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Synopsys Tops Q4 Estimates With 2026 Outlook Far Above Street as Shares Rise After Hours

The stronger targets reflect momentum linked to its expanded Nvidia collaboration, prompting investors to reassess the company’s growth path.

Overview

  • Adjusted earnings were $2.90 per share versus the $2.78 consensus, and revenue reached $2.26 billion, a 37.8% year‑over‑year increase.
  • Synopsys guided fiscal 2026 adjusted EPS to $14.32–$14.40 and revenue to $9.56–$9.66 billion, well ahead of Wall Street’s $12.85 EPS and $7.04 billion revenue estimates.
  • Shares rose about 5.7% in extended trading to $502.88 following the report.
  • CEO Sassine Ghazi described a solid finish to the year and highlighted plans for sustainable growth and margin expansion in fiscal 2026.
  • Nvidia recently broadened its partnership with Synopsys, with reports of a $2 billion investment tied to joint development of AI-driven design tools.