Synopsys, Inc.

Synopsys, Inc. Earnings Recaps

SNPS Information Technology 3 recaps
Next earnings: September 8, 2026 (estimated) · full calendar
Q2 2026 May 29, 2026

Shares dropped 10.1% after Synopsys reported deceleration concerns evidenced by cautious outlook despite revenue and margins beating initial guidance. Investors appear to have focused on management’s tempered full-year outlook and the still-developing monetization of AI-driven initiatives.

Key takeaways
  • Revenue, non-GAAP operating margin, and EPS all beat guidance due to strong execution and AI-driven demand.
  • Full-year guidance was raised but included a cautious tone around growth and margin expansion, signaling slowing momentum ahead.
  • Design Automation continued to grow with emphasis on AI-related advanced node and 3DIC solutions, supported by hardware-assisted verification demand.
  • Early-stage monetization of new technologies like GPU-accelerated EDA and agentic AI remains promising but not yet material.
  • Design IP saw strong win rates, including over 90% for PCIe 7.0 and continued traction in UCIe and advanced connectivity, supporting long-term growth potential.
Full recap
Q1 2026 Feb 26, 2026

Synopsys delivered a strong Q1 FY2026, achieving revenue and non-GAAP EPS at the high end of guidance, reflecting robust demand for AI-driven design solutions despite ongoing economic challenges.

Key takeaways
  • Revenue growth was driven by significant wins in design automation, particularly in hardware and AI applications.
  • The integration of Ansys enhanced Synopsys' position in key markets, with large multiyear agreements in aerospace and automotive.
  • Continued leadership in multi-die technology and advanced nodes, with 100% usage on critical tape-outs at 2-nanometer and below.
  • Strong demand for high-speed protocol IP translated into over 40 design wins, showcasing Synopsys' competitive edge in emerging interconnect standards.
Full recap
Q4 2025 Dec 11, 2025

Synopsys, Inc. reported record annual revenue of $7.05 billion in FY 2025, driven by strong semiconductor demand and successful integration of ANSYS, while providing a guidance range for FY 2026 revenue of $9.61 billion.

Key takeaways
  • Fourth quarter revenue aligned with guidance; EPS exceeded expectations.
  • ANSYS integration progresses well, with a focus on restructuring for efficiency and expanding synergies.
  • Strong demand noted in design automation and hardware-assisted verification, particularly in AI and high-performance computing sectors.
  • Strategic partnerships with NVIDIA and others set the stage for cross-industry innovation, enhancing the company's engineering solutions.
  • Guidance for FY 2026 includes continued revenue growth fueled by technological advancements and AI-driven initiatives.
Full recap