Cadence Design Systems Inc (NASDAQ:CDNS) reported financial results for the second quarter of 2026 after the market close on Monday. Here’s a rundown of the report.

• Cadence Design Systems shares are powering higher. Why are CDNS shares rallying?

Cadence Design Systems Q2 Highlights

Cadence Design Systems reported second-quarter revenue of $1.584 billion, beating analyst estimates of $1.577 billion. The company reported second-quarter adjusted earnings of $2.11 per share, beating estimates of $2.06 per share, according to Benzinga Pro.

Total revenue was up about 24% year-over-year, driven by broad-based strength and accelerating demand for AI-driven solutions.

The company ended the quarter with a record backlog of $8.1 billion and approximately $1.44 billion in cash and cash equivalents.

“Cadence is leading the agentic AI transformation in semiconductor design with a healthy environment. We are uniquely positioned to capitalize on this massive TAM expansion opportunity as the only provider with agentic solutions spanning the full electronic system design flow,” said Anirudh Devgan, president and CEO of Cadence Design Systems.

Cadence Design Systems guided for third-quarter adjusted earnings of $2.01 to $2.07 per share versus estimates of $1.94 per share.

The company raised its full-year revenue guidance from a range of $6.13 billion to $6.23 billion to a new range of $6.26 billion to $6.34 billion, versus estimates of $6.21 billion. Cadence also raised its full-year adjusted earnings guidance from a range of $7.85 to $7.95 per share to an updated range of $8.05 to $8.15 per share, versus estimates of $7.96 per share.

Management will discuss the quarter on an earnings call scheduled for 5 p.m. ET.

CDNS Shares Pop After Hours

CDNS Price Action: Cadence Design Systems shares were up 4.03% in after-hours, trading at $352.25 at the time of publication on Monday, according to Benzinga Pro.

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