Why Synopsys Stock Soared Nearly 5% Higher Today

Synopsys raised its long-term growth outlook to mid-teens CAGR through 2030, driven by AI, application-optimized silicon, and a dual IP business model. The company expects 15% revenue growth and 44% operating margin by FY2027, supported by partnerships and new monetization streams, according to its Investor Day 2026.

Synopsys (SNPS) announced plans to repurchase $1B in shares and target 50% free cash flow returns to shareholders. The company projects $1B in AOIP revenue by 2030, driven by multiyear agreements like a $1B deal with Amazon. Synopsys also outlined AI strategies, including a partnership with OpenAI, and expects $400M in annualized revenue synergies from Ansys by 2029.

Synopsys (SNPS) raised its long-term growth outlook to mid-teens CAGR through 2030, driven by AI engineering and application-optimized IP. The company expects 15% revenue growth and 44% operating margin by FY 2027, according to its Investor Day 2026.

Synopsys and OpenAI will jointly develop an AI model for chip design, sharing revenue. The GPT-Synopsys model will optimize designs, reducing development time. Synopsys raised its fiscal 2027 revenue growth forecast to 15%, above analyst expectations of 11.19%. Shares rose 7% on the news.

Synopsys (SNPS) announced a $1 billion share buyback plan, targeting 50% of its free cash flow. The company's GF Value™ suggests it is undervalued, with an intrinsic value of $658.56 vs. a current price of $434.94. Synopsys has a GF Score™ of 91/100, reflecting strong fundamentals and growth potential.

Synopsys (SNPS) and OpenAI partnered to create GPT-Synopsys, an AI model for chip design. They will share revenue from commercial use. Synopsys raised its 2027 revenue growth forecast to 15%, above analyst estimates. Shares rose 7% post-announcement. The model will integrate with Synopsys's platforms, with customer data protected.