Cadence posted first-quarter revenue of $1.47 billion, up from $1.242 billion a year earlier, with adjusted earnings of $1.96 per share, both exceeding expectations. Core EDA revenue rose 18% year-on-year, and the hardware segment delivered record quarterly sales driven by AI and high-performance computing customers.

The company raised its full-year revenue forecast to $6.13 billion–$6.23 billion, representing approximately 17% year-on-year growth. Annual adjusted profit per share is now projected at $7.85–$7.95, down from the prior $8.05–$8.15 range, with GAAP operating margin expected at 27.5%–28.5% and adjusted margin at 43.5%–44.5%.

Sustained heavy investment in specialized AI processors is boosting demand for Cadence’s electronic design automation tools as tech giants design complex SoCs and AI accelerators. Cadence is collaborating with Nvidia to integrate physics engines into AI models for robotics simulation and has introduced an AI agent to automate early stages of chip design.