Cadence Design Systems (CDNS) reported its second-quarter 2026 results after the market close on Monday, and the numbers were solid enough to send shares higher in after-hours trading.
Revenue came in at $1.584 billion, slightly above the $1.577 billion analysts were expecting. Adjusted earnings per share were $2.11, beating the consensus estimate of $2.06. That's about a 24% jump in revenue compared to the same quarter last year, driven by broad-based strength and accelerating demand for AI-powered solutions.
The company also ended the quarter with a record backlog of $8.1 billion and roughly $1.44 billion in cash and cash equivalents — a healthy cushion.
“Cadence is leading the agentic AI transformation in semiconductor design with a healthy environment. We are uniquely positioned to capitalize on this massive TAM expansion opportunity as the only provider with agentic solutions spanning the full electronic system design flow,” said Anirudh Devgan, president and CEO of Cadence Design Systems.
Looking ahead, Cadence guided for third-quarter adjusted earnings of $2.01 to $2.07 per share, well above the $1.94 analysts had penciled in. More importantly, the company raised its full-year 2026 revenue guidance from a range of $6.13 billion to $6.23 billion to a new range of $6.26 billion to $6.34 billion, versus the $6.21 billion consensus. Full-year adjusted earnings guidance was also lifted, from $7.85–$7.95 per share to $8.05–$8.15 per share, compared to estimates of $7.96.
Management will discuss the quarter in more detail on an earnings call scheduled for 5 p.m. ET.
Investors liked what they saw. Cadence shares were up 4.03% in after-hours trading, changing hands at $352.25 at the time of publication.
