Core Insights - The company reported a strong performance for Q4 and FY26, indicating a combination of growth in both top and bottom lines despite challenges faced in Q3 due to China restrictions [1] - The company is taking a pragmatic approach to its guidance for FY26, assuming no significant changes in the Chinese market, which had previously seen a decline of over 20% in FY25 [5][6] - The increasing investment in chip design globally, particularly in the US, South Korea, and Europe, is expected to provide a positive tailwind to offset the challenges in China [6] Company Performance - The company experienced a significant impact on its IP business due to a six-week sales halt to China, which affected Q3 results [1] - The guidance for FY26 does not factor in any potential recovery in the Chinese market, reflecting a cautious outlook [6] Market Dynamics - The company is observing a competitive landscape in China, where local companies are developing alternative chips, limiting the company's ability to sell to certain clients [4] - The endorsement of Nvidia's technology is seen as a validation of the company's direction towards integrating AI with semiconductor design, which is expected to drive future growth [9] Strategic Initiatives - The acquisition of ANC is anticipated to enhance the company's capabilities in creating digital twins, which will facilitate more sophisticated product designs and reduce costs [7][8] - The shift towards AI-powered products in various industries, including automotive and aerospace, is creating significant opportunities for the company to leverage its semiconductor and software solutions [8][9]