The earnings call highlighted Cadence's strong financial performance and growth across its business segments, driven by AI advancements and strategic partnerships. Despite temporary challenges from export restrictions with China and a settlement payment, the company's overall outlook and innovation trajectory remain positive.

Company Guidance

During the Cadence Second Quarter 2025 Earnings Conference Call, the company provided guidance for the year, projecting a 13% revenue growth and a 16% EPS growth for 2025. Specific financial metrics for the quarter included a total revenue of $1.275 billion, a GAAP operating margin of 19%, and a non-GAAP operating margin of 42.8%. The GAAP EPS was reported at $0.59, while the non-GAAP EPS was $1.65. Cadence also highlighted a cash balance of $2.823 billion and a principal value of debt outstanding at $2.5 billion, with an operating cash flow of $378 million. The company expects third-quarter revenue to range between $1.305 billion and $1.335 billion, with a GAAP EPS between $1.14 and $1.20, and a non-GAAP EPS between $1.75 and $1.81. For the full year, Cadence anticipates revenue between $5.21 billion and $5.27 billion, with a GAAP EPS ranging from $3.97 to $4.07, and a non-GAAP EPS from $6.85 to $6.95. The updated outlook includes considerations of a $141 million settlement payment with the DOJ and BIS and a $140 million cash tax benefit from the recently enacted One Big Beautiful Bill Act.

Exceptional Financial Performance

Cadence exceeded Q2 revenue and EPS guidance, driven by strong demand for AI-driven products. The company raised its financial outlook for 2025 to 13% revenue growth and 16% EPS growth.

Strong Core EDA and IP Growth

Core EDA revenue grew 16% year-over-year in Q2, driven by digital full flow adoption and strong hardware demand. IP business delivered over 25% year-over-year growth in Q2, with significant contributions from AI and HPC use cases.

Resolution of DOJ and BIS Investigations

Cadence reached a settlement with the DOJ and BIS regarding investigations into certain transactions with China, resolving uncertainties and allowing focus on compliance and strategic execution.

Innovative Product Launches

Cadence introduced the Millennium M2000 AI supercomputer, offering significant performance and power efficiency improvements, and launched the Cadence Tensilica NeuroEdge 130 AI Co-Processor for physical AI applications.

Strong System Design and Analysis Growth

The system design and analysis business reported 35% year-over-year revenue growth, driven by 3D-IC technology adoption and successful integration of BETA CAE solutions.

Cadence Design (CDNS) Earnings, Revenues Date & History

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CDNS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 27, 2025	2025 (Q3)	1.79 / -	1.64	―	―	―
Jul 28, 2025	2025 (Q2)	1.56 / 1.65	1.28	28.91% (+0.37)	―
Apr 28, 2025	2025 (Q1)	1.49 / 1.57	1.17	34.19% (+0.40)	―
Feb 18, 2025	2024 (Q4)	1.82 / 1.88	1.38	36.23% (+0.50)	―
Oct 28, 2024	2024 (Q3)	1.46 / 1.64	1.26	30.16% (+0.38)	―
Jul 22, 2024	2024 (Q2)	1.23 / 1.28	1.22	4.92% (+0.06)	―
Apr 22, 2024	2024 (Q1)	1.13 / 1.17	1.29	-9.30% (-0.12)	―
Feb 12, 2024	2023 (Q4)	1.33 / 1.38	0.96	43.75% (+0.42)	―
Oct 23, 2023	2023 (Q3)	1.20 / 1.26	1.06	18.87% (+0.20)	―
Jul 24, 2023	2023 (Q2)	1.18 / 1.22	1.08	12.96% (+0.14)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

CDNS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 28, 2025	$333.76	$366.26	+9.74%
Apr 28, 2025	$285.74	$302.22	+5.77%
Feb 18, 2025	$300.43	$274.04	-8.78%
Oct 28, 2024	$252.77	$284.45	+12.53%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.