Cadence Design Systems increased its full-year revenue forecast as booming investment in AI chips continues to fuel demand for advanced semiconductor design tools.
The company now expects fiscal 2026 revenue of $6.13 billion to $6.23 billion, above prior guidance, reflecting strong demand for its electronic design automation (EDA) software used by major chipmakers including Nvidia, Google and Amazon.
Cadence benefits from rising complexity in AI accelerators and custom systems-on-chip, as companies race to build more specialized processors for training and inference workloads.
While revenue guidance improved, profit expectations were slightly reduced due to acquisition-related costs tied to its Hexagon design business purchase.
