CDNS
Cadence Design Systems
Is CDNS Halal?
Electronic design automation (EDA) software — permissible developer tools.
What You Should Know
Cadence provides software tools for chip design. Core business is permissible technology infrastructure for semiconductors. Its March 2026 Form 10-Q reports $12,098.354 million of assets, $2,906.170 million of interest-bearing debt, and $1,474.220 million of quarterly revenue; the examined financial ratios pass, while customer and end-use screening remains qualitative.
⚠️ Concerns
- •Minor interest income
- •Identifiable liquidity is 12.29% of assets and debt/assets is 24.02%
- •EDA, semiconductor IP and system-design end uses are not screened by prohibited category
- •Acquisition accounting and debt-funded expansion require continuing review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
2,906.17 / 12,098.354
1,486.308 / 12,098.354
2,440.482 / 12,098.354
18.265 / 1,474.22
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 24.02%, liquidity/assets is 12.29%, receivables-plus-cash/assets is 20.17% and disclosed interest income is 1.24%; the financial ratios pass, while business revenue remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt, liquidity and receivables-plus-cash pass examined total-assets limits; this is not an index-membership claim and screened business revenue remains undisclosed.
- Financial
- Pass
- Overall
- Incomplete
Debt and identifiable conventional liquidity are below 33% of total assets; this is not an official SAC classification and screened business revenue remains unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored.
Business-activity disclosure
Cadence provides electronic-design-automation software, semiconductor IP and system-design tools. These are generally permissible technology products, but customer and downstream use vary.
Limitation: The filing reports product categories but does not isolate a reproducible prohibited-use or customer-revenue numerator for defense, surveillance, gaming or other end uses.
Purification
Disclosed interest income is 1.24% of quarterly revenue and passes the examined income limit, but screened operating revenue remains unavailable; this is not a complete fixed purification prescription.
Inputs, assumptions and primary sources
- Amounts are USD millions from Cadence's first-quarter 2026 Form 10-Q.
- Debt includes the $425 million revolving-credit balance and $2,481.170 million long-term debt; operating liabilities are excluded.
- Cash and cash equivalents are $1,406.668 million. Identifiable mortgage-backed and asset-backed debt securities total $79.640 million; marketable equity securities and NQDC trust assets are excluded.
- Receivables, net are $1,033.814 million.
- Revenue is $1,474.220 million and disclosed interest income is $18.265 million for the quarter.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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