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Cadence(CDNS) - 2025 Q2 - Quarterly Report
2025-07-29 21:39
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-15867 _____________________________________ CADENCE D ...
Cadence Design Systems Delivers Beat-And-Raise Quarter Despite US Export Bans
Benzinga· 2025-07-29 16:46
Core Insights - Cadence Design Systems Inc reported strong second-quarter earnings, leading to a rally in its stock price [1] - Revenue grew by 20.2% year-on-year to $1.275 billion, exceeding expectations by 2% [2] - Non-GAAP earnings per share reached $1.65, beating the consensus estimate of $1.56 [2] Revenue and Earnings Outlook - Management raised the revenue outlook for 2025 by $50 million, citing stronger than expected bookings and a robust pipeline [3] - Operating margin guidance was increased by 20 basis points to 44% at the midpoint [3] - Earnings projection was raised by 12 cents per share [3] Market Reaction and Analyst Ratings - Cadence shares rose by 8.83% to $363.23 following the earnings report [5] - Piper Sandler downgraded the rating from Overweight to Neutral but raised the price target from $328 to $355 [6] - Goldman Sachs maintained a Buy rating with a price target of $400 [6] Demand and Competitive Position - Core EDA revenue was reported at $906 million, surpassing the consensus of $884 million [4] - The company is experiencing stronger broad-based demand for its EDA products [4] - There is potential for significant pricing accretion from AI features in core EDA products over time [5]
第二财季业绩超预期 铿腾电子(CDNS.US)涨超9%
Zhi Tong Cai Jing· 2025-07-29 16:10
Core Viewpoint - Cadence Design Systems (CDNS.US) shares rose over 9%, reaching a record high of $364.24 following the release of strong Q2 earnings results [1] Financial Performance - The company reported a non-GAAP net income of $1.65 per diluted share for Q2, up from $1.28 per share in the same period last year, exceeding the FactSet analyst estimate of $1.56 [1] - Quarterly revenue was $1.28 billion, an increase from $1.06 billion year-over-year, also surpassing the analyst expectation of $1.25 billion [1] Future Guidance - The company anticipates adjusted earnings per share for fiscal year 2025 to be between $6.85 and $6.95, with projected revenue of $5.21 billion to $5.27 billion [1]
美股异动 | 第二财季业绩超预期 铿腾电子(CDNS.US)涨超9%
智通财经网· 2025-07-29 16:05
Core Insights - Kington Electronics (CDNS.US) shares rose over 9%, reaching a record high of $364.24 [1] Financial Performance - The company reported a non-GAAP net income of $1.65 per diluted share for Q2, up from $1.28 in the same period last year, exceeding the FactSet analyst estimate of $1.56 [1] - Quarterly revenue was $1.28 billion, an increase from $1.06 billion year-over-year, also surpassing the analyst forecast of $1.25 billion [1] Future Guidance - The company expects adjusted earnings per share for fiscal year 2025 to be between $6.85 and $6.95, with projected revenue of $5.21 billion to $5.27 billion [1]
These Analysts Boost Their Forecasts On Cadence Design Systems Following Upbeat Q2 Earnings
Benzinga· 2025-07-29 15:17
Cadence Design Systems Inc CDNS reported better-than-expected second-quarter financial results and raised its FY25 adjusted EPS and revenue guidance on Monday. These analysts made changes to their price targets on Cadence Design following earnings announcement. Considering buying CDNS stock? Here's what analysts think: Read This Next: Photo via Shutterstock Loading... Cadence Design Systems reported second-quarter revenue of $1.28 billion, beating analyst estimates of $1.26 billion. The company reported sec ...
铿腾电子上涨7.33%,报358.215美元/股,总市值978.08亿美元
Jin Rong Jie· 2025-07-29 14:02
Core Insights - Cadence Design Systems (CDNS) opened with a 7.33% increase, reaching $358.215 per share, with a trading volume of $104 million and a total market capitalization of $97.808 billion [1] Financial Performance - As of June 30, 2025, Cadence's total revenue is projected to be $2.518 billion, reflecting a year-over-year growth of 21.65% [1] - The company's net profit attributable to shareholders is expected to be $434 million, showing a year-over-year decrease of 9.12% [1] Analyst Ratings - On July 28, Cadence received a target price upgrade from Robert W. Baird to $380, with the latest rating being "Outperform" [1] Company Overview - Cadence Design Systems has over 30 years of expertise in the computing software sector and is a key leader in the electronic design industry [1] - The company focuses on intelligent system design strategies, providing software, hardware, and IP products to turn electronic design concepts into reality [1] - Cadence's clientele includes some of the most innovative companies globally, delivering exceptional electronic products across dynamic application markets such as consumer electronics, hyperscale computing, 5G communications, automotive, aerospace, industrial, and healthcare [1]
Cadence Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y, Stock Up
ZACKS· 2025-07-29 13:56
Core Insights - Cadence Design Systems (CDNS) reported Q2 2025 non-GAAP EPS of $1.65, exceeding estimates by 5.1% and showing a year-over-year increase of 28.9% [1][9] - Revenues reached $1.275 billion, surpassing estimates by 1.3% and increasing 20.3% year-over-year, driven by strong demand for AI-driven solutions [2][9] - The company settled with the Department of Justice for $141 million related to investigations into China sales from 2015 to 2021 [3] Financial Performance - CDNS ended the quarter with a backlog of $6.4 billion and current-remaining performance obligations of $3.1 billion [4] - Management raised the 2025 revenue outlook to $5.21-$5.27 billion, up from the previous range of $5.15-$5.23 billion, indicating a 12% growth from the prior year [5] - Non-GAAP EPS for 2025 is now expected to be between $6.85 and $6.95, reflecting a 13.4% increase from the previous year [5] Stock Performance - CDNS stock rose 6.6% in after-market trading and 8.5% in pre-market shares, outperforming the Computer - Software industry which grew 24.1% over the past year [7] Segment Performance - Product & Maintenance revenues, accounting for 91.8% of total revenues, rose 21.7% year-over-year to $1.17 billion, while Services revenues increased 5% to $105 million [10] - Core EDA, IP, and Systems Design & Analysis contributed 71%, 13%, and 16% to total revenues, respectively, with the System Design & Analysis benefiting from 3DIC technologies and AI-driven solutions [11][12] Margin and Cost Analysis - Total non-GAAP costs and expenses increased 14.8% year-over-year to $729 million, while non-GAAP gross margin contracted by 130 basis points to 87.2% [14] - Non-GAAP operating margin expanded by 270 basis points year-over-year to 42.8% [14] Balance Sheet and Cash Flow - As of June 30, 2025, CDNS had cash and cash equivalents of $2.823 billion, with long-term debt at $2.478 billion [15] - Operating cash flow for the quarter was $378 million, with free cash flow at $334 million; the company repurchased shares worth $175 million [16] Future Outlook - For Q3 2025, revenues are estimated to be between $1.305 billion and $1.335 billion, with non-GAAP EPS anticipated between $1.75 and $1.81 [18] - Non-GAAP operating margin for 2025 is forecasted to be between 43.5% and 44.5% [17]
刚刚,EDA巨头Cadence对华出口违规,遭重罚!
是说芯语· 2025-07-29 01:43
Core Viewpoint - Cadence Design Systems, Inc. has agreed to plead guilty and pay over $140 million to resolve criminal charges related to violations of export controls, specifically for illegally selling EDA hardware, software, and IP to a Chinese military university listed on the U.S. Entity List [1][2]. Group 1: Case Background and Violations Overview - The case involves Cadence, its Chinese subsidiary Cadence Design Systems Management (Shanghai) Co., Ltd., the Chinese military university NUDT, and a related Chinese chip company [2]. - Cadence committed 61 violations, primarily through its subsidiary Cadence China, which engaged in 56 illegal sales or loans to CSCC, a known alias for NUDT, totaling approximately $45.3 million from September 2015 to September 2020 [3][4]. Group 2: Details of Violations - The core violation involved unauthorized exports to NUDT via CSCC, with a total value of about $45.3 million, including $31.88 million in EDA hardware, $2.62 million in EDA software, and $10.79 million in semiconductor IP [5][6]. - The violations occurred over five years, with the first recorded illegal export shortly after NUDT was placed on the Entity List [6]. - All export activities were initiated by Cadence China, with evidence indicating that the actual use and support occurred at NUDT's campus in Changsha, Hunan Province, China [6][7]. Group 3: Systemic Violations and Other Entities - Cadence was also found to have allowed three other companies on the Entity List to download EDA software due to systemic gaps in its compliance processes [10]. - These violations included unauthorized downloads by JSC Mikron, a Chinese telecommunications giant, and a top Chinese chip manufacturer during various periods from 2016 to 2021 [10]. Group 4: Penalty Decisions - Cadence faces a civil penalty of up to $95.31 million, with an initial payment of $47.66 million due within 30 days of the order, and the remaining amount contingent on fulfilling obligations under the criminal plea agreement [12][14]. - The order mandates comprehensive internal audits of Cadence's export control compliance program, including oversight of its operations in China, with strict timelines for reporting [13][14]. - Future export licenses and privileges for Cadence will be contingent upon compliance with the settlement agreement and timely payment of penalties [14].
Cadence Design Systems (CDNS) Q2 Earnings and Revenues Top Estimates
ZACKS· 2025-07-28 22:16
Core Viewpoint - Cadence Design Systems reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][3]. Financial Performance - The company achieved earnings of $1.65 per share, surpassing the Zacks Consensus Estimate of $1.57 per share, and up from $1.28 per share a year ago, representing a year-over-year increase of approximately 28.8% [1][2]. - Revenues for the quarter reached $1.28 billion, exceeding the Zacks Consensus Estimate by 1.33%, and up from $1.06 billion in the same quarter last year, indicating a year-over-year growth of about 20.8% [3]. Earnings Surprises - The earnings surprise for the latest quarter was +5.10%, following a previous surprise of +5.37% in the prior quarter [2]. - Cadence has consistently surpassed consensus EPS estimates over the last four quarters [2][3]. Stock Performance - Since the beginning of the year, Cadence shares have increased by approximately 10.6%, outperforming the S&P 500's gain of 8.6% [4]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.75, with expected revenues of $1.33 billion, and for the current fiscal year, the estimate is $6.77 on $5.2 billion in revenues [8]. - The Zacks Rank for Cadence is currently 4 (Sell), indicating expectations of underperformance in the near future, influenced by unfavorable estimate revisions prior to the earnings release [7]. Industry Context - The Computer - Software industry, to which Cadence belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable environment for stocks within this sector [9].
Cadence(CDNS) - 2025 Q2 - Earnings Call Transcript
2025-07-28 22:02
Financial Data and Key Metrics Changes - Cadence reported total revenue of $1.275 billion for Q2 2025, with a GAAP operating margin of 19% and a non-GAAP operating margin of 42.8% [19] - Non-GAAP EPS grew by 29% year-over-year to $1.65, while GAAP EPS was $0.59 [19] - The company raised its financial outlook for 2025 to 13% revenue growth and 16% EPS growth [7][18] Business Line Data and Key Metrics Changes - Core EDA revenue grew by 16% year-over-year in Q2, with significant adoption of Cadence Cerebras solutions [12] - The IP business saw over 25% year-over-year growth in Q2, driven by demand in AI and HPC use cases [11] - The system design and analysis business delivered 35% year-over-year revenue growth [15] Market Data and Key Metrics Changes - China accounted for 9% of revenue in Q2, down from 11% in Q1, but strength in other regions offset this decline [34] - The company noted robust design activity and customer demand globally, particularly in AI, HPC, and system design workloads [18][35] Company Strategy and Development Direction - Cadence continues to execute its intelligent system design strategy initiated in 2018, focusing on unified EDA, IP, and system analysis [8] - The company is leveraging its AI-driven product portfolio to capitalize on the AI super cycle, enhancing its competitive position [9][17] - Cadence is committed to compliance and has enhanced its processes in response to evolving trade restrictions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for AI technologies and the overall customer environment, indicating a positive outlook for the next few years [30] - The company anticipates a strong second half of 2025, with expectations for revenue growth and a record backlog [87][100] Other Important Information - Cadence reached a settlement with the DOJ and BIS regarding investigations into transactions with customers in China, which will involve a payment of approximately $141 million [19][20] - The enactment of the One Big Beautiful Bill Act is expected to decrease Cadence's U.S. federal tax payments by approximately $140 million for the remainder of fiscal 2025 [20] Q&A Session Summary Question: Impact of physical AI on bookings - Management noted that the optimism surrounding AI is driving increased investment in innovation, which is reflected in strong bookings [25][26] Question: Increase in growth outlook despite China revenue restrictions - Management confirmed that strong demand across all geographies and a robust backlog contributed to the increased growth outlook [34][35] Question: Near and long-term impact of China - Management expressed a cautious but optimistic view on China, expecting slight growth despite previous restrictions [44][46] Question: Contribution of advanced packaging to revenue - Management highlighted that the industry is moving towards chiplet-based architectures, which is positively impacting bookings and revenue [52][56] Question: Recurring revenue percentage and customer behavior - Management indicated that the recurring revenue percentage dipped to 78% due to paused revenue in China, but typically expects it to stabilize around 80% [104][108] Question: Long-term perspective on IP growth - Management expressed increased optimism for IP growth, driven by strong demand in AI and HPC markets [111]