Cadence Design Systems' second quarter revenue of $1.58B beats by 33%, raises full-year 2026 outlook

Cadence reported second quarter 2026 revenue of $1.584 billion and non-GAAP EPS of $2.11, significantly beating analyst expectations. Citing a record backlog and business momentum, the company raised its full-year 2026 outlook for revenue and EPS.

Key Highlights

• The company raised its full-year 2026 outlook, now expecting revenue growth of 19% and non-GAAP EPS of $8.10 at the midpoint.
• Quarter-end backlog reached a record of $8.1 billion, with revenue expected from remaining performance obligations in the next 12 months at $4.2 billion.
• Growth was broad-based across segments, with IP revenue growing more than 40% year-over-year, System Design and Analysis revenue up 37%, and Core EDA revenue growing 18%.