Compliance Status

Halal

Screened on Oct 19, 2026 · AAOIFI Standard 21

A

Very Good

88Score

Is Cadence Design Systems, Inc. (CDNS) halal? Halal. Based on AAOIFI screening, Cadence Design Systems, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 88/100 (Grade: A).

Quote this verdict

HalalScreener rates Cadence Design Systems, Inc. (CDNS) Halal, 88/100, grade A under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/CDNS

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

2.8% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

You can own CDNS

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened CDNS's prohibited income, but the exact share you would need to purify is part of Pro.

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Cadence Design Systems, Inc.

CDNS: Is Cadence Design Systems, Inc. Halal?

Cadence Design Systems, Inc.

NASDAQTechnologyUS

$319.51

-1.50%

Market Cap: 88.0B

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About Cadence Design Systems, Inc.

Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing. Moreover, the company furnishes custom IC design and simulation tools capable of generating both schematic and physical representations of circuits down to the transistor level. These tools support a wide array of applications, such as analog, mixed-signal, custom digital, memory, and radio frequency (RF) designs. Cadence also offers system design and analysis products crucial for developing printed circuit boards (PCBs) and integrated circuit packages, along with capabilities to analyze complex multi-physics effects like electromagnetic and electro-thermal interactions. Furthermore, Cadence supplies intellectual property (IP) products, consisting of pre-verified, customizable functional blocks ready for integration into customer ICs. This includes verification IP and memory models used to simulate and characterize the behavior and interactions of standard industry system interface protocols. Complementing its product portfolio, Cadence provides a range of services, including methodology consulting, educational programs, hosted design solutions, and ongoing technical support and maintenance. Its diverse clientele spans sectors such as 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile technology, consumer electronics, and hyperscale computing. Established in 1987, Cadence Design Systems, Inc. is headquartered in San Jose, California.

Sector: Technology · Industry: Software - Application

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 19, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR
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Frequently Asked Questions

Is Cadence Design Systems, Inc. (CDNS) halal to invest in?
Based on AAOIFI Standard 21 screening, Cadence Design Systems, Inc. (CDNS) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Cadence Design Systems, Inc. get a A compliance rating?
Cadence Design Systems, Inc. (CDNS) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 2.8% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Cadence Design Systems, Inc.'s Shariah verdict?
Cadence Design Systems, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Cadence Design Systems, Inc. re-screened for Shariah compliance?
Cadence Design Systems, Inc. (CDNS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 19, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.