Synopsys Beats Q3, Raises FY26 Revenue and EPS Guidance on AI-Driven Demand
SNPS is trading near its 52-week low of $366 (12% above the low).
Summary
Synopsys beat Q3 expectations with $2.477 billion in revenue and non-GAAP EPS of $3.91, then raised full-year revenue and EPS guidance on AI-driven demand.
Key Events · Earnings and Guidance · SNPS
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Q3 Revenue and EPS Beat
Q3 FY2026 revenue of $2.477 billion, up 42% from $1.740 billion a year ago. Non-GAAP EPS of $3.91 exceeded the high end of prior guidance; GAAP EPS was $2.84.
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Full-Year Guidance Raised
Full-year revenue guidance raised to $9.715 billion at the midpoint and non-GAAP EPS to $15.07 at the midpoint, up from prior targets on continued AI-driven demand strength.
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Q4 Guidance Implies Acceleration
Q4 FY2026 revenue guided to $2.53–$2.58 billion and non-GAAP EPS to $4.10–$4.16, implying sequential growth from Q3's $2.477 billion.
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Cash Flow Outlook
Full-year operating cash flow guided to ~$2.8 billion and free cash flow to ~$2.6 billion, with capital expenditures of ~$225 million.
Analysis · SNPS · Technology
Synopsys delivered a strong Q3 with revenue of $2.477 billion, up 42% year-over-year, and non-GAAP EPS of $3.91, beating the high end of its own guidance. Management raised full-year revenue guidance to $9.715 billion at the midpoint and non-GAAP EPS to $15.07, citing continued AI-driven demand strength across EDA and the Ansys integration. The company also guided Q4 revenue to $2.53–$2.58 billion and non-GAAP EPS to $4.10–$4.16, implying sequential acceleration. This is a thesis-affirming print for a large-cap semiconductor design leader, with the raised guidance and double-digit EDA growth expectations the key takeaways.
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At the time of this filing, SNPS was trading at $408.56 on NASDAQ in the Technology sector, with a market capitalization of approximately $78.3B. The 52-week trading range was $366.00 to $615.79. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.