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Cadence Design Systems showed little relationship between MD&A tone and quarterly net income.
Does not remain notable after adjusting for hundreds of tests. Why?
The analysis measures a same-filing relationship, not a forecast. Limitations
Each dot represents one 10-Q filing. Points farther right have more positive MD&A tone. Points higher on the chart had stronger year-over-year net income growth, after extreme percent changes are capped. Upper-right and lower-left points indicate tone and earnings moving in the same direction. How to read this chart
Tone and earnings moved in the same direction in all 4 comparable quarters.
4 / 4 direction agreement
How is agreement calculated?| Spearman ρ (exact) | 0.187 (p=0.523) |
|---|---|
| Pearson r | 0.091 (p=0.757) |
| 95% CI (Pearson) | [-0.46, 0.59] |
| FDR q | 0.861 |
| Sample size (n) | 14 · More established sample |
| Agreement | 4 / 4 (4 / 4) |
Secondary to net income because revenue concepts are less comparable across some industries.
Annual samples are shorter and are not mixed into the default quarterly board.
Tone shown to three decimals so small nonzero values stay visible.
| Date | Form | Tone | Net income YoY | Revenue YoY |
|---|---|---|---|---|
| Jul 29, 2026 | 10-Q | +0.032 | n/a | n/a |
| May 1, 2026 | 10-Q | +0.037 | +22.7% | +18.7% |
| Oct 29, 2025 | 10-Q | +0.071 | +20.6% | +10.1% |
| Jul 30, 2025 | 10-Q | +0.038 | -30.3% | +20.2% |
| Apr 30, 2025 | 10-Q | +0.066 | +10.5% | +23.1% |
| Oct 30, 2024 | 10-Q | +0.045 | -6.4% | +18.8% |
| Jul 24, 2024 | 10-Q | +0.043 | +3.8% | +8.6% |
| Apr 24, 2024 | 10-Q | +0.021 | +2.4% | -1.2% |
| Oct 23, 2023 | 10-Q | +0.044 | +36.5% | +13.4% |
| Jul 24, 2023 | 10-Q | +0.049 | +18.3% | +13.9% |
| Apr 24, 2023 | 10-Q | +0.015 | +2.7% | +13.3% |
| Oct 24, 2022 | 10-Q | +0.084 | +5.7% | +20.2% |
| Jul 25, 2022 | 10-Q | +0.051 | +19.9% | +17.7% |
| Apr 25, 2022 | 10-Q | +0.025 | +25.7% | +22.5% |
| Oct 25, 2021 | 10-Q | -0.021 | +9.1% | +12.6% |
| Date | Form | Tone | Net income YoY | Revenue YoY |
|---|---|---|---|---|
| Feb 19, 2026 | 10-K | +0.040 | +5.1% | +14.1% |
| Feb 21, 2025 | 10-K | -0.192 | +1.4% | +13.5% |
| Feb 14, 2024 | 10-K | -0.145 | +22.6% | +14.8% |
| Feb 13, 2023 | 10-K | -0.127 | +22.0% | +19.2% |
| Feb 22, 2022 | 10-K | -0.126 | +17.8% | +11.4% |