US Market News
2月前
Cadence Reports First Quarter 2026 Financial ResultsApril 27, 2026 4:02 PM
Business Wire
Record Backlog of $8.0 Billion
Raising 2026 Revenue Outlook to ~17% YoY Growth
Cadence (Nasdaq: CDNS) today announced results for the first quarter of 2026.
First Quarter 2026 Financial Results
Revenue of $1.474 billion, compared to revenue of $1.242 billion in Q1 2025
GAAP operating margin of 29.3%, compared to 29.1% in Q1 2025
Non-GAAP operating margin of 44.7%, compared to 41.7% in Q1 2025
GAAP diluted net income per share of $1.23, compared to $1.00 in Q1 2025
Non-GAAP diluted net income per share of $1.96, compared to $1.57 in Q1 2025
Quarter-end backlog was $8.0 billion and revenue expected to be recognized in the next 12 months from remaining performance obligations was $4.0 billion
“Cadence had a strong start to 2026, delivering a solid Q1 with accelerating AI demand and record backlog, reflecting strong customer commitment to our AI-driven portfolio,” said Anirudh Devgan, president and chief executive officer. “Cadence is leading the agentic AI transformation in semiconductor and system design, pioneering the industry's most advanced and comprehensive agentic AI full-flow platform, AgentStack, integrated with ChipStack, ViraStack, and InnoStack Super Agents.”
“Cadence delivered excellent results for the first quarter of 2026, with broad-based strength across all our businesses,” said John Wall, senior vice president and chief financial officer. “With robust design activity and solid execution, we are raising our 2026 revenue outlook to 17% year-over-year growth.”
CFO Commentary
Commentary on the first quarter of 2026 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
For fiscal year 2026, the company expects:
Revenue in the range of $6.125 billion to $6.225 billion
GAAP operating margin in the range of 27.5% to 28.5%
Non-GAAP operating margin in the range of 43.5% to 44.5%
GAAP diluted net income per share in the range of $4.39 to $4.49
Non-GAAP diluted net income per share in the range of $7.85 to $7.95
The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2026 but will re-evaluate this rate periodically for significant items that may materially affect its projections.
Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release. Revenue growth outlook is based on the midpoint of the range.
Business Highlights
Launched AgentStack, an orchestration framework for Cadence's AI Super Agents that enables knowledge sharing and extensibility from chips to 3D-IC and systems
Launched ViraStack AI Super Agent for analog and custom design and the InnoStack AI Super Agent for digital implementation and signoff. Along with the ChipStack AI Super Agent for RTL and verification, Cadence now provides agentic AI solutions spanning the entire chip design spectrum
Core EDA revenue grew 18% year-over-year, driven by expanding customer adoption of Cadence’s AI-driven solutions, with continued strength in advanced digital implementation, custom, and verification at leading AI infrastructure and semiconductor customers
Hardware delivered a record quarter, led by strong demand from AI and high-performance computing customers, along with growing adoption in automotive and robotics markets
IP business achieved 22% year-over-year growth, fueled by robust demand from AI infrastructure, HPC, and automotive workloads and continued adoption of Cadence’s Star IP portfolio, including HBM, LPDDR, PCIe, SerDes, and foundation IP
System Design and Analysis revenue increased 18% year-over-year. With the close of the Hexagon D&E acquisition, Cadence added leading structural and multibody dynamics technologies and is well positioned to capitalize on the emerging Physical AI opportunity
Audio Webcast Scheduled
Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the first quarter 2026 financial results audio webcast today, April 27, 2026, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting April 27, 2026 at 5 p.m. (Pacific) and ending June 16, 2026 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.
About Cadence
Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design™ strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies. Cadence solutions offer limitless opportunities—learn more at www.cadence.com.
© 2026 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements, including Cadence’s outlook on future operating results, financial condition, strategic objectives, business model and prospects, technology and product developments, customer adoption and demand, strategic relationships, impact of Cadence's acquisition of Hexagon's design and engineering (“D&E”) business, backlog, industry trends, market growth, tax rates and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions and armed conflicts around the world; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to repay debt or access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence’s pending acquisitions, acquisition of the D&E business and other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject, including Cadence’s ongoing compliance, cooperation, audit and other obligations under its July 2025 settlement agreements with the U.S. Department of Justice (“DOJ”) and Bureau of Industry and Security (“BIS”), any further inquiries or adverse actions by the DOJ, BIS or other U.S. or foreign governmental authorities and any impact of the settlements on Cadence’s operations and business dealings in China, U.S. government contracting business and other customer relationships; and (xii) Cadence’s ability to successfully meet any environmental, social and governance targets and practices. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.
For a detailed discussion of these and other cautionary statements related to Cadence and its business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.
All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.
To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, income or expenses related to foreign currency forward exchange contract and settlement associated with an acquisition, investments, divestitures and Cadence’s non-qualified deferred compensation plan, restructuring, loss related to contingent liability and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.
Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.
The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:
Operating Margin Reconciliation
Three Months Ended
March 31, 2026
March 31, 2025
(unaudited)
GAAP operating margin as a percent of total revenue
29.3%
29.1%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
9.4%
8.7%
Amortization of acquired intangibles
3.4%
2.0%
Acquisition and integration-related costs
2.8%
1.8%
Restructuring
0.0%
0.0%
Non-qualified deferred compensation credits
(0.2)%
(0.1)%
Special charges
0.0%
0.2%
Non-GAAP operating margin as a percent of total revenue
44.7%
41.7%
Net Income Reconciliation
Three Months Ended
March 31, 2026
March 31, 2025
(in thousands)
(unaudited)
Net income on a GAAP basis
$
335,660
$
273,579
Stock-based compensation expense
138,183
107,613
Amortization of acquired intangibles
50,949
25,416
Acquisition and integration-related costs
41,258
23,105
Restructuring
(5
)
(109
)
Non-qualified deferred compensation credits
(2,826
)
(1,573
)
Special charges
—
1,988
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
(3,135
)
—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(11,177
)
3,332
Income tax effect of non-GAAP adjustments
(13,380
)
(2,939
)
Net income on a non-GAAP basis
$
535,527
$
430,412
Diluted Net Income Per Share Reconciliation
Three Months Ended
March 31, 2026
March 31, 2025
(in thousands, except per share data)
(unaudited)
Diluted net income per share on a GAAP basis
$
1.23
$
1.00
Stock-based compensation expense
0.50
0.39
Amortization of acquired intangibles
0.19
0.09
Acquisition and integration-related costs
0.15
0.09
Restructuring
—
—
Non-qualified deferred compensation credits
(0.01
)
(0.01
)
Special charges
—
0.01
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
(0.01
)
—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(0.04
)
0.01
Income tax effect of non-GAAP adjustments
(0.05
)
(0.01
)
Diluted net income per share on a non-GAAP basis
$
1.96
$
1.57
Shares used in calculation of diluted net income per share
273,725
273,631
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
March 31, 2026 and December 31, 2025
(In thousands)
(Unaudited)
March 31, 2026
December 31, 2025
Current assets:
Cash and cash equivalents
$
1,406,668
$
3,001,317
Receivables, net
1,033,814
944,939
Inventories
317,951
303,545
Prepaid expenses and other
421,967
419,872
Total current assets
3,180,400
4,669,673
Property, plant and equipment, net
536,903
517,004
Goodwill
4,929,581
2,749,143
Acquired intangibles, net
1,933,262
718,223
Deferred taxes
843,209
917,733
Other assets
674,999
581,372
Total assets
$
12,098,354
$
10,153,148
Current liabilities:
Revolving credit facility
$
425,000
$
-
Accounts payable and accrued liabilities
863,910
856,856
Current portion of deferred revenue
873,598
778,435
Total current liabilities
2,162,508
1,635,291
Long-term liabilities:
Long-term portion of deferred revenue
146,574
155,997
Long-term debt
2,481,170
2,480,150
Other long-term liabilities
746,639
407,529
Total long-term liabilities
3,374,383
3,043,676
Stockholders' equity
6,561,463
5,474,181
Total liabilities and stockholders' equity
$
12,098,354
$
10,153,148
Cadence Design Systems, Inc.
Condensed Consolidated Income Statements
For the Three Months Ended March 31, 2026 and March 31, 2025
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31, 2026
March 31, 2025
Revenue:
Product and maintenance
$
1,348,922
$
1,110,850
Services
125,298
131,516
Total revenue
1,474,220
1,242,366
Costs and expenses:
Cost of product and maintenance
153,312
116,672
Cost of services
61,235
50,461
Marketing and sales
211,485
202,700
Research and development
508,437
439,102
General and administrative
88,217
63,098
Amortization of acquired intangibles
20,210
8,922
Restructuring
(5
)
(109
)
Total costs and expenses
1,042,891
880,846
Income from operations
431,329
361,520
Interest expense
(31,613
)
(29,118
)
Other income, net
28,387
23,290
Income before provision for income taxes
428,103
355,692
Provision for income taxes
92,443
82,113
Net income
$
335,660
$
273,579
Net income per share - basic
$
1.23
$
1.01
Net income per share - diluted
$
1.23
$
1.00
Weighted average common shares outstanding - basic
272,061
271,973
Weighted average common shares outstanding - diluted
273,725
273,631
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2026 and March 31, 2025
(In thousands)
(Unaudited)
Three Months Ended
March 31,
March 31,
2026
2025
Cash and cash equivalents at beginning of period
$
3,001,317
$
2,644,030
Cash flows from operating activities:
Net income
335,660
273,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
84,622
52,916
Stock-based compensation
138,183
107,613
(Gain) loss on divestitures and investments, net
(13,925
)
1,791
Deferred income taxes
73,128
(1,861
)
ROU asset amortization and change in operating lease liabilities
(250
)
(1,446
)
Other non-cash items
1,629
862
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables
(18,548
)
102,136
Inventories
(31,376
)
15,018
Prepaid expenses and other
9,100
10,316
Other assets
(1,870
)
12,237
Accounts payable and accrued liabilities
(232,568
)
(69,621
)
Deferred revenue
20,422
(14,377
)
Other long-term liabilities
(8,425
)
(2,142
)
Net cash provided by operating activities
355,782
487,021
Cash flows from investing activities:
Purchases of investments
(29,064
)
(11,469
)
Proceeds from the sale and maturity of investments
40,443
1,246
Proceeds from the sale of IP and other assets
-
11,500
Purchases of property, plant and equipment
(48,820
)
(23,061
)
Cash paid in business combinations, net of cash acquired
(2,074,534
)
-
Net cash used for investing activities
(2,111,975
)
(21,784
)
Cash flows from financing activities:
Proceeds from revolving credit facility
425,000
-
Proceeds from issuance of common stock
72,610
76,789
Stock received for payment of employee taxes on vesting of restricted stock
(123,094
)
(72,566
)
Payments for repurchases of common stock
(200,000
)
(350,007
)
Net cash provided by (used for) financing activities
174,516
(345,784
)
Effect of exchange rate changes on cash and cash equivalents
(12,972
)
14,191
Increase (decrease) in cash and cash equivalents
(1,594,649
)
133,644
Cash and cash equivalents at end of period
$
1,406,668
$
2,777,674
Cadence Design Systems, Inc.
(Unaudited)
Revenue Mix by Geography (% of Total Revenue)
2025
2026
GEOGRAPHY
Q1
Q2
Q3
Q4
Year
Q1
Americas
48%
49%
43%
47%
47%
45%
China
11%
9%
18%
12%
13%
13%
Other Asia
19%
19%
18%
20%
19%
20%
Europe, Middle East and Africa
16%
16%
14%
14%
15%
16%
Japan
6%
7%
7%
7%
6%
6%
Total
100%
100%
100%
100%
100%
100%
Revenue Mix by Product Category (% of Total Revenue)
2025
2026
PRODUCT CATEGORY
Q1
Q2
Q3
Q4
Year
Q1
Core EDA
71%
71%
71%
69%
70%
71%
Semiconductor IP
14%
13%
14%
15%
14%
14%
System Design and Analysis
15%
16%
15%
16%
16%
15%
Total
100%
100%
100%
100%
100%
100%
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin
As of April 27, 2026
(Unaudited)
Three Months Ending
Year Ending
June 30, 2026
December 31, 2026
Forecast
Forecast
GAAP operating margin as a percent of total revenue
28.5% - 29.5%
27.5% - 28.5%
Reconciling items to non-GAAP operating margin as a
percent of total revenue:
Stock-based compensation expense
9%
9%
Amortization of acquired intangibles
5%
5%
Acquisition and integration-related costs
2%
2%
Non-GAAP operating margin as a percent of total revenue†
44.5% - 45.5%
43.5% - 44.5%
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share
As of April 27, 2026
(Unaudited)
Three Months Ending
Year Ending
June 30, 2026
December 31, 2026
Forecast
Forecast
Diluted net income per share on a GAAP basis
$1.07 to $1.13
$4.39 to $4.49
Stock-based compensation expense
0.54
2.06
Amortization of acquired intangibles
0.29
1.04
Acquisition and integration-related costs
0.10
0.40
Non-qualified deferred compensation credits
-
(0.01)
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
-
(0.01)
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
-
(0.04)
Income tax effect of non-GAAP adjustments
0.02
0.02
Diluted net income per share on a non-GAAP basis†
$2.02 to $2.08
$7.85 to $7.95
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Net Income
As of April 27, 2026
(Unaudited)
Three Months Ending
Year Ending
June 30, 2026
December 31, 2026
($ in millions)
Forecast
Forecast
Net income on a GAAP basis
$296 to $312
$1,212 to $1,239
Stock-based compensation expense
148
569
Amortization of acquired intangibles
79
286
Acquisition and integration-related costs
28
111
Non-qualified deferred compensation credits
-
(3)
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
-
(3)
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
-
(11)
Income tax effect of non-GAAP adjustments
6
6
Net income on a non-GAAP basis†
$557 to $573
$2,167 to $2,194
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
CDNS-IR
Category: Financial, Featured
View source version on businesswire.com: https://www.businesswire.com/news/home/20260426710019/en/
For more information, please contact:
Cadence Investor Relations
408-944-7100
investor_relations@cadence.com
Cadence Newsroom
408-944-7039
newsroom@cadence.com
Original: Cadence Reports First Quarter 2026 Financial Results
US Market News
5月前
Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial ResultsFebruary 17, 2026 4:02 PM
Business Wire
14% Revenue Growth and ~45% Non-GAAP Operating Margin for 2025
Record Backlog of $7.8 Billion
Cadence (Nasdaq: CDNS) today announced results for the fourth quarter and fiscal year 2025.
Fourth Quarter 2025 Financial Results
Revenue of $1.440 billion, compared to revenue of $1.356 billion in Q4 2024
GAAP operating margin of 32.2%, compared to 33.7% in Q4 2024
Non-GAAP operating margin of 45.8%, compared to 46.0% in Q4 2024
GAAP diluted net income per share of $1.42, compared to $1.24 in Q4 2024
Non-GAAP diluted net income per share of $1.99, compared to $1.88 in Q4 2024
Fiscal Year 2025 Financial Results
Revenue of $5.297 billion, compared to revenue of $4.641 billion in 2024
GAAP operating margin of 28.2%, compared to 29.1% in 2024
Non-GAAP operating margin of 44.6%, compared to 42.5% in 2024
GAAP diluted net income per share of $4.06, compared to $3.85 in 2024
Non-GAAP diluted net income per share of $7.14, compared to $5.97 in 2024
Year-end backlog was $7.8 billion and revenue expected to be recognized in the next 12 months from remaining performance obligations was $3.8 billion
“Cadence delivered excellent results for the fourth quarter, closing an outstanding 2025 with over 14% revenue growth and 20% non-GAAP EPS growth,” said Anirudh Devgan, president and chief executive officer. “Strong customer demand for our expanding AI-driven product portfolio and the essential nature of Cadence's engineering software position us well to capture the massive opportunities in the AI era.”
“Cadence closed 2025 with a strong finish and broad-based strength across the business,” said John Wall, senior vice president and chief financial officer. “We delivered a 44.6% non-GAAP operating margin, reflecting continued productivity-driven profitability improvement. With strong Q4 bookings, we began 2026 with a record backlog of $7.8 billion and excellent momentum.”
CFO Commentary
Commentary on the fourth quarter and fiscal year 2025 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.
Business Outlook
Cadence's outlook does not include the impact of its pending acquisition of Hexagon's design and engineering business.
For fiscal year 2026, the company expects:
Revenue in the range of $5.9 billion to $6.0 billion
GAAP operating margin in the range of 31.75% to 32.75%
Non-GAAP operating margin in the range of 44.75% to 45.75%
GAAP diluted net income per share in the range of $4.95 to $5.05
Non-GAAP diluted net income per share in the range of $8.05 to $8.15
The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2026 but will re-evaluate this rate periodically for significant items that may materially affect its projections.
Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release.
Business Highlights
The Cadence.ai portfolio continued gaining momentum with market shaping customers. Cadence introduced ChipStack, a groundbreaking agentic AI Super Agent for chip design and verification, built upon Cadence's foundational EDA platform. By leveraging intelligent agents that autonomously call the underlying Cadence tools, ChipStack is enabling faster design convergence and significantly improved engineering productivity
Cadence’s Core EDA business grew 13% in 2025 driven by broad hyperscaler adoption, expanding digital full-flow deployments, and growing proliferation of its AI-driven products
Hardware delivered another record year, adding more than 30 new customers, with seven of the top ten customers purchasing both Palladium Z3 and Protium X3 systems, reflecting strong AI and hyperscale demand
Cadence’s IP business grew nearly 25% year-over-year in 2025, driven by the superior performance and expanding adoption of its IP portfolio, including HBM, UCIe, PCIe, DDR, and SerDes
The System Design and Analysis business grew 13% in 2025, supported by strong demand for Cadence’s 3D-IC platform and simulation solutions that are increasingly critical for AI infrastructure, high-performance computing, and advanced mobile applications
Audio Webcast Scheduled
Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2025 financial results audio webcast today, February 17, 2026, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 17, 2026 at 5 p.m. (Pacific) and ending March 17, 2026 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.
About Cadence
Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design™ strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies. Cadence solutions offer limitless opportunities—learn more at www.cadence.com.
© 2026 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements, including Cadence’s outlook on future operating results, financial condition, strategic objectives, business model and prospects, technology and product developments, strategic relationships, pending acquisition of Hexagon's design and engineering ("D&E") business, backlog, industry trends, market growth, tax rates and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions and armed conflicts around the world; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence’s pending acquisitions, the acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject, including Cadence’s ongoing compliance, cooperation, audit and other obligations under its July 2025 settlement agreements with the U.S. Department of Justice (“DOJ”) and Bureau of Industry and Security (“BIS”), any further inquiries or adverse actions by the DOJ, BIS or other U.S. or foreign governmental authorities and any impact of the settlements on Cadence’s operations and business dealings in China, U.S. government contracting business and other customer relationships; and (xii) Cadence’s ability to successfully meet any environmental, social and governance targets and practices. Cadence’s pending D&E acquisition remains subject to certain closing conditions, which may not be satisfied in a timely manner or at all. Cadence may not successfully integrate the D&E business or realize the anticipated benefits of the acquisition. The acquisition and its effects on Cadence are subject to additional risks and uncertainties including fluctuations in the trading price of Cadence shares and in currency exchange and interest rates; Cadence’s ability to repay debt incurred to fund the acquisition; Cadence’s ability to motivate and retain key personnel; and the acquisition’s impact on relationships with third parties, including customers, partners and governmental authorities. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.
For a detailed discussion of these and other cautionary statements related to Cadence and its business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.
All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.
To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, income or expenses related to foreign currency forward exchange contract associated with a pending acquisition, investments, divestitures and Cadence’s non-qualified deferred compensation plan, restructuring, loss related to contingent liability and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.
Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.
The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:
Operating Margin Reconciliation
Three Months Ended
December 31, 2025
December 31, 2024
(unaudited)
GAAP operating margin as a percent of total revenue
32.2
%
33.7
%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
7.9
%
7.9
%
Amortization of acquired intangibles
2.1
%
2.0
%
Acquisition and integration-related costs
3.4
%
1.7
%
Restructuring
0.1
%
(0.1
)%
Non-qualified deferred compensation expenses
0.1
%
0.0
%
Special charges
0.0
%
0.2
%
Loss related to contingent liability*
0.0
%
0.6
%
Non-GAAP operating margin as a percent of total revenue
45.8
%
46.0
%
*
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
Operating Margin Reconciliation
Years Ended
December 31, 2025
December 31, 2024
(unaudited)
GAAP operating margin as a percent of total revenue
28.2
%
29.1
%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense
8.6
%
8.4
%
Amortization of acquired intangibles
2.0
%
2.0
%
Acquisition and integration-related costs
2.5
%
2.1
%
Restructuring
0.6
%
0.5
%
Non-qualified deferred compensation expenses
0.3
%
0.2
%
Special charges
0.0
%
0.0
%
Loss related to contingent liability*
2.4
%
0.2
%
Non-GAAP operating margin as a percent of total revenue
44.6
%
42.5
%
*
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
Net Income Reconciliation
Three Months Ended
December 31, 2025
December 31, 2024
(in thousands)
(unaudited)
Net income on a GAAP basis
$
388,136
$
340,210
Stock-based compensation expense
113,164
106,508
Amortization of acquired intangibles
30,229
26,776
Acquisition and integration-related costs
48,652
23,477
Restructuring
1,862
(1,020
)
Non-qualified deferred compensation expenses
2,064
293
Special charges
—
1,902
Loss related to contingent liability*
—
8,322
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition
10,666
—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(49,111
)
14,654
Income tax effect of non-GAAP adjustments
(2,505
)
(5,456
)
Net income on a non-GAAP basis
$
543,157
$
515,666
*
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
Net Income Reconciliation
Years Ended
December 31, 2025
December 31, 2024
(in thousands)
(unaudited)
Net income on a GAAP basis
$
1,108,888
$
1,055,484
Stock-based compensation expense
455,175
391,219
Amortization of acquired intangibles
105,332
90,449
Acquisition and integration-related costs
135,073
95,562
Restructuring
29,194
23,765
Non-qualified deferred compensation expenses
14,029
11,145
Special charges
1,988
3,135
Loss related to contingent liability*
128,545
8,322
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition
29,227
—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(83,286
)
(60,798
)
Income tax effect of non-GAAP adjustments
27,497
17,162
Net income on a non-GAAP basis
$
1,951,662
$
1,635,445
*
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
Diluted Net Income Per Share Reconciliation
Three Months Ended
December 31, 2025
December 31, 2024
(in thousands, except per share data)
(unaudited)
Diluted net income per share on a GAAP basis
$
1.42
$
1.24
Stock-based compensation expense
0.41
0.39
Amortization of acquired intangibles
0.11
0.10
Acquisition and integration-related costs
0.18
0.08
Restructuring
0.01
—
Non-qualified deferred compensation expenses
0.01
—
Special charges
—
0.01
Loss related to contingent liability*
—
0.03
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition
0.04
—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(0.18
)
0.05
Income tax effect of non-GAAP adjustments
(0.01
)
(0.02
)
Diluted net income per share on a non-GAAP basis
$
1.99
$
1.88
Shares used in calculation of diluted net income per share
272,932
274,292
*
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
Diluted Net Income Per Share Reconciliation
Years Ended
December 31, 2025
December 31, 2024
(in thousands, except per share data)
(unaudited)
Diluted net income per share on a GAAP basis
$
4.06
$
3.85
Stock-based compensation expense
1.67
1.43
Amortization of acquired intangibles
0.38
0.33
Acquisition and integration-related costs
0.49
0.35
Restructuring
0.11
0.09
Non-qualified deferred compensation expenses
0.05
0.04
Special charges
0.01
0.01
Loss related to contingent liability*
0.47
0.03
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition
0.11
—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(0.31
)
(0.22
)
Income tax effect of non-GAAP adjustments
0.10
0.06
Diluted net income per share on a non-GAAP basis
$
7.14
$
5.97
Shares used in calculation of diluted net income per share
273,312
273,833
*
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
December 31, 2025 and December 31, 2024
(In thousands)
(Unaudited)
December 31, 2025
December 31, 2024
Current assets:
Cash and cash equivalents
$
3,001,317
$
2,644,030
Receivables, net
944,939
680,460
Inventories
303,545
257,711
Prepaid expenses and other
419,872
433,878
Total current assets
4,669,673
4,016,079
Property, plant and equipment, net
517,004
458,200
Goodwill
2,749,143
2,378,671
Acquired intangibles, net
718,223
594,734
Deferred taxes
917,733
982,057
Other assets
581,372
544,741
Total assets
$
10,153,148
$
8,974,482
Current liabilities:
Accounts payable and accrued liabilities
$
856,856
$
632,692
Current portion of deferred revenue
778,435
737,413
Total current liabilities
1,635,291
1,370,105
Long-term liabilities:
Long-term portion of deferred revenue
155,997
115,168
Long-term debt
2,480,150
2,476,183
Other long-term liabilities
407,529
339,448
Total long-term liabilities
3,043,676
2,930,799
Stockholders' equity
5,474,181
4,673,578
Total liabilities and stockholders' equity
$
10,153,148
$
8,974,482
Cadence Design Systems, Inc.
Condensed Consolidated Income Statements
For the Three Months and Years Ended December 31, 2025 and December 31, 2024
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
Years Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenue:
Product and maintenance
$
1,332,526
$
1,239,287
$
4,821,589
$
4,213,509
Services
107,588
116,694
475,170
427,755
Total revenue
1,440,114
1,355,981
5,296,759
4,641,264
Costs and expenses:
Cost of product and maintenance
144,001
157,249
518,673
436,600
Cost of services
44,753
62,742
203,576
210,902
Marketing and sales
206,778
200,406
802,633
757,483
Research and development
464,582
392,026
1,768,772
1,549,093
General and administrative
103,225
70,228
313,387
273,961
Amortization of acquired intangibles
11,578
9,153
39,937
30,375
Loss related to contingent liability
-
8,322
128,545
8,322
Restructuring
1,862
(1,020
)
29,194
23,765
Total costs and expenses
976,779
899,106
3,804,717
3,290,501
Income from operations
463,335
456,875
1,492,042
1,350,763
Interest expense
(29,440
)
(29,907
)
(116,541
)
(75,999
)
Other income, net
59,066
9,684
146,542
121,055
Income before provision for income taxes
492,961
436,652
1,522,043
1,395,819
Provision for income taxes
104,825
96,442
413,155
340,335
Net income
$
388,136
$
340,210
$
1,108,888
$
1,055,484
Net income per share - basic
$
1.43
$
1.25
$
4.09
$
3.89
Net income per share - diluted
$
1.42
$
1.24
$
4.06
$
3.85
Weighted average common shares outstanding - basic
270,924
272,069
271,333
271,212
Weighted average common shares outstanding - diluted
272,932
274,292
273,312
273,833
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and December 31, 2024
(In thousands)
(Unaudited)
Years Ended
December 31,
December 31,
2025
2024
Cash and cash equivalents at beginning of year
$
2,644,030
$
1,008,152
Cash flows from operating activities:
Net income
1,108,888
1,055,484
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
227,828
196,935
Stock-based compensation
455,175
391,219
Gain on divestitures and investments, net
(69,089
)
(49,593
)
Deferred income taxes
66,048
(128,737
)
ROU asset amortization and change in operating lease liabilities
6,016
(1,920
)
Other non-cash items
7,166
6,138
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables
(274,894
)
(180,287
)
Inventories
(91,029
)
(82,771
)
Prepaid expenses and other
43,382
(81,529
)
Other assets
(18,569
)
11,866
Accounts payable and accrued liabilities
184,897
33,676
Deferred revenue
69,411
66,478
Other long-term liabilities
13,551
23,592
Net cash provided by operating activities
1,728,781
1,260,551
Cash flows from investing activities:
Purchases of investments
(40,895
)
(4,982
)
Proceeds from the sale and maturity of investments
140,281
47,980
Proceeds from the sale of IP and other assets
11,500
-
Purchases of property, plant and equipment
(141,871
)
(142,542
)
Cash paid in business combinations, net of cash acquired
(429,538
)
(737,574
)
Net cash used for investing activities
(460,523
)
(837,118
)
Cash flows from financing activities:
Proceeds from issuance of debt
-
3,196,595
Payments of debt
-
(1,350,000
)
Payments of debt issuance costs
-
(23,828
)
Proceeds from issuance of common stock
145,901
204,237
Stock received for payment of employee taxes on vesting of restricted stock
(169,842
)
(237,737
)
Payments for repurchases of common stock
(925,034
)
(550,026
)
Net cash provided by (used for) financing activities
(948,975
)
1,239,241
Effect of exchange rate changes on cash and cash equivalents
38,004
(26,796
)
Increase in cash and cash equivalents
357,287
1,635,878
Cash and cash equivalents at end of year
$
3,001,317
$
2,644,030
Cadence Design Systems, Inc.
(Unaudited)
Revenue Mix by Geography (% of Total Revenue)
2024
2025
GEOGRAPHY
Q1
Q2
Q3
Q4
Year
Q1
Q2
Q3
Q4
Year
Americas
46%
49%
50%
49%
49%
48%
49%
43%
47%
47%
China
12%
12%
13%
13%
12%
11%
9%
18%
12%
13%
Other Asia
20%
19%
17%
17%
18%
19%
19%
18%
20%
19%
Europe, Middle East and Africa
17%
14%
14%
15%
15%
16%
16%
14%
14%
15%
Japan
5%
6%
6%
6%
6%
6%
7%
7%
7%
6%
Total
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Revenue Mix by Product Category (% of Total Revenue)
2024
2025
PRODUCT CATEGORY
Q1
Q2
Q3
Q4
Year
Q1
Q2
Q3
Q4
Year
Core EDA
76%
73%
70%
68%
71%
71%
71%
71%
69%
70%
Semiconductor IP
12%
13%
14%
13%
13%
14%
13%
14%
15%
14%
System Design and Analysis
12%
14%
16%
19%
16%
15%
16%
15%
16%
16%
Total
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Operating Margin
As of February 17, 2026
(Unaudited)
Three Months Ending
Year Ending
March 31, 2026
December 31, 2026
Forecast
Forecast
GAAP operating margin as a percent of total revenue
30% - 31%
31.75% - 32.75%
Reconciling items to non-GAAP operating margin as a
percent of total revenue:
Stock-based compensation expense
10%
9%
Amortization of acquired intangibles
2%
2%
Acquisition and integration-related costs
2%
2%
Non-GAAP operating margin as a percent of total revenue†
44% - 45%
44.75% - 45.75%
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share
As of February 17, 2026
(Unaudited)
Three Months Ending
Year Ending
March 31, 2026
December 31, 2026
Forecast
Forecast
Diluted net income per share on a GAAP basis
$1.16 to $1.22
$4.95 to $5.05
Stock-based compensation expense
0.50
2.04
Amortization of acquired intangibles
0.12
0.46
Acquisition and integration-related costs
0.11
0.36
Income tax effect of non-GAAP adjustments
0.00
0.24
Diluted net income per share on a non-GAAP basis†
$1.89 to $1.95
$8.05 to $8.15
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Cadence Design Systems, Inc.
Impact of Non-GAAP Adjustments on Forward Looking Net Income
As of February 17, 2026
(Unaudited)
Three Months Ending
Year Ending
March 31, 2026
December 31, 2026
($ in millions)
Forecast
Forecast
Net income on a GAAP basis
$317 to $333
$1,355 to $1,382
Stock-based compensation expense
137
557
Amortization of acquired intangibles
32
125
Acquisition and integration-related costs
31
100
Income tax effect of non-GAAP adjustments
1
66
Net income on a non-GAAP basis†
$518 to $534
$2,203 to $2,230
†The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
CDNS–IR
Category: Financial, Featured
View source version on businesswire.com: https://www.businesswire.com/news/home/20260216202086/en/
For more information, please contact:
Cadence Investor Relations
408-944-7100
investor_relations@cadence.com
Cadence Newsroom
408-944-7039
newsroom@cadence.com
Original: Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results
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