Cadence (CDNS) Q3 2026 Earnings Review
What the company reported
Cadence raised its full-year revenue and adjusted earnings forecasts as demand for chip-design tools grew, with recurring revenue up 18% and contracted future business reaching $8.2 billion.
Q3 2026 earnings recap
Cadence raised its 2026 outlook as AI-related chip design demand lifted sales, giving investors stronger revenue visibility despite pressure on profit margins.
- Q3 revenue increased 22% to $1.63 billion, beating the $1.61 billion consensus reported by Newsquawk.
- Adjusted profit per share reached $2.11 versus the $2.05 estimate, while accounting profit per share stayed flat at $1.05.
- Recurring revenue grew 18%, and contracted future business reached $8.2 billion, supporting visibility into coming sales.
- The company raised its 2026 revenue forecast to $6.39–$6.42 billion and adjusted profit forecast to $8.37–$8.43 per share.
- Adjusted operating margin fell to 44.1% from 47.6%, showing that stronger sales did not translate into equally strong profit growth.
- Shares traded 2.4% above the October 26 close after the report, with $329–$336 the next chart area to watch for selling pressure.
At roughly 38 times the new adjusted profit forecast at the regular close, investors should watch whether margin recovery and contract delivery justify the valuation.
Financials, technicals and earnings
Charts through Oct 26, 2026.
Technical setup and risks
The stock rebounded above its 50-day average but remains below its 20-day average; watch $329–336 resistance and $305–310 support, alongside operating-margin pressure and export restrictions.
AI-assisted earnings research with verified issuer results. Charts use the stated completed session. Educational information; investing involves risk.