Filing Flows › Cadence Design Systems (CDNS) › Q3 2025
Cadence Design Systems (CDNS) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 29, 2025
Cadence Design Systems (CDNS) reported revenue of $1.3B for the third quarter 2025 (Q3 2025), +10% from a year earlier and +5% from the quarter before. Operating margin was 31.8%, net earnings $287M (21.4% of revenue).
Cadence Design Systems, Q3 2025: revenue $1.3B (+10% year over year), operating margin 31.8%, net earnings $287M, operating cash flow $311M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | +5% | +10% |
| Operating profit | $425M | +76% | +22% |
| Net earnings | $287M | +79% | +21% |
| Operating cash flow | $311M | -18% | -24% |
| Free cash flow | $277M | -17% | -28% |
What changed
Revenue was $1.3B in Q3 2025, up 10% year over year and up 5% from the previous quarter. Product and maintenance was the largest line at 90% of revenue. Product and maintenance added $0.11B year over year (up 10%), 87% of the total change.
Operating profit was $0.43B, a 31.8% margin (up 3.0 points year over year). Of the extra revenue versus a year earlier, 61% reached operating profit, above the 29% margin then. Total costs grew 6% against revenue growth of 10%. The fastest-growing cost line was Other operating costs (+12%). Net earnings were $0.29B, up 21% year over year. The effective tax rate was 26.9%.
Operating cash flow was $0.31B (down 24% year over year), 108% of net earnings. Non-cash charges added back $0.06B of depreciation and amortization and $0.12B of share-based compensation. Working capital and other items used $0.15B. Capital expenditures of $0.03B left free cash flow of $0.28B.
Questions
What was Cadence Design Systems' revenue in the third quarter 2025?
Cadence Design Systems (CDNS) reported revenue of $1.3B for the third quarter 2025 (Q3 2025), +10% from a year earlier and +5% from the quarter before.
Was Cadence Design Systems profitable in the third quarter 2025?
Operating profit was $425M (31.8% of revenue) and net earnings $287M.