04:50 PM EDT, 07/22/2024 (MT Newswires) -- Cadence Design Systems ( CDNS ) late Monday reported second-quarter results that exceeded Wall Street's estimates as the computational software company benefited from strong artificial intelligence demand.

Revenue rose to $1.06 billion for the quarter through June 30 from last year's $976.6 million. That compared with the Capital IQ-polled consensus of $1.04 billion. Adjusted per-share earnings increased to $1.28 from $1.22 a year earlier, topping the $1.23 Street estimate.

Cadence Design Systems ( CDNS ) experienced "robust demand for our cutting-edge technologies from AI, hyperscale, and automotive customers," Chief Executive Anirudh Devgan said in a statement.

Product and maintenance revenue increased to $960.5 million from $922.8 million, while services rose to $100.2 million from $53.8 million.

Cadence projects third-quarter adjusted EPS of $1.39 to $1.49 on revenue from $1.17 billion to $1.2 billion. Analysts polled by Capital IQ expect $1.60 and $1.2 billion, respectively.

Full-year adjusted EPS is now seen at $5.77 and $5.97, compared with the previous projection of $5.88 to $5.98. Revenue is pegged at $4.6 billion to $4.66 billion, versus $4.56 billion to $4.62 billion previously. Wall Street is looking for normalized EPS of $5.93 on revenue of $4.6 billion for the full year.

"A good finish to the first half of the year, combined with ongoing demand for our solutions, sets us up for strong growth in the second half of 2024," Chief Financial Officer John Wall said.

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