CDNSNEUTRAL

CDNS Gross Margin Analysis

84.9%

Updated 105h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so CDNS's 84.9% means it retains about 85 cents of every sales dollar before other expenses.

Sector Performance

96th percentile

CDNS

84.9%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

85.4%(Jul 2026)

→ Stable

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so CDNS's 84.9% means it retains about 85 cents of every sales dollar before other expenses.

This is far above the sector median of 44.7%, placing CDNS in the

Frequently Asked Questions

What does the Gross Margin tell investors about CDNS?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are CDNS's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.