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Mar 31, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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