Cadence raises 2026 outlook as AI design demand drives record backlog

Cadence Design Systems raised its 2026 outlook after third-quarter results showed rising demand for chip design tools, with AI-driven design work reflected in both revenue and a record backlog. The cost of buying growth is weighing on profitability.

• Cadence raised its 2026 outlook on AI-driven chip design demand
• The company's backlog reached a record level
• Growth spending is pressuring Cadence's profitability