Earnings Call
Apr 27, 2026
Q2 FY2025
EPS Estimate
1.92
EPS Actual
1.65
Post-Earnings Close
$325.31
Earnings Reaction
-3.3%
Cadence posted a clean beat across the board for Q2 2025, with revenue of $1.275 billion representing 20% year-over-year growth and non-GAAP EPS of $1.65, both at or above the high end of guidance. Hardware was the standout, with Q2 marking the best revenue quarter ever for the Palladium Z3 and Protium X3 platforms, driven by broad-based demand from AI, HPC, and automotive customers. IP grew more than 25% year-over-year, and system design and analysis delivered 35% growth. Core EDA expanded 16%. The breadth of outperformance across every segment underscores that this is not a story of one product cycle or one customer relationship, it reflects structural demand from the AI super cycle touching every layer of the semiconductor and systems design stack.
Report generated on Apr 26, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
Read the full CDNS analysis
The complete report, with key themes, analyst Q&A summary, notable quotes, and market context — is free with an account. No password, no card.