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Cadence reports quarterly revenue of $1.44 billion driven by AI demand
Wednesday, February 18, 2026 at 11:18 AM
Cadence reported Q4 2024 revenue of $1.44 billion, representing 8% sequential growth and 6% year-over-year growth, with strong margins attributed to AI demand. The company projects full-year 2025 revenue to increase 14% year-over-year.
Context
Cadence delivered a strong finish to 2025, reporting Q4 revenue of $1.44B, a 6% y/y and 8% q/q increase driven by an accelerating "AI supercycle." This performance capped a fiscal year where revenue climbed 14% to $5.3B, supported by elite profitability as non-GAAP operating margins reached 45.8%. Investor confidence is bolstered by a record $7.8B backlog, which provides exceptional visibility by covering approximately 67% of the projected $5.9B–$6.0B revenue for FY26.
The growth narrative is increasingly centered on high-value segments, with IP revenue rising 13% q/q—outpacing the core EDA business’s 5% growth—and expected to exceed the corporate average for a third consecutive year. Management’s push into agentic AI, highlighted by the new ChipStack super agent, aims to capitalize on the rising complexity of semiconductor design. By securing over $3.8B in revenue obligations for the next twelve months, Cadence has effectively de-risked its double-digit growth outlook for the coming year.
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