Core Insights - Cadence Design Systems (CDNS) reported fourth-quarter 2025 results that surpassed management's guidance, highlighting a record backlog that indicates sustained demand for its solutions [1][9] Financial Performance - Revenues reached $1.44 billion, exceeding guidance of $1.405-$1.435 billion, and increased by 6.2% year over year [2] - Non-GAAP earnings per share (EPS) were $1.99, above the guidance of $1.88-$1.94, marking a 5.9% year-over-year increase [2] - The backlog stood at $7.8 billion, with current remaining performance obligations at $3.8 billion, reflecting strong customer demand [2] Market Demand and Trends - The significant increase in backlog was driven by accelerating demand across various end markets, particularly due to AI solutions [3] - AI is transforming semiconductor and system design, with robust design activity in sectors like data centers and automotive [4] - Customers are increasing their R&D budgets for AI-driven automation, contributing to the strong demand for Cadence's solutions [4] Product Innovations - Cadence is experiencing momentum in both "AI for Design" and "Design for AI," with the launch of ChipStack AI Super Agent and the adoption of products like Cerebrus, Verisium, and Allegro X AI [5] - The hardware business also contributed to backlog growth, with over 30 new customers and increased repeat demand from AI and hyperscalers [6] Future Outlook - For 2026, revenues are projected to be between $5.9 billion and $6 billion, with non-GAAP EPS expected to range from $8.05 to $8.15 [7] - In 2025, revenues surged by 14% to $5.297 billion, while non-GAAP EPS increased by 20% to $7.14 [7]

Have you evaluated the performance of Cadence Design Systems' (CDNS) international operations for the quarter ending December 2025? Given the extensive global presence of this maker of hardware and software products for validating chip designs, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shap ...

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Feb. 19, 2026.U.S. markets had a shaky Thursday, pressured by Washington's escalating tensions with Iran and renewed worries over private credit. White House press secretary Karoline Leavitt said Wednesday that there were "many reasons and arguments that one could make for a strike against Iran," and President Donald Trump said Thursday he will decide within 10 days whether to take action.Concerns over oil supply in the ...

Market Analysis by covering: Cadence Design Systems Inc, Amazon.com Inc, Arista Networks, Vertiv Holdings Co. Read 's Market Analysis on Investing.com ...

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard. Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences. At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000 ...

Financial Performance - Product and maintenance revenue for fiscal 2025 was $4,822 million, accounting for 91% of total revenue, compared to $4,214 million (91%) in 2024 and $3,834 million (94%) in 2023[53] - Services revenue increased to $475 million (9% of total revenue) in 2025 from $428 million (9%) in 2024 and $256 million (6%) in 2023[53] - Total revenue for fiscal 2025 reached $5,297 million, up from $4,642 million in 2024 and $4,090 million in 2023[53] - In fiscal 2025, total revenue reached $5,297 million, a 14.1% increase from $4,642 million in fiscal 2024[53] - Revenue from services increased to $475 million in fiscal 2025, representing 9% of total revenue, compared to 6% in fiscal 2023[53] Performance Obligations - Contracted but unsatisfied performance obligations amounted to $7.8 billion as of December 31, 2025, with 53% expected to be recognized as revenue over the next 12 months[55][56] - As of December 31, 2025, contracted but unsatisfied performance obligations were $7.8 billion, including $0.6 billion of non-cancelable commitments[55] - The company expects to recognize 53% of the contracted but unsatisfied performance obligations as revenue over the next 12 months, and 43% over the next 13 to 36 months[56] Research and Development - The company plans to continue significant investments in R&D to innovate and enhance current products, addressing increasing complexity in semiconductor design[58] - The company emphasizes significant investments in Research and Development (R&D) to support advancements in AI-driven computational software and hardware, essential for managing design complexity[21] - The company continues to make significant investments in R&D to innovate and enhance current products, aligning with the complexity of semiconductor and systems design[58] Product and Service Offerings - The Cadence Cloud portfolio is expanding with additional cloud-based and SaaS products, enhancing service offerings for customers[50] - Cadence's product categories include Core EDA, Semiconductor IP, and System Design and Analysis (SD&A), which are tightly integrated to support the electronic product design process[24] - The company integrates advanced AI technologies into its design platforms, enabling the creation of highly accurate digital twins for improved design efficiency and reliability[23] - Cadence's solutions are critical for optimizing performance, power, and area (PPA) of semiconductors, while also accelerating time-to-market for customers[21] - The company offers a comprehensive suite of functional verification tools, including the Jasper Formal Verification Platform and Xcelium™ Parallel Logic Simulation Platform, enhancing design quality and productivity[28] Competition and Market Environment - The company faces competition from both established firms and emerging players, with key competitors including Synopsys, Siemens EDA, and various international companies[72] - The company is subject to various governmental regulations, including trade controls and data privacy laws, which may impact its operations and financial condition[61] - The regulatory framework governing AI technologies is rapidly evolving, impacting the company's ability to develop and commercialize these technologies[69] - Regulatory changes, particularly concerning AI technologies and trade restrictions, may impact the company's ability to operate and innovate[68][63] Employee Engagement and Corporate Responsibility - The company emphasizes employee engagement and talent development as central to its success, regularly conducting surveys to measure engagement[74] - Cadence offers competitive compensation and benefits programs, linking employee compensation to business and individual performance[77] - The company aims to reduce its environmental footprint through corporate responsibility initiatives, appealing to top talent seeking to build careers with responsible organizations[81] - The Cadence Giving Foundation, established in 2021, focuses on community outreach and social impact through volunteer activities and charitable contributions[80] Leadership - Anirudh Devgan has been the CEO of Cadence since December 2021, with prior roles including Executive Vice President of Research and Development[85] - John M. Wall has served as CFO since October 2017, previously holding positions such as Corporate Vice President and Corporate Controller[86] - Paul Cunningham has been the Senior Vice President and General Manager of the System Verification Group since March 2021, previously co-founding Azuro, Inc. which Cadence acquired[87] - Paul Scannell has been with Cadence since 2005, currently serving as Senior Vice President of the Customer Success Team since May 2024[88] - Marc Taxay has been the Senior Vice President, General Counsel, and Corporate Secretary since May 2025, overseeing global legal operations[89] - Chin-Chi Teng has served as Senior Vice President and General Manager of the Digital and Signoff Group since September 2018, with a strong background in research and development[90] Acquisitions and Strategic Initiatives - The company expanded its AI-driven design and verification capabilities with the acquisition of advanced agentic AI technology, reducing verification cycles from weeks to days[30] - The acquisition of VLAB Works enhanced automotive electronic software and hardware development capabilities, addressing challenges in software-defined vehicles and systems[31] - The design IP portfolio was strengthened by acquiring the Arm Artisan foundation IP business, optimizing for advanced process nodes and enhancing time to market[33] - The acquisition of Secure-IC improved embedded security capabilities, addressing critical challenges in markets such as automotive and data centers[34] - The Millennium™ Multiphysics Enterprise Platform, co-developed with NVIDIA, aims to accelerate complex simulations in various fields, including semiconductor design[39]

Cadence Design Systems (CDNS) stock pushed meaningfully higher on Feb. 18, after the electronic design automation (EDA) software giant silenced artificial intelligence (AI) disruption fears with a strong Q4 release. As investors cheered its better-than-expected 2026 earnings guidance, the company’s share price exploded up to challenge its 50-day moving average (MA) at the $311 level. A decisive break above this price may accelerate bullish momentum in the near term. Despite post-earnings surge, Cadence s ...

Core Insights - Cadence Design Systems' stock increased by 9% following the release of earnings that surpassed analysts' expectations, reporting an adjusted EPS of $1.99 and revenue of $1.44 billion for Q4 2025, reflecting a 6% year-over-year growth in both metrics [1] Group 1: Financial Performance - The company reported an adjusted earnings per share (EPS) of $1.99 and revenue of $1.44 billion for the fourth quarter of 2025, exceeding analysts' expectations of $1.91 EPS and $1.42 billion in revenue [1] - For the next fiscal year, Cadence expects revenue between $5.9 billion and $6 billion, aligning with FactSet's expectation of $5.94 billion [4] Group 2: Business Strategy and Market Trends - Approximately 45% of Cadence's business now comes from "system companies," which include hyperscalers and end producers of phones and cars, indicating a shift towards integrated hardware and software solutions [2] - The trend of system companies designing their own chips to optimize their hardware and software stack is expected to accelerate, as highlighted by examples from Apple and Google [3] Group 3: Competitive Landscape - Cadence competes with other companies in the chip design software market, including Synopsys and Siemens [4]

Tech stocks recovered on Wednesday, led by a rally in battered software names, as the Nasdaq 100 jumped 1.4% past 25,000, outpacing the S&P 500's 1% gain and the Dow's 0.7% advance.Cadence Design Systems Inc. (NASDAQ:CDNS) led the tech advance, jumping nearly 10% after the chip-design software provider topped fourth-quarter revenue estimates and projected strong growth for 2026, supported by share buybacks and AI-driven demand.Commodity markets moved broadly higher amid rising Middle East tensions. Accordin ...

The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades: TD Cowen upgraded Medpace (MEDP) to Hold from Sell with a price target of $419, down from $462. The shares have re-rated from a peak multiple and now reflect fair value, the firm tells investors in a research note.Citizens upgraded Rush Street Interactive (RSI) to Outperform from Market Perform with a $24 price ta ...