Cadence raises annual forecasts as demand booms for AI chip design
- Cadence Design Systems raised its annual revenue and profit forecasts on Monday, banking on robust demand for its AI-powered chip and system design software.
- The company now expects annual revenue between $6.26 billion and $6.34 billion, with adjusted profit projected at $8.05 to $8.15 per share, significantly above prior guidance.
- Second-Quarter revenue rose 24.2% to $1.584 billion, while quarter-end backlog reached $8.1 billion; key customers include Nvidia and Apple.
- Earlier in the month, Cadence launched AuraStack, an AI 'super agent' enabling engineers to describe goals in plain language and automatically plan circuit designs.
- Shares rose more than 5% in extended trading, while $4.2 billion of the company's $8.1 billion backlog is expected to convert to revenue within 12 months.
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Cadence raises annual forecasts as demand booms for AI chip design
Cadence lifts annual revenue forecast on sustained AI chip-design boom
Cadence Design Systems anticipates strong revenue growth. The company expects higher earnings for fiscal 2026. This optimism stems from increased investment in specialized artificial intelligence processors. Demand for Cadence's chip design tools is surging. This is driven by complex system-on-chip and AI accelerator designs.
Cadence Design Systems (CDNS) Stock Surges 3% on Stellar Q2 Results and Record Backlog
Key Highlights Q2 adjusted earnings per share reached $2.11, surpassing the $2.05 consensus Quarterly revenue climbed 24% from last year to $1.58 billion Record-high backlog of $8.1 billion at the close of the second quarter Full-year adjusted EPS outlook increased to $8.05–$8.15 from previous $7.85–$7.95 range Shares gained 3.25% during Tuesday’s premarket session Shares of Cadence Design Systems (CDNS) advanced 3.25% in premarket action on Tu…
Cadence raises 2026 outlook after record quarter, flags major Intel deal as revenue driver
Cadence Design Systems posted stronger-than-expected second-quarter results on July 27 and raised its full-year revenue growth outlook to 19%, citing broad demand for its AI-driven chip design tools and a landmark new agreement with Intel that executives described as a historic shift in the two companies' relationship.
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