Latest news with #CadenceDesignSystems
Yahoo
an hour ago
- Business
- Yahoo
Cadence Design Systems Inc (CDNS) Q2 2025 Earnings Call Highlights: Strong AI-Driven Growth ...
Total Revenue: $1.275 billion for Q2 2025. Revenue Growth: 20% year-over-year for Q2 2025. GAAP Operating Margin: 19% for Q2 2025. Non-GAAP Operating Margin: 42.8% for Q2 2025. GAAP EPS: $0.59 for Q2 2025. Non-GAAP EPS: $1.65 for Q2 2025. Cash Balance: $2.823 billion at quarter end. Operating Cash Flow: $378 million for Q2 2025. Debt Outstanding: $2.5 billion principal value. Share Repurchase: $175 million used to repurchase shares in Q2 2025. Core EDA Revenue Growth: 16% year-over-year in Q2 2025. IP Business Revenue Growth: Over 25% year-over-year in Q2 2025. System Design and Analysis Revenue Growth: 35% year-over-year in Q2 2025. Updated 2025 Revenue Outlook: $5.21 billion to $5.27 billion. Updated 2025 Non-GAAP EPS Outlook: $6.85 to $6.95. Updated 2025 Operating Cash Flow Outlook: $1.65 billion to $1.75 billion. Q3 2025 Revenue Outlook: $1.305 billion to $1.335 billion. Q3 2025 Non-GAAP EPS Outlook: $1.75 to $1.81. Warning! GuruFocus has detected 6 Warning Sign with CDNS. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Cadence Design Systems Inc (NASDAQ:CDNS) exceeded its Q2 revenue and EPS guidance, driven by strong demand across its AI-driven product portfolio. The company raised its financial outlook for 2025 to 13% revenue growth and 16% EPS growth, reflecting confidence in ongoing demand. Cadence's AI-driven portfolio, including the new Millennium M2000 AI supercomputer, is delivering significant performance and efficiency gains for customers. The company reported a 25% year-over-year growth in its IP business, driven by strong demand for AI and HPC use cases. Cadence's system design and analysis business achieved 35% year-over-year revenue growth, highlighting strong customer uptake of its 3D-IC technology. Negative Points Cadence faced export restrictions on China, which impacted its revenue, although strength in other regions offset this impact. The company had to reserve certain China bookings from its backlog due to restrictions, affecting its reported backlog at the end of Q2. Recurring revenue as a percentage of total revenue dipped to 78% in Q2, a multiyear low, due to strong demand for upfront businesses like IP and hardware. Cadence's settlement with the DOJ and BIS over past transactions with China resulted in a $141 million payment, impacting financials. The dynamic export control environment and geopolitical factors present ongoing risks and uncertainties for Cadence's operations in China. Q & A Highlights Q: How is the demand for physical AI impacting Cadence's bookings and customer spending? A: Anirudh Devgan, President and CEO, explained that there is significant optimism around AI, leading to increased customer investment in innovation and Cadence's products. Physical AI, which involves edge devices and autonomous systems, is expected to be a major growth area. It impacts both data center and edge silicon, requiring different design and simulation tools. The market is still evolving, but the customer environment is improving, with more investment in AI infrastructure and physical AI. Q: What led to Cadence's increased growth outlook despite not recognizing one month of China revenue? A: John Wall, CFO, noted that strong demand across all geographies offset any near-term softness related to China. The growth in bookings from AI, HPC, and system design workloads globally contributed to the increased outlook. The backlog at the end of Q2 was stronger than expected, indicating broad-based demand. Q: What is the near and long-term impact of China on Cadence's business? A: John Wall stated that while China was 9% of Q2 revenue, down from 11% in Q1, the outlook for China remains optimistic but prudent. The company expects China sales to be slightly up year-over-year. Anirudh Devgan added that while China will continue to invest in chip design, the rest of the world is also seeing significant investment, which may lead to a slight decrease in China's percentage of total revenue over time. Q: How is the transition to 3.5D advanced packaging architectures contributing to Cadence's bookings and revenue? A: Anirudh Devgan highlighted that the industry is moving towards chiplet-based architectures, especially in HPC and AI. Cadence is well-positioned with its Allegro platform and 3D-IC technology, which are critical for these new packaging architectures. The demand for advanced packaging is significant and contributes to the overall revenue, pulling in other products like analysis tools. Q: What are the adoption barriers for agentic AI, and how does Cadence plan to monetize it? A: Anirudh Devgan explained that Cadence packages agentic AI solutions separately from base tools, offering significant productivity and PPA benefits. The adoption barriers are not significant as customers are used to automation and face increasing workloads. Cadence focuses on delivering value and productivity, with various business models to monetize these solutions over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- Business
- Yahoo
S&P 500 & Nasdaq Notch New All-Time Closing Highs
Monday, July 28, 2025Markets lost a bit of steam mid-session this Monday, but a late surge into the close brought the S&P 500 and the Nasdaq indexes to new record closing highs. The Dow dipped slightly: -64 points, -0.14%, while the S&P 500 grew a mere 1 point, +0.02%, and the Nasdaq came up +70 points, +0.33%. The small-cap Russell 2000 also finished the day slightly in the red: -4 points, -0.19%.From April 9th lows — the day President Trump put a pause on his draconian tariff policy with nearly all U.S. trading partners — we see sizable gains across the board: the Dow +16%, the Russell 2000 +21%, the S&P 500 +23% and the tech-heavy Nasdaq, carrying the lion's share of the AI trade which has led markets all year, is up close to +30% over these 16 some-odd weeks. Earnings Reports After Today's CloseElectronic design automation software company Cadence Design Systems CDNS is up big after an impressive showing in its Q2 report released after the closing bell. Earnings of $1.65 per share improved over the $1.57 in the Zacks consensus, which itself depicted growth of more than +22% year over year. Revenues of $1.28 billion neatly overtook estimates of $1.26 billion — also up big year over year. Guidance for full-year 2025 is the icing on the cake. Shares are up +7.5% in late trading at this durable goods manufacturer Whirlpool WHR, on the other hand, missed expectations on its bottom line by two solid dimes to $1.34 per share, while meeting the $3.77 billion in the Zacks consensus exactly on the top line. North America orders outperformed expectations, but still came in -4.6% year over year. Full-year guidance for earnings is well off what analysts had previous thought, and have come down on the top line too. Shares have fallen -12.5% in the after market. What to Expect from the Stock Market on TuesdayTomorrow will be a big day for both earnings releases and economic reports. A new U.S. Trade Balance joins Retail/Wholesale Inventories for June, Case-Shiller Home Prices for May, Consumer Confidence for July and a new JOLTS (Job Openings and Labor Turnover Survey) report, also for these, the JOLTS report marks the first metric hitting the tape for 'Jobs Week,' albeit a month in arrears from jobs data coming out later in the week. Expectations are for 7.5 million job openings last month, down from the 7.74 million reported a month ago — the highest month of the year, bouncing off March near-term lows of 7.2 million. Accommodation and Food Services, particularly in the South, had by far the most amount of job openings in last month's report.Q2 earnings also revs up Tuesday morning, when we hear from Boeing BA, Procter & Gamble PG, Merck MRK, UnitedHealth UNH, PayPal PYPL and UPS UPS, all in the morning. After tomorrow's close, we'll get results from Starbucks SBUX and Visa the first day of the two-day Federal Open Market Committee (FOMC) meetings commence. On Wednesday, the Fed will decide on new interest rate policy, but there is a more than +95% chance that no move is made on the 4.25-4.50% Fed funds rate we've seen since December of last year. Expect to hear from President Trump on this matter, or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 hours ago
- Business
- Yahoo
S&P 500, Nasdaq close again at record highs, trade choppy
STORY: U.S. stocks ended mixed on Monday, as the Dow dipped fractionally, the S&P 500, while essentially flat, marked its sixth straight record close, and the Nasdaq gained a third of a percent to also close at a record high. Trading was choppy on Wall Street as investors digested President Donald Trump's trade deal with the European Union, which includes a 15% import tariff on most EU goods - half of Trump's previously threatened rate of 30%. Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, said that while markets have mostly put the tariff turmoil behind them, stocks could pull back before they climb even higher. "Markets are extremely overbought. We're coming down to the month at the end of July. July seasonally is very strong. Believe it or not, August is when markets peak. I think we're setting up for a correction within the markets, nothing significant, but we can easily get a 5 to 10% pullback, refresh this market, particularly in the seasonal period of September and October, for a year-end rally." Among individual movers, shares of Nike climbed nearly 4% after J.P. Morgan upgraded the stock to "overweight" from "neutral" and said investors should "just buy it." U.S.-listed shares of Heineken fell nearly 10% as a forecast-beating profit rise was eclipsed by investor worries over second-half profits and volumes, which Heineken warned may be softer due to tariffs. And shares of Cadence Design Systems climbed more than 6% in extended trading after the chip design software provider raised its sales forecast for the year. The week is packed with potentially market-moving events, including the Federal Reserve's latest policy decision and the Personal Consumption Expenditures report - the Fed's preferred gauge of inflation. And set to be released on Friday is the closely watched jobs report for July. Also on deck this week are a slew of corporate earnings, including from tech giants Meta, Microsoft, Amazon and Apple.
Yahoo
10 hours ago
- Business
- Yahoo
Cadence lifts FY outlook after Q2 results top estimates; shares jump
- Cadence on Monday lifted its full-year guidance after reporting second-quarter results that topped Wall Street estimates as stronger demand helped offset the hit from temporary U.S. restrictions on exports to China. Cadence Design Systems Inc (NASDAQ:CDNS) jumped 7% in recent afterhours trading following the report. For the three months ended Jun. 30, Cadence Design announced earnings per share of $1.65 on revenue of $1.28 million. Analysts polled by anticipated EPS of $1.56 on revenue of $1.25 billion. "Strength across all businesses, more than offsetting the impact of the temporary restrictions on exports to China imposed on May 23," the company said. For Q3, the company sees adjusted diluted EPS of $1.75 to $1.85, beating estimates of $1.73. Looking ahead to the full-year, the electronic systems designer forecasts adjusted EPS in a range of $6.85 to $6.95 on revenue between $5.21 billion to $5.27 billion, up from a prior estimate for adjusted EPS of $6.73 to $6.83 on revenue of $5.15 billion to $5.23 billion. Related articles Cadence lifts FY outlook after Q2 results top estimates; shares jump After soaring 149%, this stock is back in our AI's favor - & already +25% in July Surge of 50% since our AI selection, this chip giant still has great potential Sign in to access your portfolio
Globe and Mail
11 hours ago
- Business
- Globe and Mail
S&P 500 & Nasdaq Notch New All-Time Closing Highs
Monday, July 28, 2025 Markets lost a bit of steam mid-session this Monday, but a late surge into the close brought the S&P 500 and the Nasdaq indexes to new record closing highs. The Dow dipped slightly: -64 points, -0.14%, while the S&P 500 grew a mere 1 point, +0.02%, and the Nasdaq came up +70 points, +0.33%. The small-cap Russell 2000 also finished the day slightly in the red: -4 points, -0.19%. From April 9th lows — the day President Trump put a pause on his draconian tariff policy with nearly all U.S. trading partners — we see sizable gains across the board: the Dow +16%, the Russell 2000 +21%, the S&P 500 +23% and the tech-heavy Nasdaq, carrying the lion's share of the AI trade which has led markets all year, is up close to +30% over these 16 some-odd weeks. Earnings Reports After Today's Close Electronic design automation software company Cadence Design Systems CDNS is up big after an impressive showing in its Q2 report released after the closing bell. Earnings of $1.65 per share improved over the $1.57 in the Zacks consensus, which itself depicted growth of more than +22% year over year. Revenues of $1.28 billion neatly overtook estimates of $1.26 billion — also up big year over year. Guidance for full-year 2025 is the icing on the cake. Shares are up +7.5% in late trading at this hour. Household durable goods manufacturer Whirlpool WHR, on the other hand, missed expectations on its bottom line by two solid dimes to $1.34 per share, while meeting the $3.77 billion in the Zacks consensus exactly on the top line. North America orders outperformed expectations, but still came in -4.6% year over year. Full-year guidance for earnings is well off what analysts had previous thought, and have come down on the top line too. Shares have fallen -12.5% in the after market. What to Expect from the Stock Market on Tuesday Tomorrow will be a big day for both earnings releases and economic reports. A new U.S. Trade Balance joins Retail/Wholesale Inventories for June, Case-Shiller Home Prices for May, Consumer Confidence for July and a new JOLTS (Job Openings and Labor Turnover Survey) report, also for June. Of these, the JOLTS report marks the first metric hitting the tape for 'Jobs Week,' albeit a month in arrears from jobs data coming out later in the week. Expectations are for 7.5 million job openings last month, down from the 7.74 million reported a month ago — the highest month of the year, bouncing off March near-term lows of 7.2 million. Accommodation and Food Services, particularly in the South, had by far the most amount of job openings in last month's report. Q2 earnings also revs up Tuesday morning, when we hear from Boeing BA, Procter & Gamble PG, Merck MRK, UnitedHealth UNH, PayPal PYPL and UPS UPS, all in the morning. After tomorrow's close, we'll get results from Starbucks SBUX and Visa V. Finally, the first day of the two-day Federal Open Market Committee (FOMC) meetings commence. On Wednesday, the Fed will decide on new interest rate policy, but there is a more than +95% chance that no move is made on the 4.25-4.50% Fed funds rate we've seen since December of last year. Expect to hear from President Trump on this matter, however. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Procter & Gamble Company (The) (PG): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Whirlpool Corporation (WHR): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
