Cadence Design Systems Reports Strong Q4 Earnings

The chip design software company exceeded Wall Street expectations for revenue and profit in the fourth quarter.

Published on Feb. 19, 2026

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Cadence Design Systems Inc., a leading provider of hardware and software products for validating chip designs, reported strong fourth-quarter financial results that exceeded Wall Street expectations. The company reported a profit of $388.1 million, or $1.42 per share, and revenue of $1.44 billion for the quarter.

Why it matters

Cadence's robust performance in Q4 reflects the continued demand for its chip design validation tools and software as semiconductor companies ramp up production to meet the growing need for advanced chips across various industries, including consumer electronics, data centers, and automotive.

The details

Cadence's adjusted earnings per share came in at $1.99, beating the average analyst estimate of $1.90 per share. The company's revenue also topped Street forecasts, coming in at $1.44 billion compared to the expected $1.42 billion. For the current quarter ending in March, Cadence expects earnings per share to range from $1.89 to $1.95, and for the full year, it expects earnings between $8.05 and $8.15 per share with revenue ranging from $5.9 billion to $6 billion.

  • Cadence reported its Q4 2026 financial results on February 17, 2026.
  • The company provided guidance for Q1 2027 and the full fiscal year 2027.

The players

Cadence Design Systems Inc.

A leading provider of hardware and software products for validating chip designs, serving customers in the consumer electronics, data center, and automotive industries.

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What’s next

Investors will be closely watching Cadence's performance in the coming quarters to see if the company can sustain its strong momentum in the chip design software market.

The takeaway

Cadence's robust Q4 earnings demonstrate the continued demand for advanced chip design validation tools as semiconductor companies work to meet the growing need for cutting-edge chips across various industries. The company's solid financial results and optimistic guidance suggest it is well-positioned to capitalize on the ongoing semiconductor industry growth.