SAN JOSE – Cadence reported first quarter revenue of $186 million at its System Design and Analysis segment, up from $121 million in the year-ago period.

Segment revenue was up over 50% year-over-year, driven by higher demand for AI-based design optimization platforms integrated with physics-based simulation solutions. Overall revenue was $1.24 billion, versus $1.01 a year ago. GAAP operating margin rose to 29.1% from 24.8% in 2024. Non-GAAP operating margin was up 390 basis points to 41.7%.

At quarter-end, backlog was $6.4 billion.

“Cadence delivered excellent results for the first quarter of 2025 with robust ongoing customer demand for our innovative technologies driving 23% revenue growth and 34% non-GAAP EPS growth year-over-year,” said Anirudh Devgan, president and chief executive. “We haven't seen any change in customers' behavior at this time, as they continue investing in R&D for their next-gen designs. Our resilient software business model, strong backlog, and AI-driven product innovations, position us well in navigating today's dynamic macro environment.”

“Q1 was a strong quarter for Cadence, driven by broad-based strength across all our businesses,” said John Wall, senior vice president and chief financial officer. “I am pleased that we exceeded all key financial metrics for the quarter, and we are tracking ahead of our original forecast for 2025, allowing us to raise our full year outlook.”

For its fiscal 2025, the company expects revenue in the range of $5.15 billion to $5.23 billion.

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