Cadence Design Systems, Inc. (CDNS)

Cadence Design Systems topped consensus on both the top and bottom line in the third fiscal quarter of 2026, based on preliminary results reported October 26, 2026, with revenue rising 22.0% year over year to about $1.6 billion (up from roughly $1.3 billion a year ago) as its electronic design automation software and related hardware continued to drive results. Adjusted EPS of $2.11 topped the $2.05 estimate (+2.9%) and was up from $1.93 a year ago, while revenue of $1.633 billion topped the $1.613 billion estimate (+1.3%). Profitability remained high, with gross margin at roughly 96% and operating margin near 26%, alongside operating income of about $428.7 million. Net income was roughly $289.7 million, up 0.9% from about $287.1 million a year ago, and the company generated about $423.7 million of operating cash flow during the quarter. Cadence repurchased about $400.0 million of stock. For the next period, consensus calls for EPS of $2.03 on revenue of $1.675 billion.