New York, Jan 12, 2026, 21:23 EST — Market closed.
- Shares of Synopsys climbed 1.6% by Monday’s close
- In the 2025 shareholder letter, the CEO highlights export restrictions and “execution challenges.”
- Investors are focused on the Jan. 15 Needham conference, looking for new signs of demand and updates on integration progress
Synopsys (SNPS.O) ended Monday 1.6% higher at $533.42 as investors digested a shareholder letter from CEO Sassine Ghazi. He highlighted “export restrictions” adding “a measure of uncertainty” to 2025 and flagged “execution challenges.” Ghazi also announced the company will showcase its integrated Synopsys-Ansys platform at a “Synopsys Converge” event in Silicon Valley this March. (Synopsys Investor Relations)
Timing is key. Export restrictions now heavily influence chip tools and design software sectors, with investors scrambling to assess how much disruption is already priced into forecasts for 2026.
Synopsys provides electronic design automation (EDA) software, which engineers rely on to design and verify chips digitally before manufacturing. The company is also ramping up efforts in simulation, a tool that models how products perform in real-world conditions.
Ignite Next announced Monday that Synopsys is now part of its European scale-up program, joining Intel and Infineon as a “focus technology collaborator.” Synopsys Chief Strategy Officer Antonio Varas highlighted the growing impact of nimble deep tech startups on breakthroughs in semiconductors, AI, and advanced computing. (PR Newswire)
Synopsys wrapped up its acquisition of Ansys in July 2025, stating the move would broaden its addressable market and accelerate an integrated technology roadmap. The company also said combined capabilities are expected to roll out in the first half of 2026, with Ansys shares set to stop trading on Nasdaq.
Synopsys projected fiscal 2026 revenue between $9.56 billion and $9.66 billion in December, with non-GAAP earnings per share expected to land from $14.32 to $14.40. This includes an anticipated $2.9 billion in revenue from Ansys. The non-GAAP numbers leave out items like acquisition-related amortization. The company also noted that these targets assume no additional shifts in export controls or U.S. “Entity List” restrictions.
In December, Nvidia poured $2 billion into Synopsys stock, buying shares at $414.79 each, deepening a partnership centered on GPU-accelerated simulation and “agentic” AI workflows, the companies announced. Nvidia CEO Jensen Huang remarked, “CUDA GPU-accelerated computing is revolutionizing design.”
Tech stocks edged up, with the Invesco QQQ Trust gaining roughly 0.1% and the iShares Semiconductor ETF climbing around 0.5%. Synopsys outperformed them both.
Synopsys is set to present at the 28th Annual Needham Growth Conference on Jan. 15 at 11:15 a.m. Pacific time. The company will stream the webcast on its investor relations page. Investors will be keen to catch any firmer comments on export controls and early updates on how the Ansys integration is progressing. (Synopsys Investor Relations)
New U.S. export restrictions or delays in deploying integrated tools could cast doubt on the company’s targets. The stock remains highly reactive to news tied to China.
Synopsys goes head-to-head mainly with Cadence Design Systems in EDA tools, though big industrial software players like Siemens also field competing platforms. Orders in this space often serve as a leading indicator of chip design activity, well ahead of wafer production.
Tuesday’s session centers on whether Monday’s bounce can stick as traders unpack the shareholder letter. The next major event on the calendar is the Needham appearance on Jan. 15, followed by the March Silicon Valley customer event.
