Snowflake vs Cadence

Snowflake Inc. and Cadence Design Systems Inc. are examined together on this page to compare business models, financial performance, and market context. The analysis aims to present neutral, accessible information about how each company operates, generates revenue, and positions itself within the industry. Educational content, not financial advice.

Snowflake Inc. and Cadence Design Systems Inc. are examined together on this page to compare business models, financial performance, and market context. The analysis aims to present neutral, accessibl...

About The Companies

Snowflake (SNOW)

Snowflake Inc (SNOW) is a cloud-native data platform that helps organisations store, analyse and share large volumes of data. Built to run on public clouds (AWS, Azure and Google Cloud), Snowflake separates storage from compute, enabling scalable analytics, data engineering and data sharing across teams and partners. Revenue is largely subscription- and consumption-based, giving the company recurring streams alongside usage-driven upside. Strong customer growth, a broad partner ecosystem and continued product expansion (data marketplace, data cloud features and machine-learning integrations) have supported rapid top-line growth. However, Snowflake operates in a highly competitive market (including major cloud providers and specialist analytics vendors), and profitability has fluctuated as it invests in sales, marketing and R&D. The stock’s valuation can be sensitive to growth expectations and macro-driven enterprise IT spend. This summary is educational only: investors should consider risks, diversification and their own goals before making decisions — past performance is not a guide to future results.

Cadence (CDNS)

Cadence Design Systems (CDNS) is a leading provider of electronic‑design automation (EDA) software and semiconductor IP used to design, verify and optimise chips and complex electronic systems. Investors should know Cadence benefits from secular trends — rising chip complexity, AI acceleration and growing demand for custom silicon — which support steady software licence and subscription revenue. The company combines product sales, recurring licences, and professional services, and has a strong position with major semiconductor and systems companies. That said, Cadence’s business is sensitive to semiconductor industry cycles, capital spending patterns and long sales cycles for large design projects. Financial performance can fluctuate with macro conditions, and past performance is no guarantee of future returns. This summary is for educational purposes only and not personalised investment advice; consider your own situation and consult a financial professional before acting.

Comparison Snapshot

Key Financial Metrics

SNOW

Metric

CDNS

$75.46B

Market Cap

$91.30B

30.04%

Potential Profit

16.32%

Buy

Analyst Rating

Buy

Why It's Moving

Snowflake Tops Q3 Revenue and Profit Estimates, Highlighting Strong AI-Driven Demand Despite Stock Pullback

Q3 revenue reached $1.21 billion, surpassing analyst estimates of $1.18 billion and reflecting 28.7% year-over-year growth, driven by strong enterprise adoption of Snowflake’s AI Data Cloud.
Adjusted EPS of $0.35 exceeded expectations by 12.5%, while operating income beat estimates by over 21%, highlighting improved profitability and operational leverage.
Guidance for Q4 product revenue at $1.20 billion at midpoint indicates sustained momentum, supported by a growing customer base with 688 clients paying more than $1 million annually and a stronger free cash flow margin rising to 9.4%.

Sentiment:

🐃Bullish

Cadence Design Systems Boosts 2025 Revenue Outlook Following Record Backlog and Sector Optimism

Q3 report highlighted a record backlog of $7.0 billion, signaling robust demand for Cadence’s electronic design automation tools.
Raised 2025 revenue outlook to about 14% growth, up from previous guidance, indicating accelerated business pace.
Sector optimism fueled by Nvidia’s multi-year strategic partnership and $2 billion investment in a competitor, enhancing confidence in the broader EDA market where Cadence is a key player.

Sentiment:

🐃Bullish

Snowflake Tops Q3 Revenue and Profit Estimates, Highlighting Strong AI-Driven Demand Despite Stock Pullback

Q3 revenue reached $1.21 billion, surpassing analyst estimates of $1.18 billion and reflecting 28.7% year-over-year growth, driven by strong enterprise adoption of Snowflake’s AI Data Cloud.
Adjusted EPS of $0.35 exceeded expectations by 12.5%, while operating income beat estimates by over 21%, highlighting improved profitability and operational leverage.
Guidance for Q4 product revenue at $1.20 billion at midpoint indicates sustained momentum, supported by a growing customer base with 688 clients paying more than $1 million annually and a stronger free cash flow margin rising to 9.4%.

Sentiment:

🐃Bullish

Cadence Design Systems Boosts 2025 Revenue Outlook Following Record Backlog and Sector Optimism

Q3 report highlighted a record backlog of $7.0 billion, signaling robust demand for Cadence’s electronic design automation tools.
Raised 2025 revenue outlook to about 14% growth, up from previous guidance, indicating accelerated business pace.
Sector optimism fueled by Nvidia’s multi-year strategic partnership and $2 billion investment in a competitor, enhancing confidence in the broader EDA market where Cadence is a key player.

Sentiment:

🐃Bullish

Which Baskets Do They Appear In?

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Published: July 2, 2025

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Which Baskets Do They Appear In?

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Investment Analysis

Snowflake

SNOW

Pros

Snowflake has a strong and growing customer base with recent enterprise expansion driven by AI-related product integration.
The company benefits from an increasing adoption of AI and cloud data platforms, positioning it well for future growth.
Despite current unprofitability, Snowflake has shown revenue growth and earnings beats, with many analysts rating it as a Buy or Strong Buy.

Considerations

Snowflake remains unprofitable with a significant net loss and a very high forward PE ratio, indicating valuation concerns.
The stock has experienced high price volatility and a recent forecast suggests a potential price decline by year-end 2025.
Slowing revenue growth and execution risk related to long-term profitability and market saturation may impact performance.

Cadence

CDNS

Pros

Cadence Design Systems holds a leadership position in advanced AI-enabled chip design and next-generation semiconductor software.
The company exhibits strong financial health with low detected risks, supporting stable operations and growth capacity.
Cadence benefits from structural growth drivers including AI and IoT advances expected to stimulate demand for its products.

Considerations

Cadence faces potential headwinds from geopolitical issues such as US-China relations which could impact its market opportunities.
The company's valuation is relatively high compared to peers, which may limit upside potential in a market correction.
Open-source trends in electronic design automation could create competitive pressures challenging Cadence’s market position.

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About The Companies

Comparison Snapshot

Why It's Moving

Snowflake Tops Q3 Revenue and Profit Estimates, Highlighting Strong AI-Driven Demand Despite Stock Pullback

Cadence Design Systems Boosts 2025 Revenue Outlook Following Record Backlog and Sector Optimism

Snowflake Tops Q3 Revenue and Profit Estimates, Highlighting Strong AI-Driven Demand Despite Stock Pullback

Cadence Design Systems Boosts 2025 Revenue Outlook Following Record Backlog and Sector Optimism

Which Baskets Do They Appear In?

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Which Baskets Do They Appear In?

The Figma Effect: Investing in Collaborative Tech