Cadence says Q3 revenue tops guidance, raises 2026 growth outlook to about 21%
CDNS•Cadence Design Systems’ third-quarter revenue rose 22% year over year to $1.63 billion, exceeding guidance. Management raised its 2026 revenue growth outlook to approximately 21% and forecast fourth-quarter growth of 18%-20%.
1. Quarterly results and outlook
Third-quarter revenue rose 22% year over year to $1.63 billion. Product and maintenance revenue increased to $1.49 billion from $1.21 billion, while services revenue reached $146 million; non-GAAP earnings per share rose to $2.11 from $1.93, and non-GAAP operating margin fell to 44.1% from 47.6%. Management raised its 2026 revenue growth outlook for the third time this year to approximately 21%; backlog reached a record $8.2 billion, and fourth-quarter revenue guidance indicated 18%-20% year-over-year growth.
