06:23 AM EDT, 10/28/2025 (MT Newswires) -- Cadence Design Systems ( CDNS ) lifted its full-year outlook as the computational software company's third-quarter results topped market expectations.

The firm now anticipates adjusted earnings to be in a range of $7.02 to $7.08 per share for 2025, it said late Monday, up from its previous projections of $6.85 to $6.95. Revenue is pegged at $5.26 billion to $5.29 billion, compared with the prior forecast of $5.21 billion to $5.27 billion. The current consensus on FactSet is for non-GAAP EPS of $7 and sales of $5.27 billion.

"With the updated outlook and at the midpoint, we now expect our 2025 revenue to grow approximately 14% year-over-year on track to achieve double-digit growth across all our product categories for the year," Chief Financial Officer John Wall said in prepared remarks available on the company's website. The guidance assumes that current export control regulations remain "substantially similar" for the rest of the year, according to Wall.

The company's shares were down 1.5% in the most recent premarket activity.

For the ongoing three-month period, Cadence expects adjusted EPS to come in between $1.88 and $1.94 and revenue to be at $1.41 billion to $1.44 billion, Wall said. The Street is looking for non-GAAP EPS of $1.91 and sales of $1.42 billion for the fourth quarter.

The company posted adjusted EPS of $1.93 for the September quarter, up from $1.64 the year before and topping the average analyst estimate of $1.79. Revenue advanced to $1.34 billion from $1.22 billion, surpassing the Street's view for $1.32 billion.

"Cadence delivered excellent results for the third quarter of 2025, with strong operational and financial performance across all product categories and geographies as we continued the disciplined execution of our strategy," Chief Executive Anirudh Devgan said in the prepared remarks. "Bookings exceeded our expectations with backlog growing to over $7 billion."

Product and maintenance revenue inclined to $1.21 billion from about $1.1 billion last year, while services rose to $131.1 million from $115.1 million.

By geography, Americas made up 43% of the overall revenue for the quarter, down from 50% in the prior-year period. China contributed 18% to the topline result, up from 13% in the 2024 quarter, while Europe, the Middle East and Africa remained unchanged year over year at 14%. Japan accounted for 7% of overall revenue.