XML 35 R23.htm IDEA: XBRL DOCUMENT v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2026
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 condensed consolidated financial statements. The following table presents revenue, significant expenses and net income for the three and nine months ended September 30, 2026 and September 30, 2025:
Three Months Ended Nine Months Ended
September 30,
2026		September 30,
2025		September 30,
2026		September 30,
2025
(In thousands)
Revenue
$1,633,311 $1,338,838 $4,691,982 $3,856,645 
Costs and Expenses:
Salary, benefits and other employee-related costs613,263 511,603 1,810,473 1,575,868 
Stock-based compensation144,763 116,073 429,836 342,011 
Manufacturing costs
104,809 90,504 320,136 273,653 
Facilities and other infrastructure costs
65,725 49,960 178,726 141,075 
Depreciation and amortization
118,548 56,677 320,159 163,269 
Professional services
69,689 47,584 187,445 117,727 
Loss related to contingent liability(1)
— — — 128,545 
Restructuring
42,159 27,394 41,802 27,332 
Other segment items(2)
44,860 41,852 (2,974)47,809 
Interest income(9,215)(24,627)(37,417)(76,827)
Interest expense30,375 29,035 97,124 87,101 
Provision for income taxes118,588 105,661 354,189 308,330 
Net income$289,747 $287,122 $992,483 $720,752 
_____________
(1) For information regarding the loss related to a contingent liability, see Note 15 in the notes to condensed consolidated financial statements.
(2) Other segment items include 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, contributions to non-profit organizations 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 the three and nine months ended September 30, 2026 and September 30, 2025:
Three Months Ended Nine Months Ended
September 30,
2026		September 30,
2025		September 30,
2026		September 30,
2025
(In thousands)
Americas:
United States$674,093 $532,119 $1,930,985 $1,692,351 
Other Americas35,632 43,002 113,246 111,686 
Total Americas709,725 575,121 2,044,231 1,804,037 
Asia:
China255,139 245,015 680,715 505,113 
Japan107,138 86,430 304,522 240,557 
Other Asia312,375 242,721 928,853 721,458 
Total Asia674,652 574,166 1,914,090 1,467,128 
Europe, Middle East and Africa (“EMEA”)
248,934 189,551 733,661 585,480 
Total$1,633,311 $1,338,838 $4,691,982 $3,856,645 
The following table presents a summary of long-lived assets by geography as of September 30, 2026 and December 31, 2025:
As of
September 30,
2026		December 31,
2025
(In thousands)
Americas:
United States$526,927 $439,902 
Other Americas11,600 10,114 
Total Americas538,527 450,016 
Asia:
China20,631 23,014 
India
131,260 92,470 
Japan
9,622 4,079 
Other Asia14,581 18,374 
Total Asia176,094 137,937 
EMEA110,051 105,015 
Total$824,672 $692,968