Synopsys Q2 Revenue Jumps 42% to $2.28B, EPS Beats Estimates
SNPS•Synopsys posted Q2 revenue of $2.276 billion, up from $1.604 billion a year earlier, and adjusted EPS of $3.35 beating estimates by $0.20. The company raised its fiscal 2026 revenue outlook to a $9.665 billion midpoint and lifted adjusted EPS guidance to $14.76 per share.
1. Q2 results exceed estimates
Synopsys delivered Q2 revenue of $2.276 billion, a 42% increase from $1.604 billion a year earlier, and reported adjusted EPS of $3.35, surpassing the consensus by $0.20. CEO Sassine Ghazi highlighted accelerating AI adoption as a key driver of demand for the company’s semiconductor design and engineering solutions.
2. Full-year guidance raised
The company lifted its fiscal 2026 revenue forecast to a midpoint of $9.665 billion from $9.61 billion, reflecting strong performance and an accounting-related benefit from Ansys channel partnerships. Adjusted EPS guidance was raised to a midpoint of $14.76, citing expanding operating margins, cost discipline and synergies from the Ansys integration.
3. Segment performance and profit drivers
Design Automation revenue grew to $1.82 billion, accounting for 80% of total sales, while Design IP revenue declined to $454.2 million from $482 million. Net income fell to $17.1 million from $349.2 million a year earlier due to higher amortization, stock-based compensation, restructuring charges and acquisition-related expenses, and an investor day is scheduled for September 30, 2026.
