Cadence Design Systems Tops Q3 Estimates but Stock Dips
Cadence Design Systems (CDNS) outperformed Wall Street expectations with third-quarter earnings of $1.93 per share, surpassing the $1.79 consensus. Revenue climbed 10% year-over-year to $1.34 billion, edging past the $1.32 billion forecast. The company's adjusted operating margin expanded to 47.6%, up from 44.8% a year ago.
Despite the strong results, shares fell approximately 1% post-announcement, erasing earlier gains. Cadence issued bullish full-year 2025 guidance, projecting EPS of $7.02-$7.08 and revenue of $5.26-$5.29 billion, both above analyst estimates.