CDNS - Comprehensive Filing Intelligence

FY•10-K•Filed Feb 19, 2026
5.0/10
Filing Health:CAUTION

Notable concerns that warrant closer review

Executive Summary

Purchase obligations total $162.1 million over the next five fiscal years.. Revenue increased by 14.1% year-over-year. See detailed pass outputs for comprehensive analysis.

Top Concerns

  • !Operating margin declined primarily due to a significant one-time loss from settlements with BIS and the DOJ.
  • !Deferred sales commissions amortization is increasing.
  • !Significant and growing unvested stock-based compensation liability.
  • !Purchase obligations total $162.1 million over the next five fiscal years.
  • !A $128.5 million charge was recorded for export control violations impacting sales to China.

Top Positives

  • +Revenue increased due to strong performance in software, hardware, and IP offerings, supported by recent acquisitions.
  • +Operating expenses increased due to strategic investments in R&D and sales, and integration costs from acquisitions.
  • +Cash flow from operations saw a substantial increase driven by business growth and improved working capital management, despite a large settlement payment.

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

6.0/10

Management tone is confidently optimistic with focus on product and maintenance-related costs increased, primarily due to hardware product costs..

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

6.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with $162.1 million in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

2.0/10

Overall risk profile shows regulatory and litigation risk from export control violations as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

7.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.

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