Cadence Design Systems raised its annual revenue and profit forecasts on July 27, following quarterly results that exceeded profit expectations. Shares rose more than 5% in extended trading after the announcement.
The company, whose electronic design automation (EDA) tools are used to design and validate semiconductors and electronic systems, has seen sharp demand for its software as chipmakers and technology companies develop sophisticated systems-on-chip (SoCs) and AI accelerators. Customers include AI-chip leader Nvidia and iPhone-maker Apple.
Cadence's second-quarter revenue rose to $1.584 billion, largely in line with analysts' estimates.
Adjusted profit for the second quarter, compared with estimates of $2.05 per share.
For full-year 2026, Cadence now expects revenue between $6.26 billion and $6.34 billion, up from its prior projection of $6.13 billion to $6.23 billion. Analysts on average expected annual revenue of $6.21 billion, according to data compiled by LSEG.
Annual adjusted profit for 2026 expected, compared to previous forecast of $7.85 to $7.95 and analyst estimate of $7.96.
Cadence also launched an AI 'super agent' called AuraStack earlier in July. The tool allows engineers to describe their goals in plain language, then plans and executes work using Cadence's existing software tools to lay out and virtually test circuit designs.
Quarter-end backlog, with $4.2 billion expected to be recognized as revenue within the next 12 months.