Cadence Design Systems (CDNS) - Factual Summary Cadence Design Systems reported fourth-quarter fiscal 2025 results that beat quarterly expectations. The company achieved double-digit growth, operating leverage, and recorded a record backlog. Management attributed the strong performance to increased customer design activity tied to AI infrastructure development and in-house silicon development. Following the earnings announcement, shares rose more than 5% in premarket trading. Rosenblatt Securities upgraded Cadence to Buy from Neutral, raising its price target to $360, citing AI-driven demand and the strong backlog. Piper Sandler maintained a Neutral rating while lowering its price target to $319. The company forecasted annual growth for 2026 following the fourth-quarter beat. Cadence is partnering with India's largest manufacturers on AI factory initiatives utilizing NVIDIA infrastructure.
Read full analysisCadence Design Systems (CDNS) - Factual Summary Cadence Design Systems reported fourth-quarter fiscal 2025 results that beat quarterly expectations. The company achieved double-digit growth, operating leverage, and recorded a record backlog. Management attributed the strong performance to increased customer design activity tied to AI infrastructure development and in-house silicon development. Following the earnings announcement, shares rose more than 5% in premarket trading. Rosenblatt Securities upgraded Cadence to Buy from Neutral, raising its price target to $360, citing AI-driven demand and the strong backlog. Piper Sandler maintained a Neutral rating while lowering its price target to $319. The company forecasted annual growth for 2026 following the fourth-quarter beat. Cadence is partnering with India's largest manufacturers on AI factory initiatives utilizing NVIDIA infrastructure.
Cadence Design Systems provides electronic design automation (EDA) software, hardware, and IP used by semiconductor and systems companies to design chips and complex electronic systems. Its tools are critical infrastructure for AI chip development, with customers including hyperscalers and leading chipmakers. The company's record $7.8 billion backlog and AI-driven demand growth are central to today's post-earnings rally.