Synopsys announces $1B+ AWS deal, OpenAI partnership, $1B buyback and raises FY2027 revenue guidance
Synopsys disclosed a multi‑year agreement with Amazon Web Services valued at over $1 billion to license its silicon IP and engineering software for custom chips. The company also launched a strategic partnership with OpenAI to co‑develop an AI model for semiconductor design, announced a share repurchase program of about $1 billion, and lifted its fiscal 2027 revenue guidance to roughly $11.15 billion. The announcements were made at the 2026 Investor Day in New York and sent the stock up 2.5% in pre‑market trading.
Why it matters
The AWS license‑plus‑royalty structure adds a recurring revenue stream that scales with Amazon’s chip production, potentially boosting Synopsys’ long‑term cash flow. The share buyback, representing up to 50% of free cash flow, returns capital to shareholders. The higher revenue guidance, above the prior consensus of about $10.8 billion, signals stronger growth expectations for investors.
Key facts
- 1The AWS agreement is valued at over $1 billion. investing.com
- 2AWS will license Synopsys’ silicon IP and engineering software for its Nitro, Graviton and Trainium processors. investing.com
- 3The deal uses a license‑plus‑royalty model tied to Amazon’s chip production volumes. finance.yahoo.com
- 4Synopsys entered a multi‑year strategic partnership with OpenAI to co‑develop the GPT‑Synopsys AI model. investing.com
- 5The share repurchase program is approximately $1 billion, representing up to 50% of free cash flow. finance.yahoo.com
- 6Fiscal 2027 revenue guidance was raised to approximately $11.15 billion at the midpoint, implying about 15% year‑over‑year growth. finance.yahoo.com
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.