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Cadence Lifts 2026 Sales Outlook After Q1 Beat, Cuts EPS Guidance

A record $8 billion backlog signals AI-driven demand.

The logo of Cadence Design Systems is pictured outside the company's offices in San Jose, California, U.S., January 31, 2020. REUTERS/Stephen Nellis
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(Cadence Design Systems)

Overview

  • Cadence, which reported Monday, posted Q1 revenue of $1.47 billion and adjusted EPS of $1.96, topping analyst estimates.
  • The company raised its 2026 revenue forecast to $6.13–$6.23 billion but now targets non-GAAP EPS of $7.85–$7.95.
  • Total backlog reached $8.0 billion, with about $4.0 billion expected to convert into revenue over the next 12 months.
  • New AI design stacks—AgentStack, ViraStack, InnoStack and ChipStack—and tie-ups with Nvidia and Google Cloud aim to speed chip and system design.
  • Profitability improved as non-GAAP operating margin rose to 44.7% on broad growth in EDA software used to design chips, IP licensing and hardware.