Cadence Design Systems Inc (NASDAQ:CDNS) on Monday posted better-than-expected financial results for the third quarter.

Cadence Design Systems reported third-quarter revenue of $1.63 billion, beating analyst estimates of $1.61 billion. The company reported adjusted earnings of $2.11 per share for the quarter, beating estimates of $2.04 per share, according to Benzinga Pro.

"Cadence delivered an outstanding third quarter. With broad-based business momentum, expanding technology leadership and a record backlog, we are raising our 2026 revenue outlook to 21% year-over-year growth," said Anirudh Devgan, president and CEO of Cadence Design Systems.

Cadence Design Systems raised its full-year revenue guidance from a range of $6.26 billion to $6.34 billion to a new range of $6.39 billion to $6.42 billion, versus estimates of $6.32 billion. The company also raised its full-year adjusted earnings guidance from a range of $8.05 to $8.15 per share to an updated range of $8.37 to $8.43 per share, versus estimates of $8.16 per share.

CDNS shares rose 2.5% to $330.07 in pre-market trading.

These analysts made changes to their price targets on Cadence Design following earnings announcement.

• Needham analyst Charles Shi maintained the stock with a Buy and raised the price target from $400 to $430.
• Baird analyst Joe Vruwink maintained the stock with an Outperform and raised the price target from $420 to $440.

Considering buying CDNS stock? Here’s what analysts think:

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