Cadence raises 2026 outlook. Cadence Design Systems stock sits 17.72 percent below its yearly high

Published on 10/27/2026 at 11:31 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q3 revenue rose 22.00 percent to USD 1.63 billion. Cadence Design Systems stock costs EUR 295.95 on October 27, 2026, 0.08 percent above Xetra close.

Growth outlook and results

Cadence raised its fiscal 2026 revenue growth outlook to 21.00 percent on October 26, 2026.
Third-quarter revenue reached USD 1.633 billion for the period ended September 30, 2026.
Cadence Design Systems stock trades at EUR 295.95 at 11:22 a.m. CET at Lang & Schwarz on October 27, 2026, 0.08 percent above the Xetra close of October 26, 2026.

Cadence Design Systems, US1273871087, Illustration mit AI erstellt.

Cadence Design Systems (ISIN US1273871087) was trading at EUR 295.95 at Lang & Schwarz on October 27, 2026, at 11:22 a.m. CET, up 0.08 percent versus the Xetra close of October 26, 2026 at EUR 295.70. The company raised its fiscal 2026 revenue growth outlook to 21.00 percent after reporting third-quarter results on October 26, 2026, according to Cadence.

Revenue growth reaches 22 percent

For the three months ended September 30, 2026, revenue reached USD 1.633 billion, compared with USD 1.339 billion in the same quarter of 2025. That represents 22.00 percent year-over-year growth. Cadence reported GAAP operating margin of 26.20 percent and non-GAAP operating margin of 44.10 percent for the quarter.

The results also included a record backlog of USD 8.2 billion and USD 4.2 billion of revenue expected to be recognized from remaining performance obligations during the next 12 months. The company said recurring revenue increased 18.00 percent year over year, while System Design and Analysis revenue grew 30.00 percent.

What does the outlook mean for margins?

Cadence expects fiscal 2026 revenue of USD 6.387 billion to USD 6.417 billion and non-GAAP diluted earnings per share of USD 8.37 to USD 8.43. The non-GAAP operating margin forecast is 44.20 percent to 45.20 percent, compared with the 44.10 percent margin reported for the third quarter. Investing.com reported that adjusted earnings of USD 2.11 per share exceeded the USD 2.04 consensus, while revenue topped the USD 1.61 billion estimate.

The next dated milestone in the company release is December 31, 2026, the fiscal year-end used for the fourth-quarter forecast. Cadence expects fourth-quarter revenue of USD 1.695 billion to USD 1.725 billion and non-GAAP diluted earnings per share of USD 2.19 to USD 2.25, according to Cadence.

Stock stays below its yearly high

The euro quote is 17.72 percent below the 52-week high of EUR 359.70 and above the 52-week low of EUR 165.64, based on the same October 27, 2026 market snapshot. The primary listing is on Nasdaq, where the stock was last quoted at USD 322.17 on October 26, 2026, after the regular session.

Market valuation remains tied to the higher growth outlook and the margin profile. MarketBeat reported a consensus target of USD 404.14 from 22 ratings on October 20, 2026, while the same report cited a Moderate Buy consensus. That target is 25.45 percent above the USD 322.17 Nasdaq close.

Trading reference

Cadence Design Systems was trading at EUR 295.95 at Lang & Schwarz on October 27, 2026, at 11:22 a.m. CET, 0.08 percent above the Xetra close of October 26, 2026 at EUR 295.70. The Nasdaq-listed stock was last quoted at USD 322.17 on October 26, 2026, after the regular session. The further course of trading is shown by the continuously updated real-time quote of Cadence Design Systems stock.