SAN JOSE, CA – Cadence Design Systems posted strong third quarter financial results, reporting revenue of $1.339 billion compared to $1.215 billion in the same quarter last year. GAAP operating margin rose to 31.8% from 28.8%, and non-GAAP operating margin improved to 47.6% from 44.8%. The company’s backlog hit a record $7.0 billion, with $3.5 billion expected to be recognized over the next 12 months.

CEO Anirudh Devgan highlighted Cadence’s growing role in AI-driven system design and analysis, noting that the company’s strategic partnerships across the AI ecosystem are helping deliver “AI-centric transformational solutions.” The company also raised its full-year revenue outlook to roughly 14% year-over-year growth.

During the quarter, Cadence completed its acquisition of Arm’s Artisan foundation IP and announced a definitive agreement to acquire Hexagon AB’s D&E business, adding advanced structural analysis and multi-body dynamics technologies to its system design and analysis portfolio. Hardware posted a record quarter, supported by significant expansions with AI and HPC customers.

For the fiscal year, Cadence expects revenue between $5.262 billion and $5.292 billion. 

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