Cadence Design SystemsXTER:CDS -2.63%96 Net Margin % is 22.77% as of Mar. 2026, which is 2% above its 10-year median of 22.38. GuruFocus rates XTER:CDS with a GF Score™ of 96/100 and a GF Value™ of €323.52 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,827 Software companies, Cadence Design Systems ranks better than 91.05% on this metric.
The historical rank and industry rank for Cadence Design Systems's Net Margin % or its related term are showing as below:
XTER:CDS'
s Net Margin % Range Over the Past 10 Years
Min: 10.5 Med: 22.38 Max: 42.33
Current: 21.18
XTER:CDS's Net Margin % is ranked better than 91.05% of 2827
companies
in the Software industry
Industry Median: 2.54
vs XTER:CDS: 21.18
Cadence Design Systems (XTER:CDS) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Cadence Design Systems Net Margin % Related Terms
Cadence Design Systems Net Margin % Historical Data
* 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.
XTER:CDS vs ADBE, INTU, ADP: Net Margin % Comparison
For the Software - Application subindustry, Cadence Design Systems's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Net Margin % distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Net Margin % falls into.
* 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 (XTER:CDS) has a Net Margin % of 22.77% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Cadence Design Systems and its competitors. This is near median its historical median of 22.38. Over the past decade, Cadence Design Systems' Net Margin % has ranged from 10.50 to 42.33. According to the industry distribution chart, Cadence Design Systems ranks #253 out of 2827 companies in the Software industry, placing it in the top 8.9%.
Is Cadence Design Systems' Net Margin % too high?
Cadence Design Systems' current Net Margin % of 22.77% is near median its 10-year median of 22.38. Over the past 10 years, this metric has ranged from a low of 10.50 to a high of 42.33. The Software industry median Net Margin % is 2.54. Cadence Design Systems' value of 22.77% is 796.5% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #253 out of 2827 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cadence Design Systems has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Net Margin % compare to ADBE and INTU?
According to the Software industry distribution chart, Cadence Design Systems ranks #253 out of 2827 companies for Net Margin %. This places Cadence Design Systems in the top 9% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Cadence Design Systems' value of 22.77% is 796.5% above this benchmark. Historically, Cadence Design Systems' own Net Margin % has ranged from 10.50 to 42.33 over the past decade. While the company's 10-year median is 22.38 vs. the industry median of 2.54, Cadence Design Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Net Margin % of 22.77% is 796.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Net Margin % is 22.77%, which is near median its own 10-year median of 22.38. 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 (XTER:CDS) is currently considered Fairly Valued. The stock's GF Value™ is €323.52, compared to a current price of €323.70 — trading 0.1% above its estimated fair value. The current Net Margin % is 22.77%, which is near median its 10-year median of 22.38 and 796.5% above the Software industry median of 2.54. Cadence Design Systems' overall GF Score™ is 96/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Cadence Design Systems (XTER:CDS), the current Net Margin % is 22.77% 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 (XTER:CDS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be overvalued.
The current stock price of €323.70 is trading 0.1% above its estimated GF Value™ of €323.52.
GuruFocus considers Cadence Design Systems to be Fairly Valued.
Key valuation signals for XTER:CDS:
Net Margin %: 22.77% (near median its 10-year median of 22.38)
GF Value™: €323.52 vs. price of €323.70 (0.1% above fair value)
Industry Position: 796.5% above the Software median (#253 of 2827)
No single metric tells the full story. See the XTER:CDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
96GF Score
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