Cadence Beats Q3, Lifts FY26 Revenue Growth to 21%, Adds $2.5B Buyback
CDNS sits 25% above its 52-week low of $262.749 on elevated volume (1.8× avg).
Summary
Cadence beat Q3 guidance with $1.633 billion of revenue (up 22%) and $2.11 non-GAAP EPS, raised FY26 revenue growth to about 21%, and authorized an additional $2.5 billion of share repurchases.
Key Events · Earnings and Guidance · CDNS
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Q3 Beat and Guidance Raised Again
Revenue of $1.633 billion rose 22% from $1.339 billion a year ago, and non-GAAP EPS came in at $2.11 versus $1.93. FY26 revenue is now guided to $6.387-$6.417 billion, about 21% growth, up from the $6.26-$6.34 billion range given in early August.
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Record $8.2 Billion Backlog
Quarter-end backlog reached $8.2 billion, with $4.2 billion of remaining performance obligations expected to be recognized as revenue in the next 12 months.
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Buyback Expanded by $2.5 Billion
The board authorized an additional $2.5 billion of repurchases on October 23, 2026, after Cadence used $400 million to buy back shares in Q3; management expects to spend more than 50% of free cash flow on repurchases for the year.
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Margins Compressed on Charges
GAAP operating margin fell to 26.2% from 31.8%, reflecting $79.9 million of acquired-intangible amortization and $42.2 million of restructuring; non-GAAP operating margin was 44.1% versus 47.6%.
Analysis · CDNS · Technology
Cadence beat its own Q3 guidance and raised the full-year outlook for the third time this year, with revenue now guided to $6.387-$6.417 billion (about 21% growth) and non-GAAP EPS to $8.37-$8.43. A record $8.2 billion backlog underpins the raise rather than just reflecting a good quarter. Alongside the results, the board added $2.5 billion to the buyback on top of the $400 million already spent in Q3, and management expects to deploy more than half of free cash flow on repurchases this year — a real offset to the share count drift from stock compensation. The one soft spot is margin: GAAP operating margin fell to 26.2% from 31.8% a year ago on acquisition amortization and $42 million of restructuring, though non-GAAP margin of 44.1% held close to last year's 47.6%.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 36.2% of the 898 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.75%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CDNS was trading at $329.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $88.7B. The 52-week trading range was $262.75 to $416.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.