Cadence Design Systems

Cadence Design Systems, Inc. (NASDAQ: CDNS) is an American multinational technology and computational software company headquartered in San Jose, California, that has established itself as a global leader in electronic design automation (EDA) software and hardware. With a market capitalization of $88.62 billion as of November 2025 and annual revenue of $4.64 billion in 2024, Cadence provides the essential tools and technologies that enable the design of integrated circuits, systems on chips (SoCs), printed circuit boards, and increasingly, applications in pharmaceutical drug discovery and autonomous systems.

Founded in 1988 through the merger of SDA Systems and ECAD, Cadence emerged at a pivotal moment in the semiconductor industry when the complexity of integrated circuit design was growing exponentially. The company's EDA software revolutionized how chips are designed by automating and optimizing the layout, verification, and manufacturing processes that would be impossible to manage manually. Today, Cadence's tools are indispensable to semiconductor manufacturers, systems companies, and electronics firms building next-generation products for markets including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences, and robotics.

Cadence's comprehensive portfolio spans the entire chip design flow, from initial concept through manufacturing. Its flagship products include Virtuoso Studio for custom/analog design, the Spectre family of circuit simulators, Genus for synthesis, and Innovus for digital implementation. The company has been at the forefront of integrating artificial intelligence and machine learning into chip design, with its Cerebrus AI-driven platform achieving over 1,000 tapeouts and attracting 50+ new customers in Q1 2025 alone. The company's AI capabilities have positioned it as a critical partner for leading technology companies including NVIDIA, Intel, and TSMC.

Under the leadership of President and CEO Dr. Anirudh Devgan since December 2021, Cadence has significantly expanded beyond traditional EDA into adjacent markets. The company's September 2025 announcement of its €2.7 billion acquisition of Hexagon's Design & Engineering business, including MSC Software, represents a strategic move into physical AI and system design, adding simulation capabilities for robotics and autonomous systems. This follows other strategic acquisitions including the April 2025 agreement to acquire Arm Holdings' Artisan foundation IP business and the January 2025 acquisition of Secure-IC for embedded security IP.

Cadence's growth trajectory has been remarkable, with the company reporting record financial performance in 2024-2025. Q1 2025 revenue jumped 23% year-over-year to $1.24 billion, with AI-driven segments like Semiconductor IP growing 40% and System Design & Analysis expanding 50%. The company's backlog reached a record $7.0 billion in Q3 2025, reflecting strong customer demand and long-term commitment. With 12,700 employees as of December 2024 and operations spanning the globe, Cadence continues to pioneer computational software that accelerates innovation in engineering design from silicon to systems, making it an indispensable partner in the age of AI, 5G, autonomous vehicles, and advanced computing.