Cadence Design Systems (CDNS) Q4 FY2025 earnings: revenue $1.4 billion, up 6.2% on the year

Cadence Design Systems Inc. (CDNS) reported revenue of $1.4 billion for Q4 FY2025, the quarter ended 31 December 2025, up 6.2% on the same quarter a year earlier. Net income was $388 million, up 14.1% on the year, and diluted earnings per share $1.42. The figures are the company's own, from the 10-K it filed with the SEC on 19 February 2026.

Revenue

$1.4 billion

+6.2% on the year · +7.6% on the quarter

Q1 FY2024Q4 FY2025

Operating margin

32.2%

33.7% a year earlier

Q1 FY2024Q4 FY2025

Net income

$388 million

+14.1% on the year · +35.2% on the quarter

Q1 FY2024Q4 FY2025

Diluted EPS

$1.42

+14.5% on the year · +35.2% on the quarter

Q1 FY2024Q4 FY2025

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 22 new.

Revenue rose 14% to $5.297 billion: Fiscal 2025 revenue was $5.297 billion, up from $4.641 billion; fourth-quarter revenue was $1.440 billion, up from $1.356 billion.
Non-GAAP EPS up 20% to $7.14: Non-GAAP diluted EPS for 2025 was $7.14, up from $5.97 in 2024. GAAP diluted EPS was $4.06, against $3.85.
IP grew nearly 25% in 2025: The IP business grew nearly 25% in 2025, driven by performance and adoption across HBM, UCIe, PCIe, DDR and SerDes.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Revenue	1,440	1,339	1,356	+7.6%	+6.2%
Research and development	n/a	423	n/a
Operating income	463	425	457	+8.9%	+1.4%
Operating margin	32.2%	31.8%	33.7%
Interest expense	29.4	29.0	29.9	+1.4%	-1.6%
Pre-tax income	493	393	437	+25.5%	+12.9%
Income tax	105	106	96.4	-0.8%	+8.7%
Effective tax rate	21.3%	26.9%	22.1%
Net income	388	287	340	+35.2%	+14.1%
Net margin	27.0%	21.4%	25.1%
Diluted EPS	$1.42	$1.05	$1.24	+35.2%	+14.5%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Operating cash flow	553	311	441	+78.2%	+25.4%
Capital expenditure	41.0	33.7	37.2	+21.8%	+10.3%
Free cash flow	512	277	404	+85.0%	+26.8%
Free cash flow margin	35.6%	20.7%	29.8%
Cash from investing	-88.8	-174	-40.0
Cash from financing	-214	-194	-511
Depreciation and amortisation	64.6	56.7	54.7	+13.9%	+18.1%
Share-based compensation	113	116	107	-2.5%	+6.2%
Buybacks	200	200	150	0.0%	+33.3%
Diluted shares, weighted	273m	274m	274m	-0.3%	-0.5%
Shares outstanding at period end	272m	272m	274m	-0.1%	-0.7%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Shareholders' equity	5,474	5,199	4,674	+5.3%	+17.1%
Debt	2,480	2,479	2,476	+0.0%	+0.2%
Operating lease liabilities	136	n/a	109		+25.2%
Other liabilities	2,063	1,921	1,716	+7.4%	+20.2%
Total liabilities and equity	10,153	9,599	8,974	+5.8%	+13.1%
Fixed assets	517	495	458	+4.5%	+12.8%
Goodwill	2,749	2,645	2,379	+3.9%	+15.6%
Intangible assets	718	673	595	+6.8%	+20.8%
Investments	222	n/a	265		-16.2%
Securities held for sale or to maturity	n/a	72.8	n/a
Cash and equivalents	3,001	2,753	2,644	+9.0%	+13.5%
Receivables	945	755	680	+25.1%	+38.9%
Inventory	304	286	258	+6.1%	+17.8%
Other assets	1,697	1,920	1,696	-11.6%	+0.1%
Total assets	10,153	9,599	8,974	+5.8%	+13.1%

Questions

What was Cadence Design Systems' revenue in Q4 FY2025?

Cadence Design Systems (CDNS) reported revenue of $1.4 billion for Q4 FY2025, the quarter ended 31 December 2025, up 6.2% on the same quarter a year earlier.

How much did Cadence Design Systems earn in Q4 FY2025?

Net income for Q4 FY2025 was $388 million, up 14.1% on the year, and diluted earnings per share $1.42.

When did Cadence Design Systems report Q4 FY2025 results?

Cadence Design Systems filed its 10-K for the year that ended with the quarter on 19 February 2026; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	773	902	858	903	900	1,022	977	1,023	1,069	1,009	1,061	1,215	1,356	1,242	1,275	1,339	1,440	1,474	1,584	1,633
R&D	n/a	291	287	324	n/a	350	354	370	n/a	379	371	407	n/a	439	442	423	n/a	508	531	538
Operating income	196	319	283	261	211	322	299	293	337	250	294	350	457	362	242	425	463	431	450	429
Operating margin	25%	35%	33%	29%	23%	32%	31%	29%	31%	25%	28%	29%	34%	29%	19%	32%	32%	29%	28%	26%
Interest expense	4.3	4.1	4.3	5.5	9.1	9.3	8.9	9.1	9.0	8.7	12.9	24.5	29.9	29.1	28.9	29.0	29.4	31.6	35.1	30.4
Pre-tax income	194	310	273	252	211	321	298	300	362	310	316	333	437	356	281	393	493	428	510	408
Tax rate	9%	24%	31%	26%	-14%	25%	26%	15%	11%	20%	27%	29%	22%	23%	43%	27%	21%	22%	28%	29%
Net income	177	235	187	186	240	242	221	254	324	248	230	238	340	274	160	287	388	336	367	290
Net margin	23%	26%	22%	21%	27%	24%	23%	25%	30%	25%	22%	20%	25%	22%	13%	21%	27%	23%	23%	18%
Diluted EPS	$0.64	$0.85	$0.68	$0.68	$0.88	$0.89	$0.81	$0.93	$1.19	$0.91	$0.84	$0.87	$1.24	$1.00	$0.59	$1.05	$1.42	$1.23	$1.33	$1.05
Operating cash flow	216	337	325	317	264	267	414	396	272	253	156	410	441	487	378	311	553	356	635	424
Capital expenditure	15.3	18.1	24.1	44.1	36.9	26.7	19.9	22.0	33.7	49.6	29.2	26.5	37.2	23.1	44.1	33.7	41.0	48.8	52.6	61.8
Free cash flow	201	318	300	273	227	241	394	374	238	204	127	383	404	464	334	277	512	307	582	362
Buybacks	110	250	350	150	300	125	325	125	125	125	125	150	150	350	175	200	200	200	200	400
Shares outstanding	277m	276m	274m	274m	273m	273m	272m	272m	272m	272m	274m	274m	274m	273m	272m	272m	272m	276m	275m	274m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-K for the period ended 31 December 2025, filed 19 February 2026: the filing.