Competitive EnvironmentThe EDA software segment is expected to generate mid-single-digit growth for its core tools, with Cadence facing a very stable but fierce competitive environment.
Order Fulfillment ChallengesBacklog and cRPO were weak, showing some challenges in short-term order fulfillment.
Valuation ConcernsReluctantly find too many long-term uncertainties around core technology transitions, which have yet to be reflected in CDNS's premium valuation.