Cadence Design Systems Tops S&P 500 After Strong Third Quarter [Video]

Shares of Cadence Design Systems (CDNS) shares climbed more than 12% on Tuesday to notch the top daily performance of any S&P 500 stock after the electronic design automation firm posted strong quarterly results and boosted its full-year guidance.

The provider of design software, hardware, intellectual property (IP) and other solutions posted revenue of $1.215 billion for the third quarter of 2024, up around 19% year-over-year. Non-GAAP earnings per share (EPS), at $1.64, was up more than 30% from the year-ago period. Both figures came in ahead of consensus forecasts.

Cadence also lifted its revenue and non-GAAP earnings forecasts for the full year.

Cadence specializes in integrated circuits and electronic systems to aid in design processes across industries including communications, automotive, defense, and industrial markets.

Robust demand for artificial intelligence (AI)design products underpinned Cadence’s strong quarterly performance. In the earnings report, the company touted the productivity benefits of its Cadence.AI portfolio, which incorporates generative AI technology along with AI-driven …