Cadence Design Systems raises fiscal 2026 revenue forecast to $6.13 billion–$6.23 billion, citing sustained AI chip-design demand

Cadence raised its full-year revenue forecast on Monday, now expecting fiscal 2026 revenue between $6.13 billion and $6.23 billion, compared with its prior projection of $5.9 billion to $6 billion. The company attributed the increase to sustained heavy investment in specialized artificial intelligence processors driving demand for its chip-design tools.

Cadence provides electronic design automation (EDA) software and hardware—essential tools used to design and verify semiconductors and electronic systems. Demand has surged as chipmakers and tech giants like Google and Amazon design increasingly complex systems-on-chip (SoCs) and AI accelerators. The company is also partnering with Nvidia to integrate its physics engines with AI models designed to train robots inside computer simulations.

Cadence reported first-quarter revenue of $1.47 billion, beating analysts' estimates of $1.45 billion. However, annual adjusted profit per share is forecast between $7.85 and $7.95, below the company's earlier forecast of $8.05 to $8.15.