Key Highlights

  • Cadence hosts its third-quarter 2026 results webcast on Monday, October 26, at 2:00 p.m. Pacific Time.
  • Second-quarter revenue was $1.584 billion, up from $1.275 billion a year earlier, a calculated gain of about 24%.
  • Backlog ended the second quarter at $8.1 billion.
  • Third-quarter revenue is guided to $1.595 billion to $1.625 billion, with non-GAAP EPS of $2.01 to $2.07.
  • Full-year revenue guidance was raised to $6.26 billion to $6.34 billion from $6.125 billion to $6.225 billion.

Cadence Earnings: What Is the Setup for the Third-Quarter Webcast on October 26?

Cadence Design Systems (NASDAQ:CDNS) will discuss third-quarter 2026 results in a webcast on Monday, October 26, at 2:00 p.m. Pacific Time, according to a company notice issued on October 5. The report follows a second quarter in which the company beat its own guidance and raised its full-year outlook.

Cadence develops electronic design automation software, semiconductor intellectual property and system design and analysis tools used by chip and electronics designers. Its software sits early in the process of building advanced processors, which ties its growth to design activity across the chip industry.

Cadence Second Quarter: How Strong Was the Starting Point?

Second-quarter revenue was $1.584 billion, compared with $1.275 billion a year earlier. GAAP diluted EPS was $1.33 and non-GAAP diluted EPS was $2.11, with a GAAP operating margin of 28.4% and a non-GAAP operating margin of 45.5%.

Backlog stood at $8.1 billion at quarter end, which gives revenue visibility into coming periods. Recurring revenue was 78% of the quarter, and the full-year outlook assumes about 80%.

By product group, core electronic design automation was 68% of revenue, down from 71% a year earlier, while semiconductor IP rose to 15% from 13% and system design and analysis to 17% from 16%.

Operating cash flow was $635 million in the quarter, and the company repurchased $200 million of stock, or 0.580 million shares. Cash and equivalents were about $1.44 billion at June 30.

Cadence Guidance: What Does the Third-Quarter Outlook Imply?

For the third quarter, management guided revenue of $1.595 billion to $1.625 billion, GAAP EPS of $1.11 to $1.17 and non-GAAP EPS of $2.01 to $2.07. Operating margins are guided at 27.5% to 28.5% on a GAAP basis and 43.5% to 44.5% non-GAAP.

Against year-ago third-quarter revenue of $1.339 billion, the revenue range implies growth of roughly 19% to 21%, a calculated figure. Non-GAAP EPS guidance sits slightly below the second-quarter result of $2.11.

For 2026, revenue is guided to $6.26 billion to $6.34 billion, or 18% to 20% growth, with non-GAAP EPS of $8.05 to $8.15 and GAAP EPS of $4.76 to $4.86. Operating cash flow is expected at about $2.0 billion, and non-GAAP operating margin at 43.75% to 44.75%.

Cadence Report: What Should Investors Watch on the Call?

The main markers are whether third-quarter revenue lands within or above the $1.595 billion to $1.625 billion range, how backlog moves from $8.1 billion, and whether full-year guidance is lifted again. The product mix, especially semiconductor IP and system design, and the pace of share repurchases are also worth tracking. Management commentary on design activity from chip and systems customers, and on how recurring revenue tracks toward the roughly 80% assumed for the year, will also frame how the quarter is read.