Cadence Design Systems stock: higher outlook and expanded buyback

Cadence Design Systems stock is in focus after the company raised its 2026 outlook and expanded its share-repurchase authorization. The announcements came with the company's third-quarter results released on Monday, October 26, 2026.

Cadence reported third-quarter revenue of USD 1.633 billion, up 22 percent from USD 1.339 billion a year earlier. Non-GAAP diluted earnings per share increased to USD 2.11 from USD 1.93, while GAAP diluted earnings per share remained at USD 1.05.

Higher outlook follows strong demand

Cadence lifted its 2026 revenue outlook to a range of USD 6.387 billion to USD 6.417 billion, equivalent to 21 percent growth at the midpoint. The company expects non-GAAP diluted earnings per share of USD 8.37 to USD 8.43 and fourth-quarter revenue of USD 1.695 billion to USD 1.725 billion.

Quarter-end backlog reached USD 8.2 billion, including USD 4.2 billion expected to be recognized as revenue during the following 12 months. Cadence said recurring revenue increased 18 percent year over year. Core electronic design automation revenue rose 20 percent, semiconductor intellectual property revenue increased 24 percent and System Design and Analysis revenue grew 30 percent.

The company also highlighted Maestro, a portfolio of domain-specialized artificial-intelligence models for chip and system design. Cadence said initial workflow results showed up to 30 percent higher quality and five times greater token efficiency than general-purpose foundation models.

Buyback adds capital-return support

Cadence used USD 400 million to repurchase shares during the quarter. Its board then authorized an additional USD 2.5 billion for the repurchase program, giving investors a further capital-return factor alongside the raised operating outlook.

The results, outlook and buyback authorization are detailed in Cadence's third-quarter release.

Cadence Design Systems stock traded at 293.83 euros on Lang & Schwarz at 10:45 CET on Saturday, October 31, 2026. Investors can follow the real-time quote of Cadence Design Systems stock.

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