Cadence Design Systems beats Q3 estimates and raises full-year outlook
What happened
Cadence Design Systems reported third-quarter results late Monday that beat Wall Street expectations and raised its full-year outlook. Adjusted earnings came in at $2.11 per share on sales of $1.63 billion, versus FactSet consensus of $2.05 per share on $1.61 billion; earnings rose 9% and sales surged 22% year over year. For the full year, Cadence now expects adjusted earnings of $8.40 per share on sales of $6.4 billion at the midpoint, up from $8.10 per share and $6.3 billion three months ago (versus $7.14 per share and $5.3 billion last year). CEO Anirudh Devgan cited broad-based momentum, expanding technology leadership and a record backlog, and shares rose more than 2% in after-hours trading.
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Start your free 14-day trialWho’s affected
- CDNS (Cadence Design Systems): direct beneficiary; shares rose more than 2% after hours to about $330 after closing up 1.8% at $322.17.
- Semiconductor/AI infrastructure (NVDA, AVGO, AMD, SOXX): positive read-through — rising EDA demand and a record backlog signal chip-design activity remains strong ahead of hyperscaler earnings.
- AI software peers (SNPS): sentiment support from a peer beat-and-raise in electronic design automation.
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