Cadence Design Systems has increased its full-year revenue forecast, citing persistent, significant investment in specialized artificial intelligence processors as the key driver for its chip-design tools.
The demand for Cadence's electronic design automation (EDA) software and hardware is soaring. Chipmakers and major tech firms are increasingly designing complex systems-on-a-chip (SoCs) and AI accelerators. Cadence is a leading provider in the EDA industry, supplying essential tools for semiconductor and electronic system design and verification to companies like Nvidia and Apple.
For fiscal year 2026, Cadence now projects revenue between $6.13 billion and $6.23 billion, up from its previous forecast of $5.9 billion to $6 billion. However, the company's annual adjusted profit per share forecast was slightly lowered to $7.85-$7.95, down from $8.05-$8.15.
Cadence is actively collaborating with Nvidia, integrating its physics engines with AI models for robotic training in simulations. Earlier this year, the company launched an AI agent to streamline the initial chip design phases.