Cadence Design Systems (CDNS) Q3 2025 10-Q Quarterly Report
Filed: Oct 29, 2025Period ending Sep 30, 2025
Information Technology
Services-Prepackaged SoftwareSEC EDGAR Cadence Design Systems (CDNS) 10-Q quarterly report for Q3 2025, filed with SEC EDGAR on Oct 29, 2025 for the fiscal period ending Sep 30, 2025. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.
Cadence Design Systems Q3 2025 10-Q Analysis
Management Discussion & Analysis
- • Revenue $1,338.8M, up $123.3M (10%) YoY for Q3; nine-month revenue $3,856.6M, up $571.3M (17%) YoY driven by software, hardware, IP growth
- • Operating margin increased to 28% vs 25% YoY for Q3 (exact % not provided, calculated estimate based on narrative); margin growth due to revenue increase and lower variable compensation
- • Semiconductor IP segment performed best, with increased revenue from Artisan acquisition; United States revenue down 8%, China revenue up $88.3M (+56%) due to lifted export restrictions
- • Cash and cash equivalents increased by $109.2M to $2.75B; operating cash flow rose $356.1M to $1.18B driven by higher business levels and tax timing; $1.6B share repurchase authorization remains available
- • Management highlights ongoing investment in R&D (+4% Q3 YoY), acquisitions (VLAB Works, Artisan IP), expects increased up-front revenue proportion, cautious on geopolitical trade constraints, anticipates closing Hexagon acquisition in Q1 2026 with €2.7B consideration
Risk Factors
- • New export control risks due to July 27, 2025 DOJ/BIS settlements, $140.6M penalties, guilty plea on export violations 2015-2021 in China
- • Material update: heightened export compliance obligations including three-year DOJ probation, annual internal audits, increased reporting
- • Regulatory/legal risk from export control violations, potential denial of export privileges, debarment, and ongoing government investigations
- • Market risk: China’s semiconductor policy spurs rising foreign and domestic competition, also affected by shifting U.S.-China trade restrictions
- • Financial risk: temporary BIS-imposed license requirements in China caused revenue decline; ongoing exposure to trade sanction impacts and receivable credit risks
Cadence Design Systems Q3 2025 Quarterly FinancialsXBRL
Revenue
$1.3B
▲ +10.1% YoY▲ +5.0% QoQ
Net Income
$287M
▲ +20.6% YoY▲ +79.4% QoQ
Operating Margin
31.8%
▲ +297bp YoY▲ +1282bp QoQ
Net Margin
21.4%
▲ +186bp YoY▲ +890bp QoQ
ROE
5.5%
Total Assets
$9.6B
EPS (Diluted)
$1.05
▲ +20.7% YoY▲ +78.0% QoQ
Operating Cash Flow
$311M
▼ -24.2% YoY▼ -17.7% QoQ
Source: XBRL data from Cadence Design Systems Q3 2025 10-Q filing on SEC EDGAR. All figures in USD.
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