Core Insights - Cadence Design Systems (CDNS) reported better-than-expected earnings for Q3 but provided a disappointing outlook for Q4, leading to a decline in stock price in after-hours trading [1][3]. Financial Performance - For the September quarter, Cadence earned an adjusted $1.93 per share on sales of $1.34 billion, surpassing analyst expectations of $1.79 per share on $1.32 billion in sales [2]. - Year-over-year, Cadence's earnings increased by 18% and sales rose by 10% [2]. Guidance and Forecasts - The company's Q4 guidance indicated adjusted earnings of $1.78 per share on sales of $1.39 billion, missing Wall Street's expectations of $1.92 per share on $1.41 billion in sales [3]. - For the full year, Cadence forecasted adjusted earnings of $7.05 per share on sales of $5.28 billion, which is above analyst expectations of $6.93 per share on $5.25 billion in sales [4]. Market Position - Cadence ended Q3 with a record backlog of $7 billion, indicating strong demand for its products [4]. - The CEO highlighted the company's strategic relationships within the AI ecosystem, positioning Cadence as a key player in delivering AI-centric solutions [4]. Stock Performance - In after-hours trading, CDNS stock fell nearly 2% to $345, following a 1.8% increase during regular trading hours, closing at $351.40 [5].