Research
The quarter in one line: Cadence beat on both lines (non-GAAP EPS $2.11 vs $2.05, revenue $1,633M vs $1,613M), lifted full-year guidance to 21% revenue growth, and took backlog to a record $8.2B — the exact raise-and-beat yesterday's preview said the multiple required.
Research
The setup in one line: Cadence raised full-year guidance to 19% revenue growth in July on a record $8.1B backlog — and tonight's consensus ($2.05 EPS on $1,613M) sits almost exactly on the midpoint of the guidance Cadence itself gave for this quarter.
Research
Four takeaways: Growth keeps slowing at the top line — revenue grew 11.85% YoY, solid but no longer spectacular. Margins did the heavy lifting — operating margin expanded 641 bps YoY. The cash machine is real — $2.88B of free cash flow funded a $4.797B buyback in a single quarter.