Cadence Design Systems Q1 Earnings: Revenue In Line, EPS Beat, Raised Guidance — 'We Haven't Seen Any Change In Customers' Behavior'

Cadence Design Systems Inc CDNS reported first-quarter financial results Monday after the close. Here’s a rundown of the report.

Q1 Earnings: Cadence Design Systems reported first-quarter revenue of $1.24 billion, in line with analyst estimates. Total revenue was up 23% compared to the first quarter of 2024, driven by “broad-based strength” across all of the company’s businesses.

The company reported first-quarter adjusted earnings of $1.57 per share, beating analyst estimates of $1.49 per share, according to Benzinga Pro.

Business highlights include semiconductor IP growth of 40% year-over-year in the first quarter and more than 50% growth in system design and analysis revenue.

Backlog totaled $6.4 billion at quarter’s end, with current remaining performance obligations of $3.2 billion. Cadence Design Systems ended the quarter with approximately $2.78 billion in cash and cash equivalents.

“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 CEO of Cadence Design Systems.

“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.”

Guidance: Cadence Design Systems raised its full-year 2025 outlook. The company sees full-year revenue in the range of $5.15 billion to $5.23 billion, up from previous guidance of $5.14 billion to $5.22 billion. Benzinga Pro estimates currently call for full-year revenue of $5.19 billion. The company anticipates full-year adjusted earnings of $6.73 to $6.83 per share, up from prior guidance of $6.65 to $6.75 per share. Analysts are forecasting full year-earnings of $6.71 per share.

Cadence Design Systems executives will hold a conference call at 5 p.m. ET to further discuss the quarter with investors and analysts.

CDNS Price Action: Cadence Design Systems shares were down 1.53% after hours, trading at $281.38 at the time of publication Monday, according to Benzinga Pro.

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