Cadence Design Systems, Inc.: Beat — EPS $2.11, Revenue $1.63B
Earnings BeatQ3 2026 · After-market
Did Cadence Design Systems, Inc. (CDNS) beat earnings today?
Yes, Cadence Design Systems, Inc. (CDNS) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+2.93% surprise
$2.11Actual
Expected: $2.05
vs. year ago +9.3%
Total Revenue+0.82% surprise
$1.63BActual
Expected: $1.62B
vs. year ago +22.0%
Released Oct 26 · 4:02 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $1.63B | $1.34B | +22.0% |
| Revenue detail — reported lines | |||
| └─Product and maintenance | $1.49B | $1.21B | +23.2% |
| Consolidated revenue by source | |||
| └─Services | $146.00M | $131.13M | +11.3% |
| Net Income | $289.75M | $287.12M | +0.9% |
| GAAP Basic EPS | $1.06 | $1.06 | +0.0% |
| GAAP Diluted EPS | $1.05 | $1.05 | +0.0% |
| Non-GAAP Diluted EPS | $2.11 | $1.93 | +9.3% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| Revenue | — | $6.387B-$6.417B |
| GAAP Operating Margin | 30%-31% | 28.2%-29.2% |
| Non-GAAP Operating Margin | 44%-45% | 44.2%-45.2% |
| GAAP Diluted EPS | $1.23-$1.29 | $4.84-$4.90 |
| Non-GAAP Diluted EPS | $2.19-$2.25 | $8.37-$8.43 |
| GAAP Net Income | $339M-$355M | $1,331M-$1,347M |
| Non-GAAP Net Income | $601M-$617M | $2,301M-$2,317M |
Business Highlights
- ➤Launched Maestro domain-specialized AI models for chip and system design.
- ➤Maestro delivered initial workflow results of up to 30% higher quality and 5X greater token efficiency.
- ➤Several customer deployments of Maestro were underway.
- ➤Cadence AI Super Agents surpassed 100 active customer engagements.
- ➤AI Super Agents improved productivity across digital, analog, custom and system-design workflows.
- ➤Recorded 16 new digital and signoff full-flow wins.
- ➤Expanded hardware relationships with marquee customers and grew the hardware cloud offering.
- ➤Demand for Star IP spanned interface, memory and foundation IP.
- ➤Advanced packaging and PCB solutions saw continued strength.
- ➤Millennium platform adoption continued to grow.
- ➤Used $400 million to repurchase Cadence shares.
- ➤Board authorized an additional $2.5 billion for the share-repurchase program.
Management Commentary
Anirudh Devgan, president and chief executive officer
“Cadence delivered an outstanding third quarter. With broad-based business momentum, expanding technology leadership and a record backlog, we are raising our 2026 revenue outlook to 21% year-over-year growth.”
Anirudh Devgan, president and chief executive officer
“With the launch of Maestro, our portfolio of domain specialized AI models for chip and system design, and the accelerating deployment of our AI Super Agents, Cadence is exceptionally well positioned to capitalize on the transformational Agentic AI opportunity.”
John Wall, senior vice president and chief financial officer
“Q3 revenue grew 22% year-over-year, with strong double-digit growth across all product categories, driven by growing momentum from AI-driven designs.”
John Wall, senior vice president and chief financial officer
“With record backlog of $8.2 billion and continued strength in recurring revenue, we are poised to deliver a strong 2026.”