Cadence Design Systems reported strong financial results for the fourth quarter and fiscal year 2024, exceeding revenue and earnings expectations. Fourth-quarter revenue reached $1.356 billion, up from $1.069 billion in the same period of 2023. GAAP operating margin improved to 33.7%, while non-GAAP operating margin rose to 46.0%. GAAP diluted earnings per share were $1.24, compared to $1.19 in Q4 2023, and non-GAAP diluted EPS increased to $1.88 from $1.38.

For the full year, revenue totaled $4.641 billion, reflecting growth from $4.090 billion in 2023. GAAP operating margin slightly declined to 29.1%, while non-GAAP operating margin improved to 42.5%. GAAP diluted EPS stood at $3.85, with non-GAAP diluted EPS increasing to $5.97. The company ended the year with a record backlog of $6.8 billion and current remaining performance obligations of $3.4 billion.

CEO Anirudh Devgan highlighted the company’s growth, particularly in AI-related opportunities, and CFO John Wall noted broad-based business strength. For 2025, Cadence forecasts revenue between $5.14 billion and $5.22 billion, with GAAP operating margin between 30.25% and 31.25% and non-GAAP operating margin between 43.25% and 44.25%. GAAP diluted EPS is expected to range from $4.19 to $4.29, while non-GAAP diluted EPS is projected at $6.65 to $6.75.