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].

Company Performance - Cadence Design Systems (CDNS) reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.49 per share, and up from $1.17 per share a year ago [1] - The company achieved revenues of $1.24 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.34% and increasing from $1.01 billion year-over-year [3] - Over the last four quarters, Cadence has consistently surpassed consensus EPS and revenue estimates [2][3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $1.25 billion, and for the current fiscal year, it is $6.70 on revenues of $5.19 billion [8] - The estimate revisions trend for Cadence is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Computer - Software industry, to which Cadence belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]