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Jun 30, 2025
Cadence Q2 2025 Earnings Report
Cadence exceeded Q2 2025 guidance for revenue and non-GAAP EPS.
Key Takeaways
Cadence delivered strong Q2 results driven by AI product demand, achieving 20% YoY revenue growth and surpassing non-GAAP EPS expectations, despite export restrictions to China.
Revenue grew to $1.275 billion, up from $1.061 billion in Q2 2024.
Non-GAAP EPS reached $1.65, beating guidance.
Quarter-end backlog was $6.4 billion with $3.1 billion in cRPO.
GAAP EPS was impacted by a $140.6 million legal settlement charge.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cadence raised its 2025 outlook for revenue, non-GAAP EPS, and operating cash flow.
Positive Outlook
- 2025 revenue outlook raised to $5.21B–$5.27B
- Non-GAAP EPS guidance increased to $6.85–$6.95
- Operating cash flow expected to be $1.65B–$1.75B
- Non-GAAP operating margin projected at 43.5%–44.5%
- Benefit from $140M in reduced cash tax payments
Challenges Ahead
- One-time $140.6M legal settlement affects GAAP results
- GAAP EPS guidance lower due to settlement charges
- Continued impact from export restrictions to China
- Decline in GAAP operating margin YoY (19.0% vs 27.7%)
- Possible variability in global tax and macroeconomic environment
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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