Synopsys Earnings Beat Guidance and Lift Full-Year Forecast
Synopsys earnings beat guidance and they raised full-year revenue and non-GAAP EPS forecasts while traders weighed AI demand strength against deal costs.
KEY TAKEAWAYS
- Reported fiscal second-quarter revenue was $2.3 billion and non-GAAP EPS was $3.35 per share.
- Raised FY26 revenue midpoint to $9.7 billion and non-GAAP EPS midpoint to $14.76.
- Management cited AI-driven chip-design demand and early Ansys synergies as the upgrade drivers.
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Synopsys, Inc. (Nasdaq: SNPS) reported fiscal second-quarter results for the period ended April 30, 2026, that exceeded prior guidance. On May 27, 2026, the company raised its full-year 2026 revenue and non-GAAP earnings per share (EPS) forecasts, citing strong demand for AI-driven chip-design software and early benefits from its acquisition of Ansys.
Quarter Results and Updated Guidance
Synopsys reported second-quarter revenue of $2.3 billion, a 42% increase from a year earlier. Non-GAAP EPS was $3.35 per diluted share, while GAAP EPS was $0.09. The company said it exceeded prior guidance on revenue, non-GAAP operating margin, and EPS. It raised the full-year revenue midpoint to $9.7 billion and the non-GAAP EPS midpoint to $14.76, attributing the improvement to expanded operating margins driven by cost discipline and accelerating synergies from the Ansys acquisition.
AI Demand and Ansys Integration
Management identified AI as the primary driver behind current demand, noting that AI chip design software and related workflows are prompting customers to accelerate design and verification efforts. “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power – driving demand across our portfolio,” the company said. Demand was broad-based across its Electronic Design Automation (EDA) tools, Design-IP (intellectual property blocks licensed to chipmakers), and Software Integrity businesses. The Synopsys.ai platform, which supports more automated AI chip-design flows, saw strong adoption.
The quarter reflected early benefits from integrating Ansys, which materially increased revenue but also raised GAAP expenses, including amortization of intangible assets, restructuring charges, and interest expense tied to roughly $10 billion of debt incurred for the acquisition. Synopsys described an “EPS-neutral Ansys channel-related accounting impact” for 2026 and noted that the impending close of its Processor IP Solutions business will partially offset the revenue uplift.
Synopsys scheduled an Investor Day for September 2026 to outline strategy and the combined financial model. On the same day, it appointed Jesse Cohn of Elliott Investment Management to its board. Management said the event will detail integration synergies and the longer-term margin trajectory for the merged company.
