CADENCE DESIGN SYSTEMS INC, 10-Q filed on 4/30/2025
Quarterly Report
v3.25.1
Cover Page
 3 Months Ended
Mar. 31, 2025
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Mar. 31, 2025
Document Transition Report false
Entity File Number 000-15867
Entity Registrant Name CADENCE DESIGN SYSTEMS, INC.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 00-0000000
Entity Address, Address Line One 2655 Seely Avenue, Building 5,
Entity Address, City or Town San Jose,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95134
City Area Code (408)
Local Phone Number 943-1234
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol CDNS
Security Exchange Name NASDAQ
Entity Common Stock, Shares Outstanding 273,042,000
Entity Central Index Key 0000813672
Amendment Flag false
Document Fiscal Year Focus 2025
Document Fiscal Period Focus Q1
Current Fiscal Year End Date --12-31
v3.25.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 2,777,674 $ 2,644,030
Receivables, net 580,887 680,460
Inventories 225,621 257,711
Prepaid expenses and other 413,905 433,878
Total current assets 3,998,087 4,016,079
Property, plant and equipment, net 466,322 458,200
Goodwill 2,419,717 2,378,671
Acquired intangibles, net 584,228 594,734
Deferred taxes 986,191 982,057
Other assets 558,941 544,741
Total assets 9,013,486 8,974,482
Current liabilities:    
Accounts payable and accrued liabilities 570,197 632,692
Current portion of deferred revenue 730,570 737,413
Total current liabilities 1,300,767 1,370,105
Long-term liabilities:    
Long-term portion of deferred revenue 110,702 115,168
Long-term debt 2,477,159 2,476,183
Other long-term liabilities 348,601 339,448
Total long-term liabilities 2,936,462 2,930,799
Commitments and contingencies
Stockholders’ equity:    
Common stock and capital in excess of par value 4,327,187 4,181,737
Treasury stock, at cost (5,693,200) (5,309,579)
Retained earnings 6,265,447 5,991,868
Accumulated other comprehensive loss (123,177) (190,448)
Total stockholders’ equity 4,776,257 4,673,578
Total liabilities and stockholders’ equity $ 9,013,486 $ 8,974,482
v3.25.1
Condensed Consolidated Income Statements - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenues [Abstract]    
Revenue $ 1,242,366 $ 1,009,103
Costs and Expenses:    
Marketing and sales 202,700 180,589
Research and development 439,102 378,958
General and administrative 63,098 68,716
Amortization of acquired intangibles 8,922 5,407
Restructuring (109) 280
Total costs and expenses 880,846 759,147
Income from operations 361,520 249,956
Interest expense (29,118) (8,692)
Other income, net 23,290 68,779
Income before provision for income taxes 355,692 310,043
Provision for income taxes 82,113 62,400
Net income $ 273,579 $ 247,643
Net income per share - basic (usd per share) $ 1.01 $ 0.92
Net Income per share - diluted (usd per share) $ 1.00 $ 0.91
Weighted average common shares outstanding - basic (in shares) 271,973 269,606
Weighted average common shares outstanding - diluted (in shares) 273,631 273,544
Product and maintenance [Member]    
Revenues [Abstract]    
Revenue $ 1,110,850 $ 913,385
Costs and Expenses:    
Cost of sales 116,672 75,395
Service [Member]    
Revenues [Abstract]    
Revenue 131,516 95,718
Costs and Expenses:    
Cost of sales $ 50,461 $ 49,802
v3.25.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]    
Net income $ 273,579 $ 247,643
Other comprehensive income (loss), net of tax effects:    
Foreign currency translation adjustments 66,150 (12,630)
Changes in defined benefit plan liabilities 355 (21)
Reclassification of realized losses on derivatives designated as hedging instruments 195 0
Unrealized gains (losses) on available-for-sale debt securities 571 (392)
Total other comprehensive income (loss), net of tax effects 67,271 (13,043)
Comprehensive income $ 340,850 $ 234,600
v3.25.1
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Common Stock, Par Value and Capital in Excess of Par
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance, shares at Dec. 31, 2023   271,706        
Beginning balance at Dec. 31, 2023 $ 3,404,271   $ 3,166,964 $ (4,604,323) $ 4,936,384 $ (94,754)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 247,643       247,643  
Other comprehensive loss, net of taxes $ (13,043)         (13,043)
Purchase of treasury stock, shares (425) (425)        
Purchase of treasury stock $ (125,006)     (125,006)    
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares   1,319        
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures 116,725   89,159 27,566    
Stock received for payment of employee taxes on vesting of restricted stock, shares   (466)        
Stock received for payment of employee taxes on vesting of restricted stock (151,123)   (12,705) (138,418)    
Stock-based compensation expense 88,129   88,129      
Ending balance, shares at Mar. 31, 2024   272,134        
Ending balance at Mar. 31, 2024 3,567,596   3,331,547 (4,840,181) 5,184,027 (107,797)
Beginning balance, shares at Dec. 31, 2024   273,851        
Beginning balance at Dec. 31, 2024 4,673,578   4,181,737 (5,309,579) 5,991,868 (190,448)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 273,579       273,579  
Other comprehensive loss, net of taxes $ 67,271         67,271
Purchase of treasury stock, shares (1,361) (1,361)        
Purchase of treasury stock $ (350,007)     (350,007)    
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures, shares   700        
Issuance of common stock and reissuance of treasury stock under equity incentive plans, net of forfeitures 76,789   67,220 9,569    
Stock received for payment of employee taxes on vesting of restricted stock, shares   (148)        
Stock received for payment of employee taxes on vesting of restricted stock (72,566)   (29,383) (43,183)    
Stock-based compensation expense 107,613   107,613      
Ending balance, shares at Mar. 31, 2025   273,042        
Ending balance at Mar. 31, 2025 $ 4,776,257   $ 4,327,187 $ (5,693,200) $ 6,265,447 $ (123,177)
v3.25.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Cash Flows [Abstract]    
Cash and cash equivalents at beginning of period $ 2,644,030 $ 1,008,152
Cash flows from operating activities:    
Net income 273,579 247,643
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 52,916 39,556
Stock-based compensation 107,613 88,129
(Gain) loss on divestitures and investments, net 1,791 (55,394)
Deferred income taxes (1,861) (1,523)
ROU asset amortization and change in operating lease liabilities (1,446) (917)
Other non-cash items 862 556
Changes in operating assets and liabilities, net of effect of acquired businesses:    
Receivables 102,136 102,991
Inventories 15,018 (10,689)
Prepaid expenses and other 10,316 (15,073)
Other assets 12,237 (7,535)
Accounts payable and accrued liabilities (69,621) (117,291)
Deferred revenue (14,377) (23,941)
Other long-term liabilities (2,142) 6,720
Net cash provided by operating activities 487,021 253,232
Cash flows from investing activities:    
Purchases of investments (11,469) (2,095)
Proceeds from the sale and maturity of investments 1,246 43,377
Proceeds from the sale of IP and other assets 11,500 0
Purchases of property, plant and equipment (23,061) (49,601)
Cash paid in business combinations, net of cash acquired 0 (71,450)
Net cash used for investing activities (21,784) (79,769)
Cash flows from financing activities:    
Proceeds from issuance of common stock 76,789 116,725
Stock received for payment of employee taxes on vesting of restricted stock (72,566) (151,123)
Payments for repurchases of common stock (350,007) (125,006)
Net cash used for financing activities (345,784) (159,404)
Effect of exchange rate changes on cash and cash equivalents 14,191 (9,793)
Increase in cash and cash equivalents 133,644 4,266
Cash and cash equivalents at end of period 2,777,674 1,012,418
Supplemental cash flow information:    
Cash paid for interest 55,734 4,903
Cash paid for income taxes, net $ 29,956 $ 23,850
v3.25.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, Cadence believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for a Quarterly Report on Form 10-Q and are adequate to make the information presented not misleading. These condensed consolidated financial statements are meant to be, and should be, read in conjunction with the consolidated financial statements and the notes thereto included in Cadence’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "Annual Report").
The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q reflect all adjustments (which include only normal, recurring adjustments and those items discussed in these notes) that are, in the opinion of management, necessary to state fairly the results of operations, cash flows and financial position for the periods and dates presented. The results for such periods are not necessarily indicative of the results to be expected for the full fiscal year or other periods. Certain prior period balances have been reclassified to conform to the current period presentation. Management has evaluated subsequent events through the issuance date of the unaudited condensed consolidated financial statements.
Fiscal Year End
Cadence’s fiscal year end is December 31, and its fiscal quarters end on March 31, June 30, and September 30.
Use of Estimates
Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Recently Adopted Accounting Standards
Segment Reporting
In November 2023, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” intended to improve reportable segment disclosure requirements, primarily through enhanced annual and interim disclosures for significant segment expenses. Cadence adopted this ASU retrospectively during fiscal 2024 for its Annual Report. For interim disclosures required by this ASU, see Note 15 in the notes to condensed consolidated financial statements.
New Accounting Standards Not Yet Adopted
Income Taxes
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. Cadence plans to adopt this standard in connection with its annual report for fiscal 2025 and is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Income Statement - Expense Disaggregation Disclosure
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires additional disclosure of certain costs and expenses in the notes to the financial statements. The updated standard is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and will be applied prospectively with the option for retrospective application. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
v3.25.1
REVENUE
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Cadence groups its solutions in three product categories: Core EDA, Semiconductor IP, and System Design and Analysis. The Core EDA category includes software, hardware, and services used to design and verify a wide variety of semiconductors. The Semiconductor IP category includes silicon subsystems, software, and services that are used in semiconductor design. The System Design and Analysis category includes software and services used to design and verify a wide variety of physical electronic systems. These categories are tightly integrated to provide complete design solutions for customers.
The following table shows the percentage of revenue contributed by each of Cadence’s product categories for the three months ended March 31, 2025 and March 31, 2024:
 Three Months Ended
 March 31,
2025		March 31,
2024
Core EDA*
71 %76 %
Semiconductor IP (“IP”)
14 %12 %
System Design and Analysis15 %12 %
Total100 %100 %
_____________
* Includes immaterial amount of revenue accounted for under leasing arrangements.
Cadence generates revenue from contracts with customers and applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Certain of Cadence’s licensing arrangements allow customers the ability to remix among software products. Cadence also has arrangements with customers that include a combination of products, with the actual product selection and number of licensed users to be determined at a later date. For these arrangements, Cadence estimates the allocation of the revenue to product categories based upon the expected usage of products. Revenue by product category fluctuates from period to period based on demand for products and services, and Cadence’s available resources to deliver them. No single customer accounted for 10% or more of total revenue during the three months ended March 31, 2025 or March 31, 2024.
Recurring revenue includes revenue recognized over time from Cadence’s software arrangements, services, royalties, maintenance on IP licenses and hardware, and operating leases of hardware. Recurring revenue also includes revenue recognized at varying points in time over the term of other arrangements with non-cancelable commitments, whereby the customer commits to a fixed dollar amount over a specified period of time that can be used to purchase from a list of products. These arrangements do not meet the definition of a revenue contract until the customer executes a separate selection form to identify the products and services that they are purchasing. Each separate selection form under the arrangement is treated as an individual contract and accounted for based on the respective performance obligations.
The remainder of Cadence’s revenue is recognized at a point in time and is characterized as up-front revenue. Up-front revenue is primarily generated by sales of hardware, individual IP licenses and certain software licenses.
The percentage of Cadence’s recurring and up-front revenue in any single fiscal period is primarily impacted by delivery of hardware and IP products to its customers.
The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three months ended March 31, 2025 and March 31, 2024:
 Three Months Ended
 March 31,
2025		March 31,
2024
Revenue recognized over time77 %87 %
Revenue from arrangements with non-cancelable commitments3 %3 %
Recurring revenue80 %90 %
Up-front revenue20 %10 %
Total100 %100 %
Significant Judgments
Cadence’s contracts with customers often include promises to transfer to a customer multiple software and/or IP licenses and services, including professional services, technical support services, and rights to unspecified updates. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or not distinct and thus accounted for together, requires significant judgment. In some arrangements, such as most of Cadence’s IP license arrangements and the license of certain software, Cadence has concluded that the licenses and the related updates and technical support are distinct from each other. In others, such as Cadence’s time-based software arrangements, the licenses and certain services are not distinct from each other. These time-based software arrangements include multiple software licenses and updates to the licensed software products, as well as technical support, and Cadence has concluded that these promised goods and services are a single, combined performance obligation.
The accounting for contracts with multiple performance obligations requires the contract’s transaction price to be allocated to each distinct performance obligation based on relative stand-alone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation because Cadence rarely licenses or sells products on a standalone basis. In instances where the SSP is not directly observable because Cadence does not sell the license, product or service separately, Cadence determines the SSP using information that maximizes the use of observable inputs and may include market conditions. Cadence typically has more than one SSP for individual performance obligations due to the stratification of those items by classes of customers and circumstances. In these instances, Cadence may use information such as the size of the customer and geographic region of the customer in determining the SSP.
Revenue is recognized over time for Cadence’s combined performance obligations that include software licenses, updates, technical support and maintenance that are separate performance obligations with the same term. For Cadence’s professional services, revenue is recognized over time, generally using costs incurred or hours expended to measure progress. Judgment is required in estimating project status and the costs necessary to complete projects. A number of internal and external factors can affect these estimates, including labor rates, utilization and efficiency variances and specification and testing requirement changes. For Cadence’s other performance obligations recognized over time, revenue is generally recognized using a time-based measure of progress reflecting generally consistent efforts to satisfy those performance obligations throughout the arrangement term.
If a group of agreements are so closely related that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. Cadence exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. Cadence’s judgments about whether a group of contracts comprise a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved.
Cadence is required to estimate the total consideration expected to be received from contracts with customers. In limited circumstances, the consideration expected to be received is variable based on the specific terms of the contract or based on Cadence’s expectations of the term of the contract. Generally, Cadence has not experienced significant returns or refunds to customers. These estimates require significant judgment and a change in these estimates could have an effect on its results of operations for the periods involved.
Contract Balances
The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on Cadence’s condensed consolidated balance sheets. For certain software, hardware and IP agreements with payment plans, Cadence records an unbilled receivable related to revenue recognized upon transfer of control because it has an unconditional right to invoice and receive payment in the future related to those transferred products or services. Cadence records a contract asset when revenue is recognized prior to invoicing and Cadence does not have the unconditional right to invoice or retains performance risk with respect to that performance obligation. Cadence records deferred revenue when revenue is recognized subsequent to invoicing. For Cadence’s time-based software agreements, customers are generally invoiced in equal, quarterly amounts, although some customers are invoiced in single or annual amounts.
The contract assets indicated below are included in prepaid expenses and other in the condensed consolidated balance sheets and primarily relate to Cadence’s rights to consideration for work completed but not billed as of the balance sheet date on services and customized IP contracts. The contract assets are transferred to receivables when the rights become unconditional, usually upon completion of a milestone.
Cadence’s contract balances as of March 31, 2025 and December 31, 2024 were as follows:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Contract assets$70,775 $29,339 
Deferred revenue841,272 852,581 
Cadence recognized revenue of $390.1 million during the three months ended March 31, 2025, and $324.4 million during the three months ended March 31, 2024, that was included in the deferred revenue balance at the beginning of each respective fiscal year. All other activity in deferred revenue, with the exception of deferred revenue assumed from acquisitions, is due to the timing of invoices in relation to the timing of revenue as described above.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, Cadence has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing Cadence’s products and services, and not to facilitate financing arrangements.
Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Cadence has elected to exclude the potential future royalty receipts from the remaining performance obligations. Contracted but unsatisfied performance obligations were approximately $6.4 billion as of March 31, 2025, which included $0.5 billion of non-cancelable commitments from customers where actual product selection and quantities of specific products or services are to be determined by customers at a later date.
Cadence estimates its remaining performance obligations at a point in time. Actual amounts and timing of revenue recognition may differ from these estimates largely due to changes in actual installation and delivery dates, as well as contract renewals, modifications and terminations. As of March 31, 2025, Cadence expected to recognize 55% of the contracted but unsatisfied performance obligations, excluding non-cancelable commitments, as revenue over the next 12 months, 42% over the next 13 to 36 months and the remainder thereafter.
Cadence recognized revenue of $14.9 million during the three months ended March 31, 2025, and $15.0 million during the three months ended March 31, 2024, from performance obligations satisfied in previous periods. These amounts represent royalties earned during the period and exclude contracts with nonrefundable prepaid royalties. Nonrefundable prepaid royalties are recognized upon delivery of the IP because Cadence’s right to the consideration is not contingent upon customers’ future shipments.
v3.25.1
RECEIVABLES, NET
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
RECEIVABLES, NET RECEIVABLES, NET
Cadence’s current and long-term receivables balances as of March 31, 2025 and December 31, 2024 were as follows:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Accounts receivable$314,976 $393,017 
Unbilled accounts receivable270,298 293,251 
Long-term receivables24,186 24,179 
Total receivables609,460 710,447 
Less allowance for doubtful accounts(4,387)(5,808)
Total receivables, net$605,073 $704,639 
Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of March 31, 2025, no single customer accounted for 10% or more of Cadence’s total receivables. As of December 31, 2024, one customer accounted for approximately 11% of Cadence’s total receivables.
v3.25.1
DEBT
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Cadence’s outstanding debt was as follows:
 March 31, 2025December 31, 2024
 (In thousands)
Principal
Unamortized Discount and Issuance Costs
Carrying ValuePrincipal
Unamortized Discount and Issuance Costs
Carrying Value
2027 Notes$500,000 $(2,927)$497,073 $500,000 $(3,206)$496,794 
2029 Notes1,000,000 (9,194)990,806 1,000,000 (9,666)990,334 
2034 Notes1,000,000 (10,720)989,280 1,000,000 (10,945)989,055 
Total outstanding debt$2,500,000 $(22,841)$2,477,159 $2,500,000 $(23,817)$2,476,183 
Senior Notes
In September 2024, Cadence issued $500.0 million aggregate principal amount of 4.200% Senior Notes due September 10, 2027 (the “2027 Notes”). Cadence received net proceeds of $496.5 million from the issuance of the 2027 Notes, net of a discount of $0.1 million and issuance costs of $3.5 million. As of March 31, 2025, the fair value of the 2027 Notes was $498.7 million.
In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.300% Senior Notes due September 10, 2029 (the “2029 Notes”). Cadence received net proceeds of $989.8 million from the issuance of the 2029 Notes, net of a discount of $1.4 million and issuance costs of $8.8 million. As of March 31, 2025, the fair value of the 2029 Notes was $991.7 million.
In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.700% Senior Notes due September 10, 2034 (the “2034 Notes,” and together with the 2027 Notes and the 2029 Notes, the “New Senior Notes”). Cadence received net proceeds of $988.8 million from the issuance of the 2034 Notes, net of a discount of $1.9 million and issuance costs of $9.3 million. As of March 31, 2025, the fair value of the 2034 Notes was $977.7 million.
Cadence may redeem the New Senior Notes, in whole or in part, at any time or from time to time, at redemption prices specified in the governing indenture. In addition, Cadence may be required to repurchase New Senior Notes upon occurrence of a change of control triggering event, as set forth in the governing indenture.
The indenture governing the New Senior Notes includes customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on Cadence’s ability to grant liens on certain assets, enter into certain sale and lease-back transactions, or merge, consolidate or sell assets, and also includes customary events of default. As of March 31, 2025, Cadence was in compliance with all covenants associated with the New Senior Notes.
Both the discount and issuance costs are being amortized to interest expense over the term of the New Senior Notes using the effective interest method. Interest on the New Senior Notes is payable semi-annually in arrears in March and September of each year. The New Senior Notes are unsecured and rank equal in right of payment to all of Cadence’s existing and future senior indebtedness.
v3.25.1
GOODWILL AND ACQUIRED INTANGIBLES
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND ACQUIRED INTANGIBLES GOODWILL AND ACQUIRED INTANGIBLES
Goodwill
The changes in the carrying amount of goodwill during the three months ended March 31, 2025 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of December 31, 2024$2,378,671 
Effect of foreign currency translation41,046 
Balance as of March 31, 2025$2,419,717 
Acquired Intangibles, Net
Acquired intangibles as of March 31, 2025 were as follows:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$460,255 $(204,291)$255,964 
Agreements and relationships393,700 (85,852)307,848 
Tradenames, trademarks and patents28,865 (8,449)20,416 
Total acquired intangibles$882,820 $(298,592)$584,228 
Acquired intangibles as of December 31, 2024 were as follows:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$465,453 $(199,126)$266,327 
Agreements and relationships386,365 (78,605)307,760 
Tradenames, trademarks and patents28,113 (7,466)20,647 
Total acquired intangibles$879,931 $(285,197)$594,734 
Amortization expense from existing technology is included in cost of product and maintenance. Amortization expense for the three months ended March 31, 2025 and March 31, 2024 by condensed consolidated income statement caption was as follows:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Cost of product and maintenance$16,494 $11,348 
Amortization of acquired intangibles8,922 5,407 
Total amortization of acquired intangibles$25,416 $16,755 
As of March 31, 2025, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2025 - remaining period$68,314 
202688,564 
202785,334 
202880,668 
202965,995 
203040,842 
Thereafter154,511 
Total estimated amortization expense$584,228 
v3.25.1
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three months ended March 31, 2025 and March 31, 2024 as follows:
Three Months Ended
March 31,
2025		March 31,
2024
(In thousands)
Cost of product and maintenance$2,154 $1,280 
Cost of services2,466 1,629 
Marketing and sales21,671 17,836 
Research and development67,089 53,637 
General and administrative14,233 13,747 
Total stock-based compensation expense$107,613 $88,129 
Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $830.0 million as of March 31, 2025, which is expected to be recognized over a weighted average vesting period of 2.1 years.
v3.25.1
STOCK REPURCHASE PROGRAM
 3 Months Ended
Mar. 31, 2025
Class of Stock Disclosures [Abstract]  
STOCK REPURCHASE PROGRAM STOCK REPURCHASE PROGRAM
Cadence is authorized to repurchase shares of its common stock under a publicly announced program that was most recently increased by its Board of Directors in August 2023. The actual timing and amount of repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. As of March 31, 2025, approximately $477.0 million of Cadence’s share repurchase authorization remained available to repurchase shares of Cadence common stock.
The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three months ended March 31, 2025 and March 31, 2024 were as follows:
Three Months Ended
March 31,
2025		March 31,
2024
(In thousands)
Shares repurchased1,361 425 
Total cost of repurchased shares$350,007 $125,006 
v3.25.1
OTHER INCOME, NET
 3 Months Ended
Mar. 31, 2025
Other Income and Expenses [Abstract]  
OTHER INCOME, NET OTHER INCOME, NET
Cadence’s other income, net, for the three months ended March 31, 2025 and March 31, 2024 was as follows:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Interest income$26,222 $9,512 
Gain on sale of IP and other assets
11,500 — 
Gain (loss) on investments
(13,291)55,394 
Gain (loss) on securities in Non-Qualified Deferred Compensation (“NQDC”) trust
(1,573)4,588 
Gain (loss) on foreign exchange
809 (331)
Other expense, net(377)(384)
Total other income, net
$23,290 $68,779 
For additional information relating to Cadence’s investment activity, see Note 10 in the notes to condensed consolidated financial statements.
v3.25.1
NET INCOME PER SHARE
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting.
The calculations for basic and diluted net income per share for the three months ended March 31, 2025 and March 31, 2024 are as follows:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands, except per share amounts)
Net income$273,579 $247,643 
Weighted average common shares used to calculate basic net income per share271,973 269,606 
Stock-based awards1,658 3,938 
Weighted average common shares used to calculate diluted net income per share273,631 273,544 
Net income per share - basic$1.01 $0.92 
Net income per share - diluted$1.00 $0.91 
The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2025 and March 31, 2024 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Market-based awards
187 — 
Options to purchase shares of common stock234 59 
Non-vested shares of restricted stock190 8 
Total potential common shares excluded611 67 
v3.25.1
INVESTMENTS
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Investments in Equity Securities
Marketable Equity Investments
Cadence’s investments in marketable equity securities consist of purchased shares of publicly held companies and are included in prepaid expenses and other in Cadence’s condensed consolidated balance sheets. Changes in the fair value of these investments are recorded to other income, net in Cadence’s condensed consolidated income statements. The carrying value of marketable equity investments was $78.7 million and $90.4 million as of March 31, 2025 and December 31, 2024, respectively.
Non-Marketable Equity Investments
Cadence’s investments in non-marketable equity securities generally consist of stock or other instruments of privately held entities and are included in other assets on Cadence’s condensed consolidated balance sheets. Cadence holds a 16% interest in a privately held company that is accounted for using the equity method of accounting. The carrying value of this investment was $96.0 million and $97.5 million as of March 31, 2025 and December 31, 2024, respectively.
Cadence records its proportionate share of net income from the investee, offset by amortization of basis differences, to other income, net in Cadence’s condensed consolidated income statements. For the three months ended March 31, 2025 and March 31, 2024, Cadence recognized losses of $1.5 million and $0.4 million, respectively.
Cadence also holds other non-marketable investments in privately held companies where Cadence does not have the ability to exercise significant influence and the fair value of the investments is not readily determinable. The carrying value of these investments was $36.5 million and $26.6 million as of March 31, 2025 and December 31, 2024, respectively. Gains and losses on these investments were not material to Cadence’s condensed consolidated financial statements for the periods presented.
The portion of gains and losses included in Cadence’s condensed consolidated income statements related to equity securities still held at the end of the period were as follows:
Three Months Ended
March 31,
2025		March 31,
2024
(In thousands)
Net gains (losses) recognized on equity securities
$(13,259)$55,398 
Less: Net gains recognized on equity securities sold
— (20,367)
Net gains (losses) recognized on equity securities still held
$(13,259)$35,031 
Investments in Debt Securities
The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on its condensed consolidated balance sheets:
 As of March 31, 2025
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$50,782 $485 $(266)$51,001 
Total available-for-sale securities$50,782 $485 $(266)$51,001 
 As of December 31, 2024
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$50,604 $230 $(582)$50,252 
Total available-for-sale securities$50,604 $230 $(582)$50,252 
Gross unrealized gains and losses are recorded as a component of accumulated other comprehensive loss on Cadence's condensed consolidated balance sheets. As of March 31, 2025 and December 31, 2024, the fair value of available-for-sale debt securities in a continuous unrealized loss position for greater than 12 months was $6.3 million and $6.0 million, respectively. The unrealized losses on these securities were not material.
As of March 31, 2025, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:
 (In thousands)
Due within 1 year
$1,671 
Due after 1 year through 5 years9,696 
Due after 5 years through 10 years19,415 
Due after 10 years20,219 
Total$51,001 
As of March 31, 2025, Cadence did not intend to sell any of its available-for-sale debt securities in an unrealized loss position, and it was more likely than not that Cadence will hold the securities until maturity or a recovery of the cost basis.
v3.25.1
FAIR VALUE
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy:
•Level 1 – Quoted prices for identical instruments in active markets;
•Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2025.
On a quarterly basis, Cadence measures at fair value certain financial assets and liabilities. The fair value of financial assets and liabilities was determined using the following levels of inputs as of March 31, 2025 and December 31, 2024:
 Fair Value Measurements as of March 31, 2025
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,963,812 $1,963,812 $— $— 
Marketable securities:
Marketable equity securities78,706 78,706 — — 
Mortgage-backed and asset-backed securities51,001 — 51,001 — 
Securities held in NQDC trust
93,023 93,023 — — 
Foreign currency exchange contracts12,289 — 12,289 — 
Total Assets$2,198,831 $2,135,541 $63,290 $— 
As of March 31, 2025, Cadence did not have any financial liabilities requiring a recurring fair value measurement.
 Fair Value Measurements as of December 31, 2024
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,700,084 $1,700,084 $— $— 
Marketable securities:
Marketable equity securities90,374 90,374 — — 
Mortgage-backed and asset-backed securities50,252 — 50,252 — 
Securities held in NQDC trust96,450 96,450 — — 
Total Assets$1,937,160 $1,886,908 $50,252 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts$7,533 $— $7,533 $— 
Total Liabilities$7,533 $— $7,533 $— 
Level 1 Measurements
Cadence’s cash equivalents held in money market funds, marketable equity securities and the trading securities held in Cadence’s NQDC trust are measured at fair value using Level 1 inputs.
Level 2 Measurements
The valuation techniques used to determine the fair value of Cadence’s investments in marketable debt securities, foreign currency forward exchange contracts and New Senior Notes are classified within Level 2 of the fair value hierarchy. For additional information relating to Cadence’s debt arrangements, see Note 4 in the notes to condensed consolidated financial statements.
v3.25.1
INVENTORY
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
INVENTORY INVENTORY
Cadence’s inventory balances as of March 31, 2025 and December 31, 2024 were as follows:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Inventories:
Raw materials$210,713 $243,244 
Work-in-process
— 1,216 
Finished goods14,908 13,251 
Total inventories$225,621 $257,711 
v3.25.1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Legal Proceedings
From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. Cadence is also subject from time to time to inquiries, investigations and regulatory proceedings involving governments and regulatory agencies in the jurisdictions in which Cadence operates, including the ongoing investigations by the Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce and the U.S. Department of Justice (“DOJ”) regarding certain historical sales by Cadence to customers in China. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates.
Cadence has been responding to subpoenas received from BIS in February 2021 and DOJ in November 2023 regarding sales and business activity in China. In December 2024, Cadence began discussions with BIS and DOJ regarding their preliminary findings and a potential resolution. Although Cadence believes it has defenses to the potential claims, Cadence has recorded an estimated probable liability as of March 31, 2025 and December 31, 2024 that is immaterial to Cadence’s condensed consolidated financial statements. Actual losses could differ materially.
Other Contingencies
Cadence provides its customers with a warranty on sales of hardware products, generally for a 90-day period. Cadence did not incur any significant costs related to warranty obligations during the three months ended March 31, 2025 or March 31, 2024.
Cadence’s product license and services agreements typically include a limited indemnification provision for claims from third parties relating to Cadence’s intellectual property. If the potential loss from any indemnification claim is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss.
Cadence did not incur any material losses from indemnification claims during the three months ended March 31, 2025 or March 31, 2024.
v3.25.1
ACCUMULATED OTHER COMPREHENSIVE LOSS
 3 Months Ended
Mar. 31, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE LOSS
Cadence’s accumulated other comprehensive loss is comprised of the aggregate impact of foreign currency translation gains and losses, changes in defined benefit plan liabilities, unrealized losses on derivatives designated as hedging instruments and unrealized gains and losses on available-for-sale debt securities, and is presented in Cadence’s condensed consolidated statements of comprehensive income.
Accumulated other comprehensive loss was comprised of the following as of March 31, 2025 and December 31, 2024:
As of
March 31,
2025		December 31,
2024
 (In thousands)
Foreign currency translation loss$(112,461)$(178,611)
Changes in defined benefit plan liabilities(4,092)(4,447)
Unrealized losses on derivatives designated as hedging instruments
(6,843)(7,038)
Unrealized gains (losses) on available-for-sale debt securities219 (352)
Total accumulated other comprehensive loss$(123,177)$(190,448)
For the three months ended March 31, 2025 and March 31, 2024, there were no significant amounts reclassified from accumulated other comprehensive loss to net income.
v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Segment reporting is based on the “management approach,” following the method that management organizes the company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. Cadence operates as one operating segment. Cadence’s chief operating decision maker (“CODM”) is its CEO. The CODM makes decisions on resource allocation and assesses performance of the business based on Cadence’s consolidated results, including net income.
For additional information on Cadence’s revenue, including the nature and timing of revenue from contracts with customers, see Note 2 in the notes to condensed consolidated financial statements. The following table presents revenue, significant expenses and net income for the three months ended March 31, 2025 and March 31, 2024:
Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Revenue
$1,242,366 $1,009,103 
Costs and Expenses:
Salary, benefits and other employee-related costs542,655 475,886 
Stock based compensation
107,613 88,129 
Manufacturing costs
81,666 56,661 
Facilities and other infrastructure costs
43,836 41,654 
Depreciation and amortization
52,916 39,556 
Professional services
32,461 38,917 
Restructuring
(109)280 
Other segment items(1)
22,740 (41,203)
Interest income(26,222)(9,512)
Interest expense29,118 8,692 
Provision for income taxes82,113 62,400 
Net income$273,579 $247,643 
_____________
(1) Other segment items include direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
Outside the United States, Cadence markets and supports its products and services primarily through its subsidiaries. Revenue is attributed to geography based upon the country in which the product is used, or services are delivered. Long-lived assets are attributed to geography based on the country where the assets are located.
The following table presents a summary of revenue by geography for the three months ended March 31, 2025 and March 31, 2024:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Americas:
United States$568,967 $435,523 
Other Americas29,612 27,347 
Total Americas598,579 462,870 
Asia:
China139,381 117,229 
Other Asia240,512 208,531 
Total Asia379,893 325,760 
Europe, Middle East and Africa (“EMEA”)
195,743 169,056 
Japan68,151 51,417 
Total$1,242,366 $1,009,103 
The following table presents a summary of long-lived assets by geography as of March 31, 2025 and December 31, 2024:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Americas:
United States$422,658 $412,339 
Other Americas10,242 7,437 
Total Americas432,900 419,776 
Asia:
China20,011 22,929 
Other Asia91,734 83,951 
Total Asia111,745 106,880 
EMEA
72,784 73,551 
Japan3,905 4,183 
Total$621,334 $604,390 
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net income $ 273,579 $ 247,643
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the fiscal quarter ended March 31, 2025, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated the contracts, instructions or written plans for the purchase or sale of our securities set forth in the table below.
Type of Trading Arrangement
Name and PositionActionAdoption/ Termination
Date		Rule 10b5-1*Total Shares of Common Stock to be SoldExpiration Date
Chin-Chi Teng, Senior Vice President and General Manager, R&D
Adoption3/7/2025X
Up to 26,390
9/2/2025
Paul Cunningham, Senior Vice President and General Manager, System Verification Group
Adoption(1)
3/10/2025
X
Up to 12,000
5/8/2026
Paul Cunningham, Senior Vice President and General Manager, System Verification Group
Termination(1)
3/13/2025
X
Up to 12,000
5/8/2026
Paul Cunningham. Senior Vice President and General Manager, System Verification Group
Adoption
3/14/2025
X
Up to 12,000
5/8/2026
* Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
(1)Dr. Cunningham’s trading arrangement entered into on March 10, 2025 was promptly terminated on March 13, 2025 due to a clerical error. No securities were purchased or sold under the trading arrangement.
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Chin-Chi Teng [Member]  
Trading Arrangements, by Individual  
Name Chin-Chi Teng
Title Senior Vice President and General Manager, R&D
Rule 10b5-1 Arrangement Adopted true
Adoption Date 3/7/2025
Arrangement Duration 179 days
Aggregate Available 26,390
Adoption (1) [Member] | Paul Cunningham [Member]  
Trading Arrangements, by Individual  
Name Paul Cunningham
Title Senior Vice President and General Manager, System Verification Group
Rule 10b5-1 Arrangement Adopted true
Adoption Date 3/10/2025
Arrangement Duration 424 days
Aggregate Available 12,000
Termination [Member] | Paul Cunningham [Member]  
Trading Arrangements, by Individual  
Name Paul Cunningham
Title Senior Vice President and General Manager, System Verification Group
Rule 10b5-1 Arrangement Terminated true
Termination Date 3/13/2025
Arrangement Duration 421 days
Aggregate Available 12,000
Adoption (2) [Member]  
Trading Arrangements, by Individual  
Title Senior Vice President and General Manager, System Verification Group
Adoption (2) [Member] | Paul Cunningham [Member]  
Trading Arrangements, by Individual  
Name Paul Cunningham
Rule 10b5-1 Arrangement Adopted true
Adoption Date 3/14/2025
Arrangement Duration 420 days
Aggregate Available 12,000
v3.25.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Cadence Design Systems, Inc. (“Cadence”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations.
Use of estimates
Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy
Recently Adopted Accounting Standards
Segment Reporting
In November 2023, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” intended to improve reportable segment disclosure requirements, primarily through enhanced annual and interim disclosures for significant segment expenses. Cadence adopted this ASU retrospectively during fiscal 2024 for its Annual Report. For interim disclosures required by this ASU, see Note 15 in the notes to condensed consolidated financial statements.
New Accounting Standards Not Yet Adopted
Income Taxes
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. Cadence plans to adopt this standard in connection with its annual report for fiscal 2025 and is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Income Statement - Expense Disaggregation Disclosure
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures,” which requires additional disclosure of certain costs and expenses in the notes to the financial statements. The updated standard is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and will be applied prospectively with the option for retrospective application. Cadence is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
Fair value of financial instruments
Inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Cadence’s market assumptions. These two types of inputs have created the following fair value hierarchy:
•Level 1 – Quoted prices for identical instruments in active markets;
•Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires Cadence to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. Cadence recognizes transfers between levels of the hierarchy based on the fair values of the respective financial instruments at the end of the reporting period in which the transfer occurred.
Contingencies
From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. Cadence is also subject from time to time to inquiries, investigations and regulatory proceedings involving governments and regulatory agencies in the jurisdictions in which Cadence operates, including the ongoing investigations by the Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce and the U.S. Department of Justice (“DOJ”) regarding certain historical sales by Cadence to customers in China. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates.
v3.25.1
Commitment and Contingencies (Policies)
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Contingencies
From time to time, Cadence is involved in various disputes and litigation that arise in the ordinary course of business. These include disputes and legal proceedings related to intellectual property, indemnification obligations, mergers and acquisitions, licensing, contracts, customers, products, distribution and other commercial arrangements and employee relations matters. Cadence is also subject from time to time to inquiries, investigations and regulatory proceedings involving governments and regulatory agencies in the jurisdictions in which Cadence operates, including the ongoing investigations by the Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce and the U.S. Department of Justice (“DOJ”) regarding certain historical sales by Cadence to customers in China. At least quarterly, Cadence reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, Cadence accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on Cadence’s judgments using the best information available at the time. As additional information becomes available, Cadence reassesses the potential liability related to pending claims and legal proceedings and may revise estimates.
v3.25.1
REVENUE (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from external customers by product category
The following table shows the percentage of revenue contributed by each of Cadence’s product categories for the three months ended March 31, 2025 and March 31, 2024:
 Three Months Ended
 March 31,
2025		March 31,
2024
Core EDA*
71 %76 %
Semiconductor IP (“IP”)
14 %12 %
System Design and Analysis15 %12 %
Total100 %100 %
_____________
* Includes immaterial amount of revenue accounted for under leasing arrangements.
Disaggregation of revenue
The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three months ended March 31, 2025 and March 31, 2024:
 Three Months Ended
 March 31,
2025		March 31,
2024
Revenue recognized over time77 %87 %
Revenue from arrangements with non-cancelable commitments3 %3 %
Recurring revenue80 %90 %
Up-front revenue20 %10 %
Total100 %100 %
Contract balances
Cadence’s contract balances as of March 31, 2025 and December 31, 2024 were as follows:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Contract assets$70,775 $29,339 
Deferred revenue841,272 852,581 
v3.25.1
RECEIVABLES, NET (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Current and long-term accounts receivable balances
Cadence’s current and long-term receivables balances as of March 31, 2025 and December 31, 2024 were as follows:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Accounts receivable$314,976 $393,017 
Unbilled accounts receivable270,298 293,251 
Long-term receivables24,186 24,179 
Total receivables609,460 710,447 
Less allowance for doubtful accounts(4,387)(5,808)
Total receivables, net$605,073 $704,639 
v3.25.1
DEBT (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Summary of debt outstanding
Cadence’s outstanding debt was as follows:
 March 31, 2025December 31, 2024
 (In thousands)
Principal
Unamortized Discount and Issuance Costs
Carrying ValuePrincipal
Unamortized Discount and Issuance Costs
Carrying Value
2027 Notes$500,000 $(2,927)$497,073 $500,000 $(3,206)$496,794 
2029 Notes1,000,000 (9,194)990,806 1,000,000 (9,666)990,334 
2034 Notes1,000,000 (10,720)989,280 1,000,000 (10,945)989,055 
Total outstanding debt$2,500,000 $(22,841)$2,477,159 $2,500,000 $(23,817)$2,476,183 
v3.25.1
GOODWILL AND ACQUIRED INTANGIBLES (Tables)
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the carrying amount of goodwill
The changes in the carrying amount of goodwill during the three months ended March 31, 2025 were as follows:
 Gross Carrying
Amount
 (In thousands)
Balance as of December 31, 2024$2,378,671 
Effect of foreign currency translation41,046 
Balance as of March 31, 2025$2,419,717 
Schedule of acquired intangibles with finite and indefinite lives (excluding goodwill)
Acquired intangibles as of March 31, 2025 were as follows:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$460,255 $(204,291)$255,964 
Agreements and relationships393,700 (85,852)307,848 
Tradenames, trademarks and patents28,865 (8,449)20,416 
Total acquired intangibles$882,820 $(298,592)$584,228 
Acquired intangibles as of December 31, 2024 were as follows:
Gross Carrying
Amount		Accumulated
Amortization		Acquired
Intangibles, Net
 (In thousands)
Existing technology$465,453 $(199,126)$266,327 
Agreements and relationships386,365 (78,605)307,760 
Tradenames, trademarks and patents28,113 (7,466)20,647 
Total acquired intangibles$879,931 $(285,197)$594,734 
Amortization of acquired intangibles Amortization expense for the three months ended March 31, 2025 and March 31, 2024 by condensed consolidated income statement caption was as follows:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Cost of product and maintenance$16,494 $11,348 
Amortization of acquired intangibles8,922 5,407 
Total amortization of acquired intangibles$25,416 $16,755 
Estimated amortization expense
As of March 31, 2025, the estimated amortization expense for intangible assets with definite lives was as follows for the following five fiscal years and thereafter:
 (In thousands)
2025 - remaining period$68,314 
202688,564 
202785,334 
202880,668 
202965,995 
203040,842 
Thereafter154,511 
Total estimated amortization expense$584,228 
v3.25.1
STOCK-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-based compensation expense and allocation by cost
Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three months ended March 31, 2025 and March 31, 2024 as follows:
Three Months Ended
March 31,
2025		March 31,
2024
(In thousands)
Cost of product and maintenance$2,154 $1,280 
Cost of services2,466 1,629 
Marketing and sales21,671 17,836 
Research and development67,089 53,637 
General and administrative14,233 13,747 
Total stock-based compensation expense$107,613 $88,129 
v3.25.1
STOCK REPURCHASE PROGRAM (Tables)
 3 Months Ended
Mar. 31, 2025
Class of Stock Disclosures [Abstract]  
Shares repurchased and the total cost of shares repurchased
The shares repurchased under Cadence’s repurchase authorizations and the total cost of repurchased shares, including commissions, during the three months ended March 31, 2025 and March 31, 2024 were as follows:
Three Months Ended
March 31,
2025		March 31,
2024
(In thousands)
Shares repurchased1,361 425 
Total cost of repurchased shares$350,007 $125,006 
v3.25.1
OTHER INCOME, NET (Tables)
 3 Months Ended
Mar. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of Other Nonoperating Income (Expense)
Cadence’s other income, net, for the three months ended March 31, 2025 and March 31, 2024 was as follows:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Interest income$26,222 $9,512 
Gain on sale of IP and other assets
11,500 — 
Gain (loss) on investments
(13,291)55,394 
Gain (loss) on securities in Non-Qualified Deferred Compensation (“NQDC”) trust
(1,573)4,588 
Gain (loss) on foreign exchange
809 (331)
Other expense, net(377)(384)
Total other income, net
$23,290 $68,779 
v3.25.1
NET INCOME PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Basic and diluted net income per share
The calculations for basic and diluted net income per share for the three months ended March 31, 2025 and March 31, 2024 are as follows:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands, except per share amounts)
Net income$273,579 $247,643 
Weighted average common shares used to calculate basic net income per share271,973 269,606 
Stock-based awards1,658 3,938 
Weighted average common shares used to calculate diluted net income per share273,631 273,544 
Net income per share - basic$1.01 $0.92 
Net income per share - diluted$1.00 $0.91 
Potential shares of Cadence's common stock excluded
The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2025 and March 31, 2024 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Market-based awards
187 — 
Options to purchase shares of common stock234 59 
Non-vested shares of restricted stock190 8 
Total potential common shares excluded611 67 
v3.25.1
INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Gain (Loss) on Securities
The portion of gains and losses included in Cadence’s condensed consolidated income statements related to equity securities still held at the end of the period were as follows:
Three Months Ended
March 31,
2025		March 31,
2024
(In thousands)
Net gains (losses) recognized on equity securities
$(13,259)$55,398 
Less: Net gains recognized on equity securities sold
— (20,367)
Net gains (losses) recognized on equity securities still held
$(13,259)$35,031 
Unrealized Gain (Loss) on Investments
The following is a summary of Cadence’s available-for-sale debt securities recorded within prepaid expenses and other on its condensed consolidated balance sheets:
 As of March 31, 2025
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$50,782 $485 $(266)$51,001 
Total available-for-sale securities$50,782 $485 $(266)$51,001 
 As of December 31, 2024
  Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair Value
 (In thousands)
Available-for-sale debt securities
Mortgage-backed and asset-backed securities$50,604 $230 $(582)$50,252 
Total available-for-sale securities$50,604 $230 $(582)$50,252 
Investments Classified by Contractual Maturity Date
As of March 31, 2025, the fair values of available-for-sale debt securities, by remaining contractual maturity, were as follows:
 (In thousands)
Due within 1 year
$1,671 
Due after 1 year through 5 years9,696 
Due after 5 years through 10 years19,415 
Due after 10 years20,219 
Total$51,001 
v3.25.1
FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities The fair value of financial assets and liabilities was determined using the following levels of inputs as of March 31, 2025 and December 31, 2024:
 Fair Value Measurements as of March 31, 2025
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,963,812 $1,963,812 $— $— 
Marketable securities:
Marketable equity securities78,706 78,706 — — 
Mortgage-backed and asset-backed securities51,001 — 51,001 — 
Securities held in NQDC trust
93,023 93,023 — — 
Foreign currency exchange contracts12,289 — 12,289 — 
Total Assets$2,198,831 $2,135,541 $63,290 $— 
As of March 31, 2025, Cadence did not have any financial liabilities requiring a recurring fair value measurement.
 Fair Value Measurements as of December 31, 2024
  TotalLevel 1Level 2Level 3
 (In thousands)
Assets
Cash equivalents:
Money market funds$1,700,084 $1,700,084 $— $— 
Marketable securities:
Marketable equity securities90,374 90,374 — — 
Mortgage-backed and asset-backed securities50,252 — 50,252 — 
Securities held in NQDC trust96,450 96,450 — — 
Total Assets$1,937,160 $1,886,908 $50,252 $— 
  TotalLevel 1Level 2Level 3
 (In thousands)
Liabilities
Foreign currency exchange contracts$7,533 $— $7,533 $— 
Total Liabilities$7,533 $— $7,533 $— 
v3.25.1
INVENTORY (Tables)
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
Schedule of inventory
Cadence’s inventory balances as of March 31, 2025 and December 31, 2024 were as follows:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Inventories:
Raw materials$210,713 $243,244 
Work-in-process
— 1,216 
Finished goods14,908 13,251 
Total inventories$225,621 $257,711 
v3.25.1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)
 3 Months Ended
Mar. 31, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated other comprehensive loss, net of tax
Accumulated other comprehensive loss was comprised of the following as of March 31, 2025 and December 31, 2024:
As of
March 31,
2025		December 31,
2024
 (In thousands)
Foreign currency translation loss$(112,461)$(178,611)
Changes in defined benefit plan liabilities(4,092)(4,447)
Unrealized losses on derivatives designated as hedging instruments
(6,843)(7,038)
Unrealized gains (losses) on available-for-sale debt securities219 (352)
Total accumulated other comprehensive loss$(123,177)$(190,448)
v3.25.1
SEGMENT REPORTING (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Consolidated segment income and expenses The following table presents revenue, significant expenses and net income for the three months ended March 31, 2025 and March 31, 2024:
Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Revenue
$1,242,366 $1,009,103 
Costs and Expenses:
Salary, benefits and other employee-related costs542,655 475,886 
Stock based compensation
107,613 88,129 
Manufacturing costs
81,666 56,661 
Facilities and other infrastructure costs
43,836 41,654 
Depreciation and amortization
52,916 39,556 
Professional services
32,461 38,917 
Restructuring
(109)280 
Other segment items(1)
22,740 (41,203)
Interest income(26,222)(9,512)
Interest expense29,118 8,692 
Provision for income taxes82,113 62,400 
Net income$273,579 $247,643 
_____________
(1) Other segment items include direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
Summary of revenue by geography
The following table presents a summary of revenue by geography for the three months ended March 31, 2025 and March 31, 2024:
 Three Months Ended
 March 31,
2025		March 31,
2024
 (In thousands)
Americas:
United States$568,967 $435,523 
Other Americas29,612 27,347 
Total Americas598,579 462,870 
Asia:
China139,381 117,229 
Other Asia240,512 208,531 
Total Asia379,893 325,760 
Europe, Middle East and Africa (“EMEA”)
195,743 169,056 
Japan68,151 51,417 
Total$1,242,366 $1,009,103 
Summary of long-lived assets by geography
The following table presents a summary of long-lived assets by geography as of March 31, 2025 and December 31, 2024:
 As of
 March 31,
2025		December 31,
2024
 (In thousands)
Americas:
United States$422,658 $412,339 
Other Americas10,242 7,437 
Total Americas432,900 419,776 
Asia:
China20,011 22,929 
Other Asia91,734 83,951 
Total Asia111,745 106,880 
EMEA
72,784 73,551 
Japan3,905 4,183 
Total$621,334 $604,390 
v3.25.1
REVENUE - Revenue by Product Category (Details) - Revenue Benchmark - Product Concentration Risk
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue from External Customer [Line Items]    
Revenue percentage by product category 100.00% 100.00%
Core EDA    
Revenue from External Customer [Line Items]    
Revenue percentage by product category [1] 71.00% 76.00%
Semiconductor IP    
Revenue from External Customer [Line Items]    
Revenue percentage by product category 14.00% 12.00%
System Design and Analysis    
Revenue from External Customer [Line Items]    
Revenue percentage by product category 15.00% 12.00%
[1] Includes immaterial amount of revenue accounted for under leasing arrangements.
v3.25.1
REVENUE - Recurring vs. Up-front Revenue (Details)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer, timing of goods or service 100.00% 100.00%
Transferred over time    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer, timing of goods or service 80.00% 90.00%
Transferred over time | Revenue arrangement recognized over time    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer, timing of goods or service 77.00% 87.00%
Transferred over time | Revenue arrangement with non-cancelable commitments    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer, timing of goods or service 3.00% 3.00%
Transferred at point in time    
Disaggregation of Revenue [Line Items]    
Revenue from contract with customer, timing of goods or service 20.00% 10.00%
v3.25.1
REVENUE - Contract Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]      
Contract assets $ 70,775   $ 29,339
Deferred revenue 841,272   $ 852,581
Revenue recognized from deferred revenue during the period $ 390,100 $ 324,400  
v3.25.1
REVENUE - Remaining Performance Obligations (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Disaggregation of Revenue [Line Items]    
Unsatisfied performance obligations $ 6,400.0  
Remaining performance obligation, amount from non-cancellable IP access agreements 500.0  
Revenue recognized from performance obligations satisfied in previous periods $ 14.9 $ 15.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01    
Disaggregation of Revenue [Line Items]    
Expected remaining performance obligation to be converted to revenue, percentage 55.00%  
Expected timing of satisfaction of remaining performance obligation, period 12 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-02    
Disaggregation of Revenue [Line Items]    
Expected remaining performance obligation to be converted to revenue, percentage 42.00%  
Expected timing of satisfaction of remaining performance obligation, period 13 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01    
Disaggregation of Revenue [Line Items]    
Expected timing of satisfaction of remaining performance obligation, period 36 months  
v3.25.1
RECEIVABLES, NET - Receivables by Category and Concentration (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Customer
Dec. 31, 2024
USD ($)
Customer
Current and long-term receivables balances    
Accounts receivable $ 314,976 $ 393,017
Unbilled accounts receivable 270,298 293,251
Long-term receivables 24,186 24,179
Total receivables 609,460 710,447
Less allowance for doubtful accounts (4,387) (5,808)
Total receivables, net $ 605,073 $ 704,639
Number of Customers with Accounts Receivable and Installment Contract Receivable Balance Greater than Ten Percent of Balance | Customer 0 1
Percentage of Company's Receivables Net and Installment Contract Receivables Net Attributable to Single Customer 10.00% 11.00%
v3.25.1
DEBT - Outstanding Debt by Instrument (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Sep. 10, 2024
Debt Instrument [Line Items]      
Principal $ 2,500,000 $ 2,500,000  
Unamortized discount and issuance costs 22,841 23,817  
Carrying Value 2,477,159 2,476,183  
Senior Notes [Member] | Senior Notes Due 2027      
Debt Instrument [Line Items]      
Principal 500,000 500,000 $ 500,000
Unamortized discount and issuance costs 2,927 3,206 100
Carrying Value 497,073 496,794  
Senior Notes [Member] | Senior Notes Due 2029      
Debt Instrument [Line Items]      
Principal 1,000,000 1,000,000 1,000,000
Unamortized discount and issuance costs 9,194 9,666 1,400
Carrying Value 990,806 990,334  
Senior Notes [Member] | Senior Notes Due 2034      
Debt Instrument [Line Items]      
Principal 1,000,000 1,000,000 1,000,000
Unamortized discount and issuance costs 10,720 10,945 $ 1,900
Carrying Value $ 989,280 $ 989,055  
v3.25.1
DEBT - Senior Notes (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Sep. 10, 2024
Debt Instrument [Line Items]      
Aggregate principal amount issued $ 2,500,000 $ 2,500,000  
Unamortized discount and issuance costs 22,841 23,817  
Senior Notes [Member] | Senior Notes Due 2027      
Debt Instrument [Line Items]      
Aggregate principal amount issued 500,000 500,000 $ 500,000
Stated interest rate of 2024 Notes     4.20%
Long-Term Debt     $ 496,500
Unamortized discount and issuance costs 2,927 3,206 100
Debt issuance costs     3,500
Fair value of Senior Notes 498,700    
Senior Notes [Member] | Senior Notes Due 2029      
Debt Instrument [Line Items]      
Aggregate principal amount issued 1,000,000 1,000,000 $ 1,000,000
Stated interest rate of 2024 Notes     4.30%
Long-Term Debt     $ 989,800
Unamortized discount and issuance costs 9,194 9,666 1,400
Debt issuance costs     8,800
Fair value of Senior Notes 991,700    
Senior Notes [Member] | Senior Notes Due 2034      
Debt Instrument [Line Items]      
Aggregate principal amount issued 1,000,000 1,000,000 $ 1,000,000
Stated interest rate of 2024 Notes     4.70%
Long-Term Debt     $ 988,800
Unamortized discount and issuance costs 10,720 $ 10,945 1,900
Debt issuance costs     $ 9,300
Fair value of Senior Notes $ 977,700    
v3.25.1
DEBT - Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Aug. 31, 2024
Mar. 31, 2025
Line of Credit Facility [Line Items]    
Credit facility, current borrowing capacity   $ 1,250.0
Credit facility additional borrowing capacity available   500.0
Credit facility, maximum borrowing capacity   $ 1,750.0
Credit facility, maturity date   Aug. 14, 2029
Payment of debt issuance costs $ 1.3  
Credit facility, covenant, debt to EBITDA ratio after step up triggered by acquisition   4
Debt covenant, acquisition amount triggering step up   $ 250.0
Minimum [Member]    
Line of Credit Facility [Line Items]    
Credit facility, commitment fee percentage   0.05%
Credit facility, covenant, debt to EBITDA ratio   3.5
Debt covenant, pro forma leverage ratio   3.25
Maximum [Member]    
Line of Credit Facility [Line Items]    
Credit facility, commitment fee percentage   0.125%
Debt covenant, pro forma leverage ratio   3.75
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member]    
Line of Credit Facility [Line Items]    
Credit facility, interest rate spread   0.625%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum [Member]    
Line of Credit Facility [Line Items]    
Credit facility, interest rate spread   1.125%
Term Secured Overnight Financing Rate (SOFR)    
Line of Credit Facility [Line Items]    
SOFR adjustment   0.10%
Base Rate [Member] | Minimum [Member]    
Line of Credit Facility [Line Items]    
Credit facility, interest rate spread   0.00%
Base Rate [Member] | Maximum [Member]    
Line of Credit Facility [Line Items]    
Credit facility, interest rate spread   0.125%
v3.25.1
GOODWILL AND ACQUIRED INTANGIBLES - Goodwill (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
USD ($)
Changes in the carrying amount of goodwill  
Balance at beginning of period $ 2,378,671
Effect of foreign currency translation 41,046
Balance at end of period $ 2,419,717
v3.25.1
GOODWILL AND ACQUIRED INTANGIBLES - Acquired Intangibles, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount $ 882,820  
Accumulated amortization (298,592) $ (285,197)
Acquired intangibles, net 584,228  
Intangible assets, gross carrying amount (excluding goodwill) 882,820 879,931
Acquired intangibles, net 584,228 594,734
Existing Technology [Member]    
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount 460,255 465,453
Accumulated amortization (204,291) (199,126)
Acquired intangibles, net 255,964 266,327
Agreements and Relationships [Member]    
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount 393,700 386,365
Accumulated amortization (85,852) (78,605)
Acquired intangibles, net 307,848 307,760
Tradenames Trademarks And Patents [Member]    
Acquired intangibles with finite lives, excluding intangibles fully amortized at end of prior fiscal year    
Gross carrying amount 28,865 28,113
Accumulated amortization (8,449) (7,466)
Acquired intangibles, net $ 20,416 $ 20,647
v3.25.1
GOODWILL AND ACQUIRED INTANGIBLES - Amortization Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Cost of product and maintenance $ 16,494 $ 11,348
Amortization of acquired intangibles 8,922 5,407
Total amortization of acquired intangibles $ 25,416 $ 16,755
v3.25.1
GOODWILL AND ACQUIRED INTANGIBLES - Estimated amortization expense (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Estimated amortization expense  
2025 - remaining period $ 68,314
2026 88,564
2027 85,334
2028 80,668
2029 65,995
2030 40,842
Thereafter 154,511
Acquired intangibles, net $ 584,228
v3.25.1
STOCK-BASED COMPENSATION (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-based compensation expense and allocation by cost [Line Items]    
Stock based compensation $ 107,613 $ 88,129
Cost of product and maintenance    
Share-based compensation expense and allocation by cost [Line Items]    
Stock based compensation 2,154 1,280
Cost of services    
Share-based compensation expense and allocation by cost [Line Items]    
Stock based compensation 2,466 1,629
Marketing and sales    
Share-based compensation expense and allocation by cost [Line Items]    
Stock based compensation 21,671 17,836
Research and development    
Share-based compensation expense and allocation by cost [Line Items]    
Stock based compensation 67,089 53,637
General and administrative    
Share-based compensation expense and allocation by cost [Line Items]    
Stock based compensation 14,233 $ 13,747
Stock option and restricted stock grants [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total unrecognized compensation expense $ 830,000  
Weighted-average vesting period over which unrecognized compensation expense will be recognized 2 years 1 month 6 days  
v3.25.1
STOCK REPURCHASE PROGRAM (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Stock repurchase program    
Stock repurchase program, remaining authorized repurchase amount $ 477,000  
Shares repurchased 1,361 425
Total cost of repurchased shares $ 350,007 $ 125,006
v3.25.1
OTHER INCOME, NET (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Other Income and Expenses [Abstract]    
Interest income $ 26,222 $ 9,512
Gain on sale of IP and other assets 11,500 0
Gain (loss) on investments (13,291) 55,394
Gain (loss) on securities in Non-Qualified Deferred Compensation (“NQDC”) trust (1,573) 4,588
Gain (loss) on foreign exchange 809 (331)
Other expense, net (377) (384)
Other income, net $ 23,290 $ 68,779
v3.25.1
NET INCOME PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share, Basic and Diluted [Abstract]    
Net income $ 273,579 $ 247,643
Weighted average common shares used to calculate basic net income per share 271,973 269,606
Stock-based awards 1,658 3,938
Weighted average common shares used to calculate diluted net income per share (in shares) 273,631 273,544
Net income per share - basic (usd per share) $ 1.01 $ 0.92
Net income per share - diluted (usd per share) $ 1.00 $ 0.91
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 611 67
Market-based awards    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 187 0
Options to purchase shares of common stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 234 59
Non-vested shares of restricted stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 190 8
v3.25.1
INVESTMENTS - Marketable Equity Investments (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Marketable Securities [Line Items]    
Marketable equity investment, carrying value $ 78.7 $ 90.4
v3.25.1
INVESTMENTS - Non-Marketable Equity Investments, Equity Method Investments (Details) - Privately held company, equity method - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage 16.00%    
Equity method investments, carrying value $ 96.0   $ 97.5
Income (loss) from equity method investments $ (1.5) $ (0.4)  
v3.25.1
INVESTMENTS - Non-Marketable Equity Investments, Securities without Readily Determinable Fair Value (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Other equity investments not readily marketable    
Equity Securities without Readily Determinable Fair Value [Line Items]    
Equity securities without readily determinable fair value, carrying value $ 36.5 $ 26.6
v3.25.1
INVESTMENTS - Investments in Equity Securities, FV-NI Gain (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Debt and Equity Securities [Line Items]    
Net gains (losses) recognized on equity securities $ (13,259) $ 55,398
Less: Net gains recognized on equity securities sold 0 (20,367)
Net gains (losses) recognized on equity securities still held $ (13,259) $ 35,031
v3.25.1
INVESTMENTS - Available-for-sale Debt Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Amortized cost $ 50,782 $ 50,604
Gross accumulated unrealized gains 485 230
Gross accumulated unrealized losses (266) (582)
Available-for-sale debt securities, fair value 51,001 50,252
Fair value of available-for-sale debt securities in a continuous unrealized loss position, 12 months or longer 6,300 6,000
Mortgage-backed and asset-backed securities    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Amortized cost 50,782 50,604
Gross accumulated unrealized gains 485 230
Gross accumulated unrealized losses (266) (582)
Available-for-sale debt securities, fair value $ 51,001 $ 50,252
v3.25.1
INVESTMENTS - Available-for -sale Debt Securities, Contractual Maturity (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale [Line Items]    
Due within 1 year $ 1,671  
Due after 1 year through 5 years 9,696  
Due after 5 years through 10 years 19,415  
Due after 10 years 20,219  
Total $ 51,001 $ 50,252
v3.25.1
FAIR VALUE - Fair Value of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Liabilities   $ 0
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Liabilities   7,533
Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Liabilities   0
Fair Value, Recurring [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Assets $ 2,198,831 1,937,160
Total Liabilities   7,533
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Assets 2,135,541 1,886,908
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Assets 63,290 50,252
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total Assets 0 0
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts   7,533
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts   0
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts   7,533
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts   0
Fair Value, Recurring [Member] | Money Market Funds | Cash Equivalents [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Money market funds 1,963,812 1,700,084
Fair Value, Recurring [Member] | Money Market Funds | Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Money market funds 1,963,812 1,700,084
Fair Value, Recurring [Member] | Money Market Funds | Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Money market funds 0 0
Fair Value, Recurring [Member] | Money Market Funds | Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Money market funds 0 0
Fair Value, Recurring [Member] | Equity Securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 78,706 90,374
Fair Value, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 78,706 90,374
Fair Value, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring [Member] | Mortgage-backed and asset-backed securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 51,001 50,252
Fair Value, Recurring [Member] | Mortgage-backed and asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring [Member] | Mortgage-backed and asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 51,001 50,252
Fair Value, Recurring [Member] | Mortgage-backed and asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, Fair Value Disclosure 0 0
Fair Value, Recurring [Member] | Deferred Compensation Plan Assets [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities held in NQDC trust 93,023 96,450
Fair Value, Recurring [Member] | Deferred Compensation Plan Assets [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities held in NQDC trust 93,023 96,450
Fair Value, Recurring [Member] | Deferred Compensation Plan Assets [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities held in NQDC trust 0 0
Fair Value, Recurring [Member] | Deferred Compensation Plan Assets [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities held in NQDC trust 0 $ 0
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 12,289  
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 0  
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts 12,289  
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency exchange contracts $ 0  
v3.25.1
INVENTORY (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 210,713 $ 243,244
Work-in-process 0 1,216
Finished goods 14,908 13,251
Total inventories $ 225,621 $ 257,711
v3.25.1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Accumulated other comprehensive loss    
Foreign currency translation loss $ (112,461) $ (178,611)
Changes in defined benefit plan liabilities (4,092) (4,447)
Unrealized losses on derivatives designated as hedging instruments (6,843) (7,038)
Unrealized gains (losses) on available-for-sale debt securities 219 (352)
Total accumulated other comprehensive loss $ (123,177) $ (190,448)
v3.25.1
SEGMENT REPORTING - Revenue, significant expenses and net income (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Revenue $ 1,242,366 $ 1,009,103
Stock based compensation 107,613 88,129
Depreciation and amortization 52,916 39,556
Restructuring (109) 280
Interest income (26,222) (9,512)
Interest expense 29,118 8,692
Provision for income taxes 82,113 62,400
Net income 273,579 247,643
Reportable Segment    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Revenue 1,242,366 1,009,103
Salary, benefits and other employee-related costs 542,655 475,886
Stock based compensation 107,613 88,129
Manufacturing costs 81,666 56,661
Facilities and other infrastructure costs 43,836 41,654
Depreciation and amortization 52,916 39,556
Professional services 32,461 38,917
Restructuring (109) 280
Other segment items [1] 22,740 (41,203)
Interest income (26,222) (9,512)
Interest expense 29,118 8,692
Provision for income taxes 82,113 62,400
Net income $ 273,579 $ 247,643
[1] Other segment items include direct costs for advertising, marketing events, travel, entertainment, bad debt and other operating expense categories that are not considered significant individually. It also includes non-operating expenses such as gains and losses on investments, foreign currency and other non-operating expenses that are not considered significant individually.
v3.25.1
SEGMENT REPORTING - Summary of Revenue by Geography (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment reporting [Line Items]    
Revenue $ 1,242,366 $ 1,009,103
United States [Member]    
Segment reporting [Line Items]    
Revenue 568,967 435,523
Other Americas [Member]    
Segment reporting [Line Items]    
Revenue 29,612 27,347
Americas [Member]    
Segment reporting [Line Items]    
Revenue 598,579 462,870
China [Member]    
Segment reporting [Line Items]    
Revenue 139,381 117,229
Other Asia [Member]    
Segment reporting [Line Items]    
Revenue 240,512 208,531
Asia [Member]    
Segment reporting [Line Items]    
Revenue 379,893 325,760
EMEA [Member]    
Segment reporting [Line Items]    
Revenue 195,743 169,056
Japan [Member]    
Segment reporting [Line Items]    
Revenue $ 68,151 $ 51,417
v3.25.1
SEGMENT REPORTING - Summary of Long-Lived Assets by Geography (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries $ 621,334 $ 604,390
United States [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 422,658 412,339
Other Americas [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 10,242 7,437
Americas [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 432,900 419,776
China [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 20,011 22,929
Other Asia [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 91,734 83,951
Asia [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 111,745 106,880
EMEA [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries 72,784 73,551
Japan [Member]    
Summary of long-lived assets by geography    
Long-lived assets in individual foreign countries $ 3,905 $ 4,183