Companies /Technology

Synopsys Inc

NASDAQ: SNPS Software - Infrastructure
$446.59
▼ $18.31 (−3.94%) today
Markets open · 10:31am ET

Q3 2026 Earnings

Reported Aug 26, 2026, 4:21pm ET · SEC source
$3.91
Beat +6.44%
EPS · est. $3.67 Adjusted
$2.5B
Beat +1.56%
Revenue · est. $2.4B
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+5%+10%+15%Aug 25Aug 28report 4:21pm ETearnings+0.4%+12.1%
0+5%+10%+15%Aug 25Aug 28earnings+0.4%+12.1%
SNPS +12.1%S&P 500 +0.4%
0+5%+10%+15%Aug 25Aug 28report 4:21pm ETearnings+0.8%+12.1%
0+5%+10%+15%Aug 25Aug 28earnings+0.8%+12.1%
SNPS +12.1%NASDAQ +0.8%
+13.39%
Day of report

Did SNPS Beat Earnings? Q3 2026 Results

Synopsys delivered a strong fiscal third quarter, beating Wall Street expectations on both the top and bottom lines as the Ansys acquisition continued to power substantial year-over-year expansion. Revenue of $2.48 billion topped the $2.44 billion consensus by 1.56% and rose 42.4% from $1.74 billion a year ago, driven by broad-based strength in electronic design automation and a meaningful contribution from Ansys, which closed in Q3 FY2025. Adjusted non-GAAP EPS of $3.91 beat the $3.67 consensus by 6.44%, up from $3.39 in the prior-year period, while non-GAAP operating margin reached 41.6%. The Design Automation segment anchored results with $2.00 billion in revenue, and the Design IP segment returned to year-over-year growth at $473.80 million, a recovery investors had been closely watching ahead of the print. Management raised its full-year FY2026 revenue guidance to a midpoint of $9.72 billion and lifted non-GAAP EPS guidance to a midpoint of $15.07, citing continued AI-driven demand strength, with Q4 revenue targeted at $2.53 billion to $2.58 billion.

Key Takeaways
  • Broad-based strength across the business led by EDA outperformance
  • Strong quarter from Ansys following transformational acquisition
  • Design IP business returned to year-over-year growth
  • AI-driven demand for silicon IP and engineering solutions
  • Non-GAAP operating margin expansion to 41.6%

“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. One year after the transformational acquisition of Ansys, we are executing with focus, extending our leadership and gaining momentum.”

Synopsys CEO, on the earnings call

Forward Guidance & Outlook

Synopsys raised its full fiscal year 2026 guidance on continued AI-driven demand strength. Full-year revenue is now targeted at $9.690 billion to $9.740 billion (midpoint $9.715 billion), up from prior expectations. Full-year non-GAAP EPS guidance was raised to $15.04–$15.10 (midpoint $15.07). Full-year non-GAAP operating margin is targeted at approximately 41.5% at the midpoint. Operating cash flow is expected at approximately $2.8 billion and free cash flow at approximately $2.6 billion. For Q4 FY2026, revenue is targeted at $2.530–$2.580 billion, with non-GAAP EPS of $4.10–$4.16. The company expects double-digit growth in EDA. Targets assume no further changes to export control restrictions or Entity List restrictions. Full-year revenue includes approximately $2.98 billion of expected Ansys revenue, and reflects the impact of approximately $110 million from divested Optical Solutions Group and PowerArtist RTL businesses and $40 million from the recently completed Processor IP Solutions divestiture.

SNPS YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$700.0M$1.4B$2.1B$1.7B$2.5BRevenue$1.4B$1.8BGross Profit$165.3M$357.5MOperating Income$242.5M$545.8MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

SNPS Revenue by Segment

Design Automation$2.0B+52.7%
Design IP$473.8M+10.8%

Figures from SEC filings and company reports. Not investment advice.