Cadence Design Systems, Inc. stock research
FY2026 Q1
Cadence Design Systems (CDNS) Gross Margin & Quarterly History
Explore Cadence Design Systems, Inc. (CDNS) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
This quarter's revenue and gross profit both increased compared to the prior quarter and the year-ago quarter. However, the cost of revenue rose at a faster rate than revenue, causing the gross margin to weaken slightly from the year-ago period.
- The primary observable driver is the faster growth of cost of revenue relative to revenue, which compressed the gross margin.
- Revenue was higher than the immediately preceding quarter, but gross margin cannot be compared due to missing data. Compared to the same quarter one year earlier, gross margin was lower, while both revenue and gross profit were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
85.4%
Gross profit
$1.3B
Revenue
$1.5B
Cost of revenue
$214.5M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.2B | $1.1B | $167.1M | 86.5% |
| Jun 30, 2025 | $1.3B | $962.7M | $312.7M | 75.5% |
| Sep 30, 2025 | $1.3B | $1.2B | $182.2M | 86.4% |
| Mar 31, 2026 | $1.5B | $1.3B | $214.5M | 85.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.9 pts
Year-over-year change
Mar 31, 2025
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the faster growth of cost of revenue relative to revenue, which compressed the gross margin.
Revenue was higher than the immediately preceding quarter, but gross margin cannot be compared due to missing data. Compared to the same quarter one year earlier, gross margin was lower, while both revenue and gross profit were higher.
Monitor the proportion of cost of revenue to revenue in future quarters to assess margin stability.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Cadence Design Systems, Inc. (CDNS) | 85.4% |