Cadence Design Systems Inc. announced its financial results for the second quarter of 2025, reporting a revenue of $1.275 billion, marking a 20% increase from $1.061 billion in the same quarter of the previous year. The company reported a GAAP operating margin of 19.0%, down from 27.7% in Q2 2024, and a GAAP diluted net income per share of $0.59, compared to $0.84 in the prior year. On a non-GAAP basis, the operating margin rose to 42.8% from 40.1% in Q2 2024, with a non-GAAP diluted net income per share of $1.65, up from $1.28 in the same period last year. The quarter-end backlog stood at $6.4 billion, while the current remaining performance obligations expected to be recognized as revenue in the next 12 months was $3.1 billion. Looking ahead, Cadence has updated its outlook for the fiscal year 2025. The company expects revenue to be in the range of $5.21 billion to $5.27 billion. The GAAP operating margin is projected to range from 28.5% to 29.5%, and the non-GAAP operating margin is anticipated to be between 43.5% and 44.5%. The GAAP diluted net income per share is expected to range from $3.97 to $4.07, while the non-GAAP diluted net income per share is projected to be between $6.85 and $6.95. Cadence also expects operating cash flow to be between $1.65 billion and $1.75 billion, with a noted $140.6 million cash outflow related to settlements with the U.S. Department of Justice and the Bureau of Industry and Security. Additionally, the company anticipates approximately $140 million in reduced cash tax payments due to the immediate expensing of U.S. R&D expenditures.