Cadence Design Systems vs OpenText
Add, change or remove companies; up to four.
The short version
- Cadence Design Systems is the larger business, with $5.3B of revenue in fiscal 2025 against $5.2B for OpenText.
- Cadence Design Systems grew revenue faster (14.1%, against 1.5%).
- Cadence Design Systems kept more of each dollar of sales as operating profit (28.2% operating margin, against 20.6%).
- Cadence Design Systems turned more of its sales into free cash flow (30.0% FCF margin, against 15.4%).
- Cadence Design Systems earned a higher return on the capital invested in it (23.7%, against 9.0%).
| Latest fiscal year | CDNS · FY25 | OTEX · FY26 |
|---|---|---|
| Size | ||
| Market cap | $86.6B | $7.0B |
| Revenue | $5.3B | $5.2B |
| Free cash flow | $1.6B | $808M |
| Net income | $1.1B | $643M |
| Growth | ||
| Revenue growth | 14.1% | 1.5% |
| 5-year growth | 14.6% | 9.2% |
| Share count change | −0.2% | −5.4% |
| Profitability | ||
| Gross margin | — | 73.7% |
| Operating margin | 28.2% | 20.6% |
| Net margin | 20.9% | 12.3% |
| FCF margin | 30.0% | 15.4% |
| Return on capital | 23.7% | 9.0% |
| Return on equity | 21.9% | 16.2% |
| Balance sheet | ||
| Net debt | −$675M | $4.8B |
| Net debt / EBITDA | −0.4x | 3.2x |
| Dividends and buybacks | $925M | $685M |
| Valuation & quality | ||
| P/E | 73.8x | — |
| Piotroski F-score | 5 | 9 |
Revenue
FY17
CDNS $1.9B
OTEX $2.3B
FY18
CDNS $2.1B
OTEX $2.8B
FY19
CDNS $2.3B
OTEX $2.9B
FY20
CDNS $2.7B
OTEX $3.1B
FY21
CDNS $3.0B
OTEX $3.4B
FY22
CDNS $3.6B
OTEX $3.5B
FY23
CDNS $4.1B
OTEX $4.5B
FY24
CDNS $4.6B
OTEX $5.8B
FY25
CDNS $5.3B
OTEX $5.2B
FY26
CDNS —
OTEX $5.2B
CDNS
OTEX
Operating margin
FY17
CDNS 16.7%
OTEX 15.5%
FY18
CDNS 18.5%
OTEX 18.0%
FY19
CDNS 21.1%
OTEX 19.8%
FY20
CDNS 24.1%
OTEX 16.2%
FY21
CDNS 26.1%
OTEX 21.9%
FY22
CDNS 30.2%
OTEX 18.5%
FY23
CDNS 30.6%
OTEX 11.5%
FY24
CDNS 29.1%
OTEX 15.4%
FY25
CDNS 28.2%
OTEX 17.3%
FY26
CDNS —
OTEX 20.6%
CDNS
OTEX
Free cash flow
FY17
CDNS $413M
OTEX $361M
FY18
CDNS $543M
OTEX $603M
FY19
CDNS $655M
OTEX $812M
FY20
CDNS $810M
OTEX $882M
FY21
CDNS $1.0B
OTEX $812M
FY22
CDNS $1.1B
OTEX $889M
FY23
CDNS $1.2B
OTEX $655M
FY24
CDNS $1.1B
OTEX $808M
FY25
CDNS $1.6B
OTEX $687M
FY26
CDNS —
OTEX $808M
CDNS
OTEX
Return on capital
FY17
CDNS 22.6%
OTEX 8.4%
FY18
CDNS 35.7%
OTEX 5.6%
FY19
CDNS 34.6%
OTEX 6.6%
FY20
CDNS 33.0%
OTEX 5.7%
FY21
CDNS 36.1%
OTEX 5.9%
FY22
CDNS 38.7%
OTEX 7.9%
FY23
CDNS 37.5%
OTEX 3.9%
FY24
CDNS 28.1%
OTEX 5.4%
FY25
CDNS 23.7%
OTEX 8.7%
FY26
CDNS —
OTEX 9.0%
CDNS
OTEX
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.