CDNS Earnings Prediction
The chart below shows how CDNS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CDNS sees a +1.16% change in stock price 10 days leading up to the earnings, and a -1.22% change 10 days following the report. On the earnings day itself, the stock moves by +0.33%. This data can give you a slight idea of what to expect for the next quarter's release.
CDNS Key Earning Data
CDNS Earnings Analysis
Positive
Earnings Per Share Beat: Cadence Design Systems, Inc. reported an EPS of $1.57, exceeding expectations of $1.49.
Revenue Growth Achievement: The company achieved a 23% year-over-year revenue growth in Q1 2025.
EPS Growth Rate: Non-GAAP EPS increased by 34% compared to the previous year.
Positive Financial Outlook: Cadence raised its financial outlook for the year due to strong performance and customer demand.
IP Business Growth: The IP business grew by 40% year-over-year, benefiting from AI and chiplet-based architectures.
Core EDA Revenue Growth: Core EDA revenue grew 16% year-over-year, with strong demand for AI-driven solutions.
Partnership Expansion Strategy: The company expanded partnerships with key players like NVIDIA and Rapidus, enhancing its product offerings.
AI Solutions Adoption: Cadence's AI-driven solutions, such as Cadence Cerebrus, gained traction with nearly 50 new logos in Q1.
AI-Driven Revenue Growth: The system design and analysis business saw over 50% year-over-year revenue growth, driven by AI-driven optimization solutions.
Best Companies to Work For: Cadence was recognized as one of the 100 best companies to work for, ranking #11 by Fortune and Great Place to Work.
Negative
Operating Margin Decline: Cadence's GAAP operating margin decreased to 29.1% in Q1, down from previous quarters, indicating potential pressure on profitability.
Revenue Growth vs. Uncertainties: Despite a strong revenue growth of 23% year-over-year, the company faces macroeconomic uncertainties that could impact future performance.
Debt Risk Concerns: The company has a significant debt of $2,500 million, which could pose risks if cash flow does not remain strong.
Operating Margin Decline: The guidance for Q2 indicates a decrease in GAAP operating margin to a range of 27.5% to 28.5%, suggesting potential challenges in maintaining profitability in the near term.
Share Repurchase Strategy Concerns: The reliance on share repurchases to manage earnings per share may indicate a lack of confidence in organic growth, as the company plans to use at least 50% of its annual free cash flow for this purpose.
CDNS FAQs
How does CDNS typically perform around its earnings report dates?
CDNS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +1.16% change leading up to the report and a -1.22% change in the 10 days following the release.
Is Cadence Design Systems Inc (CDNS) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CDNS Earning Call Sentiment
Cadence Design Systems, Inc. (NASDAQ:CDNS) Q1 2025 Earnings Call Transcript
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