Cadence Design Systems Inc (NASDAQ:CDNS) reported better-than-expected second-quarter financial results and raised its FY25 adjusted EPS and revenue guidance on Monday.
Cadence Design Systems reported second-quarter revenue of $1.28 billion, beating analyst estimates of $1.26 billion. The company reported second-quarter adjusted earnings of $1.65 per share, beating estimates of $1.58 per share, according to Benzinga Pro.
Cadence Design Systems raised its 2025 revenue outlook to 13% year-over-year growth. The company now expects full-year revenue between $5.21 billion and $5.27 billion versus estimates of $5.19 billion.
Cadence also raised its full-year adjusted earnings guidance from a range of $6.73 to $6.83 per share to a new range of $6.85 to $6.95 per share versus estimates of $6.79 per share. The company expects third-quarter adjusted earnings to be in between $1.75 and $1.81 per share versus estimates of $1.72 per share.
"The strength and breadth of our products are enabling us to lead through the accelerating waves of the AI Supercycle, from AI infrastructure build-out, to physical AI in autonomous systems, to the emerging frontier of science AI," said Anirudh Devgan, president and CEO of Cadence Design Systems.
Cadence Design shares gained 8.2% to trade at $361.21 on Tuesday.
These analysts made changes to their price targets on Cadence Design following earnings announcement.
- Needham analyst Charles Shi maintained Cadence Design Systems with a Buy and raised the price target from $325 to $390.
- Mizuho analyst Siti Panigrahi maintained the stock with an Outperform rating and raised the price target from $360 to $375.
- Piper Sandler analyst Clarke Jeffries downgraded the stock from Overweight to Neutral and raised the price target from $328 to $355.
- Rosenblatt analyst Blair Abernethy maintained Cadence Design with a Neutral and raised the price target from $300 to $320.
- Stifel analyst Ruben Roy maintained the stock with a Buy and raised the price target from $350 to $395.
- Keybanc analyst Jason Celino maintained Cadence Design Systems with an Overweight rating and raised the price target from $358 to $405.
- Wells Fargo analyst Joe Quatrochi maintained the stock with an Overweight and raised the price target from $365 to $405.
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