Cadence Design Systems, the San Jose maker of chip-design software, is scheduled to report third-quarter results after the market closes Monday, Oct. 26.

Why it matters: Cadence's tools are used to design AI chips. Its results give an early read on chip design spending before Intel reports later in the week.

The numbers to watch

  • Company guidance: revenue of $1.595 billion to $1.625 billion and adjusted EPS of $2.01 to $2.07.
  • Consensus: about $2.05 a share on $1.61 billion in revenue, according to MarketBeat. The Zacks consensus is $2.04.
  • A year ago: $1.93 a share on about $1.34 billion in revenue.
  • Backlog was $8.1 billion at the end of the second quarter, Zacks noted.

What else to watch

Zacks said investors will look for demand tied to AI and its "AI Super-Agent" tools. Cadence guided for an adjusted operating margin of 43.5% to 44.5%, down from 47.6% a year earlier.

Shares closed Friday at $316.49, up 2.21%, MarketBeat reported. Zacks said the stock is down 7% over six months.

Sources: MarketBeat; Zacks via Yahoo Finance.