Cadence Q4 revenue beats estimates on demand for AI-driven products

Cadence Design Systems

17/02/2026 21:10

Overview

AI and digital twins leader's Q4 revenue rose, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company reported record backlog of $7.8 bln, indicating strong future demand

Outlook

Cadence expects 2026 revenue between $5.9 bln and $6.0 bln

Company forecasts 2026 GAAP EPS between $4.95 and $5.05

Cadence projects 2026 non-GAAP EPS between $8.05 and $8.15

Result Drivers

AI PRODUCT PORTFOLIO - Strong demand for AI-driven products and engineering software drove revenue growth

CORE EDA GROWTH - Core EDA business grew 13% in 2025 due to hyperscaler adoption and AI-driven products

IP BUSINESS EXPANSION - IP business grew nearly 25% year-over-year, driven by performance and adoption of IP portfolio

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.44 bln
$1.42 bln (18 Analysts)
Q4 Adjusted EPS
Beat
$1.99
$1.91 (17 Analysts)
Q4 EPS
$1.42


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Cadence Design Systems Inc is $390.00, about 30.2% above its February 13 closing price of $299.46

The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nBw34lvtma

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)