet the definition of a revenue contract until the customer executes a separate selection form to identify the products and services that they are purchasing. Each separate selection form under the arrangement is treated as an individual contract and accounted for based on the respective performance obligations. Cadence records a customer deposit liability for amounts received from customers prior to the arrangement meeting the definition of a revenue contract.
Software Revenue Recognition
Cadence’s time-based license arrangements grant customers the right to access and use all of the licensed products at the outset of an arrangement and updates are generally made available throughout the entire term of the arrangement, which is generally two to three years. Cadence’s updates provide continued access to evolving technology as customers’ designs migrate to more advanced nodes and as its customers’ technological requirements evolve. In addition, certain time-based license arrangements include remix rights and unspecified additional products that become commercially available during the term of the agreement. Payments are generally received in equal or near equal installments over the term of the agreement.
Multiple software licenses, related updates, and technical support in these time-based arrangements constitute a single, combined performance obligation and revenue is recognized over the term of the license, commencing upon the later of the effective date of the arrangement or transfer of the software license. Remix rights are not an additional promised good or service in the contract, and where unspecified additional software product rights are part of the contract with the customer, such rights are accounted for as part of the single performance obligation that includes the licenses, updates, and technical support because such rights are provided for the same period of time and have the same time-based pattern of transfer to the customer.
For certain software arrangements where the updates are not critical to maintaining the utility of the software, Cadence considers the license, related updates and technical support as separate performance obligations. In these instances, the total consideration is allocated across the separate performance obligations using SSPs and the license revenue is recognized upon the later of the delivery or effective date of the contract and the revenue related to the updates and technical support is recognized over the term of the arrangement.
Hardware Revenue Recognition
Cadence generally has two performance obligations in arrangements involving the sale or lease of hardware products. The first performance obligation is to transfer the hardware product (which includes software integral to the functionality of the hardware product). The second performance obligation is to provide maintenance on hardware and its embedded software, which includes rights to technical support, hardware repairs and software updates that are all provided over the same term and have the same time-based pattern of transfer to the customer. The transaction price allocated to the hardware product is generally recognized as revenue at the time of delivery because the customer obtains control of the product at that point in time. Cadence has concluded that control generally transfers at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware. The transaction price allocated to maintenance is recognized as revenue ratably over the maintenance term. Payments for hardware contracts are generally received subsequent to delivery of the hardware product. Shipping and handling costs are considered fulfillment costs and are included in cost of product and maintenance in Cadence’s consolidated income statements.
IP Revenue Recognition
Cadence generally licenses IP under nonexclusive license agreements that provide usage rights for specific designs. In addition, for certain of Cadence’s IP license agreements, royalties are collected as customers ship their own products that incorporate Cadence IP. These arrangements generally have two performance obligations—transferring the licensed IP and associated maintenance, which includes rights to technical support, and software updates that are all provided over the maintenance term and have a time-based pattern of transfer to the customer.
Revenue allocated to the IP license is recognized at a point in time upon the later of the delivery of the IP or the beginning of the license period and revenue allocated to the maintenance is recognized over the maintenance term. Royalties are recognized as revenue in the quarter in which the applicable Cadence customer ships its products that incorporate Cadence IP. Payments for IP contracts are generally received subsequent to delivery of the IP. Cadence customizes certain IP and revenue related to this customization is recognized as services revenue as described below.
Services Revenue Recognition
Revenue from service contracts is recognized over time, generally using costs incurred or hours expended to measure progress. Cadence has a history of accurately estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. Payments for services are generally due upon milestones in the contract or upon consumption of the hourly resources.
Stock-Based Compensation
Cadence recognizes the cost of awards of equity instruments granted to employees in exchange for their services as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period, which is typically the vesting period. Cadence recognizes stock-based compensation expense on the straight-line method for awards that only contain a service condition and on the graded-vesting method for awards that contain both a service and performance condition. Cadence recognizes the impact of forfeitures on stock-based compensation expense as they occur.
The fair value of stock options and purchase rights issued under Cadence’s Employee Stock Purchase Plan (“ESPP”) are calculated using the Black-Scholes option pricing model. The computation of the expected volatility assumption used for new awards is based on a weighting of historical and implied volatilities. When determining the expected term, Cadence reviews historical employee exercise behavior from options having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes for the comparable term in effect at the time of grant. The expected dividend yield used in the calculation is zero because Cadence has not historically paid and currently does not expect to pay dividends in the foreseeable future.
The fair value of market-based performance stock awards is calculated using a Monte Carlo simulation model and takes into account the same input assumptions as the Black-Scholes model, as well as the possibility that the market conditions may not be satisfied. Cadence recognizes stock-based compensation expense on the graded-vesting method for market-based performance stock awards.
Advertising
Cadence expenses the costs of advertising as incurred. Total advertising expense, including marketing programs and events, was $15.2 million, $23.2 million and $21.7 million during fiscal 2025, 2024 and 2023, respectively, and is included in marketing and sales in the consolidated income statements.
Restructuring
Cadence records personnel-related restructuring charges with termination benefits when the costs are both probable and estimable. Cadence records personnel-related restructuring charges with non-customary termination benefits when the plan has been communicated to the affected employees. Cadence generally begins recording facilities-related restructuring charges in the period in which a formal plan to vacate an affected facility is established. In connection with facilities-related restructuring plans, Cadence has made certain assumptions and estimates related to facilities, particularly the timing of exit and the ability to sublease. Facility closure costs in restructuring charges primarily includes accelerated ROU asset amortization, lease buyout costs and certain contractual costs to maintain facilities during the period after abandonment.
Cadence records estimated provisions for termination benefits and outplacement costs along with other personnel-related restructuring costs, asset impairments related to abandoned assets and other costs associated with the restructuring plan. Cadence regularly evaluates the adequacy of its restructuring liabilities and adjusts the balances based on actual costs incurred or changes in estimates and assumptions. Subsequent adjustments to restructuring accruals are classified as restructuring in the consolidated income statements.
Accounting for Income Taxes
Cadence accounts for the effect of income taxes in its consolidated financial statements using the asset and liability method. This process involves estimating actual current tax liabilities together with assessing carryforwards and temporary differences resulting from differing treatment of items, such as depreciation, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. Cadence accounts for the United States global intangible low-taxed income as a period expense.
Cadence then records a valuation allowance to reduce the deferred tax assets to the amount that Cadence believes is more likely than not to be realized based on its judgment of all available positive and negative evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which the strength of the evidence can be objectively verified. This assessment, which is completed on a taxing jurisdiction basis, takes into account a number of types of evidence, including the following:
•the nature and history of current or cumulative financial reporting income or losses;
•sources of future taxable income;
•the anticipated reversal or expiration dates of the deferred tax assets; and
•tax planning strategies.
Cadence takes a two-step approach to recognizing and measuring the financial statement benefit of uncertain tax positions. The first step is to evaluate the tax position for recognition by determining whether the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement of the audit. Cadence classifies interest and penalties on unrecognized tax benefits as income tax expense or benefit.
Fair Value of Financial Instruments
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy:
•Level 1 – Quoted prices for identical instruments in active markets;
•Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred.
Commitments and Contingencies At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Property, Plant and Equipment [Table Text Block] Depreciation and amortization are generally provided over the estimated useful lives, using the straight-line method, as follows:
Equipment and internal-use software
2-7 years
Buildings
25-32 years
Leasehold improvementsShorter of the lease term or the estimated useful life
Building improvements and land improvements
Up to 32 years
Furniture and fixtures
3-5 years
v3.25.4
REVENUE (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from external customers by product category The following table shows the percentage of revenue contributed by each of Cadence’s product categories for fiscal 2025, 2024 and 2023:
 202520242023
Core EDA*
70 %71 %76 %
Semiconductor IP (“IP”)14 %13 %12 %
System Design and Analysis16 %16 %12 %
Total100 %100 %100 %
_____________
* Includes immaterial amount of revenue accounted for under leasing arrangements.
Disaggregation of Revenue
The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for fiscal 2025, 2024 and 2023:
 202520242023
Revenue recognized over time76 %80 %81 %
Other recurring revenue
4 %3 %3 %
Recurring revenue80 %83 %84 %
Up-front revenue20 %17 %16 %
Total100 %100 %100 %
Contract assets and deferred revenue
Cadence’s contract balances as of December 31, 2025, and December 31, 2024, were as follows:
 As of
 December 31,
2025		December 31,
2024
 (In thousands)
Contract assets$67,764 $29,339 
Deferred revenue934,432 852,581 
v3.25.4
RECEIVABLES, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Current and long-term accounts receivable balances
Cadence’s current and long-term receivables balances as of December 31, 2025, and December 31, 2024, were as follows:
 As of
 December 31,
2025		December 31,
2024
 (In thousands)
Accounts receivable$492,834 $393,017 
Unbilled accounts receivable455,993 293,251 
Long-term receivables52,451 24,179 
Total receivables1,001,278 710,447 
Less allowance for doubtful accounts(3,888)(5,808)
Total receivables, net$997,390 $704,639 
Roll forward of allowance for doubtful accounts
Cadence’s provisions for losses on its accounts receivable during fiscal 2025, 2024 and 2023 were as follows:
Balance at Beginning of PeriodCharged to Costs and ExpensesUncollectible Accounts Written Off, NetBalance at End of Period
Year ended December 31, 2025$5,808 $829 $(2,749)$3,888 
Year ended December 31, 20244,553 2,078 (823)5,808 
Year ended December 31, 2023$2,290 $3,325 $(1,062)$4,553 
v3.25.4
DEBT (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Summary of debt outstanding
Cadence’s outstanding debt as of December 31, 2025, and December 31, 2024, was as follows:
 December 31, 2025December 31, 2024
 (In thousands)
Principal
Unamortized Discount and Issuance Costs
Carrying ValuePrincipal
Unamortized Discount and Issuance Costs
Carrying Value
2027 Notes500,000 (2,073)497,927 500,000 (3,206)496,794 
2029 Notes1,000,000 (7,747)992,253 1,000,000 (9,666)990,334 
2034 Notes1,000,000 (10,030)989,970 1,000,000 (10,945)989,055 
Total outstanding debt$2,500,000 $(19,850)$2,480,150 $2,500,000 $(23,817)$2,476,183 
v3.25.4
ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]      
Business Combination, Recognized Asset Acquired and Liability Assumed
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Secure-IC based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$33,400 
Goodwill80,477 
Acquired intangibles61,800 
Other long-term assets11,420 
Total assets acquired187,097 
Current liabilities14,184 
Long-term liabilities20,194 
Total liabilities assumed34,378 
Total purchase consideration$152,719 
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of the Artisan foundation IP business based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$936 
Goodwill49,671 
Acquired intangibles80,800 
Other long-term assets948 
Total assets acquired132,355 
Current liabilities3,089 
Long-term liabilities775 
Total liabilities assumed3,864 
Total purchase consideration$128,491 
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of VLAB Works based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$9,343 
Goodwill93,068 
Acquired intangibles27,700 
Other long-term assets1,322 
Total assets acquired131,433 
Current liabilities4,222 
Long-term liabilities898 
Total liabilities assumed5,120 
Total purchase consideration$126,313 
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of BETA CAE based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$118,676 
Goodwill822,129 
Acquired intangibles345,000 
Other long-term assets18,198 
Total assets acquired1,304,003 
Current liabilities36,465 
Long-term liabilities36,250 
Total liabilities assumed72,715 
Total purchase consideration$1,231,288 
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Invecas based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$50,608 
Goodwill42,209 
Acquired intangibles15,500 
Other long-term assets7,414 
Total assets acquired115,731 
Current liabilities17,114 
Long-term liabilities3,647 
Total liabilities assumed20,761 
Total purchase consideration$94,970 
The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$1,460 
Goodwill80,999 
Acquired intangibles26,000 
Other long-term assets2,798 
Total assets acquired111,257 
Current liabilities2,531 
Long-term liabilities142 
Total liabilities assumed2,673 
Total purchase consideration$108,584 
The total purchase consideration was allocated to the assets acquired and liabilities assumed with Cadence’s acquisition of Pulsic based on their respective fair values on the acquisition date as follows:
 Fair Value
 (In thousands)
Current assets$4,369 
Goodwill47,448 
Acquired intangibles12,400 
Other long-term assets89 
Total assets acquired64,306 
Current liabilities1,553 
Long-term liabilities2,885 
Total liabilities assumed4,438 
Total purchase consideration$59,868 
Business Combination, Intangible Asset, Acquired, Finite-Lived and Indefinite-Lived
Definite-lived intangible assets acquired with Cadence’s acquisition of Secure-IC were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$37,000 7.0 years
Agreements and relationships22,900 10.0 years
Tradenames, trademarks and patents1,900 7.0 years
Total acquired intangibles with definite lives$61,800 8.1 years
Definite-lived intangible assets acquired with Cadence’s acquisition of the Artisan foundation IP business were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$45,400 4.5 years
Agreements and relationships27,100 10.0 years
Tradenames, trademarks and patents8,300 6.5 years
Total acquired intangibles with definite lives$80,800 6.6 years
Definite-lived intangible assets acquired with Cadence’s acquisition of VLAB Works were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$18,300 6.0 years
Agreements and relationships9,000 7.0 years
Tradenames, trademarks and patents400 3.0 years
Total acquired intangibles with definite lives$27,700 6.3 years
Definite-lived intangible assets acquired with Cadence’s acquisition of BETA CAE were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$140,000 6.0 years
Agreements and relationships190,000 15.0 years
Tradenames, trademarks and patents15,000 7.0 years
Total acquired intangibles with definite lives$345,000 11.0 years
Definite-lived intangible assets acquired with Cadence’s acquisition of the SerDes and Memory business from Rambus were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$16,700 5.0 years
Agreements and relationships9,300 7.0 years
Total acquired intangibles with definite lives$26,000 5.7 years
Definite-lived intangible assets acquired with Cadence’s acquisition of Pulsic were as follows:
 Fair ValueWeighted Average Amortization Period
 (In thousands) (in years)
Existing technology$8,000 6.2 years
Agreements and relationships4,100 8.0 years
Tradenames, trademarks and patents300 6.0 years
Total acquired intangibles with definite lives$12,400 6.8 years
v3.25.4
GOODWILL AND ACQUIRED INTANGIBLES (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the carrying amount of goodwill
The changes in the carrying amount of goodwill during fiscal 2025 and 2024 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of December 31, 2023$1,535,845 
Goodwill resulting from acquisitions889,585 
Effect of foreign currency translation(46,759)
Balance as of December 31, 20242,378,671 
Goodwill resulting from acquisitions249,712 
Effect of foreign currency translation120,760 
Balance as of December 31, 2025$2,749,143 
Acquired intangibles with finite lives (excluding goodwill), excluding intangibles fully amortized at end of prior fiscal year
Acquired intangibles as of December 31, 2025, were as follows, excluding intangibles that were fully amortized as of December 31, 2024:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$590,211 $(256,589)$333,622 
Agreements and relationships470,334 (114,697)355,637 
Tradenames, trademarks and patents40,984 (12,020)28,964 
Total acquired intangibles$1,101,529 $(383,306)$718,223 
Acquired intangibles as of December 31, 2024, were as follows, excluding intangibles that were fully amortized as of December 31, 2023:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$465,453 $(199,126)$266,327 
Agreements and relationships386,365 (78,605)307,760 
Tradenames, trademarks and patents28,113 (7,466)20,647 
Total acquired intangibles$879,931 $(285,197)$594,734 
Amortization of acquired intangibles Amortization expense for fiscal 2025, 2024 and 2023, by consolidated income statement caption, was as follows:
202520242023
 (In thousands)
Cost of product and maintenance$65,395 $60,074 $43,808 
Amortization of acquired intangibles39,937 30,375 18,162 
Total amortization of acquired intangibles$105,332 $90,449 $61,970 
Estimated amortization expense
As of December 31, 2025, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2026$125,335 
2027117,035 
2028112,320 
202997,511 
203062,280 
Thereafter203,742 
Total estimated amortization expense$718,223 
v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income before provision for income taxes
Cadence’s income before provision for income taxes included income from the United States and from foreign subsidiaries for fiscal 2025, 2024 and 2023, was as follows:
202520242023
(In thousands)
United States$535,551 $600,088 $533,442 
Foreign subsidiaries986,492 795,731 748,484 
Total income before provision for income taxes$1,522,043 $1,395,819 $1,281,926 
Components of income taxes provision
Cadence’s provision for income taxes was comprised of the following items for fiscal 2025, 2024 and 2023:
202520242023
(In thousands)
Current:
Federal$133,235 $281,674 $156,495 
State and local67,323 50,430 15,933 
Foreign146,549 136,968 104,866 
Total current347,107 469,072 277,294 
Deferred:
Federal31,079 (130,490)(87,851)
State and local8,805 (5,127)25,440 
Foreign26,164 6,880 25,899 
Total deferred66,048 (128,737)(36,512)
Total provision for income taxes$413,155 $340,335 $240,782 
Summary of income tax reconciliation
The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the provision computed at the U.S. federal statutory income tax rate to the provision for income taxes for fiscal 2025.
2025
(In thousands)(%)
Provision computed at federal statutory income tax rate$319,629 21.0 %
State and local income tax, net of federal tax effect*
68,258 4.5 %
Foreign tax effects
Ireland
Statutory tax rate difference between Ireland & United States(45,716)(3.0)%
Other
(16,302)(1.1)%
Other foreign jurisdictions
66,259 4.4 %
Effect of cross-border tax laws
Global intangible low-taxed income
131,254 8.6 %
Foreign-derived intangible income
(7,342)(0.5)%
Subpart F
22,040 1.4 %
Tax credits
Research and development tax credits
(20,556)(1.4)%
Foreign tax credits
(110,079)(7.2)%
Change in deferred tax asset valuation allowance
(11)— %
Nontaxable or nondeductible items
Stock based compensation
(29,013)(1.9)%
Settlements with BIS and the DOJ
26,994 1.8 %
Acquisition-related costs
14,105 0.9 %
Decrease in unrecognized tax benefits
(4,837)(0.3)%
Other
(1,528)(0.1)%
Provision for income taxes$413,155 27.1 %
_____________
*State taxes in California make up the majority (greater than 50 percent) of the tax effect in this category.
The following table presents the required disclosures prior to the adoption of ASU 2023-09 and reconciles the provision computed at the U.S. federal statutory income tax rate to the provision for income taxes for fiscal 2024 and fiscal 2023.
20242023
(In thousands)
Provision computed at federal statutory income tax rate$293,122 $269,205 
State and local income tax, net of federal tax effect50,130 40,304 
Intercompany transfers of intangible property rights7,833 23,826 
Foreign income tax rate differential(62,798)(54,210)
Foreign-derived intangible income deduction(13,344)(14,253)
U.S. tax on foreign entities144,222 113,011 
Stock-based compensation(6,181)(26,805)
Change in deferred tax asset valuation allowance11,441 9,077 
Tax credits(135,344)(130,383)
Non-deductible acquisition-related costs
11,770 6,709 
Withholding taxes20,175 15,300 
Tax settlements, foreign— 4,034 
Increase (decrease) in unrecognized tax benefits9,061 (19,660)
Other10,248 4,627 
Provision for income taxes$340,335 $240,782 
Effective tax rate24 %19 %
Components of deferred tax assets and liabilities
The components of deferred tax assets and liabilities consisted of the following as of December 31, 2025, and December 31, 2024:
As of
December 31,
2025		December 31,
2024
(In thousands)
Deferred tax assets:
Tax credit carryforwards$125,267 $110,031 
Reserves and accruals110,634 103,731 
Intangible assets472,393 487,947 
Capitalized research and development expense for income tax purposes305,835 368,085 
Operating loss carryforwards12,801 9,781 
Deferred income84,309 79,195 
Capital loss carryforwards16,601 16,861 
Stock-based compensation costs38,610 34,045 
Depreciation and amortization33,759 17,228 
Investments22,826 20,757 
Lease liability39,606 33,341 
Total deferred tax assets1,262,641 1,281,002 
Valuation allowance(104,782)(90,603)
Net deferred tax assets1,157,859 1,190,399 
Deferred tax liabilities:
Intangible assets(139,761)(107,251)
Undistributed foreign earnings(92,954)(76,045)
ROU assets(39,606)(33,341)
Investments
(11,422)(14,171)
Other(3,950)(7,869)
Total deferred tax liabilities(287,693)(238,677)
Total net deferred tax assets$870,166 $951,722 
Summary of operating loss carryforward As of December 31, 2025, Cadence’s operating loss carryforwards were as follows:
AmountExpiration Periods
(In thousands)
Federal$41 
2033
California31,209 
from 2026 through 2046
Other states (tax effected, net of federal benefit)164 from 2028 through indefinite
Foreign (tax effected)10,334 indefinite
Summary of tax credit carryforwards
As of December 31, 2025, Cadence had tax credit carryforwards of:
AmountExpiration Periods
(In thousands)
Federal*$60,773 
from 2031
California— indefinite
Other states 10,261 
from 2034 through 2045
Foreign 54,234 
from 2045 through indefinite
_____________
*Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period.
Earliest tax years open to examination by jurisdiction As of December 31, 2025, Cadence’s earliest tax years that remain open to examination and the assessment of additional tax include:
JurisdictionEarliest Tax Year Open to Examination
United States – Federal2020
United States – California2020
Ireland2021
Israel2017
Unrecognized tax benefits roll forward
The changes in Cadence’s gross amount of unrecognized tax benefits during fiscal 2025, 2024 and 2023 are as follows:
202520242023
(In thousands)
Unrecognized tax benefits at the beginning of the fiscal year$107,388 $94,311 $126,073 
Gross amount of the increase (decrease) in unrecognized tax benefits of tax positions taken during a prior year*
232 10,109 (1,401)
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year4,118 6,669 2,565 
Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities, including the utilization of tax attributes(6,598)— (8,000)
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations(4,118)(3,173)(24,768)
Effect of foreign currency translation(81)(528)(158)
Unrecognized tax benefits at the end of the fiscal year$100,941 $107,388 $94,311 
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence’s effective tax rate$99,944 $106,420 $93,398 
_____________
* Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions
Interest and penalties recognized in consolidated income statements and balance sheets
The total amounts of interest, net of tax, and penalties recognized in the consolidated income statements as provision for income taxes for fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands)
Interest$1,984 $3,893 $2,282 
Penalties(308)143 267 
The total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of December 31, 2025, and December 31, 2024, were as follows:
As of
December 31,
2025		December 31,
2024
(In thousands)
Interest$9,050 $9,010 
Penalties891 1,261 
Cash paid for income taxes Total income taxes paid (net of refunds) for fiscal 2025 include:
2025
(In thousands)
U.S. Federal
$76,724 
U.S. State & Local29,980 
Foreign140,663 
Total$247,367 
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock based compensation expense and allocation by share based payment award
Stock-based compensation expense and the related income tax benefit recognized in connection with stock options, restricted stock and the ESPP during fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands)
Stock options$16,101 $18,610 $15,939 
Restricted stock400,699 338,082 278,567 
ESPP38,375 34,527 31,105 
Total stock-based compensation expense$455,175 $391,219 $325,611 
Income tax benefit$76,978 $66,080 $50,994 
Stock based compensation expense and allocation by cost
Stock-based compensation expense is reflected in Cadence’s consolidated income statements during fiscal 2025, 2024 and 2023 as follows:
202520242023
(In thousands)
Cost of product and maintenance$8,216 $6,402 $4,500 
Cost of services9,498 8,149 5,728 
Marketing and sales87,150 77,195 66,304 
Research and development278,489 241,730 194,709 
General and administrative71,822 57,743 54,370 
Total stock-based compensation expense$455,175 $391,219 $325,611 
Fair value of options granted and the weighted-average assumptions The weighted average grant date fair value of options granted, and the weighted average assumptions used in the model for fiscal 2024 and 2023 were as follows:
20242023
Dividend yieldNoneNone
Expected volatility31.9 %32.6 %
Risk-free interest rate4.3 %3.6 %
Expected term (in years)4.85.0
Weighted average fair value of options granted$103.79 $71.83 
Summary of changes in stock options outstanding under equity incentive plans
A summary of the changes in stock options outstanding under Cadence’s equity incentive plans during fiscal 2025 is presented below:
Weighted
Average
Weighted
Average
Remaining
Contractual
Terms



Aggregate
Intrinsic
SharesExercise Price(Years)Value
(In thousands)(In thousands)
Options outstanding as of December 31, 20241,322 $171.08 
Granted— — 
Exercised(289)93.81 
Forfeited(26)230.93 
Options outstanding as of December 31, 20251,007 $191.75 3.5$121,643 
Options vested as of December 31, 2025806 $176.62 3.2$109,590 
Intrinsic value of and cash received from options exercised
The total intrinsic value of and cash received from options exercised during fiscal 2025, 2024 and 2023 was:
202520242023
(In thousands)
Intrinsic value of options exercised$65,864 $266,336 $139,125 
Cash received from options exercised27,125 88,903 30,940 
Fair value of market-based awards valued granted and the weighted-average assumptions The weighted average assumptions used in the model for fiscal 2025 and 2023 were as follows:
20252023
Dividend yieldNoneNone
Expected volatility33.5 %33.6 %
Risk-free interest rate4.0 %3.6 %
Expected term (in years)4.93.8
Weighted average fair value of market-based awards granted
$128.47 $132.20 
Stock-based compensation expense related to performance-based restricted stock grants
Stock-based compensation expense related to performance-based restricted stock grants and market-based restricted stock grants for fiscal 2025, 2024 and 2023 was as follows:
202520242023
(In thousands)
Stock-based compensation expense related to performance-based restricted stock$27,557 $29,178 $22,922 
Stock-based compensation expense related to market-based stock awards
57,753 19,934 30,095 
Summary of the changes in restricted stock outstanding under Cadence's equity incentive plans
A summary of the changes in restricted stock outstanding under Cadence’s equity incentive plans during fiscal 2025 is presented below:
Weighted
Average Grant Date


Aggregate
Intrinsic
SharesFair ValueValue
(In thousands)(In thousands)
Unvested shares as of December 31, 20244,557 $186.79 
Granted2,341 181.08 
Vested(2,049)185.75 
Forfeited(203)229.50 
Unvested shares as of December 31, 20254,646 $182.50 $779,350 
Total fair value of restricted stock awards that vested
The total fair value realized by employees upon vesting of restricted stock during fiscal 2025, 2024 and 2023 was:
202520242023
(In thousands)
Fair value of restricted stock realized upon vesting$610,406 $649,152 $442,556 
Weighted-average grant date fair value of purchase rights granted under ESPP and weighted average assumptions used in model The weighted average grant date fair value of purchase rights granted under the ESPP and the weighted average assumptions used in the model for fiscal 2025, 2024 and 2023 were as follows:
202520242023
Dividend yieldNoneNoneNone
Expected volatility38.8 %32.1 %29.9 %
Risk-free interest rate4.2 %5.1 %4.5 %
Expected term (in years)0.50.50.5
Weighted average fair value of purchase rights granted
$87.92 $65.50 $50.95 
Shares of common stock issued under Employee Stock Purchase Plan
Shares of common stock issued under the ESPP for fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands, except per share amounts)
Cadence shares purchased under the ESPP507 548 647 
Cash received for the purchase of shares under the ESPP$118,776 $115,335 $102,017 
Weighted average purchase price per share$234.08 $210.31 $157.70 
Summary of common stock reserved for future issuance
As of December 31, 2025, Cadence had reserved the following shares of authorized but unissued common stock for future issuance:
Shares
(In thousands)
Employee equity incentive plans*16,748 
Employee stock purchase plans5,724 
Directors stock plans*424 
    Total22,896 
_____________
*Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.
v3.25.4
STOCK REPURCHASE PRROGRAMS (Tables)
 12 Months Ended
Dec. 31, 2025
Class of Stock Disclosures [Abstract]  
Share repurchased and the total cost of shares repurchased
The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during fiscal 2025, 2024 and 2023 were as follows:
2025*
2024
2023**
(In thousands)
Shares repurchased3,165 1,930 3,145 
Total cost of repurchased shares$925,034 $550,026 $700,134 
_____________
*    Excludes $3.1 million of excise tax.
**    Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023, and excludes $0.9 million of excise tax.
v3.25.4
RESTRUCTURING AND OTHER CHARGES (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring reserve rollforward by major type of cost
The following table presents activity for Cadence’s restructuring plans during fiscal 2025, 2024 and 2023:
Severance
and
Benefits
Excess
Facilities
Total
(In thousands)
Balance, December 31, 2022$— $— $— 
Restructuring10,935 78 11,013 
Non-cash changes
— (78)(78)
Cash payments(8,211)— (8,211)
Effect of foreign currency translation(121)— (121)
Balance, December 31, 2023$2,603 $— $2,603 
Restructuring22,735 1,030 23,765 
Non-cash changes
— (1,030)(1,030)
Cash payments(20,464)— (20,464)
Effect of foreign currency translation(147)— (147)
Balance, December 31, 2024$4,727 $— $4,727 
Restructuring 25,808 3,386 29,194 
Non-cash changes
— (3,386)(3,386)
Cash payments(15,957)— (15,957)
Effect of foreign currency translation(111)— (111)
Balance, December 31, 2025$14,467 $— $14,467 
v3.25.4
OTHER INCOME, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Other income (expense), net
Cadence’s other income, net, for fiscal 2025, 2024 and 2023 was as follows:
 202520242023
 (In thousands)
Interest income$101,584 $62,484 $29,637 
Gain on sale of IP and other assets
11,500 — — 
Gains on investments
57,589 49,593 34,602 
Gains on securities in NQDC trust
14,029 11,145 10,851 
Losses on foreign exchange(36,090)(965)(5,490)
Other expense, net(2,070)(1,202)(2,714)
Total other income, net
$146,542 $121,055 $66,886 
v3.25.4
NET INCOME PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Basic and diluted net income per share
The calculations for basic and diluted net income per share for fiscal 2025, 2024 and 2023 are as follows:
 202520242023
 (In thousands, except per share amounts)
Net income$1,108,888 $1,055,484 $1,041,144 
Weighted average common shares used to calculate basic net income per share271,333 271,212 269,381 
Stock-based awards1,979 2,621 3,367 
Weighted average common shares used to calculate diluted net income per share273,312 273,833 272,748 
Net income per share – basic$4.09 $3.89 $3.86 
Net income per share – diluted$4.06 $3.85 $3.82 
Potential shares of Cadence's common stock excluded
The following table presents shares of Cadence’s common stock outstanding for fiscal 2025, 2024 and 2023 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive: 
 202520242023
 (In thousands)
Long-term market-based awards1,168 — 1,381 
Options to purchase shares of common stock 207 184 345 
Non-vested shares of restricted stock70 258 232 
Total potential common shares excluded1,445 442 1,958 
v3.25.4
INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Gain (Loss) on Securities
The portion of gains and losses included in Cadence’s consolidated income statements related to equity securities still held at the end of the period were as follows:
202520242023
(In thousands)
Net gains recognized on equity securities
$57,777 $49,653 $34,651 
Less: Net gains recognized on equity securities sold
(66,171)(20,367)(12,283)
Net gains (losses) recognized on equity securities still held
$(8,394)$29,286 $22,368 
Summary of available-for-sale securities
The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on its consolidated balance sheets:
 As of December 31, 2025
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$70,317 $852 $(199)$70,970 
Total available-for-sale securities$70,317 $852 $(199)$70,970 
 As of December 31, 2024
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$50,604 $230 $(582)$50,252 
Total available-for-sale securities$50,604 $230 $(582)$50,252 
Available-for-sale investments by contractual maturity
As of December 31, 2025, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:
 (In thousands)
Due within 1 year
$1,150 
Due after 1 year through 5 years15,481 
Due after 5 years through 10 years26,916 
Due after 10 years27,423 
Total$70,970 
v3.25.4
FAIR VALUE (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities The fair value of financial assets and liabilities was determined using the following levels of inputs as of December 31, 2025, and December 31, 2024:
 Fair Value Measurements as of December 31, 2025
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$2,100,210 $2,100,210 $— $— 
Marketable securities:
Marketable equity securities83,244 83,244 — — 
Mortgage-backed and asset-backed securities70,970 — 70,970 — 
Securities held in NQDC trust117,732 117,732 — — 
Total Assets$2,372,156 $2,301,186 $70,970 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts25,999 — 25,999 — 
Total Liabilities$25,999 $— $25,999 $— 
 Fair Value Measurements as of December 31, 2024
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,700,084 $1,700,084 $— $— 
Marketable securities:
Marketable equity securities90,374 90,374 — — 
Mortgage-backed and asset-backed securities50,252 — 50,252 — 
Securities held in NQDC trust96,450 96,450 — — 
Total Assets$1,937,160 $1,886,908 $50,252 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts7,533 — 7,533 — 
Total Liabilities$7,533 $— $7,533 $— 
v3.25.4
BALANCE SHEET COMPONENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Disclosure Text Block Supplement [Abstract]  
Summary of certain balance sheet components
A summary of certain balance sheet components as of December 31, 2025, and December 31, 2024, is as follows:
As of
December 31,
2025		December 31,
2024
(In thousands)
Inventories:
Raw materials$245,487 $243,244 
Work-in-process
14,665 1,216 
Finished goods43,393 13,251 
Inventories$303,545 $257,711 
Prepaid expenses and other:
Short-term investments
154,213 140,625 
Other prepaid expenses and other assets265,659 293,253 
Prepaid expenses and other$419,872 $433,878 
Property, plant and equipment:
Equipment and internal-use software
$990,700 $875,399 
Buildings137,597 137,781 
Land57,413 57,687 
Leasehold, building and land improvements298,417 245,669 
Furniture and fixtures51,189 43,517 
In-process capital assets3,193 14,879 
Total cost1,538,509 1,374,932 
Less: Accumulated depreciation and amortization(1,021,505)(916,732)
Property, plant and equipment, net$517,004 $458,200 
Other assets:
Long-term investments
$67,517 $124,086 
ROU lease assets175,964 146,190 
Other long-term assets337,891 274,465 
Other assets$581,372 $544,741 
Accounts payable and accrued liabilities:
Trade accounts payable
$93,491 $5,555 
Payroll and payroll-related accruals384,424 335,232 
Other accrued operating liabilities378,941 291,905 
Accounts payable and accrued liabilities$856,856 $632,692 
Other long-term liabilities:
Operating lease liabilities$136,289 $108,893 
Other accrued liabilities271,240 230,555 
Other long-term liabilities$407,529 $339,448 
v3.25.4
LEASES (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Operating lease expense
Operating lease expense, which includes immaterial amounts of short-term leases, variable lease costs and sublease income, was as follows during fiscal 2025, 2024 and 2023:
202520242023
(In thousands)
Operating lease expense$70,846 $61,827 $56,805 
Schedule of supplemental balance sheet information related to leases
Additional activity related to Cadence’s leases during fiscal 2025, 2024 and 2023 was as follows:
202520242023
(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities$55,244 $49,978 $46,069 
ROU assets obtained in exchange for operating lease obligations79,567 42,614 32,597 
ROU lease assets and lease liabilities for Cadence’s operating leases were recorded in the consolidated balance sheets as follows:
As of
December 31,
2025		December 31,
2024
(In thousands)
Other assets$175,964 $146,190 
Accounts payable and accrued liabilities49,889 41,554 
Other long-term liabilities136,289 108,893 
Total lease liabilities$186,178 $150,447 
Weighted average remaining lease term (in years)5.65.3
Weighted average discount rate5 %4 %
Table of lease liability maturity
Future lease payments included in the measurement of lease liabilities on the consolidated balance sheet as of December 31, 2025, for the following five fiscal years and thereafter were as follows:
Operating
 Leases
(In thousands)
2026$55,588 
202738,885 
202831,555 
202925,575 
203017,385 
Thereafter44,761 
Total future lease payments213,749 
Less imputed interest(27,571)
Total lease liability balance$186,178 
v3.25.4
Commitment and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Purchase obligations
Cadence had purchase obligations of $162.1 million as of December 31, 2025, that were associated with agreements or commitments for purchases of goods or services. Cadence expects to settle these obligations in the following five fiscal years and thereafter as follows:
Purchase
Obligations
(In thousands)
2026$99,629 
202727,319 
202820,939 
20297,181 
20307,015 
Thereafter— 
Total
$162,083 
v3.25.4
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Contributions to defined contribution plans Cadence’s total contributions made to these plans during fiscal 2025, 2024 and 2023 were as follows:
202520242023
(In thousands)
Contributions to defined contribution plans$51,104 $45,164 $39,651 
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)
 12 Months Ended
Dec. 31, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated other comprehensive income net of tax
Accumulated other comprehensive loss was comprised of the following as of December 31, 2025, and December 31, 2024:
As of
December 31,
2025		December 31,
2024
 (In thousands)
Foreign currency translation loss$14,266 $(178,611)
Changes in defined benefit plan liabilities(10,293)(4,447)
Unrealized losses on derivatives designated as hedging instruments, net of taxes
(6,431)(7,038)
Unrealized gains (losses) on available-for-sale debt securities
653 (352)
Total accumulated other comprehensive loss$(1,805)$(190,448)
v3.25.4
SEGMENT REPORTING (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Consolidated segment income and expenses The following table presents revenue, significant expenses and net income for fiscal 2025, 2024 and 2023:
 202520242023
 (In thousands)
Revenue
5,296,759 4,641,264 4,089,986 
Costs and Expenses:
Salary, benefits and other employee-related costs
2,132,023 1,936,542 1,754,223 
Stock based compensation
455,175 391,219 325,611 
Manufacturing costs
376,610 330,903 232,012 
Facilities and other infrastructure costs
192,719 174,102 156,977 
Depreciation and amortization
227,828 196,935 145,292 
Professional services
169,290 153,439 117,752 
Loss related to contingent liability (1)
128,545 8,322 — 
Restructuring
29,194 23,765 11,013 
Other segment items (2)
48,375 16,703 58,632 
Interest income(101,584)(62,484)(29,637)
Interest expense116,541 75,999 36,185 
Provision for income taxes413,155 340,335 240,782 
Net income$1,108,888 $1,055,484 $1,041,144 
_____________
(1) For information regarding the loss related to a contingent liability, see Note 18 in the notes to the consolidated financial statements.
(2) Other segment items includes direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
Summary of revenue by geography
The following table presents a summary of revenue by geography for fiscal 2025, 2024 and 2023:
 202520242023
 (In thousands)
Americas:
United States$2,310,965 $2,159,703 $1,694,529 
Other Americas168,349 93,101 65,259 
Total Americas2,479,314 2,252,804 1,759,788 
Asia:
China679,971 573,096 679,538 
Other Asia1,005,232 855,919 766,409 
Total Asia1,685,203 1,429,015 1,445,947 
Europe, Middle East and Africa790,569 699,241 655,078 
Japan341,673 260,204 229,173 
Total$5,296,759 $4,641,264 $4,089,986 
Summary of long-lived assets by geography
The following table presents a summary of long-lived assets by geography as of December 31, 2025, December 31, 2024, and December 31, 2023: 
 As of
 December 31,
2025		December 31,
2024		December 31,
2023
 (In thousands)
Americas:
United States$439,902 $412,339 $383,807 
Other Americas10,114 7,437 10,219 
Total Americas450,016 419,776 394,026 
Asia:
China23,014 22,929 29,598 
Other Asia110,844 83,951 71,365 
Total Asia133,858 106,880 100,963 
Europe, Middle East and Africa105,015 73,551 56,449 
Japan4,079 4,183 2,572 
Total$692,968 $604,390 $554,010 
v3.25.4
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation $ 111.4 $ 96.9 $ 78.4
Equipment and internal-use software | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 2 years    
Equipment and internal-use software | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 7 years    
Building [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 25 years    
Building [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 32 years    
Leasehold improvements [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] Useful Life, Shorter of Lease Term or Asset Utility [Member]    
Building improvements and land improvements [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 32 years    
Furniture and Fixtures [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 3 years    
Furniture and Fixtures [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Useful Life 5 years    
v3.25.4
Summary of Significant Accounting Policies - Deferred Sales Commissions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Capitalized contract costs, net $ 53.1 $ 51.9  
Amortization of capitalized contract costs $ 50.0 $ 47.6 $ 41.4
v3.25.4
Summary of Significant Accounting Policies - Long-lived Assets (Details)
Dec. 31, 2025
Minimum [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 1 year
Maximum [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 15 years
v3.25.4
Summary of Significant Accounting Policies - Leases (Details)
Dec. 31, 2025
Minimum [Member]  
Lessee, Lease, Description [Line Items]  
Lessee, remaining lease term, operating leases 1 year
Lessee, Lease not yet commenced, renewal term, operating leases 1 year
Maximum [Member]  
Lessee, Lease, Description [Line Items]  
Lessee, remaining lease term, operating leases 13 years
Lessee, Lease not yet commenced, renewal term, operating leases 10 years
Lessor, Operating Lease, Term of Contract 3 years
v3.25.4
Summary of Significant Accounting Policies - Derivative Financial Instruments (Details)
 12 Months Ended
Dec. 31, 2025
Forward Contracts [Member]  
Derivative [Line Items]  
Maximum Maturity Period of Forward Contracts 90 days
v3.25.4
Summary of Significant Accounting Policies - Other (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Treasury stock reissued at lower than repurchase price $ 0 $ 0 $ 0
Excise taxes recorded as a component of treasury stock 3,100   900
Advertising expense $ 15,200 $ 23,200 $ 21,700
v3.25.4
REVENUE - Revenue by Product Category (Details) - Product Concentration Risk - Revenue Benchmark
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from External Customer [Line Items]      
Revenue percentage by product category 1 1 1
Core EDA      
Revenue from External Customer [Line Items]      
Revenue percentage by product category [1] 0.70 0.71 0.76
Semiconductor IP      
Revenue from External Customer [Line Items]      
Revenue percentage by product category 0.14 0.13 0.12
System Design and Analysis      
Revenue from External Customer [Line Items]      
Revenue percentage by product category 0.16 0.16 0.12
[1] Includes immaterial amount of revenue accounted for under leasing arrangements
v3.25.4
REVENUE - Recurring vs. Up-front Revenue (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from External Customer [Line Items]      
Revenue from contract with customer, timing of goods or service 100.00% 100.00% 100.00%
Transferred over Time      
Revenue from External Customer [Line Items]      
Revenue from contract with customer, timing of goods or service 80.00% 83.00% 84.00%
Transferred over Time | Revenue arrangement recognized over time      
Revenue from External Customer [Line Items]      
Revenue from contract with customer, timing of goods or service 76.00% 80.00% 81.00%
Transferred over Time | Other recurring revenue      
Revenue from External Customer [Line Items]      
Revenue from contract with customer, timing of goods or service 4.00% 3.00% 3.00%
Transferred at Point in Time      
Revenue from External Customer [Line Items]      
Revenue from contract with customer, timing of goods or service 20.00% 17.00% 16.00%
v3.25.4
REVENUE - Contract Balances (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Contract assets $ 67,764 $ 29,339  
Deferred revenue 934,432 852,581  
Revenue recognized from deferred revenue during the period $ 737,900 $ 669,900 $ 689,700
v3.25.4
REVENUE - Remaining Performance Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Unsatisfied performance obligations $ 7,800.0    
Remaining performance obligation, amount from non-cancellable IP access agreements 600.0    
Revenue recognized from performance obligation satisfied in previous periods $ 87.3 $ 68.0 $ 55.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Disaggregation of Revenue [Line Items]      
Expected remaining performance obligation to be converted to revenue, percentage 53.00%    
Expected timing of satisfaction of remaining performance obligation, period 12 months    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01      
Disaggregation of Revenue [Line Items]      
Expected remaining performance obligation to be converted to revenue, percentage 43.00%    
Expected timing of satisfaction of remaining performance obligation, period 13 months    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01      
Disaggregation of Revenue [Line Items]      
Expected timing of satisfaction of remaining performance obligation, period 36 months    
v3.25.4
RECEIVABLES, NET - Receivables by Category and Concentration (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
acquisition
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Current and long-term receivables balances        
Accounts receivable $ 492,834 $ 393,017    
Unbilled accounts receivable 455,993 293,251    
Long-term receivables 52,451 24,179    
Total receivables 1,001,278 710,447    
Less allowance for doubtful accounts (3,888) (5,808) $ (4,553) $ (2,290)
Total receivables, net $ 997,390 $ 704,639    
Receivables concentration by customer | acquisition   1    
Percentage of Receivables, Net attributable to a single customer   11.00%    
v3.25.4
RECEIVABLES, NET - Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of period $ 5,808 $ 4,553 $ 2,290
Provision for losses on receivables 829 2,078 3,325
Uncollectible accounts written off, net (2,749) (823) (1,062)
Balance at end of period $ 3,888 $ 5,808 $ 4,553
v3.25.4
DEBT - Oustanding Debt by Instrument (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Sep. 10, 2024
Debt Instrument [Line Items]      
Carrying Value $ 2,480,150 $ 2,476,183  
Senior Notes [Member]      
Debt Instrument [Line Items]      
Aggregate principal amount issued 2,500,000 2,500,000  
Unamortized discount and debt issuance costs (19,850) (23,817)  
Carrying Value 2,480,150 2,476,183  
Senior Notes [Member] | Senior Notes Due Twenty-Twenty Seven      
Debt Instrument [Line Items]      
Aggregate principal amount issued 500,000 500,000 $ 500,000
Unamortized discount and debt issuance costs (2,073) (3,206)  
Carrying Value 497,927 496,794  
Senior Notes [Member] | Senior Notes Due Twenty-Twenty Nine      
Debt Instrument [Line Items]      
Aggregate principal amount issued 1,000,000 1,000,000 1,000,000
Unamortized discount and debt issuance costs (7,747) (9,666)  
Carrying Value 992,253 990,334  
Senior Notes [Member] | Senior Notes Due Twenty-Thirty Four      
Debt Instrument [Line Items]      
Aggregate principal amount issued 1,000,000 1,000,000 $ 1,000,000
Unamortized discount and debt issuance costs (10,030) (10,945)  
Carrying Value $ 989,970 $ 989,055  
v3.25.4
DEBT - Senior Notes (Details) - Senior Notes [Member] - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Sep. 10, 2024
Debt Instrument [Line Items]      
Principal $ 2,500,000 $ 2,500,000  
Senior Notes Due Twenty-Twenty Seven      
Debt Instrument [Line Items]      
Principal 500,000 500,000 $ 500,000
Debt Instrument, Interest Rate, Stated Percentage     4.20%
Long-Term Debt     $ 496,500
Unamortized discount     100
Debt issuance costs     3,500
Fair value of Senior Notes 503,000    
Senior Notes Due Twenty-Twenty Nine      
Debt Instrument [Line Items]      
Principal 1,000,000 1,000,000 $ 1,000,000
Debt Instrument, Interest Rate, Stated Percentage     4.30%
Long-Term Debt     $ 989,800
Unamortized discount     1,400
Debt issuance costs     8,800
Fair value of Senior Notes 1,000,000    
Senior Notes Due Twenty-Thirty Four      
Debt Instrument [Line Items]      
Principal 1,000,000 $ 1,000,000 $ 1,000,000
Debt Instrument, Interest Rate, Stated Percentage     4.70%
Long-Term Debt     $ 988,800
Unamortized discount     1,900
Debt issuance costs     $ 9,300
Fair value of Senior Notes $ 1,000,000    
v3.25.4
DEBT - Revolving Credit Facility (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Aug. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]        
Payments of debt issuance costs   $ 0 $ 23,828 $ 0
Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, current borrowing capacity   1,250,000    
Credit facility, additional borrowing capacity available   500,000    
Credit facility, maximum borrowing capacity   $ 1,750,000    
Credit facility, maturity date   Aug. 14, 2029    
Payments of debt issuance costs $ 1,300      
SOFR adjustment   0.10%    
Debt covenant, acquisition amount triggering step up   $ 250,000    
Minimum [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, commitment fee percentage   0.05%    
Credit facility, covenant, debit to EBITDA ratio   3.5    
Debt covenant, pro forma leverage ratio   3.25    
Maximum [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, commitment fee percentage   0.125%    
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition   4    
Debt covenant, pro forma leverage ratio   3.75    
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, interest rate spread   0.625%    
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, interest rate spread   1.125%    
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, interest rate spread   0.00%    
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Credit facility, interest rate spread   0.125%    
v3.25.4
ACQUISITION - Pending Acquisition (Details) - Forecast - Hexagon Design
€ in Millions
 3 Months Ended
Mar. 31, 2026
EUR (€)
Business Combination [Line Items]  
Aggregate contractual consideration € 2,700.0
Cash consideration to acquire a business 1,890.0
Equity consideration to acquire a business 810.0
Maximum [Member]  
Business Combination [Line Items]  
Contract termination fee payable € 175.0
v3.25.4
ACQUISITIONS (Details) - Acquistion details - USD ($)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Oct. 30, 2025
Aug. 26, 2025
May 29, 2025
May 30, 2024
Jan. 08, 2024
Oct. 02, 2023
Sep. 07, 2023
May 04, 2023
Business Combination [Line Items]                      
Cash consideration to acquire businesses, net of cash acquired $ 429,538,000 $ 737,574,000 $ 198,351,000                
Goodwill 2,749,143,000 2,378,671,000 1,535,845,000                
BETA CAE                      
Business Combination [Line Items]                      
Cash acquired             $ 91,300,000        
Cash consideration to acquire businesses, net of cash acquired   638,200,000                  
Aggregate contractual consideration   $ 1,140,000,000                  
Equity consideration to acquire a business, shares   1,740                  
Equity consideration to acquire a business   $ 501,800,000                  
Business Combination, Separately Recognized Transactions, Assets Recognized             55,800,000        
Current assets             118,676,000        
Goodwill             822,129,000        
Acquired intangibles             345,000,000        
Other long-term assets             18,198,000        
Total assets acquired             1,304,003,000        
Current liabilities             36,465,000        
Long-term liabilities             36,250,000        
Total liabilities assumed             72,715,000        
Total purchase consideration             $ 1,231,288,000        
Finite-lived Intangible Assets Acquired   $ 345,000,000                  
Acquired definite-lived intangible assets, weighted average useful life   11 years                  
BETA CAE | Existing Technology [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired   $ 140,000,000                  
Acquired definite-lived intangible assets, weighted average useful life   6 years                  
BETA CAE | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired   $ 190,000,000                  
Acquired definite-lived intangible assets, weighted average useful life   15 years                  
BETA CAE | Tradename Trademark and Patents [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired   $ 15,000,000                  
Acquired definite-lived intangible assets, weighted average useful life   7 years                  
Invecas                      
Business Combination [Line Items]                      
Cash acquired               $ 23,800,000      
Cash consideration to acquire businesses, net of cash acquired   $ 71,200,000                  
Current assets               50,608,000      
Goodwill               42,209,000      
Acquired intangibles               15,500,000      
Other long-term assets               7,414,000      
Total assets acquired               115,731,000      
Current liabilities               17,114,000      
Long-term liabilities               3,647,000      
Total liabilities assumed               20,761,000      
Total purchase consideration               $ 94,970,000      
Acquired definite-lived intangible assets, weighted average useful life   6 years 9 months 18 days                  
Invecas | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired   $ 15,000,000.0                  
Invecas | Tradename Trademark and Patents [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired   500,000                  
Other business combinations                      
Business Combination [Line Items]                      
Cash consideration to acquire businesses, net of cash acquired   28,300,000                  
Goodwill   25,200,000                  
Acquired intangibles   $ 5,500,000                  
Acquired definite-lived intangible assets, weighted average useful life   4 years 10 months 24 days                  
IP Business from Rambus                      
Business Combination [Line Items]                      
Cash consideration to acquire businesses, net of cash acquired   $ 108,600,000                  
Current assets                   $ 1,460,000  
Goodwill                   80,999,000  
Acquired intangibles                   26,000,000  
Other long-term assets                   2,798,000  
Total assets acquired                   111,257,000  
Current liabilities                   2,531,000  
Long-term liabilities                   142,000  
Total liabilities assumed                   2,673,000  
Total purchase consideration                   $ 108,584,000  
Finite-lived Intangible Assets Acquired     $ 26,000,000                
Acquired definite-lived intangible assets, weighted average useful life     5 years 8 months 12 days                
IP Business from Rambus | Existing Technology [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired     $ 16,700,000                
Acquired definite-lived intangible assets, weighted average useful life     5 years                
IP Business from Rambus | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired     $ 9,300,000                
Acquired definite-lived intangible assets, weighted average useful life     7 years                
Pulsic. Ltd.                      
Business Combination [Line Items]                      
Cash acquired                     $ 3,800,000
Cash consideration to acquire businesses, net of cash acquired     $ 56,100,000                
Current assets                     4,369,000
Goodwill                     47,448,000
Acquired intangibles                     12,400,000
Other long-term assets                     89,000
Total assets acquired                     64,306,000
Current liabilities                     1,553,000
Long-term liabilities                     2,885,000
Total liabilities assumed                     4,438,000
Total purchase consideration                     $ 59,868,000
Finite-lived Intangible Assets Acquired     $ 12,400,000                
Acquired definite-lived intangible assets, weighted average useful life     6 years 9 months 18 days                
Pulsic. Ltd. | Existing Technology [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired     $ 8,000,000                
Acquired definite-lived intangible assets, weighted average useful life     6 years 2 months 12 days                
Pulsic. Ltd. | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired     $ 4,100,000                
Acquired definite-lived intangible assets, weighted average useful life     8 years                
Pulsic. Ltd. | Tradename Trademark and Patents [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired     $ 300,000                
Acquired definite-lived intangible assets, weighted average useful life     6 years                
Intrinsix                      
Business Combination [Line Items]                      
Cash acquired                 $ 500,000    
Cash consideration to acquire businesses, net of cash acquired     $ 34,600,000                
Goodwill                 31,600,000    
Total assets acquired                 $ 900,000    
Finite-lived Intangible Assets Acquired     $ 2,600,000                
Acquired definite-lived intangible assets, weighted average useful life     5 years                
VLAB Works                      
Business Combination [Line Items]                      
Cash acquired           $ 5,200,000          
Cash consideration to acquire businesses, net of cash acquired 121,100,000                    
Current assets           9,343,000          
Goodwill           93,068,000          
Acquired intangibles           27,700,000          
Other long-term assets           1,322,000          
Total assets acquired           131,433,000          
Current liabilities           4,222,000          
Long-term liabilities           898,000          
Total liabilities assumed           5,120,000          
Total purchase consideration           $ 126,313,000          
Finite-lived Intangible Assets Acquired $ 27,700,000                    
Acquired definite-lived intangible assets, weighted average useful life 6 years 3 months 18 days                    
VLAB Works | Existing Technology [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 18,300,000                    
Acquired definite-lived intangible assets, weighted average useful life 6 years                    
VLAB Works | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 9,000,000                    
Acquired definite-lived intangible assets, weighted average useful life 7 years                    
VLAB Works | Tradename Trademark and Patents [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 400,000                    
Acquired definite-lived intangible assets, weighted average useful life 3 years                    
ARM ARTISAN FOUNDATION IP                      
Business Combination [Line Items]                      
Cash consideration to acquire businesses, net of cash acquired $ 128,500,000                    
Current assets         $ 936,000            
Goodwill         49,671,000            
Acquired intangibles         80,800,000            
Other long-term assets         948,000            
Total assets acquired         132,355,000            
Current liabilities         3,089,000            
Long-term liabilities         775,000            
Total liabilities assumed         3,864,000            
Total purchase consideration         $ 128,491,000            
Finite-lived Intangible Assets Acquired $ 80,800,000                    
Acquired definite-lived intangible assets, weighted average useful life 6 years 7 months 6 days                    
ARM ARTISAN FOUNDATION IP | Existing Technology [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 45,400,000                    
Acquired definite-lived intangible assets, weighted average useful life 4 years 6 months                    
ARM ARTISAN FOUNDATION IP | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 27,100,000                    
Acquired definite-lived intangible assets, weighted average useful life 10 years                    
ARM ARTISAN FOUNDATION IP | Tradename Trademark and Patents [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 8,300,000                    
Acquired definite-lived intangible assets, weighted average useful life 6 years 6 months                    
Secure IC                      
Business Combination [Line Items]                      
Cash acquired       $ 13,100,000              
Cash consideration to acquire businesses, net of cash acquired $ 139,600,000                    
Current assets       33,400,000              
Goodwill       80,477,000              
Acquired intangibles       61,800,000              
Other long-term assets       11,420,000              
Total assets acquired       187,097,000              
Current liabilities       14,184,000              
Long-term liabilities       20,194,000              
Total liabilities assumed       34,378,000              
Total purchase consideration       $ 152,719,000              
Finite-lived Intangible Assets Acquired $ 61,800,000                    
Acquired definite-lived intangible assets, weighted average useful life 8 years 1 month 6 days                    
Secure IC | Existing Technology [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 37,000,000                    
Acquired definite-lived intangible assets, weighted average useful life 7 years                    
Secure IC | Agreements and Relationship [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 22,900,000                    
Acquired definite-lived intangible assets, weighted average useful life 10 years                    
Secure IC | Tradename Trademark and Patents [Member]                      
Business Combination [Line Items]                      
Finite-lived Intangible Assets Acquired $ 1,900,000                    
Acquired definite-lived intangible assets, weighted average useful life 7 years                    
2025 acquisitions                      
Business Combination [Line Items]                      
Cash consideration to acquire businesses, net of cash acquired $ 38,900,000                    
Goodwill 26,500,000                    
Acquired intangibles 14,100,000                    
Finite-lived Intangible Assets Acquired $ 184,400,000                    
Acquired definite-lived intangible assets, weighted average useful life 3 years 4 months 24 days                    
v3.25.4
Acquisitions - Acquisition-related transaction costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination [Line Items]      
Transaction costs associated with acquisitions $ 30.5 $ 14.6 $ 12.1
v3.25.4
GOODWILL AND ACQUIRED INTANGIBLES - Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Changes in the carrying amount of goodwill    
Balance at beginning of period $ 2,378,671 $ 1,535,845
Goodwill resulting from acquisitions 249,712 889,585
Effect of foreign currency translation 120,760 (46,759)
Balance at end of period $ 2,749,143 $ 2,378,671
v3.25.4
GOODWILL AND ACQUIRED INTANGIBLES - Acquired Intangibles, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount $ 1,101,529 $ 879,931
Accumulated amortization (383,306) (285,197)
Acquired intangibles, net 718,223 594,734
Existing technology [Member]    
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount 590,211 465,453
Accumulated amortization (256,589) (199,126)
Acquired intangibles, net 333,622 266,327
Agreements and relationships [Member]    
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount 470,334 386,365
Accumulated amortization (114,697) (78,605)
Acquired intangibles, net 355,637 307,760
Tradenames, trademarks and patents [Member]    
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount 40,984 28,113
Accumulated amortization (12,020) (7,466)
Acquired intangibles, net $ 28,964 $ 20,647
v3.25.4
GOODWILL AND ACQUIRED INTANGIBLES - Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Cost of product and maintenance $ 65,395 $ 60,074 $ 43,808
Amortization of acquired intangibles 39,937 30,375 18,162
Total amortization of acquired intangibles $ 105,332 $ 90,449 $ 61,970
v3.25.4
GOODWILL AND ACQUIRED INTANGIBLES - Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Estimated amortization expense    
2026 $ 125,335  
2027 117,035  
2028 112,320  
2029 97,511  
2030 62,280  
Thereafter 203,742  
Acquired intangibles, net $ 718,223 $ 594,734
v3.25.4
INCOME TAXES - Components of Income Before Tax Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]      
United States $ 535,551 $ 600,088 $ 533,442
Foreign subsidiaries 986,492 795,731 748,484
Income before provision for income taxes $ 1,522,043 $ 1,395,819 $ 1,281,926
v3.25.4
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 133,235 $ 281,674 $ 156,495
State and local 67,323 50,430 15,933
Foreign 146,549 136,968 104,866
Total current 347,107 469,072 277,294
Deferred:      
Federal 31,079 (130,490) (87,851)
State and local 8,805 (5,127) 25,440
Foreign 26,164 6,880 25,899
Total deferred 66,048 (128,737) (36,512)
Total provision for income taxes $ 413,155 $ 340,335 $ 240,782
v3.25.4
INCOME TAXES - Components of Provision for Income Taxes (Textuals) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Consolidated net deferred tax assets $ 870,166 $ 951,722  
Unrecognized tax benefits resulting from the lapse of the applicable statute of limitations $ 4,118 3,173 $ 24,768
Tax benefit related to change in R&D expenses     $ 14,000
California Franchise Tax Board | Research Tax Credit Carryforward [Member]      
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Increase in cash paid for income taxes resulting from tax legislation   33,000  
Increase in long-term receivables resulting from tax legislation   $ 21,000  
v3.25.4
INCOME TAXES - Reconciliation of Effective Tax Rate after Adoption of ASU 2023-09 (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Provision computed at federal statutory income tax rate $ 319,629 $ 293,122 $ 269,205
United States statutory federal income tax rate 21.00%    
State and local income tax, net of federal tax effect $ 68,258 [1] 50,130 40,304
State and local income tax, net of federal tax effect, percent [1] 4.50%    
Foreign income tax rate differential   (62,798) (54,210)
Other adjustments $ (1,528) 10,248 4,627
Other adjustments, percent (0.10%)    
Global intangible low-taxed income $ 131,254 144,222 113,011
Global intangible low-taxed income, percent 8.60%    
Foreign-derived intangible income deduction $ (7,342) (13,344) (14,253)
Foreign-derived intangible income deduction, percent (0.50%)    
Subpart F $ 22,040    
Subpart F, percent 0.014    
Research and development tax credits $ (20,556)    
Research and development tax credits, percent (1.40%)    
Foreign tax credits $ (110,079)    
Foreign tax credits, percent (7.20%)    
Change in deferred tax asset valuation allowance $ (11) 11,441 9,077
Change in deferred tax asset valuation allowance, percent 0.00%    
Stock-based compensation $ (29,013) (6,181) (26,805)
Stock based compensation, percent (1.90%)    
Settlement with BIS and the DOJ $ 26,994    
Settlements with BIS and the DOJ, percent 0.018    
Acquisition-related costs $ 14,105 11,770 6,709
Acquisition-related costs, percent 0.009    
Decrease in unrecognized tax benefits $ (4,837)    
Decrease in unrecognized tax benefits, percent (0.30%)    
Provision for income taxes $ 413,155 $ 340,335 $ 240,782
Effective tax rate 27.10% 24.00% 19.00%
IRELAND      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign income tax rate differential $ (45,716)    
Foreign income tax rate differential, percent (3.00%)    
Other adjustments $ (16,302)    
Other adjustments, percent (1.10%)    
Foreign Tax Jurisdiction, Other      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign income tax rate differential $ 66,259    
Foreign income tax rate differential, percent 4.40%    
[1] State taxes in California make up the majority (greater than 50 percent) of the tax effect in this category.
v3.25.4
INCOME TAXES - Reconciliation of Effective Tax Rate before Adoption of ASU 2023-09 (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Provision computed at federal statutory income tax rate $ 319,629 $ 293,122 $ 269,205
State and local income tax, net of federal tax effect 68,258 [1] 50,130 40,304
Intercompany transfers of intangible property rights   7,833 23,826
Foreign income tax rate differential   (62,798) (54,210)
Foreign-derived intangible income deduction (7,342) (13,344) (14,253)
U.S. tax on foreign entities 131,254 144,222 113,011
Stock-based compensation (29,013) (6,181) (26,805)
Change in deferred tax asset valuation allowance (11) 11,441 9,077
Tax credits   (135,344) (130,383)
Non-deductible acquisition-related costs 14,105 11,770 6,709
Withholding taxes   20,175 15,300
Tax settlements, foreign   0 4,034
Increase (decrease) in unrecognized tax benefits   (9,061) 19,660
Other (1,528) 10,248 4,627
Total provision for income taxes $ 413,155 $ 340,335 $ 240,782
Effective tax rate 27.10% 24.00% 19.00%
IRELAND      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign income tax rate differential $ (45,716)    
Other (16,302)    
Foreign Tax Jurisdiction, Other      
Effective Income Tax Rate Reconciliation [Line Items]      
Foreign income tax rate differential $ 66,259    
[1] State taxes in California make up the majority (greater than 50 percent) of the tax effect in this category.
v3.25.4
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:      
Tax credit carryforwards $ 125,267 $ 110,031  
Reserves and accruals 110,634 103,731  
Intangible assets 472,393 487,947  
Capitalized research and development expense for income tax purposes 305,835 368,085  
Operating loss carryforwards 12,801 9,781  
Deferred income 84,309 79,195  
Capital loss carryforwards 16,601 16,861  
Stock-based compensation costs 38,610 34,045  
Depreciation and amortization 33,759 17,228  
Investments 22,826 20,757  
Lease liability 39,606 33,341  
Total deferred tax assets 1,262,641 1,281,002  
Valuation allowance (104,782) (90,603) $ (79,200)
Net deferred tax assets 1,157,859 1,190,399  
Deferred tax liabilities:      
Intangible assets (139,761) (107,251)  
Undistributed foreign earnings (92,954) (76,045)  
ROU assets (39,606) (33,341)  
Investments 11,422 14,171  
Other (3,950) (7,869)  
Total deferred tax liabilities (287,693) (238,677)  
Total net deferred tax assets 870,166 951,722  
Increase (decrease) in valuation allowance on deferred tax assets $ 14,200 $ 11,400 $ 9,100
v3.25.4
INCOME TAXES - Operating Loss and Tax Credit Carryforwards (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
United States federal [Member]  
Operating Loss Carryforwards [Line Items]  
Operating loss carry forwards $ 41
Tax credit carryforward 60,773 [1]
California State [Member]  
Operating Loss Carryforwards [Line Items]  
Operating loss carry forwards 31,209
Tax credit carryforward 0
States other than California [Member]  
Operating Loss Carryforwards [Line Items]  
Operating loss carry forwards 164
Tax credit carryforward 10,261
Foreign Tax Authority [Member]  
Operating Loss Carryforwards [Line Items]  
Operating loss carry forwards 10,334
Tax credit carryforward $ 54,234
[1] Certain of Cadence’s foreign tax credits have yet to be realized and as a result do not yet have an expiration period.
v3.25.4
INCOME TAXES - Unrecognized Tax Benefits, Interest & Penalties (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits      
Unrecognized tax benefits at the beginning of the fiscal year $ 107,388 $ 94,311 $ 126,073
Unrecognized tax benefits, decrease resulting from prior period tax positions [1]     (1,401)
Unrecognized tax benefits, increase resulting from prior period tax positions [1] 232 10,109  
Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year 4,118 6,669 2,565
Amount of decreases in unrecognized tax benefits relating the settlements with taxing authorities, including the utilization of tax attributes (6,598) 0 (8,000)
Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations (4,118) (3,173) (24,768)
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation (81) (528) (158)
Unrecognized tax benefits at the end of the fiscal year 100,941 107,388 94,311
Total amounts of unrecognized tax benefits that, if upon resolution of the uncertain tax positions would reduce Cadence's effective tax rate $ 99,944 $ 106,420 $ 93,398
Interest and penalties recognized in Income Statements      
Interest Provision for income taxes Provision for income taxes Provision for income taxes
Penalties Provision for income taxes Provision for income taxes Provision for income taxes
Interest and penalties recognized in Balance Sheets      
Interest $ 9,050 $ 9,010  
Penalties $ 891 $ 1,261  
[1] Includes unrecognized tax benefits of tax positions recorded in connection with acquisitions
v3.25.4
INCOME TAXES - Cash Taxes Paid (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
U.S. Federal $ 76,724    
U.S. State & Local 29,980    
Foreign 140,663    
Total 247,367 $ 510,000 $ 253,700
United States      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
U.S. Federal 76,700    
CALIFORNIA      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
U.S. State & Local 13,100    
China [Member]      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign 27,200    
INDIA      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign 23,600    
ISRAEL      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign 22,400    
TAIWAN      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign $ 18,300    
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Equity Incentive Plans (Details)
shares in Millions
 12 Months Ended
Dec. 31, 2025
shares
2014 Omnibus Equity Incentive Plan [Member]  
Stock Compensation Plans (Textual) [Abstract]  
Additional shares authorized and available for issuance under equity incentive plan 6.5
Number of shares available for issuance under equity incentive plan 12.1
Share-based payment award, expiration period 7 years
One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member]  
Stock Compensation Plans (Textual) [Abstract]  
Number of shares available for issuance under equity incentive plan 0.4
Share-based payment award, expiration period 10 years
Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Maximum [Member]  
Stock Compensation Plans (Textual) [Abstract]  
Vesting period 4 years
Stock options [Member] | 2014 Omnibus Equity Incentive Plan [Member] | Minimum [Member]  
Stock Compensation Plans (Textual) [Abstract]  
Vesting period 3 years
Employee Stock [Member] | One Thousand Nine Hundred Ninety Five Directors Stock Options Plan [Member]  
Stock Compensation Plans (Textual) [Abstract]  
Vesting period 1 year
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Expense by Award Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 455,175 $ 391,219 $ 325,611
Income tax benefit 76,978 66,080 50,994
Stock options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation 16,101 18,610 15,939
Restricted stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation 400,699 338,082 278,567
Employee stock purchase plans [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 38,375 $ 34,527 $ 31,105
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Expense by Income Statement Caption (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock based compensation expense and allocation by cost      
Stock-based compensation $ 455,175 $ 391,219 $ 325,611
Cost of product and maintenance [Member]      
Stock based compensation expense and allocation by cost      
Stock-based compensation 8,216 6,402 4,500
Cost of services [Member]      
Stock based compensation expense and allocation by cost      
Stock-based compensation 9,498 8,149 5,728
Marketing and sales [Member]      
Stock based compensation expense and allocation by cost      
Stock-based compensation 87,150 77,195 66,304
Research and development [Member]      
Stock based compensation expense and allocation by cost      
Stock-based compensation 278,489 241,730 194,709
General and administrative [Member]      
Stock based compensation expense and allocation by cost      
Stock-based compensation $ 71,822 $ 57,743 $ 54,370
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Options outstanding beginning balance 1,322    
Granted 0    
Exercised (289)    
Canceled and forfeited (26)    
Options outstanding ending balance 1,007 1,322  
Options vested as of December 31, 2024 806    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]      
Weighted-average exercise price, options outstanding beginning balance $ 171.08    
Weighted-average exercise price granted 0    
Weighted-average exercise price exercised 93.81    
Weighted-average exercise price, options forfeited 230.93    
Weighted-average exercise price, options outstanding ending balance 191.75 $ 171.08  
Weighted-average exercise price, options vested $ 176.62    
Weighted-average remaining contractual term, options outstanding 3 years 6 months    
Weighted-average remaining contractual term, options vested 3 years 2 months 12 days    
Aggregate intrinsic value, options outstanding $ 121,643    
Aggregate intrinsic value, options vested 109,590    
Intrinsic Value And Cash Received From Stock Options Exercised [Abstract]      
Intrinsic value of options exercised 65,864 $ 266,336 $ 139,125
Cash received from options exercised 27,125 $ 88,903 $ 30,940
Stock options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield   0.00% 0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate   31.90% 32.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate   4.30% 3.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term   4 years 9 months 18 days 5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value   $ 103.79 $ 71.83
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 16,600    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days    
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Restricted Stock (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 455,175 $ 391,219 $ 325,611
Restricted stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 400,699 $ 338,082 278,567
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested shares beginning balance 4,557    
Granted 2,341    
Vested (2,049)    
Forfeited (203)    
Unvested shares ending balance 4,646 4,557  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]      
Unvested shares beginning balance, weighted-average grant date fair value $ 186.79    
Weighted-average grant date fair value, awards granted 181.08    
Weighted-average grant date fair value, awards vested 185.75    
Weighted-average grant date fair value, awards forfeited 229.50    
Unvested shares ending balance, weighted-average grant date fair value $ 182.50 $ 186.79  
Aggregate intrinsic value, awards unvested $ 779,350    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]      
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 641,900    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 10 months 24 days    
Fair value of restricted stock realized upon vesting $ 610,406 $ 649,152 442,556
Restricted stock [Member] | Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
Restricted stock [Member] | Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 4 years    
Stock-based compensation expense related to performance-based restricted stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation $ 27,557 29,178 $ 22,922
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested shares ending balance 2,600    
Market-based performance restricted stock grants [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00%   0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate 33.50%   33.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate 4.00%   3.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 4 years 10 months 24 days   3 years 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value $ 128.47   $ 132.20
Stock-based compensation $ 57,753 $ 19,934 $ 30,095
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($)
$ / shares in Units, shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Purchase rights granted [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 38.80% 32.10% 29.90%
Risk-free interest rate 4.20% 5.10% 4.50%
Expected term (in years) 6 months 6 months 6 months
Weighted average fair value of purchase rights granted $ 87.92 $ 65.50 $ 50.95
Employee stock purchase plans [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Purchase Period for Common Stock 6 months    
Percentage of Lower of Fair Market Value at Beginning or End of Applicable Offering Period Used for Calculating Price of Common Stock to be Purchased by Employees 85.00%    
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate 15.00%    
Maximum Amount for which Common Stock can be Purchased by Employees in any Calendar Year $ 25,000    
Additional shares authorized and available for issuance under equity incentive plan 3,500    
Shares available for future issuance 5,700    
Shares of Common Stock Issued under Employee Stock Purchase Plan [Abstract]      
Cadence shares purchased under the ESPP 507 548 647
Cash received for the purchase of shares under the ESPP $ 118,776,000 $ 115,335,000 $ 102,017,000
Weighted average purchase price per share $ 234.08 $ 210.31 $ 157.70
v3.25.4
STOCK COMPENSATION PLANS AND STOCK-BASED COMPENSATION - Reserved for Future Issuance (Details)
shares in Thousands
Dec. 31, 2025
shares
Common stock reserved for future issuance  
Common stock reserved for future issuance 22,896
Employee equity incentive plans [Member]  
Common stock reserved for future issuance  
Common stock reserved for future issuance 16,748 [1]
Employee stock purchase plans [Member]  
Common stock reserved for future issuance  
Common stock reserved for future issuance 5,724
Directors stock option plans [Member]  
Common stock reserved for future issuance  
Common stock reserved for future issuance 424 [1]
[1] Includes shares reserved for: (i) issuance upon exercise of future option grants, (ii) issuance upon vesting of future restricted stock grants, (iii) outstanding but unexercised options to purchase common stock, or (iv) unvested restricted stock units.
v3.25.4
STOCK REPURCHASE PROGRAMS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 1 Months Ended 12 Months Ended
Aug. 31, 2023
Jun. 30, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity, Class of Treasury Stock [Line Items]          
Shares repurchased     3,165 1,930 3,145 [1]
Total cost of repurchased shares     $ 925,034 [2]   $ 700,134 [1]
Treasury stock acquired     928,162 $ 550,026 641,041
Excise taxes recorded as a component of treasury stock     3,100   $ 900
Stock repurchase program, remaining authorized repurchase amount     $ 1,400,000    
Share repurchase on open market          
Equity, Class of Treasury Stock [Line Items]          
Shares repurchased     3,200 1,900 2,300
Treasury stock acquired       $ 550,000 $ 500,000
Accelerated Share Repurchase Program          
Equity, Class of Treasury Stock [Line Items]          
Shares repurchased 300 600     900
Shares from equity forward contract settled during the period         276
Treasury stock acquired   $ 140,000      
Accelerated share repurchase, prepayment during period   $ 200,000      
Value of equity-linked contract under ASR agreement         $ 60,000
Average price per share repurchased under ASR agreement         $ 228.26
[1] Includes 276 thousand shares and $60 million equity forward contract from the June 2023 ASR settled in August 2023, and excludes $0.9 million of excise tax.
[2] Excludes $3.1 million of excise tax.
v3.25.4
RESTRUCTURING AND OTHER CHARGES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cadence's Restructuring Plans      
Beginning Balance $ 4,727 $ 2,603 $ 0
Restructuring 29,194 23,765 11,013
Non-cash changes (3,386) (1,030) (78)
Cash payments (15,957) (20,464) (8,211)
Effect of foreign currency translation (111) (147) (121)
Ending Balance 14,467 4,727 2,603
Severance and Benefits [Member]      
Cadence's Restructuring Plans      
Beginning Balance 4,727 2,603 0
Restructuring 25,808 22,735 10,935
Non-cash changes 0 0 0
Cash payments (15,957) (20,464) (8,211)
Effect of foreign currency translation (111) (147) (121)
Ending Balance 14,467 4,727 2,603
Excess Facilities [Member]      
Cadence's Restructuring Plans      
Beginning Balance 0 0 0
Restructuring 3,386 1,030 78
Non-cash changes (3,386) (1,030) (78)
Cash payments 0 0 0
Effect of foreign currency translation 0 0 0
Ending Balance $ 0 $ 0 $ 0
v3.25.4
OTHER INCOME, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income, Net      
Interest income $ 101,584 $ 62,484 $ 29,637
Gain on sale of IP and other assets 11,500 0 0
Gains on investments 57,589 49,593 34,602
Gains on securities in NQDC trust 14,029 11,145 10,851
Losses on foreign exchange (36,090) (965) (5,490)
Other expense, net (2,070) (1,202) (2,714)
Total other income, net $ 146,542 $ 121,055 $ 66,886
v3.25.4
OTHER INCOME, NET - foreign Currency Forward Exchange Contracts (Details) - 12 months ended Dec. 31, 2025
$ in Thousands, € in Millions
USD ($)
EUR (€)
Offsetting Assets [Line Items]    
Loss on foreign currency derivative instruments not designated as hedging instruments | $ $ (29,200)  
Foreign Exchange Forward    
Offsetting Assets [Line Items]    
Derivative, notional amount | €   € 1,890
v3.25.4
NET INCOME PER SHARE - Basic and Diluted Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 1,108,888 $ 1,055,484 $ 1,041,144
Weighted average common shares used to calculate basic net income per share 271,333 271,212 269,381
Stock-based awards 1,979 2,621 3,367
Weighted average common shares used to calculate diluted net income per share 273,312 273,833 272,748
Net income per share - basic (in usd per share) $ 4.09 $ 3.89 $ 3.86
Net income per share - diluted (in usd per share) $ 4.06 $ 3.85 $ 3.82
v3.25.4
NET INCOME PER SHARE - Anti-Dilutive Shares Outstanding (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Potential shares of Cadence's common stock excluded      
Total potential common shares excluded 1,445 442 1,958
Long-term market-based awards      
Potential shares of Cadence's common stock excluded      
Total potential common shares excluded 1,168 0 1,381
Options to purchase shares of common stock      
Potential shares of Cadence's common stock excluded      
Total potential common shares excluded 207 184 345
Non-vested shares of restricted stock      
Potential shares of Cadence's common stock excluded      
Total potential common shares excluded 70 258 232
v3.25.4
INVESTMENTS - Marketable Equity Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]    
Marketable equity securities $ 83.2 $ 90.4
v3.25.4
INVESTMENTS - Non-Marketable Equity Investments, Equity Method Investments (Details) - Privately held company, equity method - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage 10.50%    
Proceeds from sale of equity method investments $ 56.0    
Realized gain on sale of equity method investments 15.9    
Income (Loss) from equity method investments 12.2 $ (2.5) $ (2.7)
Equity method investments, carrying value $ 51.0 $ 97.5  
v3.25.4
INVESTMENTS - Non-Marketable Equity Investments, Securities Without Readily Determinable Fair Value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other equity investments not readily marketable [Member]    
Equity securities without a readily determinable fair value [Line Items]    
Upward price adjustment, equity securities without readily determinable fair value $ 53,400  
Other equity investments not readily marketable [Member]    
Equity securities without a readily determinable fair value [Line Items]    
Carrying value of equity securities without readily determinable fair value $ 16,600 $ 26,600
v3.25.4
INVESTMENTS - Investments in Equity Securities, FV-NI Gain (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]      
Net gains recognized on equity securities $ 57,777 $ 49,653 $ 34,651
Less: Net gains recognized on equity securities sold 66,171 20,367 12,283
Net gains (losses) recognized on equity securities still held $ (8,394) $ 29,286 $ 22,368
v3.25.4
INVESTMENTS - Marketable Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost basis of available-for-sale securities $ 70,317 $ 50,604
Gross Unrealized Gains 852 230
Gross Unrealized Losses (199) (582)
Estimated fair value of available-for-sale debt securities 70,970 50,252
Remaining contractual maturity within 1 year 1,150  
Remaining contractual maturity between 1 and 5 years 15,481  
Remaining contractual maturity between 5 and 10 years 26,916  
Remaining contractual maturity after 10 years 27,423  
Mortgage-Backed Securities, Issued by US Government Sponsored Enterprises    
Debt Securities, Available-for-Sale [Line Items]    
Amortized cost basis of available-for-sale securities 70,317 50,604
Gross Unrealized Gains 852 230
Gross Unrealized Losses (199) (582)
Estimated fair value of available-for-sale debt securities 70,970 $ 50,252
Fair value of available-for-sale debt securities in a continuous unrealized loss position, 12 months or longer $ 6,600  
v3.25.4
FAIR VALUE - Fair Value of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Liabilities $ 0 $ 0
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Liabilities 25,999 7,533
Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Liabilities 0 0
Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets, Fair Value Disclosure 2,372,156 1,937,160
Total Liabilities 25,999 7,533
Fair Value, Recurring | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets, Fair Value Disclosure 2,301,186 1,886,908
Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets, Fair Value Disclosure 70,970 50,252
Fair Value, Recurring | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets, Fair Value Disclosure 0 0
Fair Value, Recurring | Foreign Exchange Contract    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 25,999 7,533
Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 0 0
Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 25,999 7,533
Fair Value, Recurring | Foreign Exchange Contract | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 0 0
Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and Cash Equivalents, Fair Value Disclosure 2,100,210 1,700,084
Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and Cash Equivalents, Fair Value Disclosure 2,100,210 1,700,084
Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and Cash Equivalents, Fair Value Disclosure 0 0
Fair Value, Recurring | Money Market Funds [Member] | Cash Equivalents | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and Cash Equivalents, Fair Value Disclosure 0 0
Fair Value, Recurring | Equity Securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 83,244 90,374
Fair Value, Recurring | Equity Securities | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 83,244 90,374
Fair Value, Recurring | Equity Securities | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring | Equity Securities | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring | Mortgage-backed and asset-backed securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 70,970 50,252
Fair Value, Recurring | Mortgage-backed and asset-backed securities | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring | Mortgage-backed and asset-backed securities | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 70,970 50,252
Fair Value, Recurring | Mortgage-backed and asset-backed securities | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring | Deferred Compensation Plan Assets    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Other Assets, Fair Value Disclosure 117,732 96,450
Fair Value, Recurring | Deferred Compensation Plan Assets | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Other Assets, Fair Value Disclosure 117,732 96,450
Fair Value, Recurring | Deferred Compensation Plan Assets | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Other Assets, Fair Value Disclosure 0 0
Fair Value, Recurring | Deferred Compensation Plan Assets | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Other Assets, Fair Value Disclosure $ 0 $ 0
v3.25.4
FAIR VALUE - Level 3 Measurements (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
2025 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Finite-lived Intangible Assets Acquired $ 184,400
2024 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Finite-lived Intangible Assets Acquired $ 366,000
Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2025 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Customer Retention Rate 85.00%
Discount rate 10.00%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2024 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Customer Retention Rate 85.00%
Discount rate 10.00%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | 2025 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Customer Retention Rate 90.00%
Discount rate 13.00%
Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | 2024 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Customer Retention Rate 92.00%
Discount rate 14.00%
Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Measurement Input, Discount Rate [Member] | 2024 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Technological Obsolescence Rate 10.00%
Estimated Royalty Rate 30.00%
Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2025 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Technological Obsolescence Rate 8.00%
Discount rate 10.00%
Estimated Royalty Rate 25.00%
Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Minimum [Member] | Measurement Input, Discount Rate [Member] | 2024 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Discount rate 10.00%
Fair Value, Inputs, Level 3 [Member] | Technology-Based Intangible Assets | Maximum [Member] | Measurement Input, Discount Rate [Member] | 2025 acquisitions  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Estimated Technological Obsolescence Rate 13.00%
Discount rate 13.00%
Estimated Royalty Rate 30.00%
v3.25.4
BALANCE SHEET COMPONENTS (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Inventories:    
Raw materials $ 245,487 $ 243,244
Work-in-process 14,665 1,216
Finished goods 43,393 13,251
Inventories 303,545 257,711
Prepaid expenses and other:    
Short-term investments 154,213 140,625
Other prepaid expenses and other assets 265,659 293,253
Prepaid expenses and other 419,872 433,878
Property, plant and equipment:    
Equipment and internal-use software 990,700 875,399
Buildings 137,597 137,781
Land 57,413 57,687
Leasehold, building and land improvements 298,417 245,669
Furniture and fixtures 51,189 43,517
In-process capital assets 3,193 14,879
Total cost 1,538,509 1,374,932
Less: Accumulated depreciation and amortization (1,021,505) (916,732)
Property, plant and equipment, net 517,004 458,200
Other assets:    
Long-term investments 67,517 124,086
ROU lease assets 175,964 146,190
Other long-term assets 337,891 274,465
Other assets 581,372 544,741
Accounts payable and accrued liabilities:    
Trade accounts payable 93,491 5,555
Payroll and payroll-related accruals 384,424 335,232
Other accrued operating liabilities 378,941 291,905
Accounts payable and accrued liabilities 856,856 632,692
Other long-term liabilities:    
Operating lease liabilities 136,289 108,893
Other accrued liabilities 271,240 230,555
Other long-term liabilities $ 407,529 $ 339,448
v3.25.4
LEASES - Operating Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease expense $ 70,846 $ 61,827 $ 56,805
v3.25.4
LEASES - Additional Lease Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Cash paid for amounts included in the measurement of operating lease liabilities $ 55,244 $ 49,978 $ 46,069
ROU assets obtained in exchange for operating lease obligations $ 79,567 $ 42,614 $ 32,597
v3.25.4
LEASES - ROU Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Right-of-use assets [Extensible List] Other Assets Other Assets
ROU lease assets $ 175,964 $ 146,190
Operating lease, liability, current [Extensible List] Accounts Payable and Accrued Liabilities, Current Accounts Payable and Accrued Liabilities, Current
Operating lease, liability, current $ 49,889 $ 41,554
Operating lease liabilities 136,289 108,893
Total lease liabilities $ 186,178 $ 150,447
Operating lease, weighted average remaining lease term 5 years 7 months 6 days 5 years 3 months 18 days
Operating lease, weighted average discount rate, 5.00% 4.00%
Operating lease liability, noncurrent [Extensible List] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
v3.25.4
LEASES - Future Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 55,588  
2027 38,885  
2028 31,555  
2029 25,575  
2030 17,385  
Thereafter 44,761  
Total future lease payments 213,749  
Less imputed interest (27,571)  
Total operating lease liability 186,178 $ 150,447
Operating lease obligations for lease not yet commenced $ 33,300  
v3.25.4
COMMITMENTS AND CONTINGENCIES - purchase obligations (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]  
2026 $ 99,629
2027 27,319
2028 20,939
2029 7,181
2030 7,015
Thereafter 0
Purchase obligations $ 162,083
v3.25.4
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended 84 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2021
Loss Contingencies [Line Items]        
Loss related to contingent liability $ 128,545 $ 8,322 $ 0  
Unfavorable Regulatory Action        
Loss Contingencies [Line Items]        
Export violation, value of products and services exchanged       $ 45,300
Loss related to contingent liability 128,500      
Loss contingency, payments made $ 140,600      
Korea tax audit assessment, payment        
Loss Contingencies [Line Items]        
Loss contingency, payments made   $ 49,000    
v3.25.4
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Contributions to plan      
Contributions to defined contribution plans $ 51,104 $ 45,164 $ 39,651
v3.25.4
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Sep. 05, 2024
Accumulated other comprehensive loss      
Foreign currency translation loss $ (178,611) $ 14,266  
Changes in defined benefit plan liabilities (4,447) (10,293)  
Unrealized losses on derivatives designated as hedging instruments, net of taxes (7,038) (6,431)  
Unrealized gains (losses) on available-for-sale debt securities (352) 653  
Total accumulated other comprehensive loss (190,448) $ (1,805)  
Other Comprehensive Income (Loss), before Tax [Abstract]      
Other comprehensive loss, from hedging activities, before reclassification and tax $ 9,700    
Treasury Lock [Member]      
Derivative [Line Items]      
Derivative, notional amount     $ 850,000
v3.25.4
SEGMENT REPORTING - Revenue, significant expenses and net income (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Number of Reportable Segments | segment 1    
Revenue $ 5,296,759 $ 4,641,264 $ 4,089,986
Depreciation and amortization 227,828 196,935 145,292
Loss related to contingent liability 128,545 8,322 0
Restructuring 29,194 23,765 11,013
Interest income (101,584) (62,484) (29,637)
Interest expense 116,541 75,999 36,185
Provision for income taxes 413,155 340,335 240,782
Net income 1,108,888 1,055,484 1,041,144
Reportable Segment      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenue 5,296,759 4,641,264 4,089,986
Salary, benefits and other employee-related costs 2,132,023 1,936,542 1,754,223
Stock based compensation 455,175 391,219 325,611
Manufacturing costs 376,610 330,903 232,012
Facilities and other infrastructure costs 192,719 174,102 156,977
Depreciation and amortization 227,828 196,935 145,292
Professional services 169,290 153,439 117,752
Loss related to contingent liability [1] 128,545 8,322 0
Restructuring 29,194 23,765 11,013
Other segments items [2] 48,375 16,703 58,632
Interest income (101,584) (62,484) (29,637)
Interest expense 116,541 75,999 36,185
Provision for income taxes 413,155 340,335 240,782
Net income $ 1,108,888 $ 1,055,484 $ 1,041,144
[1] For information regarding the loss related to a contingent liability, see Note 18 in the notes to the consolidated financial statements.
[2] Other segment items includes direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
v3.25.4
SEGMENT REPORTING - Summary of Revenue by Geography (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue $ 5,296,759 $ 4,641,264 $ 4,089,986
United States      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 2,310,965 2,159,703 1,694,529
Other Americas [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 168,349 93,101 65,259
Americas [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 2,479,314 2,252,804 1,759,788
China [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 679,971 573,096 679,538
Other Asia [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 1,005,232 855,919 766,409
Asia [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 1,685,203 1,429,015 1,445,947
Europe, Middle East and Africa [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue 790,569 699,241 655,078
Japan [Member]      
Entity Wide Disclosure on Geographic Areas Revenue from External Customers      
Total revenue $ 341,673 $ 260,204 $ 229,173
v3.25.4
SEGMENT REPORTING - Summary of Long-Lived Assets by Geography (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Summary of long-lived assets by geography      
Long-lived assets $ 692,968 $ 604,390 $ 554,010
United States      
Summary of long-lived assets by geography      
Long-lived assets 439,902 412,339 383,807
Other Americas [Member]      
Summary of long-lived assets by geography      
Long-lived assets 10,114 7,437 10,219
Americas [Member]      
Summary of long-lived assets by geography      
Long-lived assets 450,016 419,776 394,026
China [Member]      
Summary of long-lived assets by geography      
Long-lived assets 23,014 22,929 29,598
Other Asia [Member]      
Summary of long-lived assets by geography      
Long-lived assets 110,844 83,951 71,365
Asia [Member]      
Summary of long-lived assets by geography      
Long-lived assets 133,858 106,880 100,963
Europe, Middle East and Africa [Member]      
Summary of long-lived assets by geography      
Long-lived assets 105,015 73,551 56,449
Japan [Member]      
Summary of long-lived assets by geography      
Long-lived assets $ 4,079 $ 4,183 $ 2,572