Cadence Design Systems raises 2026 revenue and profit outlook and adds $2.5 billion to buyback

Third-quarter earnings per share of $2.11 beat expectations by $0.02, but revenue fell short.

Cadence Design Systems raised its full-year 2026 revenue and profit forecasts and added $2.5 billion to its share repurchase program. The figures are as of 4:05 PM Eastern, after the market closed.

For the third quarter, Cadence reported earnings per share of $2.11, $0.02 above the expected figure. Revenue was $1.63 billion, below the $1.65 billion expected.

The company now expects full-year revenue of $6.387 billion to $6.417 billion. That is up from its earlier range of $6.260 billion to $6.340 billion, and implies growth of about 21 per cent over last year. Its non-GAAP earnings per share forecast, a company-defined adjusted measure, rose to $8.37 to $8.43 from $8.05 to $8.15. Chief executive Anirudh Devgan credited broad-based momentum, wider technology leadership and a record backlog for the higher revenue outlook.

Revenue in the quarter missed expectations, so the higher full-year outlook depends on the company turning its backlog of existing orders into revenue over the rest of the year. That conversion is the item to watch in coming quarters. The extra $2.5 billion repurchase authorization gives Cadence more room to buy back its own shares, but the company has not said how much it plans to use.