Companies /Technology

Cadence Design Systems Inc

NASDAQ: CDNS Software - Application
$304.88
▼ $1.80 (−0.59%) today
Markets closed · 10:18pm ET

Q4 2025 Earnings

Reported Feb 17, 2026, 4:02pm ET · SEC source
$1.99
Beat +4.19%
EPS · est. $1.91
$1.4B
Beat +1.13%
Revenue · est. $1.4B
−1.4%
Trailing market
CDNS vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%Feb 17Feb 18report 4:02pm ETearnings+0.5%+1.4%
−6%−3%0+3%Feb 17Feb 18earnings+0.5%+1.4%
CDNS +1.4%S&P 500 +0.5%
−6%−3%0+3%Feb 17Feb 18report 4:02pm ETearnings+0.6%+1.4%
−6%−3%0+3%Feb 17Feb 18earnings+0.6%+1.4%
CDNS +1.4%NASDAQ +0.6%
−4%0+4%Feb 17Feb 25report 4:02pm ETearnings+1.7%+1.9%
−4%0+4%Feb 17Feb 25earnings+1.7%+1.9%
CDNS +1.9%S&P 500 +1.7%
−4%0+4%Feb 17Feb 25report 4:02pm ETearnings+2.9%+1.9%
−4%0+4%Feb 17Feb 25earnings+2.9%+1.9%
CDNS +1.9%NASDAQ +2.9%
+7.60%
Day of report
−2.76%
Next session
−1.04%
One week
−6.92%
30 days

S&P 500 over the same 30 days: −5.50%.

Did CDNS Beat Earnings? Q4 2025 Results

Cadence Design Systems closed out fiscal 2025 on a solid note, <a href="https://247wallst.com/investing/2026/02/17/live-will-cadence-design-systems-cdns-beat-q4-earnings-tonight/">beating Q4 expectations</a> on both the top and bottom lines as fourth-quarter revenue came in at $1.44 billion, up 6.2% year over year, and non-GAAP EPS of $1.99 cleared the $1.91 consensus by 4.06%. The results were powered in large part by broad hyperscaler adoption and expanding digital full-flow deployments, which helped Core EDA grow 13% for the full year, while the IP business surged nearly 25% on demand for HBM, PCIe, and SerDes technologies. Full-year revenue of $5.30 billion represented over 14% growth, and the company exited 2025 with a record backlog of roughly $7.80 billion, reinforcing the durability of its recurring-revenue model. Analysts have noted that Cadence occupies a privileged position within the EDA oligopoly, benefiting from high switching costs and secular tailwinds in AI-driven chip complexity. Looking ahead, management guided fiscal 2026 revenue of $5.90 billion to $6.00 billion and non-GAAP EPS of $8.05 to $8.15, with operating cash flow targeted near $2.00 billion, all before any contribution from the pending Hexagon design and engineering acquisition.

Key Takeaways
  • Broad hyperscaler adoption driving Core EDA growth
  • Expanding digital full-flow deployments
  • Strong AI and hyperscale demand for hardware verification systems
  • IP portfolio performance driven by HBM, UCIe, PCIe, DDR, and SerDes adoption
  • 3D-IC platform and simulation demand for AI infrastructure applications
  • Productivity-driven profitability improvement expanding non-GAAP operating margin to 44.6%
  • Record backlog of ~$7.8 billion providing revenue visibility

“Cadence delivered excellent results for the fourth quarter, closing an outstanding 2025 with over 14% revenue growth and 20% non-GAAP EPS growth.”

Cadence Design Systems CEO, on the earnings call

Forward Guidance & Outlook

For fiscal year 2026, Cadence expects revenue of $5.9 billion to $6.0 billion (11-13% growth), GAAP operating margin of 31.75%-32.75%, non-GAAP operating margin of 44.75%-45.75%, GAAP EPS of $4.95-$5.05, non-GAAP EPS of $8.05-$8.15, and operating cash flow of approximately $2.0 billion. Capital expenditures are expected at approximately $210 million. The company expects to use approximately 50% of free cash flow to repurchase shares for the year. For Q1 2026, Cadence expects revenue of $1.42-$1.46 billion, non-GAAP operating margin of 44%-45%, non-GAAP EPS of $1.89-$1.95, and plans to use approximately $200 million for share repurchases. The outlook excludes the impact of the pending Hexagon D&E acquisition.

CDNS YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$400.0M$800.0M$1.2B$1.4B$1.4BRevenue$456.9M$463.3MOperating Income$340.2M$388.1MNet Income
$0$400.0M$800.0M$1.2BRevenueOperating IncomeNet Income

CDNS Revenue by Segment

Product and Maintenance$1.3B
Core EDA
System Design and Analysis
Semiconductor IP
Services$107.6M

CDNS Revenue by Geography

Americas
Asia Pacific
China
EMEA
Japan

Figures from SEC filings and company reports. Not investment advice.