Q4 2025 Cadence Design Systems Inc Earnings Call Transcript

Feb 17, 2026 / 10:00 PM GMT

Release Date Price: MXN4865.82 (-5.24%)

Transcript 10-K8-K

Key Points

Positve

Cadence Design Systems Inc (CDNS) reported a 14% revenue growth and a 45% operating margin for 2025, indicating strong financial performance.
The company ended 2025 with a record backlog of $7.8 billion, reflecting robust demand and portfolio strength.
Cadence's AI solutions, including the newly launched ChipStack AI super agent, are gaining traction and providing significant productivity improvements.
The company's hardware business achieved a record year with over 30 new customers and increased demand from AI and hyperscale sectors.
Cadence's IP business saw strong momentum with nearly 25% revenue growth in 2025, driven by expanding IP portfolio and critical role in AI, HPC, and automotive verticals.

Negative

Despite strong performance, there is caution regarding the second half of 2026 due to limited visibility in the hardware pipeline.
The company faces potential challenges from export control regulations, which could impact future results.
There is ongoing competition from private companies in the AI space, which could affect Cadence's market position.
The transition to more annual subscription arrangements in SG&A impacted year-over-year growth comparisons.
Concerns about potential cannibalization of existing products due to new AI-driven solutions were raised during the call.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CDNS.OQ - Cadence Design Systems Inc
Q4 2025 Cadence Design Systems Inc Earnings Call
Feb 17, 2026 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good afternoon. My name is Abby, and I'll be your conference operator today.

At this time, I would like to welcome everyone to the Cadence 4th quarter and fiscal year 2025 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star and then the number one on your telephone keypad.

Thank you. And I will now turn the call over to Richard Goo, Vice President of investor relations for Cadence. Please go ahead.

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