Core Insights - Cadence Design Systems (CDNS) reported revenue of $1.44 billion for the quarter ended December 2025, marking a year-over-year increase of 6.2% and exceeding the Zacks Consensus Estimate by 1.12% [1] - The earnings per share (EPS) for the same period was $1.99, compared to $1.88 a year ago, resulting in an EPS surprise of 4.57% over the consensus estimate of $1.90 [1] Financial Performance Metrics - The backlog for Cadence stood at $7.8 billion, surpassing the two-analyst average estimate of $7.42 billion [4] - Revenue from product and maintenance was reported at $1.33 billion, exceeding the average estimate of $1.29 billion from six analysts, reflecting a year-over-year increase of 7.5% [4] - Revenue from services was reported at $107.59 million, which fell short of the six-analyst average estimate of $128.33 million, indicating a year-over-year decline of 7.8% [4] Stock Performance - Over the past month, shares of Cadence have returned -5.7%, compared to a -1.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]