Cadence Design Surges After Beating Earnings Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy CDNS?
Source: CNBC
- Earnings Beat: Cadence Design Systems reported an adjusted EPS of $1.99 and revenue of $1.44 billion for Q4 2025, both approximately 6% higher year-over-year, surpassing analyst expectations of $1.91 and $1.42 billion, indicating robust market performance.
- Significant Contribution from System Companies: CEO Anirudh Devgan highlighted that around 45% of the business now comes from 'system companies', including hyperscalers and end producers of phones and cars, reflecting a growing demand for integrated hardware and software design solutions.
- AI-Driven Capital Expenditures: The company is benefiting from increased R&D and capital expenditures by tech enterprises focused on artificial intelligence, particularly in developing large language models, positioning Cadence as a key player in the rapidly evolving AI market.
- Optimistic Revenue Outlook: Cadence expects revenue between $5.9 billion and $6 billion for the next fiscal year, aligning closely with FactSet's upper estimate of $5.94 billion, demonstrating management's confidence in sustained market demand and future growth.
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Analyst Views on CDNS
Wall Street analysts forecast CDNS stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 283.460
Low
275.00
Averages
350.00
High
390.00
Current: 283.460
Low
275.00
Averages
350.00
High
390.00
About CDNS
Cadence Design Systems, Inc. is an electronic systems designing company. The Company applies its Intelligent System Design strategy to deliver software, hardware and intellectual property (IP) that turn design concepts into reality. Its product categories include Core Electronic Design Automation (EDA), Semiconductor IP, and System Design and Analysis (SD&A). Core EDA includes software, hardware, and services used to design and verify a wide variety of semiconductors. The semiconductor IP portfolio includes silicon subsystems, software, and services that are used in semiconductor design. The SD&A category includes the software and services used to design and verify a wide variety of physical electronic systems. Its semiconductors are used in various industries, including automotive, aerospace, biotech, hyperscale and cloud computing, data centers, telecommunications, medical technology, industrial Internet of things (IIoT), and artificial intelligence (AI).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cadence Design Stock Jumps 6.4% Following Strong Q4 Earnings Report
- Company Performance: Cadence Design reported a 6.4% rise in its results after Q4, surpassing estimates.
- Market Reaction: The positive results have led to an increase in investor confidence and interest in the company's stock.
See More
Cadence Design Systems Reports 14% Revenue Growth in 2025 Earnings Call
- Significant Revenue Growth: Cadence Design Systems achieved a 14% revenue growth in 2025, with total revenue reaching $5.297 billion, reflecting strong demand for its AI solutions and engineering software, further solidifying its market leadership.
- Innovative Product Launch: The introduction of ChipsTech AI SuperAgent, the world's first agentic AI solution for automating chip design and verification, is expected to provide customers with up to 10x productivity improvement, significantly enhancing Cadence's competitive edge in the chip design market.
- Robust Backlog: Cadence finished 2025 with a record backlog of $7.8 billion, well above expectations, indicating strong customer demand for its products and services and suggesting sustained growth potential in the coming years.
- Deepened Strategic Partnerships: Strengthened collaborations with industry leaders like Broadcom to drive the development of next-generation AI designs, highlighting Cadence's pivotal role in advancing industry innovation and technological progress.
See More
US Stocks Close Higher on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
Cadence Design Surges After Beating Earnings Expectations
- Earnings Beat: Cadence Design Systems reported an adjusted EPS of $1.99 and revenue of $1.44 billion for Q4 2025, both approximately 6% higher year-over-year, surpassing analyst expectations of $1.91 and $1.42 billion, indicating robust market performance.
- Significant Contribution from System Companies: CEO Anirudh Devgan highlighted that around 45% of the business now comes from 'system companies', including hyperscalers and end producers of phones and cars, reflecting a growing demand for integrated hardware and software design solutions.
- AI-Driven Capital Expenditures: The company is benefiting from increased R&D and capital expenditures by tech enterprises focused on artificial intelligence, particularly in developing large language models, positioning Cadence as a key player in the rapidly evolving AI market.
- Optimistic Revenue Outlook: Cadence expects revenue between $5.9 billion and $6 billion for the next fiscal year, aligning closely with FactSet's upper estimate of $5.94 billion, demonstrating management's confidence in sustained market demand and future growth.
See More
Cadence Design Systems Q4 Earnings Beat Expectations, Shares Rise
- Earnings Surprise: Cadence Design Systems reported an adjusted EPS of $1.99 and revenue of $1.44 billion for Q4 2025, marking a 6% year-over-year increase and surpassing analyst expectations of $1.91 EPS and $1.42 billion revenue, indicating robust market performance.
- Accelerating Custom Chip Trend: CEO Anirudh Devgan highlighted that approximately 45% of the company's business now comes from 'system companies,' including hyperscalers and end producers of smartphones and cars, reflecting a rapid increase in demand for custom chips in the market.
- AI-Driven Capital Expenditures: The company is benefiting from significant investments in artificial intelligence-related R&D by various tech enterprises, particularly in the development and application of large language models, further solidifying its leadership in the chip design software sector.
- Future Revenue Outlook: Cadence expects revenue for the next fiscal year to be between $5.9 billion and $6 billion, aligning closely with FactSet's expectation of $5.94 billion, demonstrating confidence in future growth prospects.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
Cadence Design Stock Jumps 6.4% Following Strong Q4 Earnings Report
- Company Performance: Cadence Design reported a 6.4% rise in its results after Q4, surpassing estimates.
- Market Reaction: The positive results have led to an increase in investor confidence and interest in the company's stock.
See More
Cadence Design Systems Reports 14% Revenue Growth in 2025 Earnings Call
- Significant Revenue Growth: Cadence Design Systems achieved a 14% revenue growth in 2025, with total revenue reaching $5.297 billion, reflecting strong demand for its AI solutions and engineering software, further solidifying its market leadership.
- Innovative Product Launch: The introduction of ChipsTech AI SuperAgent, the world's first agentic AI solution for automating chip design and verification, is expected to provide customers with up to 10x productivity improvement, significantly enhancing Cadence's competitive edge in the chip design market.
- Robust Backlog: Cadence finished 2025 with a record backlog of $7.8 billion, well above expectations, indicating strong customer demand for its products and services and suggesting sustained growth potential in the coming years.
- Deepened Strategic Partnerships: Strengthened collaborations with industry leaders like Broadcom to drive the development of next-generation AI designs, highlighting Cadence's pivotal role in advancing industry innovation and technological progress.
See More
US Stocks Close Higher on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
Cadence Design Surges After Beating Earnings Expectations
- Earnings Beat: Cadence Design Systems reported an adjusted EPS of $1.99 and revenue of $1.44 billion for Q4 2025, both approximately 6% higher year-over-year, surpassing analyst expectations of $1.91 and $1.42 billion, indicating robust market performance.
- Significant Contribution from System Companies: CEO Anirudh Devgan highlighted that around 45% of the business now comes from 'system companies', including hyperscalers and end producers of phones and cars, reflecting a growing demand for integrated hardware and software design solutions.
- AI-Driven Capital Expenditures: The company is benefiting from increased R&D and capital expenditures by tech enterprises focused on artificial intelligence, particularly in developing large language models, positioning Cadence as a key player in the rapidly evolving AI market.
- Optimistic Revenue Outlook: Cadence expects revenue between $5.9 billion and $6 billion for the next fiscal year, aligning closely with FactSet's upper estimate of $5.94 billion, demonstrating management's confidence in sustained market demand and future growth.
See More
Cadence Design Systems Q4 Earnings Beat Expectations, Shares Rise
- Earnings Surprise: Cadence Design Systems reported an adjusted EPS of $1.99 and revenue of $1.44 billion for Q4 2025, marking a 6% year-over-year increase and surpassing analyst expectations of $1.91 EPS and $1.42 billion revenue, indicating robust market performance.
- Accelerating Custom Chip Trend: CEO Anirudh Devgan highlighted that approximately 45% of the company's business now comes from 'system companies,' including hyperscalers and end producers of smartphones and cars, reflecting a rapid increase in demand for custom chips in the market.
- AI-Driven Capital Expenditures: The company is benefiting from significant investments in artificial intelligence-related R&D by various tech enterprises, particularly in the development and application of large language models, further solidifying its leadership in the chip design software sector.
- Future Revenue Outlook: Cadence expects revenue for the next fiscal year to be between $5.9 billion and $6 billion, aligning closely with FactSet's expectation of $5.94 billion, demonstrating confidence in future growth prospects.
See More
US Stock Markets Rise on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, surpassing expectations of 0.3%, indicating a rebound in capital spending and boosting market confidence in economic recovery.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly exceeding expectations of 1.304 million, suggesting a revival in the real estate market that could drive growth in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which indicates a recovery momentum in manufacturing that may further propel economic growth.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, which will further boost market sentiment and attract investor interest.
See More
