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Gotrade News - Cadence Design Systems (CDNS) reported third-quarter 2026 revenue of $1.633 billion on Monday, October 26, 2026, compared with $1.339 billion a year earlier, according to Cadence's official release. Non-GAAP diluted earnings per share were $2.11, compared with $1.93, and the company raised its 2026 revenue outlook.
Regular-session close on October 26, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
Cadence Earnings Details
GAAP diluted earnings per share were $1.05, the same as $1.05 in the third quarter of 2025, the release said. GAAP operating margin was 26.2%, compared with 31.8% a year earlier, and non-GAAP operating margin was 44.1%, compared with 47.6%. Quarter-end backlog was $8.2 billion, and revenue expected to be recognized in the next 12 months from remaining performance obligations was $4.2 billion.
For fiscal year 2026, Cadence expects revenue of $6.387 billion to $6.417 billion, GAAP diluted earnings per share of $4.84 to $4.90 and non-GAAP diluted earnings per share of $8.37 to $8.43. For the fourth quarter, the company's CFO commentary gives a revenue outlook of $1.695 billion to $1.725 billion and non-GAAP earnings per share of $2.19 to $2.25.
Cadence used $400 million to repurchase its shares in the quarter, and its Board of Directors authorized an additional $2.5 billion for the share repurchase program. The company said it expects to use approximately $400 million to repurchase shares in the fourth quarter.
Why It Matters for CDNS
According to the CFO commentary, the quarter exceeded Cadence's own third-quarter guidance for revenue, non-GAAP operating margin and non-GAAP earnings per share, and the company is raising its 2026 revenue growth outlook for the third time this year, to about 21%. Its previous fiscal 2026 outlook was revenue of $6,260 million to $6,340 million and non-GAAP earnings per share of $8.05 to $8.15.
"Q3 revenue grew 22% year-over-year, with strong double-digit growth across all product categories, driven by growing momentum from AI-driven designs," Chief Financial Officer John Wall said. The company said Core EDA revenue grew 20%, IP revenue increased 24% and System Design and Analysis revenue grew 30% from a year earlier, and that it launched Maestro, a portfolio of domain-specialized AI models for chip and system design.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
