Updated Financial Guidance

Cadence raised its fiscal‑2026 revenue outlook to $6.125 billion–$6.225 billion, a 17% YoY increase, but trimmed adjusted diluted earnings per share to $7.85–$7.95 from the previously guided $8.05–$8.15. GAAP diluted net income per share is now projected at $4.39–$4.49. Operating margin guidance was lowered to 27.5–28.5% GAAP and 43.5–44.5% non‑GAAP, reflecting expected dilution from the Hexagon D&E acquisition in 2026. The integration is projected to be accretive in 2027 but dilutive in 2026, affecting margins and cash flows. Operating cash flow for 2026 is forecast at $1.875 billion–$1.975 billion, with the company planning to allocate at least 50% of free cash flow to share repurchases. Share buyback plans include a $200 million repurchase in Q1, and operating cash flow for the quarter was $356 million.