10-Q quarterly report · filed Oct 29, 2025

Cadence Design Systems (CDNS) Q3 2025 10-Q Quarterly Report

Short answer

Cadence Design Systems (CDNS) filed its Q3 2025 10-Q quarterly report on Oct 29, 2025 for the quarter ended Sep 30, 2025. Quarterly revenue was $1.3B (up 10.1% year over year) with net income of $287M.

Q3 2025 key financials · XBRL

Revenue
$1.3B
+10.1% YoY · +5.0% QoQ
Net income
$287M
+20.6% YoY · +79.4% QoQ
Operating margin
31.8%
EPS (diluted)
$1.05
+20.7% YoY · +78.0% QoQ

Source: XBRL data from the Cadence Design Systems (CDNS) Q3 2025 10-Q on SEC EDGAR. USD.

Cadence Design Systems Q3 2025 10-Q analysis

AI summary of MD&A and risk factor updates

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

Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K

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