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Synopsys

SNPS Q2 2026 Earnings

Reported May 27, 2026 at 4:13 PM ET · SEC Source

Q2 26 EPS

$3.35

BEAT +5.96%

Est. $3.16

Q2 26 Revenue

$2.28B

BEAT +1.10%

Est. $2.25B

vs S&P Since Q2 26

-12.1%

TRAILING MARKET

SNPS -13.5% vs S&P -1.4%

Market Reaction

Did SNPS Beat Earnings? Q2 2026 Results

Synopsys delivered a clear beat across both key metrics in fiscal Q2 2026, posting non-GAAP EPS of $3.35 against a consensus estimate of $3.16, a 5.96% positive surprise, while revenue of $2.28 billion edged past the $2.25 billion estimate and surged… Read more Synopsys delivered a clear beat across both key metrics in fiscal Q2 2026, posting non-GAAP EPS of $3.35 against a consensus estimate of $3.16, a 5.96% positive surprise, while revenue of $2.28 billion edged past the $2.25 billion estimate and surged 42.0% year over year, a dramatic step-up that reflects the full quarterly contribution of the $35 billion Ansys acquisition closed in mid-2025. The Design Automation segment, which generated $1.82 billion, or roughly 80% of total revenue, drove the top-line strength, with adjusted operating margins expanding to 43.3% from 40.9% a year ago, even as the Design IP segment softened to $454.20 million amid a deliberate reallocation of resources and a planned divestiture of the Processor IP Solutions business. Ahead of the print, investor positioning had already pushed shares higher on optimism around Ansys integration progress and AI semiconductor demand. Management raised full-year revenue guidance to a $9.67 billion midpoint and lifted non-GAAP EPS guidance to $14.76, with Q3 revenue projected between $2.41 billion and $2.46 billion.

Key Takeaways

  • • Full contribution of Ansys acquisition revenue in Q2 FY2026
  • • Strong execution and performance across both Design Automation and Design IP segments
  • • AI scaling semiconductor demand and driving architectural diversity and chip complexity
  • • Cost discipline and accelerating Ansys integration synergies expanding operating margins
  • • Significant debt repayment of $3.46 billion in H1 FY2026

SNPS Forward Guidance & Outlook

Synopsys raised its full fiscal year 2026 revenue target to $9,625–$9,705 million (midpoint $9,665 million), up from a prior midpoint of $9,610 million, reflecting $35 million in business performance upside, $60 million from an EPS-neutral Ansys channel accounting impact, partially offset by $40 million from the expected Processor IP Solutions divestiture. Full-year non-GAAP EPS guidance was raised to $14.72–$14.80 (midpoint $14.76), with expanded operating margin driven by cost discipline and accelerating synergies. Full-year operating cash flow is targeted at approximately $2,300 million, free cash flow at approximately $2,000 million, and capital expenditures at approximately $300 million. For Q3 FY2026, revenue is guided to $2,410–$2,460 million, non-GAAP EPS of $3.63–$3.69, and GAAP EPS of $0.84–$0.98. Targets assume no further changes to export control restrictions or the U.S. government Entity List. An Investor Day is planned for September 30, 2026 to provide additional long-term financial targets and strategy detail.

24/7 Wall St

SNPS YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

SNPS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“Synopsys delivered a strong second quarter with solid execution and strength across the business. AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power—driving demand across our portfolio. Our momentum, leadership roadmap, and deep customer engagements are a strong foundation for sustained growth and margin expansion as we solve our customers' toughest engineering challenges.”

— Sassine Ghazi, Q2 2026 Earnings Press Release

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