EX-99.01 2 cdns02172026ex9901.htm PRESS RELEASE

Exhibit 99.01

Cadence Reports Fourth Quarter and Fiscal Year 2025 Financial Results

14% Revenue Growth and ~45% Non-GAAP Operating Margin for 2025

Record Backlog of $7.8 Billion

SAN JOSE, Calif. — February 17, 2026 — Cadence (Nasdaq: CDNS) today announced results for the fourth quarter and fiscal year 2025.

Fourth Quarter 2025 Financial Results

•Revenue of $1.440 billion, compared to revenue of $1.356 billion in Q4 2024

•GAAP operating margin of 32.2%, compared to 33.7% in Q4 2024

•Non-GAAP operating margin of 45.8%, compared to 46.0% in Q4 2024

•GAAP diluted net income per share of $1.42, compared to $1.24 in Q4 2024

•Non-GAAP diluted net income per share of $1.99, compared to $1.88 in Q4 2024

Fiscal Year 2025 Financial Results

•Revenue of $5.297 billion, compared to revenue of $4.641 billion in 2024

•GAAP operating margin of 28.2%, compared to 29.1% in 2024

•Non-GAAP operating margin of 44.6%, compared to 42.5% in 2024

•GAAP diluted net income per share of $4.06, compared to $3.85 in 2024

•Non-GAAP diluted net income per share of $7.14, compared to $5.97 in 2024

•Year-end backlog was $7.8 billion and revenue expected to be recognized in the next 12 months from remaining performance obligations was $3.8 billion

“Cadence delivered excellent results for the fourth quarter, closing an outstanding 2025 with over 14% revenue growth and 20% non-GAAP EPS growth,” said Anirudh Devgan, president and chief executive officer. “Strong customer demand for our expanding AI-driven product portfolio and the essential nature of Cadence's engineering software position us well to capture the massive opportunities in the AI era.”

“Cadence closed 2025 with a strong finish and broad-based strength across the business,” said John Wall, senior vice president and chief financial officer. “We delivered a 44.6% non-GAAP operating margin, reflecting continued productivity-driven profitability improvement. With strong Q4 bookings, we began 2026 with a record backlog of $7.8 billion and excellent momentum.”

CFO Commentary

Commentary on the fourth quarter and fiscal year 2025 financial results by John Wall, senior vice president and chief financial officer, is available at www.cadence.com/cadence/investor_relations.

Business Outlook

Cadence's outlook does not include the impact of its pending acquisition of Hexagon's design and engineering business.

For fiscal year 2026, the company expects:

•Revenue in the range of $5.9 billion to $6.0 billion

•GAAP operating margin in the range of 31.75% to 32.75%

•Non-GAAP operating margin in the range of 44.75% to 45.75%

•GAAP diluted net income per share in the range of $4.95 to $5.05

•Non-GAAP diluted net income per share in the range of $8.05 to $8.15

The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company’s geographic earnings mix, or other changes to the company’s strategy or business operations. The company expects to use the current

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normalized non-GAAP tax rate through fiscal 2026 but will re-evaluate this rate periodically for significant items that may materially affect its projections.

Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release. Revenue growth outlook is based on the midpoint of the range.

Business Highlights

•The Cadence.ai portfolio continued gaining momentum with market shaping customers. Cadence introduced ChipStack, a groundbreaking agentic AI Super Agent for chip design and verification, built upon Cadence's foundational EDA platform. By leveraging intelligent agents that autonomously call the underlying Cadence tools, ChipStack is enabling faster design convergence and significantly improved engineering productivity

•Cadence’s Core EDA business grew 13% in 2025 driven by broad hyperscaler adoption, expanding digital full-flow deployments, and growing proliferation of its AI-driven products

•Hardware delivered another record year, adding more than 30 new customers, with seven of the top ten customers purchasing both Palladium Z3 and Protium X3 systems, reflecting strong AI and hyperscale demand

•Cadence’s IP business grew nearly 25% year-over-year in 2025, driven by the superior performance and expanding adoption of its IP portfolio, including HBM, UCIe, PCIe, DDR, and SerDes

•The System Design and Analysis business grew 13% in 2025, supported by strong demand for Cadence’s 3D‑IC platform and simulation solutions that are increasingly critical for AI infrastructure, high‑performance computing, and advanced mobile applications

Audio Webcast Scheduled

Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the fourth quarter and fiscal year 2025 financial results audio webcast today, February 17, 2026, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting February 17, 2026 at 5 p.m. (Pacific) and ending March 17, 2026 at 5 p.m. (Pacific). Webcast access is available at www.cadence.com/cadence/investor_relations.

About Cadence

Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design™ strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies. Cadence solutions offer limitless opportunities—learn more at www.cadence.com.

© 2026 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

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This press release contains forward-looking statements, including Cadence’s outlook on future operating results, financial condition, strategic objectives, business model and prospects, technology and product developments, strategic relationships, pending acquisition of Hexagon's design and engineering (“D&E”) business, backlog, industry trends, market growth, tax rates and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions and armed conflicts around the world; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence’s pending acquisitions, the acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject, including Cadence’s ongoing compliance, cooperation, audit and other obligations under its July 2025 settlement agreements with the U.S. Department of Justice (“DOJ”) and Bureau of Industry and Security (“BIS”), any further inquiries or adverse actions by the DOJ, BIS or other U.S. or foreign governmental authorities and any impact of the settlements on Cadence’s operations and business dealings in China, U.S. government contracting business and other customer relationships; and (xii) Cadence’s ability to successfully meet any environmental, social and governance targets and practices. Cadence’s pending D&E acquisition remains subject to certain closing conditions, which may not be satisfied in a timely manner or at all. Cadence may not successfully integrate the D&E business or realize the anticipated benefits of the acquisition. The acquisition and its effects on Cadence are subject to additional risks and uncertainties including fluctuations in the trading price of Cadence shares and in currency exchange and interest rates; Cadence’s ability to repay debt incurred to fund the acquisition; Cadence’s ability to motivate and retain key personnel; and the acquisition’s impact on relationships with third parties, including customers, partners and governmental authorities. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors.

For a detailed discussion of these and other cautionary statements related to Cadence and its business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.

All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

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GAAP to Non-GAAP Reconciliation

Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance.

To supplement Cadence’s financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence’s performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, income or expenses related to foreign currency forward exchange contract associated with a pending acquisition, investments, divestitures and Cadence’s non-qualified deferred compensation plan, restructuring, loss related to contingent liability and other significant items not directly related to Cadence’s core business operations, and the income tax effect of non-GAAP pre-tax adjustments.

Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence’s core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting.

The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below:

 

Operating Margin Reconciliation						Three Months Ended
						December 31, 2025						December 31, 2024
						(unaudited)
GAAP operating margin as a percent of total revenue						32.2%						33.7%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense						7.9%						7.9%
Amortization of acquired intangibles						2.1%						2.0%
Acquisition and integration-related costs						3.4%						1.7%
Restructuring						0.1%						(0.1)%
Non-qualified deferred compensation expenses						0.1%						0.0%
Special charges						0.0%						0.2%
Loss related to contingent liability*						0.0%						0.6%
Non-GAAP operating margin as a percent of total revenue						45.8%						46.0%

*			Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.

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Operating Margin Reconciliation						Years Ended
						December 31, 2025						December 31, 2024
						(unaudited)
GAAP operating margin as a percent of total revenue						28.2%						29.1%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense						8.6%						8.4%
Amortization of acquired intangibles						2.0%						2.0%
Acquisition and integration-related costs						2.5%						2.1%
Restructuring						0.6%						0.5%
Non-qualified deferred compensation expenses						0.3%						0.2%
Special charges						0.0%						0.0%
Loss related to contingent liability*						2.4%						0.2%
Non-GAAP operating margin as a percent of total revenue						44.6%						42.5%

*			Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.

Net Income Reconciliation						Three Months Ended
						December 31, 2025						December 31, 2024
(in thousands)						(unaudited)
Net income on a GAAP basis						$	388,136					$	340,210
Stock-based compensation expense						113,164						106,508
Amortization of acquired intangibles						30,229						26,776
Acquisition and integration-related costs						48,652						23,477
Restructuring						1,862						(1,020)
Non-qualified deferred compensation expenses						2,064						293
Special charges						—						1,902
Loss related to contingent liability*						—						8,322
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition						10,666						—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets						(49,111)						14,654
Income tax effect of non-GAAP adjustments						(2,505)						(5,456)
Net income on a non-GAAP basis						$	543,157					$	515,666

*			Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.

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Net Income Reconciliation						Years Ended
						December 31, 2025						December 31, 2024
(in thousands)						(unaudited)
Net income on a GAAP basis						$	1,108,888					$	1,055,484
Stock-based compensation expense						455,175						391,219
Amortization of acquired intangibles						105,332						90,449
Acquisition and integration-related costs						135,073						95,562
Restructuring						29,194						23,765
Non-qualified deferred compensation expenses						14,029						11,145
Special charges						1,988						3,135
Loss related to contingent liability*						128,545						8,322
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition						29,227						—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets						(83,286)						(60,798)
Income tax effect of non-GAAP adjustments						27,497						17,162
Net income on a non-GAAP basis						$	1,951,662					$	1,635,445

*			Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.

Diluted Net Income Per Share Reconciliation						Three Months Ended
						December 31, 2025						December 31, 2024
(in thousands, except per share data)						(unaudited)
Diluted net income per share on a GAAP basis						$	1.42					$	1.24
Stock-based compensation expense						0.41						0.39
Amortization of acquired intangibles						0.11						0.10
Acquisition and integration-related costs						0.18						0.08
Restructuring						0.01						—
Non-qualified deferred compensation expenses						0.01						—
Special charges						—						0.01
Loss related to contingent liability*						—						0.03
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition						0.04						—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets						(0.18)						0.05
Income tax effect of non-GAAP adjustments						(0.01)						(0.02)
Diluted net income per share on a non-GAAP basis						$	1.99					$	1.88
Shares used in calculation of diluted net income per share						272,932						274,292

*			Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.

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Diluted Net Income Per Share Reconciliation						Years Ended
						December 31, 2025						December 31, 2024
(in thousands, except per share data)						(unaudited)
Diluted net income per share on a GAAP basis						$	4.06					$	3.85
Stock-based compensation expense						1.67						1.43
Amortization of acquired intangibles						0.38						0.33
Acquisition and integration-related costs						0.49						0.35
Restructuring						0.11						0.09
Non-qualified deferred compensation expenses						0.05						0.04
Special charges						0.01						0.01
Loss related to contingent liability*						0.47						0.03
Other income or expense related to foreign currency forward exchange contract associated with a pending acquisition						0.11						—
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets						(0.31)						(0.22)
Income tax effect of non-GAAP adjustments						0.10						0.06
Diluted net income per share on a non-GAAP basis						$	7.14					$	5.97
Shares used in calculation of diluted net income per share						273,312						273,833

*			Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.

For more information, please contact:

Cadence Investor Relations

408-944-7100

investor_relations@cadence.com

Cadence Newsroom

408-944-7039

newsroom@cadence.com

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Cadence Design Systems, Inc.

Condensed Consolidated Balance Sheets

December 31, 2025 and December 31, 2024

(In thousands)

(Unaudited)

 

						December 31, 2025						December 31, 2024
Current assets:
Cash and cash equivalents						$	3,001,317					$	2,644,030
Receivables, net						944,939						680,460
Inventories						303,545						257,711
Prepaid expenses and other						419,872						433,878
Total current assets						4,669,673						4,016,079
Property, plant and equipment, net						517,004						458,200
Goodwill						2,749,143						2,378,671
Acquired intangibles, net						718,223						594,734
Deferred taxes						917,733						982,057
Other assets						581,372						544,741
Total assets						$	10,153,148					$	8,974,482
Current liabilities:
Accounts payable and accrued liabilities						$	856,856					$	632,692
Current portion of deferred revenue						778,435						737,413
Total current liabilities						1,635,291						1,370,105
Long-term liabilities:
Long-term portion of deferred revenue						155,997						115,168
Long-term debt						2,480,150						2,476,183
Other long-term liabilities						407,529						339,448
Total long-term liabilities						3,043,676						2,930,799
Stockholders’ equity						5,474,181						4,673,578
Total liabilities and stockholders’ equity						$	10,153,148					$	8,974,482

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Cadence Design Systems, Inc.

Condensed Consolidated Income Statements

For the Three Months and Years Ended December 31, 2025 and December 31, 2024

(In thousands, except per share amounts)

(Unaudited)

 

						Three Months Ended												Years Ended
						December 31, 2025						December 31, 2024						December 31, 2025						December 31, 2024
Revenue:
Product and maintenance						$	1,332,526					$	1,239,287					$	4,821,589					$	4,213,509
Services						107,588						116,694						475,170						427,755
Total revenue						1,440,114						1,355,981						5,296,759						4,641,264
Costs and expenses:
Cost of product and maintenance						144,001						157,249						518,673						436,600
Cost of services						44,753						62,742						203,576						210,902
Marketing and sales						206,778						200,406						802,633						757,483
Research and development						464,582						392,026						1,768,772						1,549,093
General and administrative						103,225						70,228						313,387						273,961
Amortization of acquired intangibles						11,578						9,153						39,937						30,375
Loss related to contingent liability						—						8,322						128,545						8,322
Restructuring						1,862						(1,020)						29,194						23,765
Total costs and expenses						976,779						899,106						3,804,717						3,290,501
Income from operations						463,335						456,875						1,492,042						1,350,763
Interest expense						(29,440)						(29,907)						(116,541)						(75,999)
Other income, net						59,066						9,684						146,542						121,055
Income before provision for income taxes						492,961						436,652						1,522,043						1,395,819
Provision for income taxes						104,825						96,442						413,155						340,335
Net income						$	388,136					$	340,210					$	1,108,888					$	1,055,484
Net income per share - basic						$	1.43					$	1.25					$	4.09					$	3.89
Net income per share - diluted						$	1.42					$	1.24					$	4.06					$	3.85
Weighted average common shares outstanding - basic						270,924						272,069						271,333						271,212
Weighted average common shares outstanding - diluted						272,932						274,292						273,312						273,833

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Cadence Design Systems, Inc.

Condensed Consolidated Statements of Cash Flows

For the Years Ended December 31, 2025 and December 31, 2024

(In thousands)

(Unaudited) 

			Years Ended
			December 31, 2025						December 31, 2024
Cash and cash equivalents at beginning of year			$	2,644,030					$	1,008,152
Cash flows from operating activities:
Net income			1,108,888						1,055,484
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			227,828						196,935
Stock-based compensation			455,175						391,219
Gain on divestitures and investments, net			(69,089)						(49,593)
Deferred income taxes			66,048						(128,737)
ROU asset amortization and change in operating lease liabilities			6,016						(1,920)
Other non-cash items			7,166						6,138
Changes in operating assets and liabilities, net of effect of acquired businesses:
Receivables			(274,894)						(180,287)
Inventories			(91,029)						(82,771)
Prepaid expenses and other			43,382						(81,529)
Other assets			(18,569)						11,866
Accounts payable and accrued liabilities			184,897						33,676
Deferred revenue			69,411						66,478
Other long-term liabilities			13,551						23,592
Net cash provided by operating activities			1,728,781						1,260,551
Cash flows from investing activities:
Purchases of investments			(40,895)						(4,982)
Proceeds from the sale and maturity of investments			140,281						47,980
Proceeds from the sale of IP and other assets			11,500						—
Purchases of property, plant and equipment			(141,871)						(142,542)
Cash paid in business combinations, net of cash acquired			(429,538)						(737,574)
Net cash used for investing activities			(460,523)						(837,118)
Cash flows from financing activities:
Proceeds from issuance of debt			—						3,196,595
Payments of debt			—						(1,350,000)
Payments of debt issuance costs			—						(23,828)
Proceeds from issuance of common stock			145,901						204,237
Stock received for payment of employee taxes on vesting of restricted stock			(169,842)						(237,737)
Payments for repurchases of common stock			(925,034)						(550,026)
Net cash provided by (used for) financing activities			(948,975)						1,239,241
Effect of exchange rate changes on cash and cash equivalents			38,004						(26,796)
Increase in cash and cash equivalents			357,287						1,635,878
Cash and cash equivalents at end of year			$	3,001,317					$	2,644,030

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Cadence Design Systems, Inc.

(Unaudited)

Revenue Mix by Geography (% of Total Revenue)

 

			2024																														2025
GEOGRAPHY			Q1						Q2						Q3						Q4						Year						Q1						Q2						Q3						Q4						Year
Americas			46		%				49		%				50		%				49		%				49		%				48		%				49		%				43		%				47		%				47		%
China			12		%				12		%				13		%				13		%				12		%				11		%				9		%				18		%				12		%				13		%
Other Asia			20		%				19		%				17		%				17		%				18		%				19		%				19		%				18		%				20		%				19		%
Europe, Middle East and Africa			17		%				14		%				14		%				15		%				15		%				16		%				16		%				14		%				14		%				15		%
Japan			5		%				6		%				6		%				6		%				6		%				6		%				7		%				7		%				7		%				6		%
Total			100		%				100		%				100		%				100		%				100		%				100		%				100		%				100		%				100		%				100		%

Revenue Mix by Product Category (% of Total Revenue)

 

			2024																														2025
PRODUCT CATEGORY			Q1						Q2						Q3						Q4						Year						Q1						Q2						Q3						Q4						Year
Core EDA			76		%				73		%				70		%				68		%				71		%				71		%				71		%				71		%				69		%				70		%
Semiconductor IP			12		%				13		%				14		%				13		%				13		%				14		%				13		%				14		%				15		%				14		%
System Design and Analysis			12		%				14		%				16		%				19		%				16		%				15		%				16		%				15		%				16		%				16		%
Total			100		%				100		%				100		%				100		%				100		%				100		%				100		%				100		%				100		%				100		%

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Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Operating Margin

As of February 17, 2026

(Unaudited)

 

						Three Months Ending March 31, 2026						Year Ending December 31, 2026
						Forecast						Forecast
GAAP operating margin as a percent of total revenue						30% - 31%						31.75% - 32.75%
Reconciling items to non-GAAP operating margin as a percent of total revenue:
Stock-based compensation expense						10%						9%
Amortization of acquired intangibles						2%						2%
Acquisition and integration-related costs						2%						2%
Non-GAAP operating margin as a percent of total revenue†						44% - 45%						44.75% - 45.75%

†			The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.

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Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share

As of February 17, 2026

(Unaudited)

 

Three Months Ending March 31, 2026

Year Ending December 31, 2026

Forecast

Forecast

Diluted net income per share on a GAAP basis

$1.16 to $1.22

$4.95 to $5.05

Stock-based compensation expense

0.50

2.04

Amortization of acquired intangibles

0.12

0.46

Acquisition and integration-related costs

0.11

0.36

Income tax effect of non-GAAP adjustments

—

0.24

Diluted net income per share on a non-GAAP basis†

$1.89 to $1.95

$8.05 to $8.15

†			The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.

Cadence Design Systems, Inc.

Impact of Non-GAAP Adjustments on Forward Looking Net Income

As of February 17, 2026

(Unaudited)

 

Three Months Ending March 31, 2026

Year Ending December 31, 2026

($ in millions)

Forecast

Forecast

Net income on a GAAP basis

$317 to $333

$1,355 to $1,382

Stock-based compensation expense

137

557

Amortization of acquired intangibles

32

125

Acquisition and integration-related costs

31

100

Income tax effect of non-GAAP adjustments

1

66

Net income on a non-GAAP basis†

$518 to $534

$2,203 to $2,230

†			The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.