Cadence reports 22 percent revenue growth for third quarter of 2026
EDA software provider Cadence generated $1.63 billion in revenue for the third quarter of 2026, driven by sustained demand for AI chip design.
Cadence Design Systems reported $1.63 billion in revenue for the third quarter of fiscal year 2026, representing a 22 percent increase compared to the same period in the prior year. Net income for the quarter reached $290 million, while non-GAAP diluted earnings per share exceeded consensus market estimates.
The results highlight the company's position in the semiconductor industry, as demand for AI-related hardware continues to drive requirements for electronic design automation (EDA) software. Performance was notably strong across core EDA operations, which grew by 20 percent, IP licensing at 24 percent, and system design and analysis (SDA) services at 30 percent.
Cadence ended the quarter with a backlog of $8.2 billion. Consequently, the company has raised its full-year 2026 revenue guidance to reflect 21 percent growth. Additionally, the board of directors authorized an extra $2.5 billion for share repurchases, supplementing the $400 million already deployed this quarter.