Synopsys Inc

Latest Results (30.08.2026):

Synopsys, Inc. reported results for its second quarter of fiscal year 2026, delivering revenue of $2.276 billion (up ~42% year‑over‑year), GAAP diluted EPS of $0.09 and non‑GAAP diluted EPS of $3.35. Management raised its full‑year revenue and non‑GAAP EPS targets and announced an Investor Day for Sept. 30, 2026.

Revenue and growth

Q2 FY2026 revenue was $2.276B versus $1.604B in Q2 FY2025, an increase of roughly 42%. Design Automation generated $1.8218B (80% of revenue) and Design IP $454.2M (20%).

GAAP vs non‑GAAP earnings

GAAP net income from continuing operations was $17.1M, or $0.09 per diluted share. Non‑GAAP net income was $643.7M, or $3.35 per diluted share (adjusting for significant amortization, stock‑based comp, restructuring and other items).

Guidance and raised targets

Synopsys raised its full‑year revenue midpoint to $9.665B and raised full‑year non‑GAAP EPS midpoint to $14.76. Q3 revenue guidance is $2.410–$2.460B and Q3 non‑GAAP EPS guidance is $3.63–$3.69.

Accounting and transaction impacts

Fiscal 2026 revenue guidance includes expected Ansys revenue (~$2.96B, including a $60M Ansys channel accounting impact) and reflects ~$40M revenue reduction tied to the expected divestiture of the Processor IP Solutions business.

Margins and segment profitability

Adjusted operating income by segment was $789.1M for Design Automation (adjusted margin 43.3%) and $110.6M for Design IP (adjusted margin 24.4%) for the quarter, supporting expanded overall non‑GAAP operating margin expectations.

Cash flow and balance sheet highlights

Net cash provided by operating activities for the six months was $1.486B. Cash and cash equivalents were $2.412B at April 30, 2026, and long‑term debt was ~$10.014B (down from $13.462B at Oct. 31, 2025).

One‑time charges and adjustments

Q2 included large non‑cash amortization of acquired intangibles ($403.6M), stock‑based compensation ($222.3M) and $115.9M of restructuring charges, which explain the wide gap between GAAP and non‑GAAP results.

Investor engagement and outlook

Synopsys plans an Investor Day on Sept. 30, 2026 to provide long‑term targets and strategy. Management emphasized AI‑driven semiconductor demand, cost discipline, and accelerating synergies as drivers for the raised outlook.