$CDNS · CADENCE DESIGN SYSTEMS INC
Cadence Design Systems reported Q3 FY2026 results on October 26, 2026: revenue of $1.633B (up 22% YoY), GAAP EPS of $1.05, and non-GAAP EPS of $2.11. The company raised its full-year FY2026 revenue guidance to $6.387B–$6.417B (~21% growth) and non-GAAP EPS to $8.37–$8.43. The board also authorized an additional $2.5B for share repurchases, with $400M deployed in Q3 and another ~$400M planned for Q4.
- Q3 revenue of $1.633B grew 22% YoY, exceeding guidance across all product categories.
- Non-GAAP EPS of $2.11 beat Q3 2025's $1.93; GAAP EPS flat at $1.05.
- Record backlog of $8.2B; 12-month remaining performance obligations at $4.2B.
- FY2026 revenue guidance raised to $6.387B–$6.417B (~21% growth), third raise this year.
- Board authorized an additional $2.5B share repurchase; $400M used in Q3, another ~$400M planned for Q4.
Extended-hours trading at $330.04, up 2.44% vs the regular close of $322.17, reflecting a positive reaction to the beat-and-raise quarter and the $2.5B buyback authorization.
Cadence delivered a beat-and-raise quarter with 22% revenue growth, a third consecutive FY guidance hike, and a $2.5B buyback — reinforcing its AI-driven EDA dominance at $88.7B market cap.
Cadence's 21% revenue growth outlook and 44%+ non-GAAP operating margins reinforce its leadership in AI-driven EDA alongside Synopsys, with the Maestro AI model launch and 100+ AI Super Agent engagements signaling a deepening competitive moat.
Forward-looking risks include export controls, tariffs, and trade restrictions; ongoing obligations under the July 2025 DOJ/BIS settlement; and the $8.2B backlog's dependence on customer execution and macroeconomic stability.