Cadence Design Systems Inc (CDNS) FY2025Q3 Earning Prediction

10/27 04:00:00

After Hours

Cadence Design Systems Inc (CDNS) is set to release its FY2025Q3 earnings performance on 10/27 04:00:00 in After Hours trading. Consensus forecasts predict a revenue of 1.32B and an earnings per share (EPS) of 1.80 for the FY2025Q3. With Intellectia's exclusive AI algorithms, users can predict whether the earnings will beat or miss expectations before the report drops. Leverage this powerful tool to strategize and position your trades ahead of the earnings release!

Estimate

Actual

Surprise

RevenueBEAT

1.32B

1.34B

+1.16%

EPSBEAT

1.80

1.93

+7.22%

AI Summary

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AI Earnings Prediction

Prediction for FY2025Q3

Earnings Date: Oct 27, 2025

Cadence is expected to deliver a strong beat in its earnings due to robust growth in its EDA tools, strategic acquisitions, and favorable AI-driven market dynamics.

Strong Beat

Last 0 quarters:

5 beats0 misses

Scenario Analysis

The AI analyzes the probability of each scenario occurring and identifies the triggering conditions.

Scenario

Prob.

Stock Reaction

Trigger Condition

Strong Beat

55%

+12-15%

Revenue >$1.33B (+1.5% vs. consensus), EPS >$1.85 (+3.5%).

Beat

30%

+5-7%

Revenue in line, EPS ~$1.80 (+0.6%), upbeat guidance on AI/3D-IC.

Neutral

10%

Flat

Weak IP segment growth offsets EDA strength.

Miss

-8-10%

China export restrictions materially impact design activity.

Strong Miss

N/A

No evidence of downside catalysts.

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Key Indicators Forecast

The AI provides itemized forecasts for key indicators, potentially including revenue, EPS, gross margin, and free cash flow.

Revenue

EPS

Currency:

No data

Actual

Estimate

Metric

Prediction

Justification

Revenue

Strong Beat

AI-driven EDA tools (Cerebrus/JedAI) + 3D-IC traction + Hexagon acquisition synergies drive multi-segment outperformance.

EPS

Beat

High-margin EDA/IP growth and operational efficiency offset integration costs from Hexagon deal.

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Prediction Logic & Rational

Key Fact Data Insights

AI-Driven Design Solutions with TSMC

Cadence’s collaboration with TSMC on AI-driven tools (e.g., JedAI Solution, automated DRC violation fixing) directly accelerates adoption of Cadence Cerebrus and digital full flow at advanced nodes (TSMC N2). This strengthens Core EDA revenue growth (>16%), critical given high-margin EDA dominance.
Accelerated time-to-market for AI/HPC chips aligns with surging demand for custom silicon in AI, directly supporting IP Business growth (>25%) via expanded use cases.

Strategic Acquisition of Hexagon’s Design & Engineering Division

The EUR 2.7B acquisition expands Cadence’s System Design & Analysis portfolio (MSC Software’s structural analysis tools). This bolsters 3D-IC adoption (key for 35%+ growth in this segment) and diversifies revenue streams into high-growth verticals like automotive/aerospace.

Analyst Consensus on AI Tailwinds

Goldman Sachs highlights Cadence’s compounding growth from non-traditional customers (e.g., hyperscalers, auto) seeking custom chips, which amplifies TAM beyond traditional semiconductor markets.
Berenberg notes upward guidance revisions post-Q2, reflecting operational efficiency and sustained demand.

Prediction Logic & Rational

Tactical Strategy Recommendations

Pre-Earnings:
- Long Stock/CDNS Calls (Oct 27 $340 Strike): Leverage undervaluation (stock -9% vs. S&P 500 +5.5%) and high Strong Beat probability.
- Bull Call Spread (Buy $340 Call / Sell $360 Call): Capitalize on volatility crush post-earnings.
Post-Earnings:
- If Strong Beat: Hold through guidance-driven momentum (AI/3D-IC backlog commentary).
- If Neutral/Miss: Hedge with SNPS puts (competitor Synopsys may face spillover selling).
  Rationale: Fact data (TSMC AI tools, Hexagon acquisition) supports multi-segment beats, while consensus expectations remain conservative (near-flat EPS/revenue revisions). Stock’s underperformance vs. peers (SNPS) creates asymmetric upside.

Tactical Strategy Recommendations

Earnings Surprise Analysis

The chart displays the extent of earnings surprises and corresponding stock price movements for each earnings event.

Revenue

EPS

CDNS Transcript

Cadence Design Systems, Inc. (CDNS) Presents at 53rd Annual Nasdaq Investor Conference Transcript

Neutral12-9

Cadence Design Systems, Inc. (CDNS) Presents at UBS Global Technology and AI Conference 2025 Transcript

Neutral12-2

Cadence Design Systems, Inc. (CDNS) Q3 2025 Earnings Call Transcript

Positive10-27

The earnings call summary presents a positive outlook with projected revenue and EPS growth for 2025, strong operating margins, and a commitment to share repurchases. The Q&A section highlights sustained growth driven by AI and HPC, strong demand in China, and positive impacts from partnerships like NVIDIA-Intel. While there are some geopolitical risks and cautious guidance for 2026, the overall sentiment remains optimistic, supported by robust financial metrics and strategic initiatives in AI and hardware. The lack of market cap information limits precise impact prediction, but overall, a positive stock movement is expected.

Cadence Design Systems, Inc. (CDNS) Presents At Goldman Sachs Communacopia + Technology Conference (Transcript)

Neutral9-9

CDNS Report

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2024-10-30

CADENCE DESIGN SYSTEMS INC 10-Q

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CADENCE DESIGN SYSTEMS INC 10-Q

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2024-04-24

Frequently Asked Questions

What is the Cadence Design Systems Inc FY2025Q3 Earnings Release Date and Time?

Cadence Design Systems Inc (CDNS) is scheduled to release its FY2025Q3 earnings report onOct 27, 2025, After Hours(approximately 4:00 PM ET). This timing allows investors to react during after-hours trading, with a conference call typically following shortly after.

What Are the Consensus Forecasts for Cadence Design Systems Inc FY2025Q3 Revenue and EPS?

Analysts' consensus predicts 1.32B in revenue and an EPS of 1.80 for Cadence Design Systems Inc's FY2025Q3.

What Does Intellectia's AI Predict for Cadence Design Systems Inc FY2025Q3 Earnings?

Intellectia's exclusive AI algorithms forecast a Strong Beat forCadence Design Systems Inc's FY2025Q3 earnings, with a prediction date of Oct 27, 2025. Cadence Design Systems Inc Cadence is expected to deliver a strong beat in its earnings due to robust growth in its EDA tools, strategic acquisitions, and favorable AI-driven market dynamics.

How Can I Use This Earnings Prediction to Trade CDNS Stock?

Leverage Intellectia's AI forecast to position trades ahead of theOct 27, 2025 release—consider calls for a beat scenario or protective puts for misses. Focus on pre-market volatility, and use the scenario probabilities to build strategies around revenue and guidance updates.

How Accurate Is Intellectia's AI for Earnings Predictions Like Cadence Design Systems Inc FY2025Q3?

Intellectia's predictions are backed by rigorous backtesting, showing a high hit rate for Beat and Miss calls compared to traditional analysis. While no forecast is 100% certain, we provide probability-based scenarios (e.g., 50% chance of a *Beat*) and detailed rationales to help you make informed decisions. Combine our insights with your strategy for the best results—it's like having a co-pilot for earnings season! Empowering users to strategize trades before reports drop.

How does AI Earnings Prediction generate its forecasts?

AI Earnings Prediction uses advanced Large Language Models (LLMs) to analyze a wealth of data, including past earnings transcripts, real-time market sentiment, analyst insights, and company news from the last three months. It focuses on key indicators like revenue, EPS, and margins to predict whether a company will *Beat*, *Miss*, or remain Neutral relative to market expectations. Think of it as a super-smart analyst crunching numbers and news 24/7 to give you a trading edge!

When are the predictions available, and how often are they updated?

Predictions are generated two days before a company’s earnings release (e.g., 5:00 PM ET on Feb 13 for a Feb 15 report) to capture the latest market and company data. They’re updated in real-time if significant news breaks, ensuring you get fresh insights.

Can I use AI Earnings Prediction for all types of stocks?

Currently, AI Earnings Prediction focuses on companies with market caps above $40 billion, covering major players like SPG, AAPL, MSFT, and NVDA for the 2024-2025 earnings seasons. We prioritize high-impact stocks with robust data to ensure reliable forecasts. Stay tuned as we expand coverage to more companies based on user demand!