SUNNYVALE, California, August 27, 2026, 12:25 (ET)
- Shares of Synopsys advanced 10.7% to $454.06 during Thursday’s session.
- Revenue for the fiscal third quarter rose 42.4% to $2.477 billion.
- The company raised its outlook for revenue and adjusted earnings for fiscal 2026.
- The surge increased Synopsys’ listed market value by approximately $8.5 billion.
Shares of Synopsys climbed 10.7% as increased demand for chip design enabled the software firm to boost its yearly guidance. The stock was last seen at $454.06 early afternoon in New York, with close to 2 million shares traded.
The action boosted the company’s market value by approximately $8.5 billion. This increase is nearly 2.9 times the Ansys revenue that Synopsys anticipates for this fiscal year.
Synopsys Inc. (NASDAQ:SNPS) posted fiscal third-quarter revenue of $2.477 billion, up 42.4% from the same period last year, driven by organic demand and the Ansys acquisition.
The company reported adjusted earnings of $3.91 per share. Its non-GAAP operating margin came in at 41.6%, with 82% of revenue classified as recurring, based on the company’s updated financial supplement.
| Investor measure | Q3 FY2026 / outlook | Why it matters |
|---|---|---|
| Revenue | $2.477 billion, +42.4% | Reflects scale from Ansys and demand for chip design |
| Non-GAAP operating margin | 41.6% | Demonstrates leverage on earnings |
| Recurring revenue | 82% of total | Enhances predictability of revenue |
| FY2026 revenue guidance | $9.69-$9.74 billion | Company lifted full-year outlook |
| Expected Ansys FY revenue | $2.98 billion | Shows acquisition performance |
| Expected FY free cash flow | About $2.6 billion | Aids debt paydown and integration efforts |
Electronic design automation was still the leading product segment, delivering $1.283 billion and accounting for 51.8% of revenue in the quarter. Ansys posted $711.1 million, with Design IP bringing in $473.8 million.
The company is projecting fiscal-2026 revenue between $9.69 billion and $9.74 billion. Adjusted earnings per share are forecast at $15.04 to $15.10, according to the quarterly results filing.
The company projects fourth-quarter revenue between $2.53 billion and $2.58 billion. Adjusted earnings are expected to range from $4.10 to $4.16 per share.
The findings strengthen investors’ arguments for integrating simulation software with chip-design platforms. AI models need increasingly sophisticated processors, packaging methods and power assessments. Synopsys provides software covering each of these design stages.
Cash flow is a key factor in the acquisition calculations. Synopsys anticipates generating approximately $2.8 billion in operating cash flow and $2.6 billion in free cash flow within the year.
Following the Ansys transaction, leverage on the balance sheet increased. Cash and short-term investments were $3.61 billion, with total debt amounting to $10.04 billion.
Accounting variations are also notable. The GAAP operating margin stood at 14.4%, well under the adjusted number. Amortization of acquired intangibles amounted to $402.4 million, while stock-based compensation was $231.6 million.
Risks: Costs related to integrating Ansys may stay high. Efforts to lower debt might restrict capital returns, and export controls could weigh on sales in China. The stock’s significant re-rating also reduces tolerance for execution missteps.
The rally signals more than just a series of earnings beats. Investors are placing a greater value on Synopsys’ broadened software platform. Maintaining this premium relies on turning Ansys revenue into lasting cash flow.
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