- Cadence Design’s adjusted EPS for 2Q stood at $1.65, surpassing both the previous year’s figure of $1.28 and the estimated $1.56.
- The company reported a revenue of $1.28 billion, marking a 20% increase year-over-year, and exceeding the estimated $1.25 billion.
- Product and maintenance revenue reached $1.17 billion, representing a 22% growth year-over-year, and outpacing the estimated $1.15 billion.
- Services revenue was reported at $104.9 million, showing a 4.7% increase year-over-year, above the estimated $99.3 million.
- The adjusted operating margin rose to 42.8%, compared to 40% a year ago, and surpassed the estimated 41.7%.
- Adjusted net income increased by 28% year-over-year to $449.9 million, beating the estimate of $427.9 million.
- The company announced an increase in its 2025 revenue outlook to 13% growth year-over-year, and a non-GAAP operating margin target of 44%.
- Analyst recommendations include 20 buy ratings, 3 hold ratings, and 1 sell rating.
Cadence Design Sys on Smartkarma
Independent analysts on Smartkarma are closely monitoring Cadence Design Systems with a positive outlook. Baptista Research recently published a report titled “Cadence Design Systems Pushes AI Frontiers But What Challenges Lie Ahead?” lauding the company’s robust performance in the first quarter of 2025. Cadence exceeded guidance across financial metrics, with a 23% YoY revenue growth and a notable 34% increase in non-GAAP EPS. The strong performance was attributed to sustained demand for Cadence’s innovative technologies and solutions.
In another report by Baptista Research, titled “Cadence Design Systems: AI-Powered EDA Tools Are Revolutionizing Chip Design!”, analysts highlighted the success of Cadence in the fourth quarter of 2024. The company achieved significant milestones in revenue and operating margins, concluding the year with a record backlog of $6.8 billion. The report emphasized the growing demand for Cadence’s AI-driven chip-to-systems portfolio and the expanded application of AI solutions in semiconductor innovation. Collaborations with industry giants such as NVIDIA, Qualcomm, and Marvell underscore the increasing adoption of Cadence’s AI-powered products, showcasing the company’s strong momentum in the market.
A look at Cadence Design Sys Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Cadence Design Systems is positioned favorably for long-term growth and stability. With a high Momentum score of 5, the company is showing strong market performance and positive investor sentiment. This is complemented by solid scores in Growth and Resilience, indicating a strong potential for expansion and ability to withstand market challenges.
While the Value score is moderate and the Dividend score is lower, the overall outlook for Cadence Design Systems appears promising. The company’s focus on providing software technology, design, and consulting services for complex chips and electronic systems positions them well for future success in the competitive technology industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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