Key Takeaways Cadence added NVIDIA DGX SuperPOD with DGX GB200 to its Reality Digital Twin Platform.The platform enables AI factory designs that account for cost, power, cooling and space.Users can simulate failures, upgrades and performance to optimize projects pre and post-build.Cadence Design Systems, Inc. (CDNS) has announced a major expansion of its Cadence Reality Digital Twin Platform with the addition of a digital twin of NVIDIA DGX SuperPOD with DGX GB200 systems. This new model of NVIDIA’s (NVDA) ...

Core Insights - Cadence Design Systems (CDNS) stock has increased by 24.6% over the past year, outperforming the Computer-Software industry (up 23.1%), the broader Computer and Technology sector (up 24.2%), and the S&P 500 composite (up 17.5%) [1] - The company has seen a 4.6% rise since July 28, following a better-than-expected second-quarter performance, with the stock closing at $349.12, below its 52-week high of $376.45 [2] Growth Drivers - AI is significantly transforming semiconductor and system design, with Cadence being well-integrated into this shift. Key growth drivers include 5G, hyperscale computing, and autonomous vehicles [3] - The rapid adoption of Generative AI, Agentic AI, and Physical AI is leading to increased computing needs and semiconductor innovation, benefiting Cadence. The company collaborates with industry leaders like Qualcomm and NVIDIA on next-generation AI designs [4] - Rising R&D spending by customers focused on AI-driven automation is expected to benefit Cadence. The company is unifying its capabilities across various domains to capture opportunities from the ongoing AI supercycle [5] Financial Performance - Cadence's ratable software model, strong backlog, and high recurring revenue mix provide resilience amid macroeconomic volatility [6] - Core EDA revenues grew by 16% year over year in the second quarter, driven by demand from AI and hyperscale clients. The company launched Cerebrus AI Studio, which offers significant improvements in chip design efficiency [9] - The IP business saw a 25% year-over-year revenue increase in the second quarter, supported by a broadening silicon solutions portfolio and rising demand in AI and HPC [10] - Management has upgraded its revenue outlook for 2025 to a range of $5.21-$5.27 billion, with non-GAAP EPS expected between $6.85 and $6.95 [12] Cash Flow and Shareholder Returns - As of June 30, 2025, Cadence had cash and cash equivalents of $2.823 billion, with operating cash flow of $378 million and free cash flow of $334 million. The company repurchased shares worth $175 million in the second quarter and plans to execute $200 million in repurchases in the third quarter [13] Competitive Landscape - The company faces headwinds from global macroeconomic conditions and competition in the EDA/AI space, particularly from Keysight Technologies and Synopsys, which recently acquired ANSYS [15] - Cadence generates a significant portion of its revenues from international markets, with 47% of revenues coming from the U.S. in 2024. Adverse foreign currency exchange rates could impact revenue growth [16] - Cadence stock is trading at a premium, with a forward 12-month Price/Earnings ratio of 46.83X compared to the industry's 35.12X [17] Conclusion - Cadence's strong fundamentals, robust AI-driven demand, and resilient recurring revenue model position it well for long-term growth, despite macro uncertainties and competitive pressures [18]

wo[Table_Title] Research Report 30 Jul 2025 中国电子 China (Overseas) Technology 全球科技业绩快报：Cadence 2Q25 Global Tech Earnings Snapshot: Cadence 2Q25 姚书桥 Barney Yao 邓雅文 Linda Deng barney.sq.yao@htisec.com linda.yw.deng@htisec.com [Table_summary] 事件： 美东时间 2025 年 7 月 28 日，Cadence 第二季度以"beat-and-raise"交出了亮眼成绩：总收入 12.75 亿美元（同比增 长 20%），Non-GAAP 经营利润率达 42.8%（同比增长 2.7 个百分点），Non-GAAP 美股收益 1.65 美元（同比增长 29%）。财报发布后其每股盘后一度上涨超 6%。 点评： Cadence第二季度以"beat-and-raise"交出了亮眼成绩：公司当季营收达到 12.75 亿美元（同比增长 20%，超出市场 预期的 12.50 亿美元），Non-GAAP ...

Core Insights - Cadence Design Systems (CDNS) reported Q2 2025 non-GAAP EPS of $1.65, exceeding estimates by 5.1% and showing a year-over-year increase of 28.9% [1][9] - Revenues reached $1.275 billion, surpassing estimates by 1.3% and increasing 20.3% year-over-year, driven by strong demand for AI-driven solutions [2][9] - The company settled with the Department of Justice for $141 million related to investigations into China sales from 2015 to 2021 [3] Financial Performance - CDNS ended the quarter with a backlog of $6.4 billion and current-remaining performance obligations of $3.1 billion [4] - Management raised the 2025 revenue outlook to $5.21-$5.27 billion, up from the previous range of $5.15-$5.23 billion, indicating a 12% growth from the prior year [5] - Non-GAAP EPS for 2025 is now expected to be between $6.85 and $6.95, reflecting a 13.4% increase from the previous year [5] Stock Performance - CDNS stock rose 6.6% in after-market trading and 8.5% in pre-market shares, outperforming the Computer - Software industry which grew 24.1% over the past year [7] Segment Performance - Product & Maintenance revenues, accounting for 91.8% of total revenues, rose 21.7% year-over-year to $1.17 billion, while Services revenues increased 5% to $105 million [10] - Core EDA, IP, and Systems Design & Analysis contributed 71%, 13%, and 16% to total revenues, respectively, with the System Design & Analysis benefiting from 3DIC technologies and AI-driven solutions [11][12] Margin and Cost Analysis - Total non-GAAP costs and expenses increased 14.8% year-over-year to $729 million, while non-GAAP gross margin contracted by 130 basis points to 87.2% [14] - Non-GAAP operating margin expanded by 270 basis points year-over-year to 42.8% [14] Balance Sheet and Cash Flow - As of June 30, 2025, CDNS had cash and cash equivalents of $2.823 billion, with long-term debt at $2.478 billion [15] - Operating cash flow for the quarter was $378 million, with free cash flow at $334 million; the company repurchased shares worth $175 million [16] Future Outlook - For Q3 2025, revenues are estimated to be between $1.305 billion and $1.335 billion, with non-GAAP EPS anticipated between $1.75 and $1.81 [18] - Non-GAAP operating margin for 2025 is forecasted to be between 43.5% and 44.5% [17]