Cadence Design Systems, Inc.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star and then the number one on your telephone keypad. Thank you. And I will now turn the call over to Richard Gu, Vice President of Investor Relations for Cadence. Please go ahead.

Thank you, Operator. I would like to welcome everyone to our third quarter of 2025 earnings conference call. I'm joined today by Anirudh Devgn, President and Chief Executive Officer, and John Wall, Senior Vice President and Chief Financial Officer. The webcast of this call and a copy of today's prepared remarks will be available on our website, Cadence.com. Today's discussion will contain forward-looking statements, including our outlook on future business and operating results. Due to risks and uncertainties, actual results may differ materially from those projected or implied in today's discussion. For information on factors that could cause actual results to differ, please refer to our SEC filings, including our most recent forms 10-K and 10-Q, CFO commentary, and today's earnings release. All forward-looking statements during this call are based on estimates and information available to us as of today, and we disclaim any obligation to update them. In addition, all financial measures discussed on this call are non-GAAP unless otherwise specified. The non-GAAP measures should not be considered in isolation from or as a substitute for GAAP results. Reconciliations of GAAP to non-GAAP measures are included in today's earnings release. For the Q&A session today, we would ask that you observe a limit of one question only. If time permits, you can re-queue with additional questions. Now, I'll turn the call over to Anirudh.

Thank you, Richard. Good afternoon, everyone. and thank you for joining us today. Cadence delivered excellent results for the third quarter of 2025 with strong operational and financial performance across all product categories and geographies as we continued the disciplined execution of our strategy. Bookings exceeded our expectations with backlog growing to over $7 billion. underscoring our continued technology leadership and reaffirming Cadence as the trusted partner enabling customer success. Given the ongoing strength of our business, we are raising our full year outlook to approximately 14% revenue growth and 18% EPS growth. John will provide more details on our financials shortly. The accelerating AI megatrend is fueling an unprecedented wave of design activity across industries ranging from hyperscaler infrastructure to fast-growing physical AI realm of autonomous driving, drones, and robotics to the emerging domain of sciences AI. As AI drives exponential design complexity and new system architectures, Cadence is uniquely positioned to capture this generational opportunity with a differentiated and comprehensive portfolio spanning EDA, IP, 3DIC, PCB, and system analysis. The Cadence.ai portfolio embodies our strategy of design for AI and AI for design, empowering customers to build out the global AI infrastructure. while we infuse AI into our own products to deliver breakthrough automation and productivity. With deep partnerships across AI innovators, foundries, and system leaders, and a comprehensive chip-to-systems portfolio, Cadence is driving transformative PPA and productivity gains, positioning us well for sustained growth in the AI era. In Q3, we meaningfully expanded our partnership with Samsung through a wide-ranging proliferation of our core EDA software, as well as system software across PCB, advanced packaging, and system analysis. We also deepened our long-standing partnership with a leading semiconductor company in Q3 through a broad proliferation of our core EDA IP and systems portfolio, and are closely collaborating on next-generation agentic AI EDS solutions. We expanded our long-standing partnership with TSMC to power next-gen AI flows supporting TSMC's N2 and A16 technologies. Our Integrity 3D IC solution provides comprehensive support for the latest TSMC 3D fabric die stacking configurations. And our design and ready IP, including HBM4 and LPDDR6 on N3P enable next generation AI infrastructure. At TSMC's OIP conference, Broadcom highlighted integrated 3D IC full flow deployment success for hyperscaler high-capacity ASICs. Our IP business maintains strong momentum in Q3, driven by global accelerating IP demand and increasing customer proliferation of our expanding IP portfolio. Our profitable, scalable IP strategy focused on AI, HPC, and automotive verticals positions as well for continued growth. Increasing complexity of interconnect protocols driven by AI and chiplet architectures, along with new foundry opportunities are providing strong tailwinds to our IP business. Bookings were strong and tracked ahead of our expectations. Our design IP portfolio secured several competitive wins at top AI and memory customers. For instance, we won a highly competitive engagement at a marquee memory company that embraced our HBM4 and DDR5 IP for its new AI design. The recently completed acquisition of the ARM Artisan Foundation IP further augments our design IP portfolio with standard cell libraries, memory compilers, and IOs optimized for advanced nodes at the leading foundries. Our Tensilica Audio and Vision DSPs and Neo AI Accelerator, NPUs, scored multiple design wins with leading customers in U.S. and Asia for mobile, automotive, and data center verticals. Our core EDA business delivered strong results, driven by growing adoption of our AI-driven design and verification solutions. In digital, Cadence Cerebras AI Studio, the industry's first agentic AI, multi-block, multi-user design platform, continues to deliver unparalleled PPA and productivity benefits. Samsung US taped out a SF2 design using Cadence Cerebrus AI Studio to achieve a 4X productivity improvement. In another instance, Samsung used Cadence Certus, Tempus, and Innovus to rapidly close and sign off a multi-billion instance AI design on SF4 with 22% power reduction and first-pass silicon success. Our virtuoso studio and Spectre platforms saw strong momentum with their AI-driven features and workflows gaining rapid traction as the customers leveraged the automated design migration and optimization capabilities. Our hardware verification platforms have become the de facto choice for AI designs, offering industry-leading performance, capacity, and scalability. Hardware had a record Q3 with several significant expansions, especially at AI and HPC customers. We deepened our overall collaboration with OpenAI as they expanded their commitment to our Palladium emulation platform in Q3. Verisim SimAI saw growing adoption as it delivered dramatic debug productivity, test bench efficiency, and accelerated coverage closure. Nvidia, Samsung, and Qualcomm all presented CMEI success stories at Cadence Live India, highlighting 5x to 10x improvement in verification throughput. Our system design and analysis business achieved another solid quarter, driven by expanding set of innovative solutions and growing adoption across a broadening customer base. In Q3, we significantly expanded our Cadence Reality digital twin platform library with NVIDIA DGX SuperPOD model and DGX GB200 systems to accelerate AI data center deployment and operations. Three major memory providers significantly increased their clarity and security usage. as they transition to a full cadence flow for advanced IC packaging, displacing competitive solutions. Beta CAE continued its momentum with multiple competitive displacements, underscoring its accuracy and performance advantages, including a significant competitive win at a large Tier 1 automotive company in China. In Q3, Infineon Technologies standardized its PCB design workflow on the Cadence AI-driven Allegro X platform for their future designs. Last month, we signed a definite agreement to acquire Hexagon's T&E business, including its MSC software business, to bring industry-leading structural analysis and multi-body dynamics technologies to cadence. Complementing our multiphysics portfolio, this will accelerate our expansion in SDA and put us at the forefront in unlocking new opportunities across automotive, aerospace, industrial, and the rapidly emerging world of physical AI. In summary, I'm pleased with our Q2 results. and the strong momentum across our businesses. The AI era offers massive market opportunities, and through the co-optimization of our entire portfolio with AI and accelerated computing, Cadence is uniquely positioned to be the trusted partner to deliver AI-centric transformational solutions across multiple industries. Now, I will turn it over to John to provide more details on the Q3 results and our updated 2025 outlook.