Cadence beats with $2.11 adjusted EPS and raises 2026 revenue outlook to $6.39-6.42B; shares about +2% after hours
Chip-design software maker Cadence reported Q3 revenue of $1.633 billion and a record $8.2 billion backlog, and lifted its full-year outlook.
Cadence Design Systems (CDNS) reported third-quarter results after Monday’s close and raised its outlook for 2026.
| Item | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $1.633B | $1.339B |
| Non-GAAP EPS | $2.11 | $1.93 |
| GAAP EPS | $1.05 | $1.05 |
| Non-GAAP operating margin | 44.1% | 47.6% |
| Backlog | $8.2B (record) | - |
| 2026 revenue outlook | $6.387-6.417B (raised) | - |
| 2026 non-GAAP EPS outlook | $8.37-8.43 | - |
How to read it: revenue grew about 22%, but margins narrowed, so earnings grew more slowly than sales.
Why it matters: Cadence sells the software used to design chips, so its backlog is an early read on how much chip and AI-system design work is in the pipeline. Benzinga and Investing.com both put estimates at $2.04 EPS and $1.61 billion revenue (2 outlets), so the quarter and the raised guidance came in ahead of expectations. Cadence also added $2.5 billion to its buyback authorization.
Market reaction: shares rose about 2% after hours, to $329.50 at 4:19 PM ET (Benzinga), after the semiconductor index gained about 3% in the regular session.
WMR data: we do not track Cadence directly; for the chip backdrop see /en/markets/semis/ and the results table at /en/earnings/.
What to watch next: whether the after-hours gain holds in Tuesday’s session, and comments on the call about AI-related design demand.
Sources
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