PITTSBURGH - Cummins Inc . (NYSE: NYSE:CMI) and simulation software provider Ansys (NASDAQ: NASDAQ:ANSS), currently trading near its 52-week high of $364.31, have solidified their commitment to advancing sustainable and efficient power solutions by extending their collaborative agreement. This partnership renewal follows the successful use of Ansys' simulation technology by Cummins, which has reportedly saved the company millions of dollars and hastened the time-to-market for its products. According to InvestingPro data, Ansys maintains impressive gross profit margins of 92.31%, reflecting its strong market position in the simulation software industry.
The extended collaboration will focus on enhancing Ansys' simulation tools and developing new workflows, with an emphasis on integrating artificial intelligence into product development processes. With a market capitalization of $31.61 billion and robust revenue growth of 14.3% over the last twelve months, Ansys continues to demonstrate strong financial performance. Cummins aims to utilize these advanced modeling and simulation capabilities to further its "Destination Zero" strategy, which involves a customer-centric approach to creating zero-emissions solutions under its Accelera initiative.
Jonathan Wood, Chief Technical Officer at Cummins, highlighted the significance of a simulation-led strategy in product development, indicating its importance for the company's innovation efforts. Ansys' Senior Vice President of Worldwide Sales and Customer Excellence, Walt Hearn, echoed this sentiment, underscoring the role of engineering innovation in achieving a carbon-neutral future.
The partnership is expected to address the complex challenges faced by engineers in the realm of sustainable engineering, with both companies expressing a commitment to incremental and urgent innovation. InvestingPro analysis reveals that Ansys maintains a strong financial health score, suggesting its robust position to support long-term innovation initiatives. Subscribers can access 15 additional ProTips and comprehensive financial metrics to better understand Ansys's market position and growth potential.
Cummins, renowned for its diverse portfolio of power solutions, continues to confront new engineering challenges as it strives to maintain its position at the forefront of innovation. The insights gained from this ongoing partnership with Ansys are anticipated to contribute to the development of novel engineering solutions and the elevation of Ansys' simulation capabilities.
The details of the collaboration will be showcased at the upcoming Consumer Electronics Show (CES) 2025, where Ansys will present its multiphysics simulation solutions at the Las Vegas Convention Center.
This expansion of the Cummins-Ansys partnership is based on a press release statement and reflects the companies' shared dedication to driving human advancement through innovation.
In other recent news, ANSYS has reported strong Q3 results, with an 18% year-over-year increase in its Annual Contract Value (ACV), surpassing Baird's estimates by 5% and the consensus by 7%. The company is now on track to achieve double-digit percentage growth for the full fiscal year 2024, with only a 10% growth in the fourth quarter required to meet the full-year expectations. In response to these results, Baird has raised ANSYS's target to $365.
ANSYS has also been expanding its strategic partnerships with companies like Supermicro and NVIDIA (NASDAQ:NVDA) to enhance its multiphysics simulation capabilities. Its merger with Synopsys (NASDAQ:SNPS) is progressing and is currently awaiting regulatory approval from China. Meanwhile, in collaboration with Taiwan Semiconductor Manufacturing Company, ANSYS has been working to improve 3D integrated circuit design using artificial intelligence.
On the governance front, 23andMe Holding Co. has expanded its board with the addition of three new independent directors: Andre Fernandez, Jim Frankola, and Mark Jensen. These appointments are expected to contribute to the company's long-term success. These are among the recent developments shaping ANSYS and 23andMe's trajectories.
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