Cadence Design Systems' third-quarter 2026 revenue and EPS exceeded market expectations, and the company raised its full-year guidance. It also unveiled the Maestro AI model portfolio developed in collaboration with Nvidia.
Cadence Design Systems shares rose in today's after-hours trading, reaching $330.55. EPS exceeded market expectations, while revenue also increased year on year.
Against a backdrop of technological leadership and a growing backlog, the company's CEO indicated that the 2026 revenue target would be raised to 21% year-on-year growth. The Maestro AI model portfolio was developed in collaboration with Nvidia and touts higher quality and improved token efficiency compared with general-purpose foundation models.
The backlog reached a record $8.2 billion, with $4.2 billion expected to be recognized within the next 12 months. The board approved an additional $2.5 billion share repurchase authorization, indicating confidence in growth.
Following the results and the AI product announcement, market views are spreading that CDNS's competitive advantages will become even more pronounced toward year-end.
The shares entered today's earnings announcement approximately 21% below their 52-week high of $416.69, but rebounded strongly in after-hours trading.