Cadence raises 2026 outlook as AI design demand drives record backlog

Cadence Design Systems' third quarter suggests demand for chip design tools is still rising, with AI-driven design work showing up in both revenue and backlog, while the cost of buying growth is hurting profitability. Revenue for the three months ended September 30, 2026, rose 22% from a year earlier, the company said on October 26, but operating income barely moved.