Synopsys Q3 revenue, profit beat on AI demand; lifts FY outlook

Synopsys

26/08/2026 21:17

Overview
U.S. EDA and silicon IP provider's Q3 revenue rose 42%, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised full-year revenue and non-GAAP EPS guidance on AI-driven demand

Outlook
Synopsys raises full-year 2026 revenue guidance to $9.715 bln at the midpoint
Company lifts full-year non-GAAP EPS guidance to $15.07 at the midpoint
Synopsys expects double-digit growth in EDA and improved operating margins for 2026

Result Drivers
DESIGN AUTOMATION STRENGTH - Co said results were led by broad-based strength in Design Automation, including EDA and Ansys products
AI-DRIVEN DEMAND - Co cited continued AI-driven demand as supporting revenue growth and higher guidance
DESIGN IP RECOVERY - Co said its design IP business returned to year-over-year growth

Company press release: ID:nPn822kZwa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2.48 bln
$2.44 bln (16 Analysts)
Q3 Adjusted EPS
Beat
$3.91
$3.67 (16 Analysts)
Q3 EPS
 
$2.84
 
Q3 Adjusted Net Income
Beat
$752.50 mln
$707.10 mln (13 Analysts)
Q3 Net Income
 
$545.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 5 "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 $575.00, about 40.7% above its August 25 closing price of $408.79
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 31 three months ago

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(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.)