CADENCE $CDNS Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $1.63B (Est. $1.61B) 🟢; +22% YoY 🔹 Adj. EPS: $2.11 (Est. $2.05) 🟢; +9% YoY 🔹 Non-GAAP Oper Margin: 44.1%; -350 bps YoY 🔹 Backlog: $8.2B FY26 Guide: 🔹 Revenue: $6.39B-$6.42B (Est. $6.32B) 🟢 🔹 Adj. EPS: $8.37-$8.43 (Est. $8.16) 🟢 🔹 Non-GAAP Oper Margin: 44.2%-45.2% Q4 Guide: 🔹 Adj. EPS: $2.19-$2.25 (Est. $2.03) 🟢 🔹 Non-GAAP Oper Margin: 44%-45% Product Revenue Growth: 🔹 Core EDA: +20% YoY 🔹 IP: +24% YoY 🔹 System Design & Analysis: +30% YoY Announcements: 🔹 Maestro: Launched a portfolio of domain-specialized AI models purpose-built for chip and system design 🔹 Hardware: another record quarter Other Q3 Metrics: 🔹 Next-12-Month RPO: $4.2B 🔹 Non-GAAP Net Income: $582.2M (Est. $566M) 🟢 🔹 GAAP EPS: $1.05; flat YoY 🔹 GAAP Operating Margin: 26.2%; -560 bps YoY Capital Return: 🔹 Share Repurchases: $400M 🔹 Additional Authorization: $2.5B Key Updates: 🔹 Stock-based compensation: $0.53/share 🔹 Amortization of intangibles: $0.29/share 🔹 Acquisition & integration costs: $0.09/share 🔹 Restructuring: $0.15/share 🔹 Income related to investments: $0.01 per-share benefit 🔹 Income tax effect: $0.01/share Comments: 🔸 “With broad-based business momentum, expanding technology leadership and a record backlog, we are raising our 2026 revenue outlook to 21% year-over-year growth.” 🔸 “With record backlog of $8.2 billion and continued strength in recurring revenue, we are poised to deliver a strong 2026.”