Cadence Design Systems (CDNS) Beats Q3 Earnings and Revenue Estimates

Financial Performance - Cadence Design Systems reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.79 per share, and up from $1.64 per share a year ago [1] - The earnings surprise for the quarter was +7.82%, following a previous surprise of +5.1% with earnings of $1.65 per share against an expectation of $1.57 [2] - The company posted revenues of $1.34 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.94%, and up from $1.22 billion year-over-year [3] Market Performance - Cadence shares have increased approximately 14.9% since the beginning of the year, compared to the S&P 500's gain of 15.5% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.95 on revenues of $1.41 billion, and for the current fiscal year, it is $6.91 on revenues of $5.25 billion [8] - The Computer - Software industry, to which Cadence belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook for the sector [9]