Cadence Design Systems Inc (CDNS) FY2025Q4 Earning Prediction
Cadence Design Systems Inc (CDNS) is set to release its FY2025Q4 earnings performance on 02/17 16:02:00 ET in After Hours trading. Consensus forecasts predict a revenue of 1.42B and an earnings per share (EPS) of 1.90 for the FY2025Q4. 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!
AI Earnings Prediction
Cadence is likely to beat earnings expectations, driven by strong AI-related demand and stable operating margins, though uncertainties in backlog data temper confidence.
Scenario Analysis
Key Indicators Forecast
No data
Prediction Logic & Rational
Logic & Justification
Revenue Growth: Citi’s initiation of coverage highlights the EDA sector’s role as a backbone for AI growth, projecting double-digit revenue growth (directly tied to core revenue metric). This aligns with Cadence’s positioning in a market poised to benefit from AI-driven demand. However, Oppenheimer’s unchanged estimates and reliance on multiple expansion (not fundamentals) introduce caution.
Operating Margins: Citi’s mention of 40% operating margins suggests Cadence can sustain or improve profitability, supporting EPS upside. However, no explicit cost-efficiency data or margin-specific catalysts are cited.
Backlog & Cash Flow: Sector-wide AI tailwinds imply robust demand (supporting backlog), but the lack of direct backlog/cash flow data in Fact Data limits confidence in a Strong Beat.
Tactical Strategy Recommendations
Trading Strategy
Bullish Play: Buy short-dated call options (e.g., Feb 2026 $310 calls) to capitalize on Beat potential driven by AI narrative.
Hedge: Pair with Synopsys (SNPS) shares to mitigate sector-specific risks (Nvidia’s $2B investment in SNPS could lift peers).
Avoid: Long-only positions without downside protection; consensus is not priced aggressively, but competition risks remain.
Earnings Surprise Analysis
CDNS Transcript
The earnings call summary and Q&A indicate strong financial performance and optimistic guidance, with revenue and EPS growth projections for 2025. Cadence's strategic moves, including AI monetization and market share gains, are positive. Despite some unclear responses, the overall sentiment is positive with a robust share repurchase plan, likely leading to a positive stock price movement over the next two weeks.
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.
CDNS Report
Frequently Asked Questions
What is the Cadence Design Systems Inc FY2025Q4 Earnings Release Date and Time?
Cadence Design Systems Inc (CDNS) is scheduled to release its FY2025Q4 earnings report on Feb 17, 2026, 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 FY2025Q4 Revenue and EPS?
Analysts' consensus predicts 1.42B in revenue and an EPS of 1.90 for Cadence Design Systems Inc's FY2025Q4.
What Does Intellectia's AI Predict for Cadence Design Systems Inc FY2025Q4 Earnings?
Intellectia's exclusive AI algorithms forecast a Beat for Cadence Design Systems Inc's FY2025Q4 earnings, with a prediction date of Feb 17, 2026. Cadence Design Systems Inc Cadence is likely to beat earnings expectations, driven by strong AI-related demand and stable operating margins, though uncertainties in backlog data temper confidence.
How Can I Use This Earnings Prediction to Trade CDNS Stock?
Leverage Intellectia's AI forecast to position trades ahead of the Feb 17, 2026 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 FY2025Q4?
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 2025-2026 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!
