Cadence Q4 Sales Rise 6.2% to $1.44B as AI Demand Fuels $7.8B Backlog
Cadence reported Q4 revenue of $1.44B, up 6.2% year-on-year, and adjusted EPS of $1.99, topping estimates by $20M and $0.08 respectively. Strong AI processor demand lifted sales and drove contract bookings to a record $7.8B, while 2026 revenue guidance of $5.9B–$6.0B aligns with forecasts.
1. Q4 Results Surpass Estimates
Cadence delivered fourth-quarter revenue of $1.44 billion, a 6.2% increase year-on-year, beating the $1.42 billion estimate. Adjusted earnings reached $1.99 per share, exceeding the $1.91 consensus by $0.08.
2. Record Backlog and AI Demand
Elevated demand for complex AI processors drove bookings to a record $7.8 billion by quarter end. Key customers such as Apple and Amazon leveraged Cadence’s specialized chip design software and verification tools.
3. 2026 Outlook
The company forecasted 2026 revenue between $5.9 billion and $6.0 billion, in line with analyst expectations, and projected adjusted EPS of $8.05 to $8.15 for the year.
4. New Virtual AI Agent
Earlier this month Cadence introduced a virtual AI agent to accelerate complex chip design workflows, targeting competitive advantages in AI chip development amid the U.S.-China technology race.