Overview
- Synopsys reported third-quarter revenue of about $2.48 billion and adjusted earnings per share of $3.91, both above analyst estimates.
- The company’s Design Automation business drove most sales with roughly $2.003 billion in revenue, while Design IP brought in $473.8 million and returned to year-over-year growth.
- Synopsys raised its fiscal 2026 revenue outlook to $9.69 billion–$9.74 billion and its adjusted EPS forecast to $15.04–$15.10, up from prior ranges.
- Management said rising AI model work is forcing chipmakers to design more complex, custom silicon, which is boosting demand for Synopsys’ EDA tools and licensing; the firm is also integrating its prior Ansys acquisition to add physics-based simulation to its toolset.
- Despite the operational beat and higher guidance, the stock slipped in after-hours trading, a sign that investors are weighing valuation and broader market factors even as Synopsys acts as a bellwether for EDA demand.