Quarterly revenue of $2.409 billion, at high-end of prior guidance; quarterly GAAP earnings per diluted share (EPS) of $0.34, and non-GAAP earnings per diluted share of $3.77 above prior guidance
Reiterating expectations for full-year total revenue of $9.61 billion at the midpoint, including $2.9 billion of expected Ansys revenue
Synopsys' board of directors approved a replenishment of the existing stock repurchase program with authorization to purchase up to $2.0 billion of Synopsys common stock
SUNNYVALE, Calif., Feb. 25, 2026 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today reported results for its first quarter of fiscal year 2026. Revenue for the first quarter of fiscal year 2026 was $2.409 billion, compared to $1.455 billion for the first quarter of fiscal year 2025.
"Synopsys enters 2026 with an expanded portfolio, leadership positions across the business, and the most compelling roadmap in our history," said Sassine Ghazi, president and CEO of Synopsys. "AI continues to fuel robust system-level and semiconductor R&D, and the increasing AI capabilities throughout our portfolio strengthen our strategic advantage and accelerate our customers' innovation."
"First quarter results reflect strong execution and financial discipline across the business. We achieved revenue at the upper end of our guided range and non-GAAP EPS above guidance," said Shelagh Glaser, CFO of Synopsys. "We're positioning the company to capture an expanded market opportunity as we solve customers' toughest engineering challenges from silicon to systems."
In addition, today Synopsys announced that its board of directors approved a replenishment of the company's existing stock repurchase program with authorization to purchase up to $2.0 billion of Synopsys common stock.
GAAP ResultsOn a U.S. generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal year 2026 was $65.0 million, or $0.34 per diluted share, compared to $295.7 million, or $1.89 per diluted share, for the first quarter of fiscal year 2025.
Non-GAAP ResultsOn a non-GAAP basis, net income for the first quarter of fiscal year 2026 was $718.5 million, or $3.77 per diluted share, compared to non-GAAP net income of $473.2 million, or $3.03 per diluted share, for the first quarter of fiscal year 2025.
For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Business Segments Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array IC design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our logic libraries, embedded memories, wired interface IP, memory interface IP, security IP, and embedded processors.
Financial TargetsSynopsys also provided its consolidated financial targets for the second quarter and full fiscal year 2026. These targets also assume no further changes to export control restrictions or the current U.S. government "Entity List" restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see "Forward-Looking Statements" below.
Second Quarter and Full Fiscal Year 2026 Financial Targets
(in millions except per share amounts)
Range for Three Months Ending
Range for Fiscal Year Ending
April 30, 2026
October 31, 2026
Low
High
Low
High
Revenue
$ 2,225
$ 2,275
$ 9,560
$ 9,660
GAAP Expenses
$ 2,020
$ 2,085
$ 8,461
$ 8,601
Non-GAAP Expenses
$ 1,380
$ 1,410
$ 5,690
$ 5,750
Non-GAAP Interest and Other Income (Expense), net
$ (117)
$ (113)
$ (500)
$ (490)
Non-GAAP Tax Rate
18 %
18 %
18 %
18 %
Outstanding Shares (fully diluted)
192
194
192
194
GAAP EPS
$ 0.23
$ 0.43
$ 2.21
$ 2.62
Non-GAAP EPS
$ 3.11
$ 3.17
$ 14.38
$ 14.46
Operating Cash Flow
~$2,200
Free Cash Flow(1)
~$1,900
Capital Expenditures
~$300
(1) Free cash flow is calculated as cash provided from operating activities less capital expenditures.
For a reconciliation of Synopsys' second quarter and fiscal year 2026 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis and a discussion of the financial targets that we are not able to reconcile without unreasonable efforts, see "GAAP to Non-GAAP Reconciliation" in the accompanying tables below.
Earnings Call Open to InvestorsSynopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available on Synopsys' corporate website at investor.synopsys.com. Synopsys uses its website as a tool to disclose important information about Synopsys and comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the second quarter of fiscal year 2026.
Effectiveness of InformationThe targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available on Synopsys' corporate website at www.synopsys.com (collectively, the "Earnings Materials"), represent Synopsys' expectations and beliefs as of February 25, 2026. Although these Earnings Materials will remain available on Synopsys' website through the date of the earnings call for the second quarter of fiscal year 2026, their continued availability through such date does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty and does not intend to update any forward-looking statement, whether as a result of new information or future events, or otherwise update, the targets given in this press release unless required by law.
Availability of Final Financial StatementsSynopsys will include final financial statements for the first quarter of fiscal year 2026 in its quarterly report on Form 10-Q to be filed on or before March 12, 2026.
Reconciliation of First Quarter Fiscal Year 2026 ResultsThe following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.
GAAP to Non-GAAP Reconciliation of First Quarter Fiscal Year 2026 Results
(unaudited and in thousands, except per share amounts)
Three Months Ended
January 31,
2026
2025
GAAP net income attributed to Synopsys
$ 64,958
$ 295,683
Adjustments:
Amortization of acquired intangible assets
404,235
12,596
Stock-based compensation
258,724
186,279
Restructuring charges
118,282
—
Acquisition/divestiture related items
15,592
74,829
Tax adjustments
(143,322)
(96,214)
Non-GAAP net income attributed to Synopsys
$ 718,469
$ 473,173
Three Months Ended
January 31,
2026
2025
GAAP net income per diluted share attributed to Synopsys
$ 0.34
$ 1.89
Adjustments:
Amortization of acquired intangible assets
2.12
0.08
Stock-based compensation
1.36
1.19
Restructuring charges
0.62
—
Acquisition/divestiture related items
0.08
0.48
Tax adjustments
(0.75)
(0.61)
Non-GAAP net income per diluted share attributed to Synopsys
$ 3.77
$ 3.03
Shares used in computing net income per diluted share amounts:
190,762
156,189
GAAP to Non-GAAP Tax Rate Reconciliation
(unaudited)
Three Months Ended
January 31, 2026
GAAP effective tax rate
18.1 %
Stock-based compensation
(7.9) %
Restructuring charges
(2.1) %
Income tax adjustments (1)
9.9 %
Non-GAAP effective tax rate
18.0 %
(1) The tax adjustments are primarily due to differences in the tax rate effect of certain deductions, such as the deduction for foreign-derived intangible income and credits.
Reconciliation of 2026 TargetsThe following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.
GAAP to Non-GAAP Reconciliation of Second Quarter Fiscal Year 2026 Targets
(in thousands, except per share amounts)
Range for Three Months Ending
April 30, 2026
Low
High
Target GAAP expenses
$ 2,020,000
$ 2,085,000
Adjustments:
Amortization of acquired intangible assets
(400,000)
(405,000)
Stock-based compensation
(210,000)
(220,000)
Restructuring charges
(30,000)
(50,000)
Target non-GAAP expenses
$ 1,380,000
$ 1,410,000
Range for Three Months Ending
April 30, 2026
Low
High
Target GAAP earnings per diluted share attributed to Synopsys
$ 0.23
$ 0.43
Adjustments:
Amortization of acquired intangible assets
2.10
2.07
Stock-based compensation
1.14
1.09
Restructuring charges
0.26
0.16
Tax adjustments
(0.62)
(0.58)
Target non-GAAP earnings per diluted share attributed to Synopsys
$ 3.11
$ 3.17
Shares used in non-GAAP calculation (midpoint of target range)
193,000
193,000
