CDNS 10-Q filed 2026-10-28 | Key takeaways
CDNS filed its 10-Q; the most relevant disclosure change is expanded Business combinations: Hexagon D&E acquisition purchase consideration finalized at $3.12 billion (vs preliminary $3.10 billion in Q2); goodwill increased to $2.17 billion; acquired intangibles at $1.25 billion with weighted average amortization period of 7.8 years.
Key takeaways
Acquisitions: Hexagon D&E acquisition completed February 23, 2026 for ~$3.0 billion; three other 2026 acquisitions for $83.8 million
Debt: 2027 Senior Notes ($500M) reclassified as current liability; $150M borrowed under revolving credit facility as of September 30, 2026
Restructuring: 2026 Restructuring Plan initiated in September 2026 with $42.2 million in charges recorded in Q3
Share repurchases: Board approved additional $2.5 billion repurchase authorization on October 23, 2026; $601.6 million remaining
Customer concentration: No single customer accounted for 10% or more of total revenue in Q3 2026 or Q3 2025
Operating margin: Q3 2026 operating margin of 26% decreased from 32% in Q3 2025, primarily due to incremental operating expenses from acquisitions
Key metrics
Disclosure changes
- Business combinations
Hexagon D&E acquisition purchase consideration finalized at $3.12 billion (vs preliminary $3.10 billion in Q2); goodwill increased to $2.17 billion; acquired intangibles at $1.25 billion with weighted average amortization period of 7.8 years
Updates reflect finalization of acquisition accounting and measurement period adjustments - Revolving credit facility
$150 million borrowed under the revolving credit facility as of September 30, 2026; facility provides for borrowings up to $1.25 billion with right to increase to $1.75 billion
Indicates use of credit facility for liquidity purposes - Senior notes classification
2027 Senior Notes ($500 million principal) reclassified as current liability due to maturity in September 2027
Changes current vs long-term debt presentation; indicates near-term refinancing need - Restructuring
2026 Restructuring Plan initiated in September 2026; $42.2 million in charges recorded in Q3 2026 for severance and termination benefits
New restructuring initiative to align resources with business strategy - Share repurchase authorization
Board approved additional $2.5 billion share repurchase authorization on October 23, 2026; $601.6 million remaining as of September 30, 2026
Significant increase in authorized repurchase capacity - Trade regulations update
BIS suspended rule extending export restrictions to 50%-owned entities through November 9, 2026; U.S. and China extended trade arrangements through January 10, 2027; BIS has not formally extended the suspension as of filing date
Updates on export control regulatory environment affecting China operations
Primary source
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