Cadence Design Systems 10-Q, filed Oct 28, 2026

Summary

Cadence Design Systems reported revenue growth across its hardware, software, and IP offerings for the quarter ended September 30, 2026, alongside higher operating expenses, increased amortization, and restructuring charges under a 2026 Restructuring Plan, and said it completed its acquisition of Hexagon Smart Solutions AB's design and engineering business on February 23, 2026. Cadence also outlined exposure to U.S.-China trade controls and tariffs, noting that BIS's rule extending Entity List restrictions to majority-owned affiliates was suspended through November 9, 2026, and that the U.S. Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act in February 2026.

Key points

• Cadence completed its acquisition of the design and engineering business of Hexagon Smart Solutions AB on February 23, 2026, adding to its System Design and Analysis portfolio after its fiscal 2024 acquisition of BETA CAE.
• Recurring revenue fell to 79% of total revenue for the three months ended September 30, 2026, from 82% a year earlier, with up-front revenue rising to 21% from 18%.
• Cadence reported increased restructuring charges tied to a 2026 Restructuring Plan and higher operating expenses from research, development, and sales headcount.
• Cadence noted that BIS suspended for one year, through November 9, 2026, an interim final rule extending Entity List export restrictions to entities 50% or more owned by listed parties, and that the U.S. Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act in February 2026, while other tariffs remain in effect.

Written by an AI model from the filing text. It can be incomplete or wrong; the filing on SEC.gov is the record.