Synopsys Q2 Revenue $2.276B, 39.5% Margin and $11B Backlog
SNPS•Synopsys reported Q2 revenue of $2.276B, non-GAAP operating margin of 39.5% and EPS of $3.35, while backlog declined to $11B due to renewals timing. IP revenue fell 6% year-over-year but should rise sequentially in H2 2026, with multi-physics fusion tech reaching commercial availability then.
1. Q2 Financial Performance
Synopsys delivered Q2 revenue of $2.276 billion, achieved a non-GAAP operating margin of 39.5% and non-GAAP EPS of $3.35, all exceeding prior guidance and analyst expectations.
2. Backlog Trends
The company’s backlog finished the quarter at $11 billion, down from the prior quarter due to timing of contract renewals, which may introduce variability in future revenue recognition.
3. IP Segment Outlook
Revenue in the Design IP segment declined approximately 6% year-over-year, but management indicated the segment bottomed in Q1 and anticipates sequential quarterly growth throughout the second half of 2026 driven by high-value IP opportunities.
4. Multi-Physics Fusion and Integration Synergies
Commercial availability of Synopsys’ multi-physics fusion technology is targeted for the second half of 2026, and roughly half of the expected synergies from the Ansys integration are slated to materialize by the end of the fiscal year.





