Cadence Design Systems (WBO:CDNS) EBIT: €1,472 Mil (TTM As of Mar. 2026)


WBO:CDNS Cadence Design Systems Inc WBO:CDNS
87 GF Score
Price €323.80
GF Value €322.91
Valuation Fairly Valued
! 4 Warning Signs
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What is Cadence Design Systems EBIT?

Cadence Design Systems WBO:CDNS -2.88% 87 EBIT is €1,472 Mil as of Mar. 2026. GuruFocus rates WBO:CDNS with a GF Score™ of 87/100 and a GF Value™ of €322.91 (Fairly Valued). The stock has 4 warning signs investors should review.

Cadence Design Systems's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €398 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €1,472 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cadence Design Systems's annualized ROC % for the quarter that ended in Mar. 2026 was 16.50%. Cadence Design Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 301.19%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Cadence Design Systems's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1.62%.


Cadence Design Systems  (WBO:CDNS) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Cadence Design Systems's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1492.424 * ( 1 - 21.59% )/( (5347.671 + 8837.317)/ 2 )
=1170.2096584/7092.494
=16.50 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8670.788 - 731.755 - ( 2694.823 - max(0, 1396.539 - 3987.901+2694.823))
=5347.671

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10465.076 - 747.282 - ( 1216.768 - max(0, 1870.569 - 2751.046+1216.768))
=8837.317

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Cadence Design Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1590.616/( ( (591.795 + max(-489.559, 0)) + (464.421 + max(-416.339, 0)) )/ 2 )
=1590.616/( ( 591.795 + 464.421 )/ 2 )
=1590.616/528.108
=301.19 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(420.88 + 259.227 + 226.873) - (731.755 + 664.783 + 0.00099999999997635)
=-489.559

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(446.576 + 275.028 + 365.001) - (747.282 + 755.662 + -2.2737367544323E-13)
=-416.339

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Cadence Design Systems's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1471.557/90931.883
=1.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cadence Design Systems EBIT Related Terms


Cadence Design Systems EBIT Historical Data

* Premium members only.

The historical data trend for Cadence Design Systems's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Cadence Design Systems EBIT Chart

Cadence Design Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 695.09 1,008.47 1,208.71 1,405.59 1,399.35

Cadence Design Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 355.95 268.38 359.39 446.13 397.65

WBO:CDNS vs ADBE, INTU, ADP: EBIT Comparison

For the Software - Application subindustry, Cadence Design Systems's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cadence Design Systems EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Cadence Design Systems's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's EV-to-EBIT falls into.


WBO:CDNS
87GF Score
Cadence Design Systems Inc WBO:CDNS
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Cadence Design Systems EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,472 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €1,472 Mil mean?
Cadence Design Systems (WBO:CDNS) has a EBIT of €1,472 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Cadence Design Systems.
Is Cadence Design Systems' EBIT too high?
Cadence Design Systems' current EBIT is €1,472 Mil. Overall, Cadence Design Systems has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' EBIT compare to ADBE and INTU?
Cadence Design Systems' EBIT of €1,472 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Cadence Design Systems. Cadence Design Systems's current EBIT is €1,472 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cadence Design Systems stock overvalued right now?
Based on GuruFocus' analysis, Cadence Design Systems (WBO:CDNS) is currently considered Fairly Valued. The stock's GF Value™ is €322.91, compared to a current price of €323.80 — trading 0.3% above its estimated fair value. The current EBIT is €1,472 Mil. Cadence Design Systems' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Cadence Design Systems (WBO:CDNS), the current EBIT is €1,472 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cadence Design Systems (WBO:CDNS) Overvalued in 2026?

Based on GuruFocus' analysis, Cadence Design Systems stock appears to be overvalued. The current stock price of €323.80 is trading 0.3% above its estimated GF Value™ of €322.91. GuruFocus considers Cadence Design Systems to be Fairly Valued.

Key valuation signals for WBO:CDNS:

  • EBIT: €1,472 Mil
  • GF Value™: €322.91 vs. price of €323.80 (0.3% above fair value)
  • GF Score™: 87/100 with 4 warning signs

No single metric tells the full story. See the WBO:CDNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cadence Design Systems Business Description

Address 2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.
87GF Score

Get the complete analysis for WBO:CDNS

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€323.80
Price
€322.91
GF Value