REVENUE (Tables)

9 Months Ended

Sep. 30, 2026

Revenue from Contract with Customer [Abstract]

Revenue from external customers by product category

The following table shows the percentage of revenue contributed by each of Cadence’s product categories for the three and nine months ended September 30, 2026 and September 30, 2025:

	Three Months Ended				Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Core EDA*	69	%	71	%	69	%	71	%
Semiconductor IP (“IP”)	15	%	14	%	15	%	14	%
System Design and Analysis	16	%	15	%	16	%	15	%
Total	100	%	100	%	100	%	100	%

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* Includes immaterial amount of revenue accounted for under leasing arrangements.

Disaggregation of revenue

The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three and nine months ended September 30, 2026 and September 30, 2025:

	Three Months Ended				Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Revenue recognized over time	74	%	78	%	73	%	76	%
Other recurring revenue	5	%	4	%	5	%	5	%
Recurring revenue	79	%	82	%	78	%	81	%
Up-front revenue	21	%	18	%	22	%	19	%
Total revenue	100	%	100	%	100	%	100	%

Contract balances

Cadence’s contract balances as of September 30, 2026 and December 31, 2025 were as follows:

	As of
	September 30, 2026		December 31, 2025
	(In thousands)
Contract assets	$	42,523	$	67,764
Deferred revenue	1,150,533		934,432