Synopsys 8-K

PositiveEarningsGuidance raised

AI-driven demand underpins raised FY2026 targets; EDA and Ansys lead strength as Design IP returns to Y/Y growth.

Filed 2026-08-26 16:21 ET

Summary

Q3 FY2026 results with Q4 and full-year guidance. Revenue was $2.48B, up 42.4% Y/Y, with GAAP diluted EPS of $2.84 and non-GAAP diluted EPS of $3.91. Synopsys raised FY2026 revenue, non-GAAP operating margin, non-GAAP EPS and cash-flow guidance, citing continued AI-driven demand and expected double-digit growth in Design Automation.

Key Figures

Metric Q3 2026 Q3 2025 Y/Y
Revenue $2.48B $1.74B 42.4%
Operating income, GAAP $357M $165M 116%
Net income from continuing operations attributable to Synopsys, GAAP $546M $243M 125%
Net income from continuing operations attributable to Synopsys, non-GAAP $753M $549M 37.1%
Diluted EPS, GAAP $2.84 $1.50 89.3%
Diluted EPS, non-GAAP $3.91 $3.39 15.3%
  • Segment revenue: Design Automation $2.00B (+52.7% Y/Y) and Design IP $474M (+10.8%). Synopsys cited broad-based strength led by EDA, a strong Ansys quarter and a return to Y/Y growth in Design IP.
  • 9M operating cash flow was $2.30B vs $879M; FCF was $2.14B vs $744M, calculated as operating cash flow less capital expenditures.
  • At 7/31/2026, cash, cash equivalents and short-term investments were $3.61B and debt carrying value was $10.0B, down from $13.5B at 10/31/2025. 9M debt repayments were $3.46B; financing also included a $2.0B common-stock private placement and $300M of treasury-stock purchases. Period-end shares outstanding increased 3.0%, to 191.6M from 186.0M.

Guidance

Metric Period Guidance Prior Direction
Revenue Q4 FY2026 $2.530B-$2.580B — —
Revenue FY2026 $9.690B-$9.740B — Raised
GAAP expenses Q4 FY2026 $2.225B-$2.300B — —
GAAP expenses FY2026 $8.667091B-$8.742091B — —
Non-GAAP expenses Q4 FY2026 $1.450B-$1.480B — —
Non-GAAP expenses FY2026 $5.67B-$5.7B — —
Non-GAAP interest and other income (expense), net Q4 FY2026 $(119)M-$(115)M — —
Non-GAAP interest and other income (expense), net FY2026 $(485)M-$(481)M — —
Non-GAAP tax rate Q4 FY2026 18% — —
Non-GAAP tax rate FY2026 18% — —
Fully diluted shares outstanding Q4 FY2026 192M-194M — —
Fully diluted shares outstanding FY2026 192M-194M — —
GAAP operating margin FY2026 ≈10.4% midpoint — —
Non-GAAP operating margin FY2026 ≈41.5% midpoint — Raised
GAAP EPS Q4 FY2026 $0.60-$0.85 — —
GAAP EPS FY2026 $3.84-$4.08 — —
Non-GAAP EPS Q4 FY2026 $4.10-$4.16 — —
Non-GAAP EPS FY2026 $15.04-$15.10 — Raised
Operating cash flow FY2026 ≈$2.8B — Raised
FCF FY2026 ≈$2.6B — Raised
Capital expenditures FY2026 ≈$225M — —

The targets assume no further changes to export-control restrictions or current U.S. Entity List restrictions.

Investor Takeaways

  • Q4 revenue and EPS against the guided ranges will test whether the reported momentum continues; FY2026 results will show whether the raised full-year targets are achieved.
  • Watch for changes in export-control restrictions, which the FY2026 targets assume remain unchanged.

The summary is written by an AI model reading the filing.

Model 005 · prompt 01d34d48e3

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