Cadence Reports Third Quarter 2026 Financial Results
Cadence posted Q3 2026 revenue of $1.633 billion, up 22% year-over-year, with strong double-digit growth across all product categories and record backlog of $8.2 billion. Non-GAAP EPS was $2.11 versus $1.93 a year ago; GAAP EPS was flat at $1.05 with operating margin compressing to 26.2% on higher amortization and restructuring charges. Core EDA revenue grew 20%, IP grew 24%, and System Design & Analysis grew 30%. The company raised its FY2026 outlook to 21% revenue growth ($6.387B-$6.417B) and non-GAAP EPS of $8.37-$8.43, and the board authorized an additional $2.5 billion for buybacks after repurchasing $400 million in the quarter.
Key figures
- Eps
- 2.11
- Revenue
- 1633311000
- Guidance
- FY2026 revenue $6.387B-$6.417B (21% YoY growth at midpoint); GAAP EPS $4.84-$4.90; non-GAAP EPS $8.37-$8.43; GAAP op margin 28.2-29.2%; non-GAAP op margin 44.2-45.2%
- Revenue Yoy
- 22%
- Backlog
- 8200000000
- Gaap eps
- 1.05
- Q3 buyback
- 400000000
- Ip revenue yoy
- 24%
- Sda revenue yoy
- 30%
- China revenue mix
- 16%
- Core eda revenue yoy
- 20%
- Gaap operating margin
- 26.2%
- Recurring revenue yoy
- 18%
- New buyback authorization
- 2500000000
- Non gaap operating margin
- 44.1%
- Revenue next 12 months rpo
- 4200000000
AI analysis
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