Synopsys raises annual forecasts on AI-driven chip design software demand

The company projected annual adjusted earnings of $15.04 to $15.10 per share, up from its prior expectation of $14.72 to $14.80 per share. Analysts were expecting a full-year profit of $14.76 per share.

Synopsys reported revenue of $2.48 billion for the third quarter, compared with estimates of $2.44 billion. Adjusted per-share earnings of $3.91 topped estimates of $3.67.

Shares of the company were down about 2% in extended trading.

Aug. 26 (Reuters) - Synopsys on Wednesday raised its annual revenue and profit forecasts, as the AI boom drives investments in chips and infrastructure, boosting demand for the firm's chip design software.

AI-related design demand has risen sharply as chipmakers invest in more advanced semiconductor systems, while tech giants, including Amazon and Alphabet, ramp up in-house chip efforts as well.

Here are more details on the results:

• Synopsys expects fiscal 2026 revenue in the range of $9.69 billion to $9.74 billion, compared with its prior forecast of between .