Autodesk vs Cadence Design Systems
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KIRA’s take AI analyst
I put Autodesk and Cadence Design Systems side by side, using each one’s latest annual report. Here is what stands out:
- Autodesk is the larger business, with $7.2B of revenue in fiscal 2026 against $5.3B for Cadence Design Systems.
- Autodesk grew revenue faster (17.5%, against 14.1%).
- Cadence Design Systems kept more of each dollar of sales as operating profit (28.2% operating margin, against 21.9%).
- Autodesk turned more of its sales into free cash flow (33.4% FCF margin, against 30.0%).
- Autodesk earned a higher return on the capital invested in it (37.0%, against 23.7%).
- Investors pay more for each dollar of Cadence Design Systems’s earnings: a P/E of 75.1x against 32.3x for Autodesk.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Autodesk
ADSK
6/10
Revenue growthFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Cadence Design Systems
CDNS
4/10
5-year growthOperating marginNet marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | ADSK FY26 | CDNS FY25 |
|---|---|---|
| Size | ||
| Market cap | $52.6B | $88.2B |
| Revenue | $7.2B | $5.3B |
| Free cash flow | $2.4B | $1.6B |
| Net income | $1.1B | $1.1B |
| Growth | ||
| Revenue growth | 17.5% | 14.1% |
| 5-year growth | 13.7% | 14.6% |
| Share count change | −0.9% | −0.2% |
| Profitability | ||
| Gross margin | 91.0% | — |
| Operating margin | 21.9% | 28.2% |
| Net margin | 15.6% | 20.9% |
| FCF margin | 33.4% | 30.0% |
| Return on capital | 37.0% | 23.7% |
| Return on equity | 39.7% | 21.9% |
| Balance sheet | ||
| Net debt | −$97.0M | −$675M |
| Net debt / EBITDA | −0.1x | −0.4x |
| Dividends and buybacks | $1.4B | $925M |
| Valuation & quality | ||
| P/E | 32.3x | 75.1x |
| Piotroski F-score | 8 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.