Cursor’s $2 billion bet: The IDE is now a fallback, not the default

Cursor released Cursor 3, a rebuilt interface centered on agents that treats the traditional IDE as a fallback.

Cursor reported a $2 billion annualized revenue run rate in February 2026 while launching multiple product features in March.

Cursor 3 includes multi-repo agent coordination, a unified sidebar for local and cloud agents, and Cloud Handoff for session portability.