Exhibit 99.02
image0a22a.jpg

CADENCE REPORTS THIRD QUARTER
2026
CADENCE DESIGN SYSTEMS, INC.
CFO COMMENTARY
Key Takeaways
• Exceeded Q3 guidance for revenue, non-GAAP operating margin, and non-GAAP EPS
• Raising 2026 revenue growth outlook for the third time this year to ~21%
• Achieved new record backlog of $8.2 billion

Q4 2026 Outlook
• Revenue: $1.695 billion - $1.725 billion
• GAAP operating margin: 30% - 31%
• Non-GAAP operating margin: 44% - 45%
• GAAP EPS: $1.23 - $1.29
• Non-GAAP EPS: $2.19 - $2.25
• Expect to use approximately $400 million to repurchase Cadence shares in Q4
Q3 2026 KEY METRICS
• Revenue: $1.633 billion
• GAAP operating margin: 26.2%
• Non-GAAP operating margin: 44.1%
• GAAP EPS: $1.05
• Non-GAAP EPS: $2.11
• Operating cash flow: $424 million

FY 2026 Outlook
• Revenue: $6.387 billion - $6.417 billion
• GAAP operating margin: 28.2% - 29.2%
• Non-GAAP operating margin: 44.2% - 45.2%
• GAAP EPS: $4.84 - $4.90
• Non-GAAP EPS: $8.37 - $8.43
• Operating cash flow: ~$2.0 billion
• Expect to use more than 50% of free cash flow to repurchase Cadence shares for the year
Financial Results Webcast
Our Q3 2026 financial results webcast will begin October 26, 2026 at 2:00 p.m. (Pacific). The webcast may be accessed at www.cadence.com/cadence/investor_relations. An archive of the webcast will be available on October 26, 2026 until 5:00 p.m. (Pacific) on December 17, 2026.
October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Financial Metrics
(In Millions, except per share data)20212022
2023
2024
2025
2026E
Revenue$2,988 $3,562 $4,090 $4,641 $5,297 $6,387- $6,417
Revenue growth11%19%15%13%
14%
21% - 21%
3-year CAGR*
12%15%15%16%
14%
~16%
GAAP operating expenses$2,209 $2,488 $2,839 $3,291 $3,805 $4,571
GAAP operating expense growth8%13%14%16%16%~20%
Non-GAAP operating expenses$1,877 $2,125 $2,373 $2,667 $2,935 $3,540
Non-GAAP operating expense growth8%13%12%12%
10%
~21%
GAAP operating margin
26.1%30.1%30.6%29.1%
28.2%
28.2% - 29.2%
Non-GAAP operating margin37.2%40.3%42.0%42.5%
44.6%
44.2% - 45.2%
Rule of 40 Metric**
48.6%
59.5%
56.8%
56.0%
58.7%
~66%
GAAP earnings per share$2.50 $3.09 $3.82 $3.85 $4.06 $4.84 - $4.90
Non-GAAP earning per share$3.29 $4.27 $5.15 $5.97 $7.14 $8.37 - $8.43
Non-GAAP EPS growth*
18%30%21%16%
20%
18 %
3-year Non-GAAP EPS CAGR*
21%25%23%22%
19%
18 %
Weighted average diluted shares outstanding
278.9275.0
272.7
273.8
273.3
274 - 276
Cash flow from operations1,1011,242
1,349
1,261
1,729
~$2,000
Capital expenditures65123
102
143
142
~$240
* At midpoint of outlook.
** Rule of 40 Metric = Revenue growth % + Non-GAAP operating margin %.

Profitability Trends
(In Millions)20212022
2023
2024
2025
2026E*
GAAP operating margin26.1%30.1%30.6%29.1%
28.2%
28.7%
Non-GAAP operating margin37.2%40.3%42.0%42.5%
44.6%
44.7%
Stock-based compensation
(7.0)%
(7.6)%
(8.0)%
(8.4)%
(8.6)%
(8.9)%
Non-GAAP operating margin adjusted for stock-based compensation
30.2%
32.7%
34.0%
34.1%
36.0%
35.8%
GAAP operating income$779 $1,074 $1,251 $1,351 $1,492 $1,831 
Non-GAAP operating income$1,111 $1,436 $1,717 $1,974 $2,361 $2,862 
Non-GAAP operating income adjusted for stock-based compensation$901 $1,166 $1,391 $1,583 $1,906 $2,293 
* At midpoint of outlook.
October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Fourth Quarter 2026 Financial Outlook
Q4 2025Q3 2026Q4 2026E
Total Revenue ($ Millions)$1,440 $1,633 $1,695 - $1,725
   Q/Q Growth3%4% - 6%
   Y/Y Growth22%18% - 20%
GAAP Operating Margin32.2%26.2%30% - 31%
Non-GAAP Operating Margin45.8%44.1%44% - 45%
GAAP EPS$1.42 $1.05 $1.23 - $1.29
Non-GAAP EPS$1.99 $2.11 $2.19 - $2.25


Fiscal Year 2026 Financial Outlook
PreviousCurrent
FY 2025
FY 2026E
FY 2026E
Recurring Revenue
80%
~80%
~80%
Total Revenue ($ Millions)$5,297 $6,260 - $6,340$6,387 - $6,417
   Y/Y Growth
14%
18% - 20%21% - 21%
Revenue from Beginning Backlog
~69%
~65%~64%
GAAP Operating Margin
28.2%
27.75% - 28.75%28.2% - 29.2%
Non-GAAP Operating Margin
44.6%
43.75% - 44.75%44.2% - 45.2%
GAAP Other Income & Expense ($ Millions)$30 $(17) - $3$0 - $10
Non-GAAP Other Income & Expense ($ Millions)$(24)$(115) - $(95)$(101) - $(91)
GAAP Tax Rate
27.1%
~26%~27%
Non-GAAP Tax Rate16.5%16.5%16.5%
Weighted Average Diluted Shares Outstanding (Millions)
273.3
275.5 - 277.5274 - 276
GAAP EPS$4.06 $4.76 - $4.86$4.84 - $4.90
   Y/Y Growth
5%
17% - 20%19% - 21%
Non-GAAP EPS$7.14 $8.05 - $8.15$8.37 - $8.43
   Y/Y Growth
20%
13% - 14%17% - 18%
Cash Flow from Operations ($ Millions)$1,729 ~$2,000~$2,000
DSO
64
~65
~65
Capital Expenditures ($ Millions)$142 ~$240
~$240


October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Third Quarter Financial Results
Backlog
(In Billions)
2022
2023
2024
2025
Q3 2026
Backlog$5.8 $6.0 $6.8 $7.8 $8.2 
Revenue
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Product and Maintenance$1,208 $1,332 $1,349 $1,431 $1,487 
Services131 108 125 154 146 
   Total Revenue$1,339 $1,440 $1,474 $1,584 $1,633 
Table may not foot due to rounding
Recurring and Up-Front Revenue
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Revenue Recognized Over Time
78 %77 %73 %72 %74 %
Other Recurring Revenue
4 %2 %4 %6 %5 %
Recurring Revenue
82 %79 %77 %78 %79 %
Up-Front Revenue
18 %21 %23 %22 %21 %
Total Revenue
100 %100 %100 %100 %100 %
Trailing Twelve Months Recurring and Up-Front Revenue
Trailing Twelve Months Ended
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Recurring Revenue80 %80 %79 %79 %78 %
Up-Front Revenue20 %20 %21 %21 %22 %
   Total 100 %100 %100 %100 %100 %
Revenue Mix by Geography
(% of Total Revenue)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Americas43 %47 %45 %43 %43 %
China18 %12 %13 %15 %16 %
Other Asia18 %20 %20 %20 %19 %
Europe, Middle East and Africa14 %14 %16 %15 %15 %
Japan7 %7 %6 %7 %7 %
   Total100 %100 %100 %100 %100 %
Revenue Mix by Product Category
(% of Total Revenue)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Core EDA
71 %69 %71 %68 %69 %
Semiconductor IP
14 %15 %14 %15 %15 %
System Design and Analysis15 %16 %15 %17 %16 %
   Total100 %100 %100 %100 %100 %


October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Gross Margin
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
GAAP Gross Margin86.4 %86.9 %85.4 %84.9 %85.6 %
Non-GAAP Gross Margin88.0 %88.5 %88.0 %88.2 %88.8 %
Total Costs and Expenses
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Total GAAP Costs and Expenses$913 $977 $1,043 $1,134 $1,205 
Total Non-GAAP Costs and Expenses$701 $781 $815 $863 $913 
Operating Margin
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
GAAP Operating Margin31.8 %32.2 %29.3 %28.4 %26.2 %
Non-GAAP Operating Margin47.6 %45.8 %44.7 %45.5 %44.1 %
Net Income Per Share
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
GAAP Net Income Per Share$1.05 $1.42 $1.23 $1.33 $1.05 
Non-GAAP Net Income Per Share$1.93 $1.99 $1.96 $2.11 $2.11 
Total DSO
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
DSO5564676566
Balance Sheet and Cash Review
Free Cash Flow
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Net Cash from Operating Activities$311 $553 $356 $635 $424 
Capital Expenditures34 41 49 53 62 
Free Cash Flow$277 $512 $307 $582 $362 
Cash and Cash Equivalents
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Cash and Cash Equivalents$2,753 $3,001 $1,407 $1,440 $1,452 
•Approximately 15 percent of our cash and cash equivalents were in the U.S. at quarter-end.
Debt
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Debt (principal value)
$2,500 $2,500 $2,925 $2,500 $2,650 
Share Repurchase
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Share Repurchase$200 $200 $200 $200 $400 
Number of Shares0.584 0.613 0.671 0.580 1.305 
Employees
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Headcount13,693 13,800 15,110 15,445 15,753 

October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Forward Looking Statements
This CFO Commentary contains forward-looking statements, including Cadence's outlook on future operating results, financial condition, strategic objectives, capital allocation and share repurchase program, business model and prospects, technology and product developments and performance, customer adoption and demand, strategic relationships, backlog, industry trends and Cadence's ability to capitalize on them, market dynamics and market growth, tax rates, legislative and regulatory developments and other statements using words such as “anticipates,” “believes,” “expects,” “intends,” “plans,” “will,” and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence’s ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence’s efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence’s products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence’s products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence’s customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions, armed conflicts around the world, increased energy costs and supply chain constraints; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence’s increased debt levels and obligations and Cadence’s ability to repay debt or access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence’s acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject, including Cadence’s ongoing obligations under its July 2025 settlement agreements with the U.S. Department of Justice (“DOJ”) and Bureau of Industry and Security (“BIS”), any further inquiries or adverse actions by the DOJ, BIS or other governmental authorities and any impact of the settlements on Cadence’s operations and business dealings; and (xii) Cadence’s ability to successfully meet any environmental, social and governance targets and practices. In addition, the timing and amount of Cadence’s repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. Cadence's share repurchase program may be modified, suspended or terminated without prior notice.

For a detailed discussion of these and other cautionary statements related to Cadence and its business, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings.

All forward-looking statements in this document are based on management's expectations as of the date of this document and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
GAAP to Non-GAAP Reconciliation
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this CFO Commentary with their most directly comparable GAAP financial results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance. See our earnings press release issued today for further discussion of our non-GAAP financial measures, as well as the reconciliation provided in the Appendix to this CFO Commentary.

Cadence’s management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of the company’s core business operations and therefore provides supplemental information to Cadence’s management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence’s business from the same perspective as Cadence’s management, including forecasting and budgeting.

© 2026 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.
October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
APPENDIX I
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses
(In Millions)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
GAAP total costs and expenses$913 $977 $1,043 $1,134 $1,205 
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense(116)(113)(138)(147)(145)
Amortization of acquired intangibles(26)(30)(51)(80)(80)
Acquisition and integration-related costs(37)(49)(41)(33)(25)
Restructuring(27)(2)— — (42)
Non-qualified deferred compensation (expenses) credits
(6)(2)3 (11)— 
Non-GAAP total costs and expenses*$701 $781 $815 $863 $913 
Table may not foot due to rounding
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
Reconciliation of GAAP Total Expenses to Non-GAAP Total Expenses
(In Millions)20212022
2023
2024
2025
2026E
GAAP total costs and expenses$2,209 $2,488 $2,839 $3,291 $3,805 $4,571 
Reconciling items to non-GAAP total costs and expenses
Stock-based compensation expense(210)(270)(326)(391)(455)(569)
Amortization of acquired intangibles(67)(60)(62)(90)(105)(289)
Acquisition and integration-related costs(23)(41)(56)(96)(135)(122)
Restructuring 1 — (11)(24)(29)(42)
Non-qualified deferred compensation (expenses) credits(6)8 (11)(11)(14)(9)
Special charges*
(27)— — (3)(2)— 
Loss related to contingent liability**
— — — (8)(129)— 
Non-GAAP total costs and expenses***
$1,877 $2,125 $2,373 $2,667 $2,935 $3,540 
Table may not foot due to rounding
*
2021 includes costs related to a voluntary retirement program.
**
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
***
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income and Non-GAAP Operating Income Adjusted for Stock-based Compensation
(In Millions)20212022
2023
2024
2025
2026E
GAAP operating income$779 $1,074 $1,251 $1,351 $1,492 $1,831 
Reconciling items to non-GAAP operating income
Stock-based compensation expense210 270 326 391 455 569 
Amortization of acquired intangibles67 60 62 90 105 289 
Acquisition and integration-related costs23 41 56 96 135 122 
Restructuring (1)— 11 24 29 42 
Non-qualified deferred compensation expenses (credits)
6 (8)11 11 14 9 
Special charges*
27 — — 3 2 — 
Loss related to contingent liability**
— — — 8 129 — 
Non-GAAP operating income***
$1,111 $1,436 $1,717 $1,974 $2,361 $2,862 
Stock-based compensation expense(210)(270)(326)(391)(455)(569)
Non-GAAP operating income adjusted for stock-based compensation***
$901 $1,166 $1,391 $1,583 $1,906 $2,293 
Table may not foot due to rounding
*
2021 includes costs related to a voluntary retirement program.
**
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
***
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Gross Margin as a Percent of Total Revenue to Non-GAAP Gross Margin as a Percent of Total Revenue
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
GAAP gross margin as a percent of total revenue86.4%86.9%85.4%84.9%85.6%
Reconciling items to non-GAAP gross margin as a percent of total revenue
Stock-based compensation expense0.3%0.3%0.4%0.4%0.4%
Amortization of acquired intangibles1.2%1.3%2.1%2.9%2.8%
Non-qualified deferred compensation expenses (credits)
0.0%0.0%0.0%0.0%
0.0%
Acquisition and integration-related costs0.1%0.0%0.1%0.0%0.0%
Non-GAAP gross margin as a percent of total revenue*88.0%88.5%88.0%88.2%88.8%
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.



October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026E
GAAP operating margin as a percent of total revenue31.8%32.2%29.3%28.4%26.2%30% - 31%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense8.7%7.9%9.4%9.3%8.9%8%
Amortization of acquired intangibles1.9%2.1%3.4%5.0%4.9%
5%
Acquisition and integration-related costs2.8%3.4%2.8%2.1%1.5%1%
Restructuring 2.0%0.1%0.0%0.0%2.6%
0%
Non-qualified deferred compensation expenses (credits)
0.4%0.1%(0.2)%0.7%0.0%0%
Non-GAAP operating margin as a percent of total revenue*47.6%45.8%44.7%45.5%44.1%44% - 45%
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.































October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Operating Margin as a Percent of Total Revenue to Non-GAAP Operating Margin as a Percent of Total Revenue
20212022
2023
2024
2025
2026E
GAAP operating margin as a percent of total revenue26.1%30.1%30.6%29.1%
28.2%
28.2% - 29.2%
Reconciling items to non-GAAP operating margin as a percent of total revenue
Stock-based compensation expense
7.0%
7.6%
8.0%
8.4%
8.6%
9%
Amortization of acquired intangibles
2.2%
1.7%
1.5%
2.0%
2.0%
4%
Acquisition and integration-related costs
0.8%
1.1%
1.4%
2.1%
2.5%
2%
Restructuring
0.0%
0.0%
0.3%
0.5%
0.6%
1%
Non-qualified deferred compensation expenses (credits)
0.2%
(0.2)%
0.2%
0.2%
0.3%
0%
Special charges*
0.9%
0.0%
0.0%
0.0%
0.0%
0%
Loss related to contingent liability**
0.0%
0.0%
0.0%
0.2%
2.4%
0%
Non-GAAP operating margin as a percent of total revenue***
37.2%
40.3%
42.0%
42.5%
44.6%
44.2% - 45.2%
*
2021 includes costs related to a voluntary retirement program.
**
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
***
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.
October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share
(In Thousands, Except Per Share Data)Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026E
Diluted net income per share on a GAAP basis$1.05 $1.42 $1.23 $1.33 $1.05 $1.23 - $1.29
Stock-based compensation expense0.42 0.41 0.50 0.53 0.53 0.51 
Amortization of acquired intangibles0.10 0.11 0.19 0.29 0.29 0.29 
Acquisition and integration-related costs0.14 0.18 0.15 0.12 0.09 0.08 
Restructuring 0.10 0.01 — — 0.15 — 
Non-qualified deferred compensation expenses (credits)
0.02 0.01 (0.01)0.04 — — 
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
0.07 0.04 (0.01)— — — 
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
0.03 (0.18)(0.04)(0.30)(0.01)— 
Income tax effect of non-GAAP adjustments— (0.01)(0.05)0.10 0.01 0.08 
Diluted net income per share on a non-GAAP basis*$1.93 $1.99 $1.96 $2.11 $2.11 $2.19 - $2.25
Shares used in calculation of diluted net income per share273,798 272,932 273,725 276,163 275,278 
*The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.





October 26, 2026Cadence Q3 2026 Financial Results
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Cadence Design Systems, Inc.
Reconciliation of GAAP Diluted Net Income Per Share to Non-GAAP Diluted Net Income Per Share
(In Thousands, Except Per Share Data)20212022
2023
2024
2025
2026E
Diluted net income per share on a GAAP basis$2.50 $3.09 $3.82 $3.85 $4.06 $4.84 - $4.90
Stock-based compensation expense0.75 0.98 1.19 1.43 1.67 2.07 
Amortization of acquired intangibles0.24 0.22 0.23 0.33 0.38 1.05 
Acquisition and integration-related costs0.08 0.15 0.21 0.35 0.49 0.45 
Restructuring — — 0.04 0.09 0.11 0.15 
Non-qualified deferred compensation expenses (credits)0.02 (0.03)0.04 0.04 0.05 0.03 
Special charges*
0.10 — — 0.01 0.01 — 
Loss related to contingent liability**
— — — 0.03 0.47 — 
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
— — — — 0.11 (0.01)
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(0.03)0.05 (0.17)(0.22)(0.31)(0.35)
Income tax effect of non-GAAP adjustments(0.37)(0.19)(0.21)0.06 0.10 0.14 
Diluted net income per share on a non-GAAP basis***
$3.29 $4.27 $5.15 $5.97 $7.14 $8.37 - $8.43
Shares used in calculation of diluted net income per share 278,858 275,011 272,748 273,833 273,312 274 - 276M
*
2021 includes costs related to a voluntary retirement program.
**
Related to resolution of previously disclosed legal proceedings with the DOJ and BIS.
***
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.








October 26, 2026Cadence Q3 2026 Financial Results
13
Cadence Design Systems, Inc.
Reconciliation of GAAP Total Other Income and Expense to Non-GAAP Total Other Income and Expense
(In Millions)
2024
2025
2026E
GAAP total other income and expense$45 $30 $0 - $10
Reconciling items to non-GAAP total income and expense
Other income or expense related to foreign currency forward exchange contract and settlement associated with an acquisition
— 29 (3)
Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets
(61)(83)(98)
Non-GAAP total other income and expense*
$(16)$(24)$(101) - $(91)
*
The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP.


October 26, 2026Cadence Q3 2026 Financial Results
14