Synopsys Q1 revenue slightly beats estimates; co authorizes $2 bln buyback

Synopsys

25/02/2026 21:14

Overview

Semiconductor design software firm's Q1 revenue slightly beat analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company authorized $2 bln stock repurchase program

Outlook

Synopsys expects Q2 revenue between $2.225 bln and $2.275 bln

Company projects full-year revenue between $9.56 bln and $9.66 bln

Synopsys forecasts Q2 non-GAAP EPS between $3.11 and $3.17

Result Drivers

AI CAPABILITIES - AI continues to drive robust system-level and semiconductor R&D, strengthening strategic advantage and accelerating customer innovation

STRONG EXECUTION - Achieved revenue at upper end of company guidance and non-GAAP EPS above its guidance, reflecting strong execution and financial discipline

Company press release: ID:nPn9rQMLFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$2.41 bln
$2.39 bln (17 Analysts)
Q1 Adjusted EPS
Beat
$3.77
$3.56 (17 Analysts)
Q1 EPS
$0.34
Q1 Adjusted Net Income
Beat
$718.50 mln
$678.15 mln (14 Analysts)
Q1 Net Income
$65 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Synopsys Inc is $560.00, about 27.1% above its February 24 closing price of $440.72

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)