Synopsys Q3 revenue, profit beat on AI demand; lifts FY outlook
SNPS•Quarterly results beat estimates
Synopsys said third-quarter revenue rose 42% and beat analyst expectations, while adjusted EPS also came in above estimates.
The U.S. EDA and silicon IP provider reported:
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Beat | $2.48 bln | $2.44 bln (16 Analysts) |
| Q3 Adjusted EPS | Beat | $3.91 | $3.67 (16 Analysts) |
| Q3 EPS | $2.84 | ||
| Q3 Adjusted Net Income | Beat | $752.50 mln | $707.10 mln (13 Analysts) |
| Q3 Net Income | $545.80 mln |
Raised full-year outlook and analyst context
Synopsys raised its full-year 2026 revenue guidance to $9.715 billion at the midpoint and lifted full-year non-GAAP EPS guidance to $15.07 at the midpoint.
The company said it expects double-digit growth in EDA and improved operating margins for 2026.
Analyst coverage on the shares is currently rated "buy" on average, with 20 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the software peer group is "buy".
Wall Street's median 12-month price target for Synopsys, Inc. is $575.00, about 40.7% above its August 25 closing price of $408.79. The stock recently traded at 24 times the next 12-month earnings versus a P/E of 31 three months ago.
AI demand and design automation drove results
The company said results were led by broad-based strength in Design Automation, including EDA and Ansys products.
