CADENCE DESIGN SYSTEMS INC SEC 10-Q Report

Cadence Design Systems Inc., a leading provider of electronic design automation (EDA) software and engineering services, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's robust financial performance and strategic business initiatives, underscoring its continued growth and market leadership in the semiconductor and system design industries.

Financial Highlights

• Total Revenue: $1,338.8 million, reflecting a year-over-year increase driven by strong demand across product categories.
• Income from Operations: $425.4 million, indicating a robust operational performance with a focus on cost management.
• Net Income: $287.1 million, up from $238.1 million in the prior year, showcasing improved profitability.
• Net Income Per Share - Basic: $1.06, compared to $0.87 in the previous year, reflecting enhanced earnings per share.
• Net Income Per Share - Diluted: $1.05, compared to $0.87 in the previous year, indicating a positive trend in diluted earnings.

Business Highlights

• Revenue Segments: Cadence's revenue is categorized into three main product lines: Core EDA, Semiconductor IP, and System Design and Analysis. Core EDA contributed 71% of the revenue for the three and nine months ended September 30, 2025, while Semiconductor IP and System Design and Analysis contributed 14% and 15%, respectively.
• Geographical Performance: The Americas, including the United States, accounted for a significant portion of revenue, with the United States alone contributing $532.1 million for the three months ended September 30, 2025. Asia, particularly China, showed strong performance with $245.0 million in revenue, reflecting a recovery in the region. EMEA and Japan also contributed to the overall revenue growth.
• Acquisitions: Cadence completed the acquisition of VLAB Works and the Artisan foundation IP business from Arm Limited, enhancing its Core EDA and IP product categories. These acquisitions are part of Cadence's strategy to expand its design IP offerings and system verification capabilities.
• Pending Acquisition: Cadence has entered into a definitive agreement to acquire Hexagon's design and engineering business, which is expected to bolster its System Design & Analysis portfolio. This acquisition is pending regulatory approvals and is anticipated to close by March 2027.
• Macroeconomic and Geopolitical Environment: Cadence has been navigating expanded trade control laws, particularly concerning exports to China. Recent rescission of certain license requirements by BIS has allowed Cadence to restore access to its EDA Software and Technology for affected customers in China.
• Future Outlook: Cadence anticipates continued growth in its Intelligent System Design strategy, leveraging recent acquisitions and expanding its product offerings to meet the evolving needs of its customers in various industries.

SEC Filing: CADENCE DESIGN SYSTEMS INC [ CDNS ] - 10-Q - Oct. 28, 2025