Cadence Design Systems Inc (CDNS) posted financial results for the third quarter after the market close on Monday. Here's a look at the key details from the report.

Cadence Design Systems Q3 Highlights

Cadence Design Systems reported third-quarter revenue of $1.63 billion, beating analyst estimates of $1.61 billion. The company reported adjusted earnings of $2.11 per share for the quarter, beating estimates of $2.04 per share, according to market data.

Total revenue was up about 22% year-over-year, with double-digit growth across all product categories, driven by growing momentum from AI-driven designs.

The company ended the quarter with a record backlog of $8.2 billion and approximately $1.45 billion in cash and cash equivalents after buying back $400 million of stock in the quarter. Cadence said its board also authorized an additional $2.5 billion for share repurchases.

"Cadence delivered an outstanding third quarter. With broad-based business momentum, expanding technology leadership and a record backlog, we are raising our 2026 revenue outlook to 21% year-over-year growth," said Anirudh Devgan, president and CEO of Cadence Design Systems.

Cadence Design Systems raised its full-year revenue guidance from a range of $6.26 billion to $6.34 billion to a new range of $6.39 billion to $6.42 billion, versus estimates of $6.32 billion. The company also raised its full-year adjusted earnings guidance from a range of $8.05 to $8.15 per share to an updated range of $8.37 to $8.43 per share, versus estimates of $8.16 per share.

Cadence Design Systems management will further discuss the quarter on an earnings call at 5 p.m. ET.

CDNS Movement After Earnings

CDNS Price Action: Cadence Design Systems shares were up 2.28% in after-hours on Monday, trading at $329.50 at the time of publication, according to market data.