Cadence Design Systems (CDNS) reported $1.44 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 6.2%. EPS of $1.99 for the same period compares to $1.88 a year ago.
The reported revenue represents a surprise of +1.12% over the Zacks Consensus Estimate of $1.42 billion. With the consensus EPS estimate being $1.90, the EPS surprise was +4.57%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Backlog: $7.8 billion versus the two-analyst average estimate of $7.42 billion.
- Revenue- Product and maintenance: $1.33 billion versus $1.29 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +7.5% change.
- Revenue- Services: $107.59 million versus the six-analyst average estimate of $128.33 million. The reported number represents a year-over-year change of -7.8%.
View all Key Company Metrics for Cadence here>>>
Shares of Cadence have returned -5.7% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Cadence Design Systems, Inc. (CDNS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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