Key Highlights

● Cadence will discuss third-quarter results in a webcast on 26 October 2026.

● Second-quarter revenue was US$1.584 billion, up 24% year on year.

● Backlog reached a record US$8.1 billion, with every product group growing by double digits.

● The 2026 revenue outlook was raised to US$6.26 billion to US$6.34 billion.

Latest verified development

Cadence Design Systems, Inc. (NASDAQ:CDNS), the electronic design automation (EDA) software group, announced on 5 October 2026 that its third-quarter 2026 financial results webcast will be held on Monday 26 October 2026 at 2:00 pm Pacific Time. Until then, the most recent reported figures are those for the second quarter, released on 27 July. Cadence has been an S&P 500 constituent since 18 September 2017.

For context, first-quarter revenue, reported on 27 April, was US$1.474 billion, against US$1.242 billion a year earlier, and backlog was then US$8.0 billion. Second-quarter revenue was therefore about 7.5% above the first quarter, a simple calculation, and backlog rose by about US$100 million. Chief executive Anirudh Devgan had said in April that Cadence made a strong start to 2026 with accelerating AI demand and record backlog.

Second-quarter results

Revenue was US$1.584 billion, up 24% year on year and above the company's guidance. The GAAP operating margin was 28.4% and the non-GAAP margin 45.5%. Diluted earnings per share were US$1.33 on a GAAP basis and US$2.11 non-GAAP. Backlog reached a record US$8.1 billion. Operating cash flow was US$635 million, the company repurchased US$200 million of shares, and it held US$1.44 billion of cash against US$2.5 billion of debt principal.

On the earnings call, growth was described as broad-based, with every product group growing by double digits. Demand for AI and high-performance computing design tools was especially strong. Management credited agentic AI tools with raising customer productivity, noted that hardware remains supply-constrained because of demand from hyperscalers and chipmakers, and said the forecast assumes export-control rules stay broadly unchanged.

Outlook

For 2026, Cadence raised its revenue outlook to between US$6.26 billion and US$6.34 billion, about 19% growth. It guided to a GAAP operating margin of 27.75% to 28.75% and a non-GAAP margin of 43.75% to 44.75%. GAAP earnings per share are expected at US$4.76 to US$4.86 and non-GAAP at US$8.05 to US$8.15, with operating cash flow of about US$2 billion. In April the full-year revenue range had been US$6.125 billion to US$6.225 billion, so the midpoint has risen by about US$125 million, a simple calculation.

For the third quarter, the company guided to revenue of US$1.595 billion to US$1.625 billion and non-GAAP earnings per share of US$2.01 to US$2.07. The earnings midpoint of US$2.04 is below the US$2.11 delivered in the second quarter, so the guide does not assume sequential earnings growth. Both sets of figures are company forecasts.

The 26 October webcast and backlog

The 26 October webcast will show whether the third quarter lands inside the US$1.595 billion to US$1.625 billion range, how backlog compares with the record US$8.1 billion, and whether the full-year outlook changes. Management's remarks on hardware supply and export-control exposure add context.

The Intel (NASDAQ:INTC) and Samsung collaborations mentioned on the call were described as contributing over multiple years, so near-term results may reveal little about them. The sharper test is earnings: a third-quarter midpoint of US$2.04 against US$2.11 in the second quarter means the quarter is guided to land slightly lower on a non-GAAP basis.