Cadence Design Systems 3Q 2026: Revenue $1.63B, EPS $1.05— 10-Q Summary

What happened

Cadence Design Systems reported third-quarter 2026 revenue of $1.63B, up 22% from $1.34B a year earlier. Net income was $289.75M versus $287.12M, and diluted EPS was $1.05, unchanged from a year earlier.

Confirmed

Global impact / market context

Revenue grew 22% but net income rose only slightly and earnings per share, which is profit divided by shares outstanding, stayed flat. That gap suggests costs rose alongside sales, so investors may focus on whether spending on research and technical sales pays off.

Analyst inference

Recurring revenue, which is repeat business such as subscriptions, fell to 79% of revenue from 82%, so more sales came upfront. Core EDA, the software used to design chips, supplied 69% of revenue. U.S. revenue rose 27% and EMEA 31%, while China grew 4%.

Analyst inference

What to watch

1. Cadence acquired Hexagon's design and engineering business in February 2026, expanding System Design and Analysis. Watch whether that unit, which was 16% of revenue, adds sales and profit as management expects. Confirmed
2. Management expects continued investment in research and development and technical sales. Watch whether that spending lifts future revenue enough to offset pressure on profit, since earnings per share was flat despite 22% sales growth. Proposed
3. Watch the mix of recurring versus upfront revenue. Recurring revenue fell to 79% from 82%, which means more sales depend on one-time deals and could make future revenue less predictable. Analyst inference

Evidence

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