Synopsys Q3 2026 earnings beat estimates, raises full-year guidance

Synopsys Q3 2026 earnings beat estimates, raises full-year guidance

Thu, August 27, 2026 at 8:25 PM GMT+3 2 min read

• SNPS -4.79%

Synopsys reported fiscal third-quarter revenue of $2.477 billion and raised its full-year guidance on Wednesday, though shares dropped 4% in after-hours trading despite the better-than-expected numbers, according to Seeking Alpha.

Revenue for the quarter ending July 31 rose from $1.740 billion in the same period a year earlier, the company said. On a GAAP basis, net income came in at $545.8 million, or $2.84 per diluted share, compared with $242.5 million, or $1.50 per diluted share, in the year-ago quarter. On a non-GAAP basis, earnings per diluted share were $3.91, up from $3.39 a year earlier — exceeding the high end of the company's prior guidance.

The Design Automation segment, which includes electronic design automation software and Ansys products, generated $2.003 billion in revenue, accounting for roughly 81% of total revenue for the quarter. The Design IP segment brought in $473.8 million.

Synopsys raised its full-year revenue target to a range of $9.690 billion to $9.740 billion, with a midpoint of $9.715 billion, the company said. It also lifted its full-year non-GAAP EPS guidance to a range of $15.04 to $15.10, with a midpoint of $15.07. For the fourth quarter ending October 31, the company is targeting revenue of $2.530 billion to $2.580 billion and non-GAAP EPS of $4.10 to $4.16.

"Synopsys delivered an outstanding third quarter, with revenue and earnings per share exceeding the high end of our guidance range," Chief Financial Officer Shelagh Glaser said in a statement. "Given our strong performance and expectations for double-digit growth in EDA, we are raising our full year revenue, non-GAAP operating margin, EPS and cash flow guidance."

President and CEO Sassine Ghazi attributed the results to demand driven by artificial intelligence. "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," Ghazi said in a statement. "One year after the transformational acquisition of Ansys, we are executing with focus, extending our leadership and gaining momentum."

Full-year guidance assumes no further changes to export control restrictions or current U.S. government Entity List restrictions, the company said.