Cadence reported second-quarter 2026 revenue of $1.584 billion and GAAP diluted EPS of $1.33, with non-GAAP diluted EPS of $2.11. The company posted a GAAP operating margin of 28.4% and non-GAAP operating margin of 45.5%, and ended the quarter with a record backlog of $8.1 billion. Management raised fiscal 2026 guidance to about 19% revenue growth and lifted non-GAAP EPS guidance to $8.10 and operating cash flow to $2.0 billion at the midpoint.
Financial Highlights
- Revenue: $1.584 billion for Q2 2026, up from $1.275 billion in Q2 2025.
- GAAP operating margin: 28.4% for Q2 2026 (compared with 19.0% in Q2 2025).
- Non-GAAP operating margin: 45.5% for Q2 2026 (compared with 42.8% in Q2 2025).
- Net income: GAAP net income $367.076 million for the quarter; non-GAAP net income $582.372 million for the quarter.
- Diluted net income per share: GAAP $1.33; Non-GAAP $2.11 for Q2 2026.
Business Highlights
- Record backlog of $8.1 billion and remaining performance obligations expected to generate $4.2 billion of revenue over the next 12 months.
- Launched AuraStack AI Super Agent, extending the AI Super Agents portfolio to advanced packaging and PCB to span the full electronic system design flow.
- Strong early traction for AI Super Agents across ChipStack, ViraStack and InnoStack, with compelling initial customer results.
- IP business grew more than 40% year-over-year, driven by demand for the Star IP portfolio and a significant agreement with Intel plus additional semiconductor customer wins.
- Segment momentum: Core EDA revenue grew 18% year-over-year; System Design and Analysis revenue grew 37% year-over-year; hardware added 12 new customers with notable expansions among hyperscalers and AI innovators.
Original SEC Filing:
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