Revenue visibility strengthens + AI upside potential begins to emerge! Cadence Design Systems (CDNS.US) gets Morgan Stanley price target raised to $400 after earnings

Zhitong Finance APP has learned that electronic design automation (EDA) giant Cadence Design Systems (CDNS.US) reported better-than-expected third-quarter 2026 results after the U.S. market close on Monday and raised its full-year guidance. In a research report subsequently published by Morgan Stanley, the bank noted that Cadence's beat-and-raise further enhanced revenue visibility, supported by record backlog and stronger recurring revenue growth. At the same time, agentic AI presents potential commercialization opportunities, although commercial validation remains at an early stage. The bank reiterated its "Overweight" rating on Cadence with a price target of $400, implying about 24% upside from the stock's Monday closing price of $322.17.