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Sep 30, 2025
Cadence Q3 2025 Earnings Report
Cadence delivered strong Q3 results with growth in EPS, revenue, and a record backlog.
Key Takeaways
Cadence posted solid Q3 2025 results with significant year-over-year growth in revenue and EPS. The company reported record backlog and increased its full-year outlook.
Revenue reached $1.338 billion, up from $1.215 billion in Q3 2024.
GAAP EPS rose to $1.05, and non-GAAP EPS to $1.93.
Net income grew to $287.1 million.
Quarter-end backlog reached a record $7.0 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cadence raised its FY25 revenue outlook and expects continued growth supported by demand in AI and HPC.
Positive Outlook
- FY25 revenue outlook raised to ~$5.277B midpoint.
- Non-GAAP EPS guidance range increased to $7.02–$7.08.
- Non-GAAP operating margin expected between 43.9%–44.9%.
- Strong IP and hardware momentum continue.
- Backlog supports strong revenue visibility into 2026.
Challenges Ahead
- Exposure to geopolitical risks, especially in China.
- Uncertainty from integration of acquisitions.
- Stock-based compensation remains high.
- Impact from restructuring costs persists.
- Continued pressure from legal and regulatory matters.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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