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AI agents are becoming a major growth driver for Cadence as chip-design workloads could increase 30 to 40 times over the next five to six years. Its ChipStack, Veristack, Innostack and Aurastack tools are designed to automate design and verification tasks while expanding access to advanced chip development.
Cadence reported broad-based momentum, including 24% second-quarter revenue growth, and expects 19% full-year growth with a 44.25% non-GAAP operating margin. Its IP business is on track to reach a $1 billion annualized run rate, while the company continues to prioritize higher-margin EDA software.
The company ended the quarter with a record $8.1 billion backlog and approximately 58% remaining-performance-obligation coverage for the next 12 months. Cadence also sees continued opportunity in China and in simulation platforms such as Millennium, which customers have reported can deliver productivity gains of 50% to 60% in some applications.
Shares Fall, Targets Rise—Markets and ***** ysts Diverge on Synopsys
#cadence #next #Margin
AI agents are becoming a major growth driver for Cadence as chip-design workloads could increase 30 to 40 times over the next five to six years. Its ChipStack, Veristack, Innostack and Aurastack tools are designed to automate design and verification tasks while expanding access to advanced chip development.
Cadence reported broad-based momentum, including 24% second-quarter revenue growth, and expects 19% full-year growth with a 44.25% non-GAAP operating margin. Its IP business is on track to reach a $1 billion annualized run rate, while the company continues to prioritize higher-margin EDA software.
The company ended the quarter with a record $8.1 billion backlog and approximately 58% remaining-performance-obligation coverage for the next 12 months. Cadence also sees continued opportunity in China and in simulation platforms such as Millennium, which customers have reported can deliver productivity gains of 50% to 60% in some applications.
Shares Fall, Targets Rise—Markets and ***** ysts Diverge on Synopsys
#cadence #next #Margin
2 months ago
