SYNOPSYS (SNPS) Company Report

Synopsys posted Q1 revenue of $2.41 billion, at the top end of its guidance, with non-GAAP EPS of $3.77, and ended the quarter with a backlog of $11.3 billion.
The Ansys segment contributed $886 million in Q1, driven by strong simulation and analysis demand in seasonally robust end markets, and integration with Synopsys is on track.
Design Automation revenue was $2.0 billion (non-GAAP operating margin 47.3%), while Design IP revenue amounted to $407 million (down 6% YoY; margin 16.2%), with IP expected to improve sequentially in H2 FY 2026.
Free cash flow reached $822 million; cash and short-term investments totaled $2.2 billion versus $10 billion of debt, the term loans have been fully repaid, and the board authorized a $2 billion stock repurchase program.
Full-year guidance was reiterated at $9.56–$9.66 billion in revenue, with non-GAAP EPS raised to $14.38–$14.46 and an expected non-GAAP operating margin of 40.5% at midpoint.

2 days ago

Transcript

Synopsys reports Q1 2026 earnings

SNPS

Earnings

Guidance Update

Share Buyback

Synopsys delivered $2.41 billion in Q1 revenue, $3.77 non-GAAP EPS and a 42.1% non-GAAP operating margin; backlog stood at $11.3 billion at quarter-end.
By segment, Design Automation revenue was $2.0 billion (47.3% adjusted margin), Ansys contributed $886 million, and Design IP revenue was $407 million (down 6% YoY, 16.2% margin).
Generated $822 million in free cash flow; ended Q1 with $2.2 billion in cash and short-term investments vs. $10 billion in total debt, fully repaying $4.3 billion of term loans and authorizing up to $2 billion in share repurchases.
Reiterated full-year revenue guidance of $9.56 billion–$9.66 billion, raised non-GAAP EPS outlook to $14.38–$14.46, and set Q2 revenue guidance at $2.225 billion–$2.275 billion.
Highlighted strong momentum in AI-driven design, digital twins and multi-die solutions as Synopsys-Ansys integration positions the company for long-term growth.

2 days ago

Transcript

Synopsys reports Q1 2026 results

SNPS

Earnings

Guidance Update

Share Buyback

In Q1 FY 2026, Synopsys delivered $2.41 billion in revenue at the top of guidance and non-GAAP EPS of $3.77, with a 42.1% non-GAAP operating margin, and backlog of $11.3 billion.
Segment results included ~$2 billion in Design Automation revenue, $886 million from Ansys, and $407 million in Design IP revenue (–6% YoY).
Full-year guidance was reiterated at $9.56 billion–$9.66 billion in revenue, with non-GAAP EPS increased to $14.38–$14.46.
The board authorized a $2 billion share repurchase program and the company repaid its $4.3 billion term loans.

2 days ago

Transcript

Synopsys posts Q1 FY2026 results

SNPS

Earnings

Guidance Update

Share Buyback

Synopsys reported Q1 FY2026 revenue of $2.409 billion, up from $1.455 billion in Q1 FY2025.
GAAP EPS was $0.34 and non-GAAP EPS was $3.77, both exceeding prior guidance.
The company reiterated full-year FY2026 revenue guidance of $9.61 billion at midpoint, including $2.9 billion of expected Ansys revenue.
Its Board approved replenishing the stock repurchase program, authorizing purchases of up to $2.0 billion of common stock.

2 days ago

8-K

Synopsys reports Q1 FY2026 results

SNPS

Earnings

Guidance Update

Share Buyback

Synopsys reported Q1 FY2026 revenue of $2.409 billion, up from $1.455 billion in Q1 FY2025, with GAAP EPS of $0.34 and non-GAAP EPS of $3.77, both above guidance.
Board approved replenishment of its share repurchase program, authorizing up to $2.0 billion in common stock purchases.
Reiterated FY 2026 revenue guidance of $9.61 billion at the midpoint, including $2.9 billion of expected Ansys revenue.

2 days ago

Press Release

Synopsys collaborates with Lightmatter on co-packaged optics IP

SNPS

New Projects/Investments

Synopsys and Lightmatter partner to integrate Synopsys’ 224G SerDes and UCIe IP for 3nm into Lightmatter’s Passage™ 3D Co-Packaged Optics platform, targeting low-latency, high-bandwidth connectivity for AI accelerators.
Key benefits include optimized bandwidth and energy efficiency, reduced design risk via pre-verified IP, and accelerated co-design using Synopsys’ AI-powered EDA tools.
Synopsys SVP Neeraj Paliwal highlights delivery of a high-bandwidth, low-latency, energy-efficient solution bridging silicon and photonic architectures.
Analyst commentary from 650 Group underscores the collaboration as a critical step for scaling next-generation AI clusters with validated CPO roadmaps.

Jan 27, 2026, 4:00 AM

Press Release

Synopsys warns memory chip shortage to persist through 2027

SNPS

Synopsys CEO Sassine Ghazi forecasts that the global memory chip shortage driven by the AI infrastructure buildout will persist through 2026–2027 as demand outpaces supply.
Leading memory makers (Samsung, SK Hynix and Micron) are allocating most HBM and other memory to AI data centers and servers, leaving consumer electronics under-supplied.
The tight market has granted memory manufacturers strong pricing power, prompting warnings of higher end-product prices in smartphones and laptops.
Reports estimate that global AI infrastructure investment will exceed $500 billion in 2026, intensifying demand for memory components.

Jan 26, 2026, 1:04 PM

CNBC

Synopsys faces investor investigation after Q3 2025 earnings miss

SNPS

Legal Proceedings

The Law Offices of Frank R. Cruz is investigating whether Synopsys’s board breached fiduciary duties to shareholders.
Synopsys reported Q3 2025 revenue of $1.740 billion, below guidance of $1.755–1.785 billion, and net income of $242.5 million, a 43% YoY decline.
The Design IP segment generated $426.6 million (≈25% of total revenue), down 7.7% YoY; full-year 2025 Design IP revenues are expected to decline by at least 5%.
Shares fell 35.8% (–$216.59) to $387.78 on September 10, 2025, on unusually heavy trading volume.

Jan 22, 2026, 9:24 PM

Press Release

Synopsys addresses Q3 headwinds and Ansys integration at Needham Conference

SNPS

Guidance Update

M&A

Synopsys faced three headwinds in fiscal Q3—China EDA restrictions delaying IP deals, a foundry customer slowdown, and resource shifts to HPC titles—and assumes these factors will persist in its 2026 guidance.
The Ansys acquisition delivered strong performance in 2025 driven by its leading simulation and analysis portfolio, with another strong growth year forecast for 2026.
Integration progress includes accelerated cost synergies, completion of term-loan deleveraging in H1 2026, and a targeted $400 million revenue synergy run rate by year four.
Synopsys sold its ARC processor IP to Global to sharpen focus on interface and essential IP, aligning resources with its core strategic priorities.
The EDA business remains a ‘tale of two markets’—AI-driven high-performance workloads versus slower consumer/industrial segments—and Synopsys is developing joint EDA-Ansys tools to tackle PPA and yield challenges earlier in design cycles.

Jan 15, 2026, 7:15 PM

Transcript

Synopsys details 2026 outlook drivers and Ansys integration progress

SNPS

M&A

Guidance Update

Revenue Acceleration/Inflection

Synopsys identified three headwinds in its IP business—China EDA restrictions causing customer uncertainty, challenges at a major foundry customer, and resource shifts to HPC titles—that led to a meaningful Q3 outlook cut, with these China-related uncertainties expected to persist in 2026.
The acquired Ansys simulation portfolio delivered strong growth in 2025 and is forecast for further robust performance in 2026, driven by broad applicability across R&D and low current penetration of simulation tools.
Post-close Ansys integration is proceeding smoothly, with accelerated cost synergies via restructuring, term-loan deleveraging expected in H1 2026, and a $400 million revenue synergy run rate targeted by year four through a joint roadmap.
Synopsys divested its ARC processor IP to focus on interface and essential IP leadership, aligning resources with core strategic priorities and matching the asset to a better strategic fit.

Jan 15, 2026, 7:15 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for SYNOPSYS.

Q1 2026

Feb 25, 2026

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Q4 2025

Dec 10, 2025

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Q3 2025

Sep 9, 2025

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View All Transcripts

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SYNOPSYS (SNPS)

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