Companies /Technology

Synopsys Inc

NASDAQ: SNPS Software - Infrastructure
$442.61
▼ $22.28 (−4.79%) today
Markets closed · 8:12pm ET

Q1 2026 Earnings

Reported Feb 25, 2026, 4:15pm ET · SEC source
$3.77
Beat +5.98%
EPS · est. $3.56
$2.4B
Beat +0.74%
Revenue · est. $2.4B
−1.7%
Trailing market
SNPS vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Feb 25Feb 26report 4:15pm ETearnings−1.0%−6.8%
−6%−3%0Feb 25Feb 26earnings−1.0%−6.8%
SNPS −6.8%S&P 500 −1.0%
−6%−3%0Feb 25Feb 26report 4:15pm ETearnings−1.6%−6.8%
−6%−3%0Feb 25Feb 26earnings−1.6%−6.8%
SNPS −6.8%NASDAQ −1.6%
−4%0+4%Feb 24Mar 5report 4:15pm ETearnings−1.9%+2.6%
−4%0+4%Feb 24Mar 5earnings−1.9%+2.6%
SNPS +2.6%S&P 500 −1.9%
−4%0+4%Feb 24Mar 5report 4:15pm ETearnings−1.5%+2.6%
−4%0+4%Feb 24Mar 5earnings−1.5%+2.6%
SNPS +2.6%NASDAQ −1.5%
−5.16%
Day of report
−2.82%
Next session
+3.83%
One week
−10.06%
30 days

S&P 500 over the same 30 days: −8.32%.

Did SNPS Beat Earnings? Q1 2026 Results

Synopsys opened fiscal 2026 with a quarter that underscored how fundamentally its acquisition of Ansys has reshaped the business, posting Q1 revenue of $2.41 billion — up 65.4% year-over-year — and non-GAAP EPS of $3.77, running ahead of the $3.5572 Wall Street consensus by 5.98%. The Ansys integration, now fully reflected for the first time in a complete quarterly period, was the single defining driver of that growth, with the enlarged Design Automation segment alone contributing $2.00 billion, or 83% of total revenue. Operating cash flow swung to a robust $856.83 million from negative territory a year ago, while the company aggressively reduced long-term debt by roughly $3.45 billion during the quarter. <a href="https://247wallst.com/investing/2026/02/26/synopsys-beats-on-eps-and-revenue-as-ai-fueled-chip-design-demand-remains-strong/">AI-fueled chip design demand</a> remained a central theme in management's commentary, and the company reiterated full-year FY2026 revenue guidance of $9.56 billion to $9.66 billion with non-GAAP EPS of $14.38 to $14.46, signaling confidence in sustained momentum even as a Morgan Stanley downgrade flagged potential growth deceleration ahead.

Key Takeaways
  • AI-fueled robust system-level and semiconductor R&D demand
  • Ansys acquisition contributing significantly to revenue growth
  • Revenue at upper end of guided range with non-GAAP EPS above guidance
  • Strong operating cash flow of $857M vs. negative $67M year-ago quarter
  • Deferred revenue increase of $265M supporting cash generation

“Synopsys enters 2026 with an expanded portfolio, leadership positions across the business, and the most compelling roadmap in our history.”

Synopsys CEO, on the earnings call

Forward Guidance & Outlook

Synopsys reiterated full-year FY2026 revenue guidance of $9.56-$9.66 billion at the midpoint of $9.61 billion, including approximately $2.9 billion of expected Ansys revenue. Full-year non-GAAP EPS is targeted at $14.38-$14.46, with a non-GAAP tax rate of 18%. Full-year operating cash flow is targeted at approximately $2.2 billion, free cash flow at approximately $1.9 billion, and capital expenditures at approximately $300 million. For Q2 FY2026, revenue is guided at $2.225-$2.275 billion, GAAP EPS of $0.23-$0.43, and non-GAAP EPS of $3.11-$3.17. Guidance assumes no further changes to export control restrictions or U.S. Entity List designations.

SNPS YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$700.0M$1.4B$2.1B$1.5B$2.4BRevenue$1.1B$1.8BGross Profit$333.0M$203.0MOperating Income$295.7M$65.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

SNPS Revenue by Segment

Design Automation$2.0B
Design IP$407.0M

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