Synopsys Investor Day Raises Growth Targets

Synopsys Inc. (SNPS) raised its long-term growth and margin targets and updated fiscal 2027 guidance at its Investor Day on Sept. 30, 2026. The company cited AI-driven engineering, application-optimized silicon, and the Ansys integration while unveiling a new GPT-Synopsys partnership with OpenAI.

Raised Long-Term Financial Targets and Fiscal 2027 Guidance

Synopsys outlined a fiscal 2026–2030 financial framework targeting about 15% annual revenue growth, mid-20% growth in non-GAAP earnings per share (EPS) and free cash flow, and roughly 50% non-GAAP operating margin by fiscal 2030. Management attributed these goals to rising demand for AI-enabled engineering, application-optimized silicon, Design IP strength, and the integration of Synopsys design software with Ansys simulation technology.

For fiscal 2027, ending Oct. 31, 2027, Synopsys set revenue guidance between $11.1 billion and $11.2 billion, implying roughly 15% year-over-year growth. The company forecast GAAP EPS of $8.16 to $8.61, non-GAAP EPS of $19.04 to $19.12, a GAAP operating margin near 20.7%, and a non-GAAP operating margin near 44.0%. Free cash flow is expected to reach about $3.1 billion.

The long-term plan breaks down growth targets by business segment through fiscal 2030: at least 13% annual growth for electronic-design-automation (EDA), at least 10% for simulation and analysis, and at least 17% for Design IP. These segments form the foundation for the company’s margin and cash-flow objectives.

Synopsys also said it plans to return up to 50% of free cash flow to shareholders through share repurchases, aiming to buy back approximately $1 billion in the coming months, subject to market conditions.

OpenAI Partnership and Ansys Synergy Acceleration

Synopsys and OpenAI announced a multi-year commercial and development agreement to jointly build GPT-Synopsys, a specialized AI model designed to use Synopsys’ EDA tools in semiconductor design workflows. The partnership includes revenue sharing and go-to-market collaboration, aiming to embed AI into chip design processes and create a new commercial channel for these tools.

Investor Day materials also detailed expected synergies from the Ansys integration. Synopsys anticipates about $400 million in annualized revenue synergies by fiscal 2029 and approximately $400 million in annualized cost synergies by fiscal 2027. The timing for cost synergies has been accelerated by one year compared with prior guidance.

The company’s disclosures identified no new regulatory approvals, government actions, or exchange notices related to the Investor Day announcements.

Synopsys described its framework and guidance as forward-looking and subject to risks and uncertainties, reflecting management’s current view of market demand and integration benefits.