"Cadence posted record backlog of $7.0B, a clear indicator that customer demand is translating into locked-in revenue visibility. This matters because backlog converts to future cash and reduces forecast uncertainty. The company also completed its acquisition of Arm Artisan Foundation IP and signed a deal to acquire Hexagon's Design and Engineering business. These moves reinforce Cadence's strategy to consolidate the EDA (electronic design automation) market and deepen its AI integration capabilities. Management sounded confident about the trajectory. CEO Anirudh Devgan stated the company is "raising our full year revenue outlook to approximately 14% growth year-over-year," a meaningful lift that reflects sustained broad-based strength across the business."
"Revenue came in at $1.34B, topping the $1.32B consensus estimate and up 10.16% year over year. Non-GAAP EPS of $1.93 beat the $1.79 estimate by a meaningful margin. Net income grew 20.58% to $287.1M, and operating cash flow surged 186.66% to $1.18B. That cash flow jump deserves attention. It signals the company is converting growth into actual cash, not just accounting profits."
Cadence delivered a decisive Q3 beat with revenue of $1.34B and non-GAAP EPS of $1.93, alongside net income of $287.1M and double-digit revenue growth. Operating cash flow surged 186.66% to $1.18B, indicating strong cash conversion. The company reported a record $7.0B backlog that increases revenue visibility and reduces forecast uncertainty. Cadence completed the acquisition of Arm Artisan Foundation IP and agreed to acquire Hexagon's Design and Engineering business, reinforcing market consolidation and AI integration strategy. Management raised full-year revenue outlook to approximately 14% year-over-year growth, driven by momentum across IP and hardware, including AI and HPC customers.
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