Synopsys Q3 Revenue Jumps 42% to $2.48B; Backlog Hits $10.9B and Processor IP Sale Adds $425M Gain
SNPS is trading near its 52-week low of $366 (12% above the low).
Summary
Synopsys reported Q3 revenue of $2.48 billion, up 42% year-over-year, with a $10.9 billion backlog and a $425 million gain from the Processor IP divestiture. The 10-Q adds full financials, the NVIDIA placement, and securities litigation disclosures to the same-day earnings release.
Key Events · Earnings and Guidance · SNPS
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Q3 Revenue Up 42% to $2.48B
Total revenue of $2.477 billion for the quarter ended July 31, 2026, up from $1.740 billion a year ago, driven by a full quarter of Ansys contribution and broad-based strength across EDA and Design IP.
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Backlog Reaches $10.9B
Contracted but unsatisfied performance obligations were approximately $10.9 billion as of July 31, 2026, including $1.9 billion in non-cancellable FSA commitments; about 49% of the backlog excluding FSA is expected to be recognized as revenue over the next 12 months.
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Processor IP Sale Adds $425M Gain
The June 1, 2026 sale of the Processor IP business to GlobalFoundries generated $443.3 million in cash consideration and a $425.4 million pre-tax gain ($380.5 million net of $44.9 million divestiture expenses).
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NVIDIA Private Placement Raised $2.0B
In December 2025, Synopsys sold approximately 4.8 million shares to NVIDIA at $414.79 per share for net proceeds of $2.0 billion.
Analysis · SNPS · Technology
Synopsys delivered a strong Q3 with 42% revenue growth to $2.48 billion, driven by the first full quarter of Ansys contribution and broad-based strength across EDA and Design IP. The 10-Q adds material detail beyond the same-day 8-K: a $10.9 billion contracted backlog, a $425.4 million pre-tax gain from the June sale of the Processor IP business to GlobalFoundries, and a $2.0 billion NVIDIA private placement completed in December 2025. The company also disclosed consolidated securities class actions and derivative suits, with a consolidated complaint due September 23, 2026. Against that backdrop, the Board raised the restructuring cost estimate to $425M–$500M, signaling continued integration and site-closure costs from the Ansys merger.
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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.