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Mar 31
Cadence Q1 2025 Earnings Report
Cadence delivered strong results with significant revenue and non-GAAP EPS growth.
Key Takeaways
Cadence outperformed expectations in Q1 2025, driven by robust customer demand and AI-driven innovations, raising its full-year outlook.
Revenue grew 23% year-over-year to $1.242 billion.
Non-GAAP EPS increased 34% year-over-year to $1.57.
Quarter-end backlog reached $6.4 billion.
Core EDA and Semiconductor IP businesses posted strong growth driven by AI and chiplet architectures.
Cadence
Cadence
Cadence Revenue by Segment
Cadence Revenue by Geographic Location
Forward Guidance
Cadence raised its full-year 2025 outlook, expecting higher revenue and EPS based on strong customer demand and AI-driven innovation momentum.
Positive Outlook
- Raised 2025 revenue outlook to $5.15B–$5.23B.
- Raised 2025 non-GAAP EPS outlook to $6.73–$6.83.
- Strong backlog and resilient software model.
- AI-driven product innovation boosting demand.
- Expanded partnership with NVIDIA and hyperscaler gains.
Challenges Ahead
- Potential macroeconomic uncertainties.
- Risks from evolving global tax and regulatory environments.
- Challenges integrating pending acquisitions.
- Possible cybersecurity vulnerabilities.
- Fluctuations in currency exchange rates and interest rates.