CDNS
Cadence Design Systems, Inc.319.53
+1.10+0.35%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A dismisses AI cannibalization fears.
Q&A quashed AI-displacement fears, with Devgan insisting agentic flows like ChipStack explode EDA usage amid trillion-transistor workloads. Management touted share gains in hardware, IP, and digital full flows, plus 4x-10x productivity at customers like Samsung and Altera. Hardware hits records yearly; SD&A lapped multiyear deals via annual license shift. China design activity stabilized robust. No walk-backs, just prudent H2 caution on hardware and China. AI amplifies demand. Investors watch monetization via usage atop subscriptions.
Key Stats
Market Cap
87.07BP/E (TTM)
82.57Basic EPS (TTM)
3.87Dividend Yield
0%Recent Filings
8-K
Cadence closes Hexagon acquisition
Cadence closed its acquisition of Hexagon Smart Solutions' design and engineering business on February 23, 2026, issuing 3,224,473 shares as partial consideration under the September 4, 2025 agreement. The stock sale relied on Section 4(a)(2) and Regulation S exemptions. Deal bolsters Cadence's engineering capabilities.
10-K
FY2025 results
Cadence Design Systems delivered FY2025 revenue of $5.3B, up 14% y/y, with product and maintenance at $4.8B (up 14%) driving growth across Core EDA (70%), IP (14%), and System Design (16%); recurring revenue held steady at 80% while up-front jumped to 20% on hardware/IP deliveries. Geographies expanded, led by Japan (+31%), China (+19%), yet Q4 momentum shone through sequential revenue acceleration and margin stability amid acquisitions like VLAB Works, Artisan IP, and Secure-IC boosting IP and verification. Operating margin dipped to 28% from the prior 29% due to a $129M BIS/DOJ settlement hit, but cash from operations surged to $1.7B supporting $925M buybacks under a $1.4B authorization and $2.5B Senior Notes. No annual guidance disclosed; U.S.-China export controls risk curbing China revenue momentum.
8-K
Cadence names imec CEO to board
10-Q
Q3 FY2025 results
Cadence crushed Q3 with revenue up 10% y/y to $1.34B, driven by hardware and IP strength—China alone surged 56% post-BIS license fix—while operating income climbed 22% y/y to $425M (32% margin). Diluted EPS hit $1.05, matching shares math perfectly. Cash equivalents sit at $2.75B; ops cash flow topped $1.18B YTD, funding $373M M&A like August's $128.5M Artisan IP buy (recognizing $49.9M goodwill, $81M intangibles over 6.6 years). Debt steady at $2.48B carrying value, revolver fully available. Acquisitions keep rolling. Export controls still pinch China sales.
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