SAN JOSE, CA – Cadence reported 13% growth in its system design and analysis business in fiscal 2025, reflecting sustained demand for advanced packaging and system-level simulation tools used in AI infrastructure and high-performance computing applications.

The system design and analysis unit, which includes PCB design and multiphysics simulation platforms, benefited from adoption of the company’s 3D-IC platform as chiplet architectures and heterogeneous integration move into production. Growing system complexity in AI servers, advanced mobile devices, and data center hardware continues to drive demand for signal integrity, power integrity and thermal analysis capabilities earlier in the design cycle.

For the fourth quarter, Cadence posted revenue of $1.4 billion, up from $1.3 billion in the same period last year. Full-year 2025 revenue reached $5.2 billion, an increase from $4.6 billion in 2024. 

The company closed the year with a record backlog of $7.8 billion, with $3.8 billion expected to be recognized over the next 12 months.

Looking ahead to fiscal 2026, Cadence expects revenue in the range of $5.9 billion to $6 billion and a non-GAAP operating margin between 44.7% and 45.7%. The outlook excludes the impact of the pending acquisition of Hexagon’s design and engineering business.

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