Quarterly guidance

Revenue
$1.695 billion to $1.725 billion
GAAP Operating Margin
30% to 31%
Non-GAAP Operating Margin
44% to 45%
GAAP EPS
$1.23 to $1.29
Non-GAAP EPS
$2.19 to $2.25

Annual guidance

Revenue
$6.387 billion to $6.417 billion
GAAP Operating Margin
28.2% to 29.2%
Non-GAAP Operating Margin
44.2% to 45.2%
GAAP EPS
$4.84 to $4.90
Non-GAAP EPS
$8.37 to $8.43
Operating Cash Flow
Approximately $2 billion

Outlook

AI Demand
The AI build-out continues to drive design activity across all segments, including traditional, analog, and system companies.
Hardware
Demand for hardware-assisted verification is expected to remain strong as chip designs increase in complexity and size.
Design Activity
The company expects design activity to continue accelerating, supported by the proliferation of AI and 3D IC packaging.
Capital Allocation
Cadence plans to use more than 50% of its free cash flow to repurchase shares in 2026.
Export Controls
The outlook assumes that existing export control regulations remain substantially similar for the rest of the year.