Cadence Q4 revenue beats estimates on demand for AI-driven products

+0.30% Post

Cadence Design Systems, Inc.

CDNS

294.16

292.25

+0.30%

-0.65% Post

Overview

AI and digital twins leader's Q4 revenue rose, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company reported record backlog of $7.8 bln, indicating strong future demand

Outlook

Cadence expects 2026 revenue between $5.9 bln and $6.0 bln
Company forecasts 2026 GAAP EPS between $4.95 and $5.05
Cadence projects 2026 non-GAAP EPS between $8.05 and $8.15

Result Drivers

AI PRODUCT PORTFOLIO - Strong demand for AI-driven products and engineering software drove revenue growth
CORE EDA GROWTH - Core EDA business grew 13% in 2025 due to hyperscaler adoption and AI-driven products
IP BUSINESS EXPANSION - IP business grew nearly 25% year-over-year, driven by performance and adoption of IP portfolio

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$1.44 bln	$1.42 bln (18 Analysts)
Q4 Adjusted EPS	Beat	$1.99	$1.91 (17 Analysts)
Q4 EPS		$1.42

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Cadence Design Systems Inc is $390.00, about 30.2% above its February 13 closing price of $299.46
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nBw34lvtma

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