Cadence Design Systems, Inc. reported financial results for the third quarter of 2026, with revenue reaching $1.633 billion. This figure represents a 22% year-over-year increase compared to the $1.339 billion reported in the same period of the prior year. The company also disclosed a GAAP operating margin of 26.2% and a non-GAAP operating margin of 44.1% for the quarter.
For the quarter, GAAP diluted net income per share was $1.05, while non-GAAP diluted net income per share was $2.11. The company noted that it utilized $400 million to repurchase shares during the period. Additionally, the company reported a record backlog of $8.2 billion at the end of the quarter, with $4.2 billion of revenue expected to be recognized from remaining performance obligations over the next 12 months.
In its business outlook for fiscal year 2026, Cadence raised its revenue growth outlook to 21% year-over-year. The company expects full-year revenue to be in the range of $6.387 billion to $6.417 billion. The company also provided guidance for GAAP diluted net income per share between $4.84 and $4.90, and non-GAAP diluted net income per share between $8.37 and $8.43.
On October 23, 2026, Cadence’s board of directors approved an additional $2.5 billion authorization for the company’s share repurchase program. The company may repurchase shares through open market purchases, privately negotiated transactions, or other means, subject to business and market conditions.
