Synopsys, Inc. earnings overview

SNPS FY2026 Q2 · Calendar Q2 2026

Synopsys, Inc.

Synopsys delivered a solid Q2 FY26 beat on both revenue ($2.28B vs $2.25B estimate) and EPS ($3.35 vs $3.15 estimate), raised full-year guidance across all key metrics, and continued advancing its AI-driven EDA and multiphysics portfolio. Despite the positive results, shares fell sharply — down 9.2% on roughly 3x normal volume in the reaction window, with a subsequent downward drift of 5.5%. At $383.82, the stock now trades well below even the lowest analyst target of $455, suggesting the market sees risks that analyst models may not fully reflect. Key concerns center on the pace of IP segment recovery, sustainability of mid-teens ANSYS growth, reduced revenue visibility from the ANSYS channel accounting change, and China export restrictions. Management's AI-driven growth narrative remains intact, with 3D-IC adoption, hyperscaler IP deals, and Agentic AI as primary catalysts.