Cadence (CDNS) Reports Q1 Earnings: What Key Metrics Have to Say

Core Insights - Cadence Design Systems reported revenue of $1.24 billion for the quarter ended March 2025, reflecting a year-over-year increase of 23.1% [1] - The earnings per share (EPS) for the quarter was $1.57, up from $1.17 in the same quarter last year, exceeding the consensus estimate of $1.49 by 5.37% [1] Financial Performance - The reported revenue matched the Zacks Consensus Estimate of $1.24 billion, resulting in a surprise of +0.34% [1] - The company’s stock has returned +12.8% over the past month, outperforming the Zacks S&P 500 composite, which declined by -4.3% [3] Revenue Breakdown - Revenue from System Design and Analysis was 15%, slightly below the five-analyst average estimate of 15.3% [4] - Revenue from Intellectual Property (IP) was 14%, exceeding the five-analyst average estimate of 12.1% [4] - Core Electronic Design Automation (EDA) revenue was 71.3%, compared to the average estimate of 73.76% [4] Order Backlog and Revenue Components - The order backlog stood at $6.40 billion, slightly below the average estimate of $6.45 billion [4] - Revenue from products and maintenance was $1.11 billion, representing a year-over-year increase of +21.6%, but below the average estimate of $1.13 billion [4] - Revenue from services was $131.52 million, significantly above the average estimate of $105.39 million, with a year-over-year change of +37.4% [4]