Synopsys Boosts Annual Outlook as AI Complexity Drives Demand

Synopsys (SNPS) reported Q3 revenue of $2.477B, up 42% YoY, beating estimates. Non-GAAP EPS was $3.91, above consensus. GAAP EPS was $2.84. The company raised its fiscal 2026 revenue outlook to $9.69B-$9.74B, including $2.98B from Ansys. Non-GAAP operating margin is targeted at 41.5%, while GAAP is 10.4%. Cash flow and debt repayment were highlighted as strengths, while amortization and restructuring costs were noted as challenges.

Synopsys Inc (SNPS) shares rose 13% after Q2 earnings beat estimates, with EPS of $3.91 and revenue of $2.48B. The company raised full-year guidance, projecting EPS of $15.07 and revenue between $9.69B-$9.74B. GF Value™ suggests SNPS is 30.6% undervalued at $464.89, though insiders sold $20.2M in shares over 12 months.

Synopsys (SNPS) stock rose 13% to $464.89 after reporting better-than-expected quarterly earnings and raising guidance, according to the company.

Synopsys reported Q3 FY2026 revenue of $2.477B, up 42% YoY, beating estimates. Non-GAAP EPS was $3.91 vs. $3.67 expected. The company raised full-year guidance but shares fell 5.1% after-hours due to integration concerns from the Ansys acquisition. Management highlighted progress in Ansys integration, organic EDA growth, and AI monetization. Analysts have mixed reactions, with targets ranging from $550 to $600.

Synopsys (SNPS) stock rose 10.2% after Q3 earnings beat estimates, with revenue up 42.5% YoY and GAAP EPS up 89%. The company cited AI-driven demand for its software. Guidance for Q4 and full-year sales and earnings also exceeded expectations. Free cash flow reached $2.1B YTD.

Baird upgraded Synopsys (SNPS) to Outperform with a $560 price target, citing improved demand for chip-design tools and double-digit revenue growth expected in FY27. Q3 revenue rose 40% to $2.48B, with EDA and Design IP segments outperforming. Baird raised FY26 revenue growth outlook to 38% and EBIT margin to 41.5%. SNPS shares were trading at $410 on Aug. 26.