CADENCE DESIGN SYSTEMS INC (CDNS)

Cadence is a global technology company that develops computational, AI-driven software, accelerated hardware, and silicon intellectual property (IP) products and solutions for electronic design. Its Intelligent System Design strategy extends its capabilities from chip design to full electromechanical systems, built on three pillars: Design Excellence, System Innovation, and Pervasive Intelligence. It integrates agentic and generative AI, machine learning, and digital twin technology into its products, and offers cloud access through the Cadence OnCloud Platform.

Offerings are organized into three categories. Core EDA covers software, hardware, and services for designing and verifying semiconductors, including the Virtuoso platform for custom and analog IC design, the Innovus platform for digital design and signoff, the Jasper, Xcelium, and Verisium functional verification tools, and the Palladium emulation and Protium FPGA prototyping platforms. Semiconductor IP includes interface and memory IP (PCI Express, High Bandwidth Memory, Graphics Double Data Rate, SerDes, and others), Tensilica DSPs, verification IP, and, from fiscal 2025 acquisitions, Arm's Artisan foundation IP and Secure-IC's embedded security IP. System Design and Analysis covers PCB, packaging, and system-level design and multiphysics analysis, with products such as Allegro X, OrCAD X, Sigrity X, AWR, Celsius, Clarity, Fidelity CFD, Integrity 3D-IC, Optimality, Reality Digital Twin, and the Millennium platform, including the M2000 supercomputer co-developed with NVIDIA. Cadence also offers molecular modeling and simulation for pharmaceutical and biotechnology users. In fiscal 2025 it acquired VLAB Works for automotive virtual prototyping and announced its intent to acquire Hexagon's Design & Engineering business, including MSC Software, following its 2024 acquisition of BETA CAE Systems. It additionally provides technical support, education, design and methodology services, and cloud and SaaS offerings.

Customers are semiconductor companies that design and manufacture ICs and systems companies that build electromechanical systems. They serve markets including automotive, aerospace and defense, consumer electronics, hyperscale and data center computing, industrial, medical, mobile, 5G communications, IoT, and life sciences. Cadence sees growth driven by rising chip and system complexity and by AI across three areas: Infrastructure AI, Physical AI, and Life Sciences AI. OrCAD products are marketed worldwide mainly through resellers.

Most software is licensed on time-based licenses, generally two to three years, with payments typically spread over the term. A small portion is licensed perpetually. Hardware is sold or leased, and emulation hardware can be accessed through a Cadence-managed cloud. Design IP is generally licensed nonexclusively, with royalties on some IP as customers ship products. Cadence works with foundry and ecosystem partners on process design kits, supports third-party tools through its Cadence Connections program, and participates in industry groups such as the Silicon Integration Initiative and Accellera. In fiscal 2025, total revenue was $5,297 million, of which product and maintenance was 91% and services 9%.