Cadence said third-quarter revenue rose to $1.633 billion

Cadence Design Systems said third-quarter revenue was $1.633 billion, compared with $1.339 billion in the third quarter of 2025. The company’s release on Oct. 26 also said GAAP diluted net income per share was $1.05, the same as a year earlier, and that its non-GAAP diluted figure was $2.11, compared with $1.93. GAAP operating margin was 26.2%, compared with 31.8%. The non-GAAP operating margin was 44.1%, compared with 47.6%. Those non-GAAP figures are Cadence’s, after the adjustments it lists in the release. They are not a second set of results calculated here.

The company said quarter-end backlog was $8.2 billion, and that revenue expected to be recognized in the next 12 months from remaining performance obligations was $4.2 billion. It said it used $400 million to repurchase shares, and that the board authorized an additional $2.5 billion for the repurchase program. The headline of the release says recurring revenue was up 18% from a year earlier. Chief financial officer John Wall said in the release that third-quarter revenue grew 22% year over year. The dollar figures above are the ones the release states.

Cadence said it now expects full-year 2026 revenue of $6.387 billion to $6.417 billion, and that it is raising its revenue-growth outlook to 21% on the midpoint of that range. It said it expects GAAP diluted earnings per share of $4.84 to $4.90, and non-GAAP diluted earnings per share of $8.37 to $8.43. The release’s subheading describes the non-GAAP earnings outlook as $8.40. That is the company’s outlook, not a forecast from this article, and the release says actual results may differ.

The company also described product lines in its own words. It said core electronic-design-automation revenue grew 20% year over year, intellectual-property revenue grew 24%, and system design and analysis revenue grew 30%. It said it launched Maestro, which it called a set of domain-specialized models for chip and system design, and that it had more than 100 active customer engagements for what it calls AI Super Agents. Those product claims are Cadence’s. A share-price move is not reported here, and nothing in the results is a recommendation to buy or sell the stock.