Cadence tops Q3 profit estimates, hikes forecast on AI-driven design strength
CDNS•Cadence reported Q3 revenue of $1.63 billion and adjusted EPS of $2.11, beating analyst estimates of $1.61 billion and $2.05. It raised its 2026 revenue growth outlook to 21% and forecast revenue of $6.387 billion to $6.417 billion and non-GAAP EPS of $8.37 to $8.43.
1. Quarterly results
Cadence said Q3 revenue rose 22% year over year to $1.63 billion, above analyst expectations of $1.61 billion. Adjusted EPS was $2.11, topping the $2.05 estimate; reported EPS was $1.05.
2. 2026 outlook
The company expects 2026 revenue of $6.387 billion to $6.417 billion and non-GAAP EPS of $8.37 to $8.43. It raised its 2026 revenue growth outlook to 21% year over year and authorized an additional $2.5 billion for share repurchases.
3. AI design demand
CFO John Wall said momentum from AI-driven designs drove double-digit growth across all product categories. Cadence said its Maestro AI models contributed to improved workflow quality and efficiency, while its hardware segment had a record quarter, supported by customer expansions and growth in its hardware cloud offering.
