Cadence Design Systems Inc. reported third‑quarter 2025 results that beat Wall Street expectations, posting non‑GAAP earnings per share of $1.93 versus the $1.79 consensus and revenue of $1.339 billion, up 10.2% year‑over‑year.
The company’s non‑GAAP operating margin improved to 47.6%, up from 44.8% in the same quarter a year earlier. GAAP diluted net income per share was $1.05.
Management raised its full‑year 2025 revenue outlook to a range of $5.262 billion to $5.292 billion, reflecting roughly 14% year‑over‑year growth, while lowering its fiscal 2025 GAAP EPS guidance to $3.80–$3.86 per share from the prior $3.97–$4.07 range.
Cadence highlighted a record backlog of $7.0 billion and announced that it completed the acquisition of Arm Artisan Foundation IP during the quarter. It also signed a definitive agreement to acquire Hexagon’s Design & Engineering business, expanding its structural analysis and multi‑body dynamics capabilities.
CEO Anirudh Devgan emphasized the company’s Intelligent System Design strategy, noting that AI‑driven tools are delivering productivity gains for customers and that the record backlog positions Cadence well for the remainder of the fiscal year.
Analysts have responded to the earnings beat by raising price targets for Cadence, reflecting confidence in the company’s continued growth trajectory and the expanding role of its AI‑enabled solutions in the semiconductor ecosystem.
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