# Fundamentals #0039: Cadence Design Systems: 3Q2026 results

Date: 2026-10-29 08:17
URL: https://heniu.blog/en/f-log/flog-2026-10-29-0039/
Author: Heniu (heniu.blog). Text license: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/).

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Cadence Design Systems (CDNS) revenue in the third quarter was 1.63 billion USD (+22.0% y/y), while earnings per share (adjusted) increased by 9.3% y/y to 2.11 USD.

### Quarterly results

Earnings per share (GAAP) was 1.05 USD (0.0% y/y), and earnings per share (GAAP, diluted) was 1.06 USD (0.0% y/y).

### Company guidance

The company expects fourth quarter revenue in the range of 1.70 billion USD – 1.73 billion USD, and forecasts full-year revenue at 6.39 billion USD – 6.42 billion USD.

### Management commentary

Management emphasized that recurring revenue is performing very well, and AI agents are increasing the use of the company's core tools. According to management, AI agents are driving demand for chip design tools because they can call the company's compute engines multiple times. Management indicated that the company's strategy focuses on selling high-value engineering software, rather than building large-scale general-purpose AI infrastructure. According to management, design verification hardware recorded another record quarter due to demand from customers in the AI industry, and the company expects another record year in the hardware segment in subsequent quarters, although sales may fluctuate between quarters.