EDA And IP Numbers Up Again, But Numbers Are More Nuanced

EDA and Semiconductor IP revenue increased by 10.3% in Q4 2025 to $5.466 billion, compared to $4.955 billion in the same period in 2024. CAE, the largest EDA category, saw a 9.4% rise to $2.083 billion in Q4. Non-reporting IP companies, led by Arm, experienced a significant 24.7% growth to $1.413 billion. However, the growth dynamics were more complex in Q4, with variations in IP business performance, particularly in China. Quarterly fluctuations were attributed to factors like trade restrictions and supply shortages impacting memory. Additionally, physical design revenue showed a decline of -2.6% in Q4.