Cadence reported third-quarter revenue of $1.633 billion on October 26, up from $1.339 billion a year earlier, and raised its full-year revenue-growth outlook to 21%.
The company’s earnings release shows growth alongside narrower operating margins. GAAP operating margin fell to 26.2% from 31.8%, while the adjusted, non-GAAP measure declined to 44.1% from 47.6%.
GAAP diluted earnings per share remained $1.05. Non-GAAP diluted EPS increased to $2.11 from $1.93.
Cadence reported an $8.2 billion quarter-end backlog, including $4.2 billion in remaining performance obligations expected to become revenue over the following 12 months. Backlog is distinct from sales already recognized.
For 2026, management projects revenue between $6.387 billion and $6.417 billion and non-GAAP EPS of $8.37 to $8.43. Those ranges are forecasts rather than completed annual results.
The company also said it repurchased $400 million of shares during the quarter and authorized an additional $2.5 billion for its repurchase program. Authorization permits future purchases; it does not establish that the additional amount has been spent.
Sources: Cadence — October 26 results: https://www.cadence.com/en_US/home/company/newsroom/press-releases/pr-ir/2026/cadence-reports-third-quarter-2026-financial-results.html