BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.

BlackBerry Limited

Apple's Headset Strategy and Tesla's EV Sales Windfall

Shares of BlackBerry Limited (BB) jumped 8.8% after the company reported second-quarter 2025 earnings of $$0.04 per share, beating the Zacks Consensus Estimate of $0.01 per share.
Microsoft Corporation’s (MSFT) shares fell 0.61% on the broader tech decline.
Shares of CarMax, Inc. (KMX) plummeted 20.1% after the company reported second-quarter 2025 earnings of $0.64 per share, missing the Zacks Consensus Estimate of $1.03 per share.
TD SYNNEX Corporation’s (SNX) shares gained 6.2% after the company reported third-quarter fiscal 2025 earnings of $3.58 per share, surpassing the Zacks Consensus Estimate of $3.02 per share.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for Sep 26, 2025

(RTTNews) - BlackBerry Limited (BB), Thursday reported financial results for the second quarter, revealing strong profitability during the period backed by reduced operating expenses and revenue growth.
For the three months ended August 31, 2025, net earnings amounted to $13.3 million or $0.02 per share compared with a loss of $19.7 million or $0.03 per share in the previous year.
On adjusted basis, earnings stood at $24.2 million compared with a loss of $2.6 million in the prior year.
On average, analysts expected earnings of $0.01 per share during the same quarter.
Revenue increased to $129.6 million from last year's $126.2 million.
Looking ahead, the Canada-based company expects adjusted basic earnings of $0.02 - $0.04 per share for the third quarter, and $0.11 - $0.15 per share for the fiscal year 2026.
The company sees total revenue of $132 - $140 million for the third quarter, and $519 - $541 million for the full year 2026.
Meanwhile, analysts, on average, estimate revenue of $138.04 million for the third quarter, and $519.74 million for the fiscal year 2026.
Currently, BlackBerry's stock is trading at $4.32, up 0.81 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BlackBerry Swings To Profit In Q2; Expects Q3, FY26 Revenue Within View

The following companies are expected to report earnings prior to market open on 09/25/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Accenture plc (ACN)is reporting for the quarter ending August 31, 2025. The information technology services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.98. This value represents a 6.81% increase compared to the same quarter last year. ACN missed the consensus earnings per share in the 1st calendar quarter of 2025 by -0.7%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for ACN is 18.28 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Jabil Inc. (JBL)is reporting for the quarter ending August 31, 2025. The electrical company's consensus earnings per share forecast from the 3 analysts that follow the stock is $2.81. This value represents a 30.70% increase compared to the same quarter last year. In the past year JBL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.66%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for JBL is 27.04 vs. an industry ratio of 35.60.
TD SYNNEX Corporation (SNX)is reporting for the quarter ending August 31, 2025. The electrical instrument company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.89. This value represents a 6.25% increase compared to the same quarter last year. SNX missed the consensus earnings per share in the 1st calendar quarter of 2025 by -1.14%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for SNX is 13.17 vs. an industry ratio of 0.90, implying that they will have a higher earnings growth than their competitors in the same industry.
CarMax Inc (KMX)is reporting for the quarter ending August 31, 2025. The wholesale retail company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.03. This value represents a 21.18% increase compared to the same quarter last year. KMX missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -1.16%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for KMX is 14.81 vs. an industry ratio of 23.60.
BlackBerry Limited (BB)is reporting for the quarter ending August 31, 2025. The internet software company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.00. This value represents a 100.00% increase compared to the same quarter last year. In the past year BB has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 200%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BB is 71.17 vs. an industry ratio of 24.60, implying that they will have a higher earnings growth than their competitors in the same industry.
LuxExperience B.V. (LUXE)is reporting for the quarter ending June 30, 2025. The textile company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.18. This value represents a 350.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for LUXE is -12.89 vs. an industry ratio of 23.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Earnings Report for September 25, 2025 : ACN, JBL, SNX, KMX, BB, LUXE

BlackBerry Limited BB is set to report second-quarter fiscal 2026 results on Sept. 25.
The Zacks Consensus Estimate for the bottom line is pinned at 1 cent and has remained unchanged in the past 60 days.
BB expects second-quarter fiscal 2026 revenues to be in the $115-$125 million range. The consensus estimate is pinned at $125 million, down 13.8% year over year.
BB has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 116.67%.
What Our Model Predicts for BB
Our proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
BB has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Focus on Ahead of BB’s Q2 Earnings
BB’s performance is expected to have benefited from strength in the QNX segment (former IoT division), particularly solid demand for its solutions across the advanced driver assistance systems market and digital cockpit domains. Growing momentum seen in QNX Cabin among auto OEMs further cushions its prospects.
BlackBerry is actively expanding into the general embedded markets (GEM). Increasing traction for its next-generation version of QNX operating system SDP 8.0 (across automotive, rail medical, industrial and robotic verticals) is likely to have driven QNX revenues in the to be reported quarter. In the last reported quarter, BB noted that GEM now makes up 43% of the total SDP 8.0 pipeline, which grew 55% in the quarter.
On the lastearnings call management highlighted that it sees GEM as a potentially larger opportunity than automotive, with the added benefit of diversifying away from cyclical exposures in the auto industry. Also, BB is working on increasing its share in the auto space by offering pre-integrated middleware as part of a vehicle platform. This effort is supported by collaborations with Vector and TTTECH, announced earlier in 2025.
It launched the QNX Hypervisor 8.0 in the fiscal first quarter. This solution enables multiple guest OS to run alongside safety-critical QNX workloads on the same chip. The solution is likely to gain traction amid increasing autonomous vehicle production. This bodes well for BB.
Image Source: Zacks Investment Research
For the fiscal second quarter, management has guided QNX revenue to be $55-$60 million and adjusted EBITDA to $10-$13 million. Amid macro uncertainty, softness in auto production volumes and elongated buying cycles due to supply chain concerns and tariff-related disruptions remain concerns. Fluctuations in production volumes could negatively impact royalty revenues in the fiscal second quarter.
Moving on to the Secure Communications division, the performance for this segment is likely to have been driven by healthy uptake of the Secusmart, UEM endpoint management and AtHoc critical event management solutions. On the lastearnings call BlackBerry noted that AtHoc secured FedRAMP High authorization, significantly strengthening its competitive moat in the U.S. federal market as well as Germany and Canada.
Secusmart witnessed solid performance in the last reported quarter, mainly driven by large deals with the German government. Apart from the core German market, the global pipeline is growing, especially in defense, as governments seek more secure alternatives to consumer-grade platforms.
Despite longer sales cycles, BlackBerry remains confident in closing more Secusmart deals this year. With a strong pipeline ahead, it has raised full-year revenue guidance by $4 million to $234-$244 million and adjusted EBITDA to $37-$47 million (16–19%). For the second quarter, BlackBerry expects revenues to be in the band of $54-$59 million and adjusted EBITDA of $3-$6 million.
Image Source: Zacks Investment Research
BlackBerry has guided to operating cash usage in the range of $5 million to $15 million for the fiscal second quarter, primarily due to tax payments.
Macro uncertainty and forex headwinds aside, BlackBerry also faces increasing competitive pressure in both QNX and cybersecurity businesses.
BB Stock vs. Industry
BB’s shares have declined 5.2% in the past six months, significantly underperforming the Internet Software industry’s growth of 25%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered gains of 30.6% and 17.2%, respectively.
Image Source: Zacks Investment Research
Blackberry has underperformed its peers (within the broader cybersecurity space), such as CrowdStrike Holdings, Inc CRWD and SentinelOne S. CrowdStrike is up 34.8% while SentinelOne and Fortinet FTNT have registered declines of 5.1% and 15.7%. respectively over the same time frame.
BB Trades at a Discount
BB stock is trading at a discount, with a forward 12-month price/sales multiple of 4.54X compared with the Internet Software industry’s 6.01X.
Image Source: Zacks Investment Research
Fortinet, SentinelOne and CrowdStrike are trading at multiples of 8.4X, 5.63X and 23.22X, respectively, compared with the Security industry’s multiple of 13.36X.
BB Investment Considerations
Strength in QNX and expanding traction in GEMs provide long-term growth visibility. Secure Communications momentum, especially with government contracts, adds stability despite elongated sales cycles. The company’s impressive earnings surprise history and improving fundamentals bode well. However, auto market cyclicality, macro headwinds, and rising competition in cybersecurity weigh on near-term performance.
For now, holding BB stock remains the most prudent strategy, allowing investors to benefit from its growth prospects while navigating external risks. New investors could wait for a more favorable entry point.
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Should You Hold or Sell BlackBerry Stock Before Q2 Earnings Release?

The following companies are expected to report earnings prior to market open on 08/28/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Toronto Dominion Bank (TD)is reporting for the quarter ending July 31, 2025. The bank (foreign) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.46. This value represents a 2.67% decrease compared to the same quarter last year. TD missed the consensus earnings per share in the 4th calendar quarter of 2024 by -1.56%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for TD is 13.04 vs. an industry ratio of 11.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Canadian Imperial Bank of Commerce (CM)is reporting for the quarter ending July 31, 2025. The bank (foreign) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.43. This value represents a 1.42% increase compared to the same quarter last year. In the past year CM has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.46%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for CM is 12.47 vs. an industry ratio of 11.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Dollar General Corporation (DG)is reporting for the quarter ending July 31, 2025. The discount retail company's consensus earnings per share forecast from the 22 analysts that follow the stock is $1.56. This value represents a 8.24% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DG is 19.15 vs. an industry ratio of 28.10.
Burlington Stores, Inc. (BURL)is reporting for the quarter ending July 31, 2025. The discount retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.27. This value represents a 5.83% increase compared to the same quarter last year. In the past year BURL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 12.68%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BURL is 30.43 vs. an industry ratio of 28.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Hormel Foods Corporation (HRL)is reporting for the quarter ending July 31, 2025. The meat product company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.41. This value represents a 10.81% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for HRL is 17.98 vs. an industry ratio of 11.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Best Buy Co., Inc. (BBY)is reporting for the quarter ending July 31, 2025. The retail company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.22. This value represents a 8.96% decrease compared to the same quarter last year. BBY missed the consensus earnings per share in the 4th calendar quarter of 2024 by -3.08%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BBY is 11.86 vs. an industry ratio of 11.90.
Dick's Sporting Goods Inc (DKS)is reporting for the quarter ending July 31, 2025. The retail company's consensus earnings per share forecast from the 13 analysts that follow the stock is $4.29. This value represents a 1.83% decrease compared to the same quarter last year. In the past year DKS has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DKS is 15.78 vs. an industry ratio of 10.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Ollie's Bargain Outlet Holdings, Inc. (OLLI)is reporting for the quarter ending July 31, 2025. The consumer company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.91. This value represents a 16.67% increase compared to the same quarter last year. OLLI missed the consensus earnings per share in the 1st calendar quarter of 2025 by -0.83%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for OLLI is 34.90 vs. an industry ratio of 40.50.
Bath & Body Works, Inc. (BBWI)is reporting for the quarter ending July 31, 2025. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.37. This value represents a no change for the same quarter last year. In the past year BBWI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 4.26%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BBWI is 9.06 vs. an industry ratio of 10.50.
Victorias Secret & Co. (VSCO)is reporting for the quarter ending July 31, 2025. The retail (shoe) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.13. This value represents a 67.50% decrease compared to the same quarter last year. In the past year VSCO has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for VSCO is 10.94 vs. an industry ratio of 21.10.
Lucky Strike Entertainment Corporation (LUCK)is reporting for the quarter ending June 30, 2025. The leisure (recreational) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-0.07. This value represents a 16.67% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for LUCK is 52.80 vs. an industry ratio of -18.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Build-A-Bear Workshop, Inc. (BBW)is reporting for the quarter ending July 31, 2025. The retail company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.67. This value represents a 4.69% increase compared to the same quarter last year. BBW missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -1.54%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BBW is 14.77 vs. an industry ratio of 10.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Earnings Report for August 28, 2025 : TD, CM, DG, BURL, HRL, BBY, DKS, OLLI, BBWI, VSCO, LUCK, BBW

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Expanded Tech Sector ETF (Symbol: IGM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $130.49 per unit.
With IGM trading at a recent price near $118.60 per unit, that means that analysts see 10.03% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IGM's underlying holdings with notable upside to their analyst target prices are NextNav Inc (Symbol: NN), BlackBerry Ltd (Symbol: BB), and Asana Inc (Symbol: ASAN). Although NN has traded at a recent price of $14.99/share, the average analyst target is 33.42% higher at $20.00/share. Similarly, BB has 24.39% upside from the recent share price of $3.69 if the average analyst target price of $4.59/share is reached, and analysts on average are expecting ASAN to reach a target price of $16.92/share, which is 22.76% above the recent price of $13.78. Below is a twelve month price history chart comparing the stock performance of NN, BB, and ASAN:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
iShares Expanded Tech Sector ETF
IGM
$118.60
$130.49
10.03%
NextNav Inc
NN
$14.99
$20.00
33.42%
BlackBerry Ltd
BB
$3.69
$4.59
24.39%
Asana Inc
ASAN
$13.78
$16.92
22.76%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Implied IGM Analyst Target Price: $130

Cadence Design Systems CDNS reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.65, which beat the Zacks Consensus Estimate by 5.1%. The bottom line increased 28.9% year over year, exceeding management’s guided range of $1.55-$1.61.
Revenues of $1.275 billion beat the Zacks Consensus Estimate by 1.3% and increased 20.3% year over year. The figure beat the management’s guided range of $1.25-$1.27 billion. The top line was driven by broad-based demand for its solutions, especially the AI-driven portfolio, amid robust design activity. CDNS added that its efforts to unify EDA, IP, 3D-IC, PCB and system analysis are aiding in capitalizing on the opportunity presented by the AI super cycle. Also, customer R&D investments, especially in AI, remain robust.
CDNS also settled with the Department of Justice and BIS, related to previously disclosed investigations into certain China sales (worth $45 million) from 2015 to 2021. The company will have to shell out approximately $141 million as a settlement in the third quarter. With the enactment of the One Big Beautiful Bill Act, management expects the company’s U.S. federal tax payments for the remainder of fiscal 2025 to decrease by approximately $140 million.
CDNS ended the quarter with a backlog of $6.4 billion and current-remaining performance obligations of $3.1 billion.
Driven by strong results and a strong pipeline, management upgraded its outlook for 2025. Revenues for 2025 are now estimated to be in the range of $5.21-$5.27 billion compared with $5.15-$5.23 billion guided earlier. The Zacks Consensus Estimate is currently pegged at $5.20 billion, which indicates growth of 12% from the year-ago levels. Non-GAAP EPS for 2025 is expected to be between $6.85 and $6.95 compared with $6.73-$6.83 guided earlier. The Zacks Consensus Estimate is pegged at $6.77 per share, which implies a rise of 13.4% from the prior-year actuals.
Image Source: Zacks Investment Research
CDNS stock jumped 6.6% in the after-market trading yesterday, while pre-market shares are up 8.5%. It has gained 31.9% compared with the Computer - Software industry’s growth of 24.1% in the past year.
CDNS’ Segmental Performance
Product & Maintenance revenues (91.8% of total revenues) of $1.17 billion rose 21.7% year over year. Services revenues (8.2%) of $105 million increased 5% year over year. Our estimate for revenues from Product & Maintenance and Service segments was $1.144 billion and $113.5 million, respectively. Geographically, the Americas, China, Other Asia, Europe, the Middle East and Africa, and Japan contributed 49%, 9%, 19%, 16% and 7%, respectively, to total revenues in the reported quarter.
Product-wise, Core EDA, Intellectual Property (IP) and Systems Design & Analysis accounted for 71%, 13% and 16% of total revenues, respectively.
The System Design & Analysis business benefited from the adoption of 3DIC technologies and the AI-driven Advanced Substrate Router. Higher demand for BETA CAE solutions in the automotive space and increased demand for its Allegro X PCB design wins with Aerospace and Defense, hyperscale and EV customers were additional tailwinds.
CDNS’ Core EDA business, which includes Custom IC, Digital IC and Functional Verification, experienced 16% year-over-year revenue growth in the second quarter. The main driver was the continued demand for new hardware systems, especially among AI, automotive and HPC clients, along with the rapid adoption of digital full-flow solutions and the Spectre X circuit simulator. The verification software suite also continued to expand, adding 27 new logos during the quarter.
Cadence Design Systems, Inc. Price, Consensus and EPS Surprise
CDNS also unveiled Cerebrus AI Studio, which is an agentic AI multi-block and multi-user SoC design platform. It offers up to 20% PPA improvement, while speeding up chip delivery time by 5-10 times. It was endorsed by Samsung and ST Microelectronics at launch.
The IP business benefited owing to a broadening silicon solutions portfolio and increasing demand for solutions in AI, HPC, foundry ecosystem buildout and chiplet use cases, with revenues from the segment up 25% year over year in the second quarter.
CDNS’ Margin Performance
Total non-GAAP costs and expenses increased 14.8% year over year to $729 million.
Non-GAAP gross margin contracted 130 basis points (bps) to 87.2%. Non-GAAP operating margin expanded 270 bps on a year-over-year basis to 42.8%.
CDNS’ Balance Sheet & Cash Flow
As of June 30, 2025, CDNS had cash and cash equivalents of $2.823 billion compared with $2.778 billion as of March 31.
Long-term debt was $2.478 billion as of June 30, 2025, compared with $2.477 million as of March 31. CDNS issued $2.5 billion of senior notes at a weighted average interest rate of 4.44% in September 2024.
Cadence generated an operating cash flow of $378 million in the reported quarter compared with the prior quarter’s $487 million. Free cash flow was $334 million compared with $464 million in the previous quarter.
The company repurchased its shares worth $175 million in the second quarter. It expects to execute $200 million in repurchases in the third quarter.
CDNS Provides Q3 & FY25 Outlook
Non-GAAP operating margin for 2025 is forecasted to be in the range of 43.5% to 44.5% (previous view: 43.25% to 44.25%) compared with 42.5% reported in 2024. Also, operating cash flow is expected to be between $1.65 billion and $1.75 billion (earlier view: $1.6 billion and $1.7 billion). CDNS expects to utilize at least 50% of its free cash flow to repurchase shares in 2025.
For the third quarter of 2025, revenues are estimated to be in the $1.305-$1.335 billion band. The company reported sales of $1.215 billion in the year-ago quarter. The Zacks Consensus Estimate is currently pegged at $1.33 billion.
Non-GAAP EPS for the third quarter is anticipated to be between $1.75 and $1.81. CDNS reported an EPS of $1.64 in the year-ago quarter. The Zacks Consensus Estimate is currently pegged at $1.75 per share.
Non-GAAP operating margin is estimated to be between 45% and 46% in the third quarter.
CDNS’ Zacks Rank
Cadence currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Other Companies in the Same Space
BlackBerry Limited BB reported first-quarter fiscal 2026 non-GAAP EPS of 2 cents. The figure surpassed the company’s estimate of a loss of 1 cent per share to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents per share. The Zacks Consensus Estimate was pegged at breakeven. Quarterly total revenues of $121.7 million exceeded its guidance ($107-$115 million) but fell 1.4% year over year.
Over the past year, shares of BB have gained 59.6%.
Simulations Plus, Inc. SLP reported third-quarter fiscal 2025 adjusted earnings of 45 cents per share, which expanded 66.7% year over year. The figure also beat the Zacks Consensus Estimate of 26 cents per share. Quarterly revenues jumped 10% year over year to $20.4 million, driven by continued momentum across its software and services business segments, along with a $2.4 million boost from the Pro-ficiency acquisition.
Over the past year, shares of SLP have declined 66.1%.
SAP SE SAP reported second-quarter 2025 non-IFRS earnings of €1.50 ($1.70) per share, climbing 37% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.63 per share. Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues of €9.03 billion ($10.24 billion) on a non-IFRS basis, representing a 9% year-over-year increase (up 12% at constant currency). The Zacks Consensus estimate was pegged at $10.37 billion.
Shares of SAP have surged 36.6% in the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cadence Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y, Stock Up

Simulations Plus, Inc. (SLP) reported third-quarter fiscal 2025 adjusted earnings of 45 cents per share, which expanded 66.7% year over year. The figure also surpassed the Zacks Consensus Estimate of 26 cents per share.
Quarterly revenues jumped 10% year over year to $20.4 million, driven by continued momentum across its software and services business segments, along with a $2.4 million boost from the Pro-ficiency acquisition. In June 2024, SLP acquired Pro-ficiency to expand into clinical operations, leveraging its science, technology and predictive analytics to help clients reduce clinical trial failures. This deal doubled its total addressable market (TAM) and set up for strong growth, as better use of predictive tech is seen as key to improving drug development.
However, organic revenue fell 4%, mainly due to reduced QSP/QST software sales and a decline in its biosimulation services revenue. The Zacks Consensus Estimate for revenue was pegged at $19.5 million.
One of the most important developments during the quarter was the company’s strategic reorganization. Simulations Plus transitioned from a business unit structure to a functionally-driven operating model, completing a multi-year transformation aimed at streamlining operations, unlocking cross-team synergies and focusing resources on high-growth areas. This restructuring also involved adjusting staffing levels and revamping service capacity to better match current client needs, an important step toward scalability and operational efficiency.
Simulations Plus, Inc. Price, Consensus and EPS Surprise
Furthermore, SLP announced a $1 million investment in Nurocor, a cloud-based software company transforming the clinical development process for pharmaceutical companies. The investment is being made under the Simulations Plus Corporate Development Initiative, launched in 2024. This initiative targets early-stage technology companies with strong growth potential and disruptive capabilities within pharma and biotech.
The clinical trial technology and services sector was estimated at $25.7 billion in 2024, with a projected CAGR of 15.5% from 2025 to 2030. This growth is driven by the rising adoption of digital health technologies, increasing pressure to streamline trial processes and the need for faster and more efficient patient recruitment. With Nurocor's digital platform and SLP’s modeling and simulation capabilities, both companies are well-positioned to capture a meaningful share of this growing market.
Despite macroeconomic challenges affecting client behavior, the company remains committed to innovation. A major focus moving forward will be a suite of new AI-driven capabilities being integrated across its product lines. By incorporating AI into its core offerings, the company aims to differentiate itself in a competitive market and strengthen its leadership in model-informed drug development—a methodology increasingly adopted by regulators and pharmaceutical companies alike.
Following the announcement, SLP’s shares went up 3% in trading and closed the session at $17.47 on July 14, 2025. Shares of the company have lost 41.5% in the past six months against the Zacks Computer - Software industry's growth of 16.3%.
Image Source: Zacks Investment Research
SLP’s Quarter in Details
Fiscal third-quarter revenues from Software (62% of total quarterly revenues) rose 6% year over year to $12.6 million, led by continued adoption of its ADMET Predictor, with GastroPlus and MonolixSuite also contributing positively. However, the segment saw headwinds from declining QSP/QST biosimulation software usage. GastroPlus, MonolixSuite, ADMET Predictor, Pro-ficiency and QSP/QST products contributed 56%, 17%, 20%, 3% and 4%, respectively, to total software revenues. SLP added 18 new customers and had eight upsells in the fiscal quarter for MonolixSuite.
The renewal rate for commercial customers was 71% (based on accounts) and 84% (based on fees) compared with 86% and 93% in the prior-year quarter, respectively.
Services’ revenues (38%) improved 17% to $7.7 million, driven largely by Medical Communications services, despite other areas within the segment experiencing softness. These weaknesses were attributed to cautious spending, delayed projects and cancellations from BioPharma clients, reflecting broader macroeconomic uncertainty. Sales of Physiologically Based Pharmacokinetics and Quantitative Systems Pharmacology saw declines of 10% and 22% year over year, respectively.
SLP maintains a solid pipeline of service projects, though the pace of contractual commitments slowed in the third quarter. Additionally, some backlog work has been deferred to future periods. The company closed the quarter with a backlog of $20.7 million, up from $20.4 million in the previous quarter and $15.7 million a year ago.
SLP’s Operating Details
The gross margin in the quarter under review was 64% compared with 71.5% in the prior-year quarter. The Software segment’s gross margin was 80% compared with 88% a year ago. Services’ gross margin was 38%, down from 41%. The overall fall in gross margin was due to a $2 million rise in cost of revenues, with $1.1 million tied to software costs and $0.9 million to service costs.
Total operating expenses (49% of revenues) jumped 667% to $87.3 million. The rise was due to a one-time non-cash impairment charge of $77.2 million, a strategic decision to align the book value of assets with current market valuations.
Loss from operations was $74.2 million against income of $1.9 million a year ago. Adjusted EBITDA reached $7.4 million, equating to 37% of total revenue, up from 30% in the prior-year quarter.
SLP’s Liquidity
As of May 31, 2025, cash and short-term investments were $28.5 million compared with $21.5 million as of Feb. 28, 2024.
Cash flow from operations in the fiscal third quarter amounted to $8.14 million compared with $5.7 million a year ago.
SLP Cuts Fiscal 2025 Guidance
The Pro-ficiency training platform and Medical Communication services have been significantly affected by market challenges that delayed clinical trial initiations and reduced spending on commercialization, similar to the issues experienced in SLP’s biosimulation segment. As a result, the revenue outlook for these sectors has been lowered for fiscal 2025 and fiscal 2026.
SLP also faced a major client cancellation this quarter, linked to setbacks in the client’s drug programs, which reduced near-term revenue by approximately $2 million. Along with other challenges, this greatly affected quarterly results and will influence the fiscal fourth quarter and fiscal 2026. The weaker-than-expected services revenue also led to a downward revision of the full-year 2025 guidance.
For fiscal 2025, it now expects revenues to be between $76 million and $80 million, up 9-14% year over year. The prior view was $90-$93 million with an increase of 28-33%. The Pro-ficiency acquisition is now expected to contribute an additional $9-$12 million to revenues compared with $15-$18 million projected earlier. The company continues to expect the Software segment mix to be 55-60% of total revenues.
SLP now estimates adjusted earnings per share to be in the band of 93 cents to $1.06 and adjusted EBITDA margin between 23% and 27%. Earlier, it projected earnings per share to be between $1.07 and $1.20 and adjusted EBITDA margin between 31% and 33%.
SLP’s Zacks Rank
Recent Performances of Other Firms
BlackBerry Limited (BB) reported first quarter fiscal 2026 non-GAAP earnings per share (EPS) of 2 cents. The figure beat the company’s estimate of a loss of 1 cent to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents. The Zacks Consensus Estimate was pegged at breakeven.
Fastenal Company’s (FAST) second-quarter 2025 adjusted earnings and revenues came ahead of the Zacks Consensus Estimate and increased year over year. The company reported EPS of 29 cents, which beat the Zacks Consensus Estimate of 28 cents and grew 12.7% from the year-ago level of 25 cents per share.
Levi Strauss & Co. (LEVI) reported second-quarter fiscal 2025 results, wherein EPS and revenues beat the Zacks Consensus Estimate. Both metrics improved year over year. The company enters the second half of 2025 with the strength to transform into a denim lifestyle brand and top-class DTC retailer.
Shares of LEVI have risen 51.5% in the past three months.
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SLP's Q3 Earnings Top, Sales Up Y/Y, Stock Gains Despite Lowered View

Shares of BlackBerry (NYSE: BB) jumped this week, up 9% as of 1:22 p.m. ET on Friday. The rise comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq-100 gained 3.6% and 4.4%, respectively.
The company, which has reinvented itself as a software provider, released its Q1 2026 (ended May 31) financial results, beating consensus estimates for most metrics and setting rosy guidance.
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BlackBerry reports positive numbers
BlackBerry reported better-than-expected Q1 2026 results earlier this week. The company's first-quarter earnings per share (EPS) came in at $0.02, $0.02 over consensus estimates. While revenue declined 1.4% year over year (YOY), the $121.7 million in sales still topped estimates.
BlackBerry's QNX automotive software -- a sort of operating system for cars -- is seeing stronger-than-expected growth, up 4% YOY to $57.5 million. On the strength of its QNX sales and growth in its secure communications segment, the company raised its overall 2026 revenue forecast to between $508 million and $538 million.
In a statement, CEO Brian John J. Giamatteo said of the quarter, "Both our QNX and Secure Communications divisions continue to execute effectively against their strategies, beating both top line and profitability expectations."
BlackBerry is headed in the right direction
In the years since the company's "crackberries" dominated the smartphone market, the company has worked to reinvent itself, ditching device-making for software. Things look to be paying off as the company shrinks its net loss and approaches profitability. Still, there's a decent amount of hype built in, and its stock is too expensive at the moment for my taste.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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