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Dec 31, 2025
Cadence Q4 2025 Earnings Report
Cadence reported higher revenue and earnings for the fourth quarter, with strong profitability and record backlog.
Key Takeaways
Cadence delivered solid Q4 2025 results with revenue of $1.44 billion and GAAP EPS of $1.42, driven by strong demand for its AI-driven design solutions. Net income rose to $388.1 million, and the company exited the year with a record $7.8 billion backlog.
Revenue increased to $1.44 billion in Q4 2025.
GAAP diluted EPS was $1.42 and non-GAAP diluted EPS was $1.99.
Net income reached $388.1 million for the quarter.
Year-end backlog reached a record $7.8 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal year 2026, Cadence expects revenue between $5.9 billion and $6.0 billion and GAAP diluted EPS between $4.95 and $5.05, with non-GAAP diluted EPS between $8.05 and $8.15.
Positive Outlook
- Revenue guidance of $5.9 billion to $6.0 billion for FY2026.
- GAAP operating margin expected between 31.75% and 32.75%.
- Non-GAAP operating margin expected between 44.75% and 45.75%.
- GAAP diluted EPS projected between $4.95 and $5.05.
- Non-GAAP diluted EPS projected between $8.05 and $8.15.
Challenges Ahead
- Guidance excludes impact of pending acquisition.
- Exposure to global tax and regulatory changes.
- Potential geopolitical and export control risks.
- Debt levels may impact financial flexibility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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