Cadence Design Systems, Inc. (CDNS)
Cadence makes electronic design automation tools and IP that engineers use to design integrated circuits and electronic systems.
Information Technology stock comparison
CDNS vs PANW: which business are you actually underwriting?
Compare Cadence Design Systems, Inc. with Palo Alto Networks, Inc. using their business models, SEC classifications, fiscal calendars, current primary filings, and the research questions that matter. This is a thesis framework—not a price target or automatic winner.
- Sector
- Information
- Industry
- Different SIC
- Shared themes
- 1
- Updated
- 2026-09-10
CDNS vs PANW: quick comparison
| Company fact | CDNS | PANW |
|---|---|---|
| Company | Cadence Design Systems, Inc. | Palo Alto Networks, Inc. |
| Exchange | NASDAQ | NASDAQ |
| SEC industry | Services-Prepackaged Software | Computer Peripheral Equipment, NEC |
| Fiscal year-end | December 31 | July 31 |
| Latest annual filing | 10-K · 2026-02-19 | 10-K · 2026-09-10 |
CDNS vs PANW: audited financials
PANW reported about 1.7× the revenue of CDNS in the latest audited fiscal year. On profitability, CDNS converted a larger share of revenue into net income (20.9% versus 12.3%). Scale and margin are starting facts for the thesis, not the verdict.
| Metric | CDNS | PANW |
|---|---|---|
| Revenue | $5.3B | $9.2B |
| Net income | $1.1B | $1.1B |
| Operating cash flow | $1.7B | $3.7B |
| Diluted EPS | $4.06 | $1.60 |
| Net margin | 20.9% | 12.3% |
CDNS: FY ending 2025-12-31 · PANW: FY ending 2025-07-31. Figures as tagged in each issuer's SEC XBRL filing; fiscal calendars may not align.
How the businesses differ
Why this pair belongs in the comparison set
CDNS and PANW have different SEC industry classifications, but both map to the maintained Artificial intelligence research theme inside the Information Technology sector. A shared classification or theme makes the pair useful for a defined research question; it does not mean the companies have identical products, economics, or risks.
Palo Alto Networks, Inc. (PANW)
Palo Alto Networks provides next-generation firewalls, cloud security, and AI-driven threat detection for enterprises.
The useful starting point is not which ticker has performed better. It is whether the two companies convert the same economic forces into revenue and cash flow in the same way. CDNS is classified by the SEC as Services-Prepackaged Software, while PANW is classified as Computer Peripheral Equipment, NEC. The different industry codes are a warning against treating sector membership as proof of identical economics.
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The thesis, the numbers behind it, and what would break it. Full access is $15 a month.
Read the full researchWhich thesis does each company fit?
Use the distinction below to decide which filing deserves deeper work. It is a research routing rule, not a recommendation or prediction.
Study CDNS when…
- The AI capital-expenditure cycle
- Interest rates and the cost of long-duration growth
- Enterprise IT budgets and cloud migration
- Export controls and the US–China chip race
Study PANW when…
- Next-Generation Security annualized recurring revenue
- Platformization deals that consolidate point products onto Strata, Prisma, and Cortex
- Mix of hardware firewall product revenue versus subscription and support
- Distributor concentration and channel partner performance
Shared research themes
Artificial intelligence
SEC filing comparison and disclosure evidence
Start with primary filings because fiscal calendars and accounting presentation can make superficially similar quarters incomparable.CDNS's fiscal year ends December 31, while PANW's ends July 31. Normalize the reporting periods before comparing growth, margins, capital intensity, or guidance.
The current verified House and Senate snapshot contains 12matched transaction rows for CDNSand 37 for PANW. These delayed, range-based disclosures can identify a filing to inspect; they do not establish motive, conviction, or a real-time trading signal.
CDNS primary filings
PANW primary filings
What this comparison cannot tell you
This page does not contain licensed live prices, a valuation model, earnings estimates, portfolio constraints, or a forecast of future returns. SEC classifications can be broad, company descriptions can lag strategic change, and the latest annual filing may predate a material acquisition or divestiture. Read subsequent quarterly and current reports before making a decision.
A stronger business is not automatically the better stock. Starting valuation, expectations, capital structure, cyclicality, dilution, and the probability of each thesis determine the investment outcome. Use this comparison to frame the work, then verify the numbers in the linked filings and current company disclosures.
CDNS vs PANW FAQs
Are CDNS and PANW direct competitors?
Cadence Design Systems, Inc. and Palo Alto Networks, Inc. sit in the same Information Technology sector but have different SEC industry classifications. The comparison is most useful for portfolio role and sector exposure, not as a claim that every product competes directly.
Which is better, CDNS or PANW?
There is no context-free winner. Compare the operating exposures, filing evidence, valuation, balance sheet, and risks against the specific thesis you are testing. This page deliberately does not turn a static profile into a buy or sell recommendation.
Does this CDNS vs PANW comparison include live prices?
No. Yield Theory does not republish unlicensed real-time market data. The financial figures on this page are the audited annual numbers Cadence Design Systems, Inc. and Palo Alto Networks, Inc. tagged in their SEC XBRL filings. Use a regulated broker or licensed quote provider for current prices and valuation multiples.
Where does the company information come from?
Company classifications, fiscal year-ends, and filing links come from the SEC EDGAR submissions API snapshot refreshed 2026-09-25. Business summaries and research themes are maintained by Yield Theory.
Data snapshot: SEC EDGAR submissions API, refreshed 2026-09-25. Independent educational research; not investment advice.
A comparison is the setup. The thesis is the call.
CDNS vs PANW shows how the businesses differ. Membership is the monthly sourced view of who could benefit, what could break, and what evidence matters next. $15/month or $150/year.
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