Synopsys Q3 2026: EPS beats by 6%, guidance raised to $9.72B
As seen on the 24/7 Wall St. homepage on August 26, 2026.
Synopsys raised full-year revenue guidance to a $9.72 billion midpoint after a quarter that beat on both lines, with Design IP back to year-over-year growth. One year in, Ansys is carrying its weight, and management is guiding to double-digit EDA growth.
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Synopsys beat expectations with adjusted EPS of $3.91 against a consensus of $3.67, and revenue rose 42.4% from a year earlier. The surge reflects the first full quarter of Ansys contributing at scale.
Design Automation anchored the quarter and Design IP returned to year-over-year growth, a recovery investors had been tracking closely. Non-GAAP operating margin reached 41.6%, showing the combined company is holding its cost structure while absorbing a major deal.
Management lifted full-year FY2026 revenue guidance to a midpoint of $9.72 billion and raised non-GAAP EPS guidance. The company is also guiding to double-digit EDA growth.
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CEO Sassine Ghazi pointed directly to AI as the engine: "AI is driving unprecedented complexity and increasing demand for the silicon IP and engineering solutions necessary to deliver next-generation AI compute, infrastructure and physical AI systems." Full-year guidance assumes no further changes to export control or Entity List restrictions, a caveat worth watching given ongoing trade policy uncertainty.
Synopsys repurchased $300 million of treasury stock during the nine months ended July 31, 2026. Planned restructuring with significant charges is expected in Q4, so the EPS guidance range deserves a close read.
Mentioned: SNPS