Cadence reports first quarter 2025 financial results

Cadence reported strong first quarter 2025 results, with revenue rising 23% year-over-year to $1.242 billion and non-GAAP diluted earnings per share increasing 34% to $1.57. The company achieved a GAAP operating margin of 29.1% and a non-GAAP operating margin of 41.7%, driven by broad-based strength across all businesses, including 40% growth in semiconductor IP revenue and 16% growth in core EDA revenue. Management noted resilient customer demand, a strong backlog of $6.4 billion, and AI-driven product innovation as key contributors to its performance.

Looking ahead, Cadence raised its full-year 2025 guidance, expecting revenue between $5.15 billion and $5.23 billion and non-GAAP diluted EPS between $6.73 and $6.83. Recent highlights include an expanded partnership with NVIDIA and over 50% year-over-year revenue growth in system design and analysis. CEO Anirudh Devgan and CFO John Wall emphasized the company's robust operating model, resilient software business, and strong financial position during the earnings webcast.

Cadence Design Systems reported strong financial results for the fourth quarter and fiscal year 2024, exceeding revenue and earnings expectations. Fourth-quarter revenue reached $1.356 billion, up from $1.069 billion in the same period of 2023. GAAP operating margin improved to 33.7%, while non-GAAP operating margin rose to 46.0%. GAAP diluted earnings per share were $1.24, compared to $1.19 in Q4 2023, and non-GAAP diluted EPS increased to $1.88 from $1.38.

For the full year, revenue totaled $4.641 billion, reflecting growth from $4.090 billion in 2023. GAAP operating margin slightly declined to 29.1%, while non-GAAP operating margin improved to 42.5%. GAAP diluted EPS stood at $3.85, with non-GAAP diluted EPS increasing to $5.97. The company ended the year with a record backlog of $6.8 billion and current remaining performance obligations of $3.4 billion.

CEO Anirudh Devgan highlighted the company’s growth, particularly in AI-related opportunities, and CFO John Wall noted broad-based business strength. For 2025, Cadence forecasts revenue between $5.14 billion and $5.22 billion, with GAAP operating margin between 30.25% and 31.25% and non-GAAP operating margin between 43.25% and 44.25%. GAAP diluted EPS is expected to range from $4.19 to $4.29, while non-GAAP diluted EPS is projected at $6.65 to $6.75.