Cadence Design Systems Posts 14% Annual Growth, Guides $5.9B–6.0B 2026
Cadence ended fiscal 2025 with $5.297 billion revenue and $1.44 billion in Q4, delivering non-GAAP operating margins of 45.8% in Q4 and repurchasing $925 million of shares. Management reported a record $7.8 billion backlog, expects $5.9–6.0 billion 2026 revenue with ~45% margins, and unveiled the ChipStack AI Super Agent for up to 10× design productivity.
1. Fiscal 2025 Financial Results
Cadence reported Q4 revenue of $1.44 billion and full-year revenue of $5.297 billion, delivering non-GAAP operating margins of 45.8% in Q4 and 44.6% for the year. Operating cash flow reached $553 million in Q4 and $1.729 billion for fiscal 2025, and the company repurchased $925 million of shares.
2. Record Backlog and Fiscal 2026 Outlook
Management closed 2025 with a record backlog of $7.8 billion, covering approximately 67% of 2026 revenue. For fiscal 2026, Cadence guided to $5.9–6.0 billion in revenue, non-GAAP operating margins of 44.75%–45.75%, GAAP EPS of $4.95–5.05, non-GAAP EPS of $8.05–8.15, and plans to allocate about half of free cash flow to buybacks.
3. Agentic AI Workflows and ChipStack AI Super Agent
The company is rolling out agentic AI workflows that autonomously call underlying EDA tools, positioning AI as a force multiplier for design exploration. It launched the ChipStack AI Super Agent, claiming up to 10× productivity gains in coding, testbench generation, and debugging with endorsements from Qualcomm, NVIDIA and others.
4. Business Line Growth and Strategic Partnerships
Core EDA revenue grew 13%, IP increased nearly 25%, and SDA expanded 13% in 2025. Hardware systems saw record demand with over 30 new customers, and Cadence deepened collaborations with TSMC, the Intel Foundry Alliance, Samsung Foundry and Broadcom to advance AI-driven design and IP integration.