Feb. 18 at 5:42 PM
Cadence eyes
$5.9B–
$6B revenue in 2026, driven by AI design solutions boosting backlog 🚀
John Wall's outlook:
- Revenue:
$5.9B–
$6B
- Q1 2026:
$1.42B–
$1.46B
- Operating margins: GAAP 31.75%–32.75%, non-GAAP 44.75%–45.75%
- EPS: GAAP
$4.95–
$5.05, non-GAAP
$8.05–
$8.15
- Cash flow:
$2B
Management emphasizes caution on hardware & China, expecting 12%–13% revenue contribution from China.
Financial highlights:
- Q4 revenue:
$1.44B, annual revenue:
$5.3B
- Q4 GAAP operating margin: 32.2%, non-GAAP: 45.8%
- Q4 EPS:
$1.99
- Cash flow:
$553M (Q4),
$1.73B (year)
- Share repurchases:
$925M in 2025
Recalling the resurgence, recurring software hits double digits again, and hardware expands with 7 of top 10 clients being Dynamic Duo customers.
The future is clear: AI-driven growth is accelerating. Are you paying attention? Let's discuss in the comments.
$CDNS #Earnings