Silvaco Q3 adjusted net income misses estimates on EDA weakness

What happened

Silvaco reported third-quarter revenue down 13% year over year, while adjusted earnings per share and adjusted net income missed analyst expectations. EDA revenue fell 56%, despite growth in TCAD and SIP. The company forecast fourth-quarter revenue of $22.0, plus or minus 10%, and 17% revenue growth in 2026.

Confirmed

Global impact / market context

The sharp EDA decline points to weaker sales in one part of Silvaco’s design-software business, potentially limiting revenue even as TCAD and SIP grow. The fourth-quarter forecast sets a near-term test: stronger bookings and revenue would help show whether operational changes and product focus can offset that weakness.

Analyst inference

The results were mixed: quarterly revenue declined, adjusted earnings missed estimates, and EDA sales weakened, while TCAD and SIP expanded. Management expects a record fourth quarter and 2026 growth, but those forecasts are not yet results; execution will determine whether growth offsets the recent shortfall.

Analyst inference

What to watch

1. Compare fourth-quarter revenue with the company’s $22.0 forecast, allowing a 10% range either way; a shortfall could prolong pressure from the reported annual revenue decline. Analyst inference
2. Check whether bookings reach the fourth-quarter forecast of $21.0, with a 10% range either way; bookings are orders received and may signal future revenue before sales are completed. Analyst inference
3. Watch whether EDA revenue stabilizes and TCAD and SIP growth continues, since the reported EDA decline could offset gains in those businesses and weigh on total revenue. Analyst inference

Evidence

• Original source link unavailable