Cadence Design Systems Q4 2025 Results: Anticipated Highlights

Cadence Design Systems: Company Overview and Earnings Outlook

Based in San Jose, California, Cadence Design Systems, Inc. (CDNS) is a global provider of software, hardware, and related services. With a market valuation of $85.2 billion, Cadence specializes in electronic design automation (EDA) software and offers a range of professional services. Their solutions support the creation and development of advanced chips and electronic products, including semiconductors. The company is scheduled to release its financial results for the fourth quarter of fiscal 2025 after the market closes on Tuesday, February 17.

Anticipated Earnings and Recent Performance

Analysts are forecasting that CDNS will post diluted earnings of $1.55 per share, representing a 4% increase from $1.49 per share in the same quarter last year. Over the past four quarters, Cadence has either met or exceeded consensus earnings estimates three times, missing expectations only once.

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Future Earnings Projections

For the entire fiscal year, analysts predict that CDNS will achieve earnings per share of $5.66, marking a 25.8% increase from $4.50 in fiscal 2024. Looking ahead to fiscal 2026, EPS is projected to climb by 15.2% year-over-year to reach $6.52.

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Stock Performance Compared to Benchmarks

Over the past year, CDNS shares have risen by 6.6%, trailing the S&P 500 Index’s 16.7% gain during the same period. The stock also lagged behind the Technology Select Sector SPDR Fund (XLK), which advanced 25.2% over the past 52 weeks.

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Recent Quarterly Results and Guidance

On October 27, 2025, following the release of its third-quarter results, CDNS shares closed 1.8% higher. The company reported adjusted earnings per share of $1.93, surpassing analysts’ expectations of $1.79. Revenue reached $1.34 billion, slightly above the forecasted $1.33 billion. For the full year, Cadence anticipates adjusted EPS between $7.02 and $7.08, with revenue projected in the range of $5.26 billion to $5.29 billion.

Analyst Ratings and Price Targets

The consensus among analysts is highly positive, with a “Strong Buy” recommendation for CDNS. Out of 23 analysts, 17 rate the stock as a “Strong Buy,” one recommends a “Moderate Buy,” and five suggest holding. The average price target stands at $386.81, implying a potential upside of 20.7% from current levels.