Synopsys shares jump on robust growth outlook, OpenAI and AWS deals
SNPS•Synopsys shares jumped 10% after forecasting fiscal 2027 revenue of $11.10 billion to $11.20 billion and earnings per share of $19.04 to $19.12, both above analyst estimates. The company also announced deals with OpenAI and AWS.
1. Growth outlook
Synopsys forecast fiscal 2027 revenue of $11.10 billion to $11.20 billion, above the $10.81 billion analyst estimate, and earnings per share of $19.04 to $19.12, ahead of the $17.81 estimate. It targets about 15% compound annual revenue growth from fiscal 2026 through fiscal 2030 and an adjusted operating margin of about 50% by fiscal 2030.
2. Deals and buybacks
Synopsys signed a deal to share revenue with OpenAI to develop an AI model for the chip business. Amazon Web Services signed a multi-year deal worth more than $1 billion to license Synopsys chip-design intellectual property. The company plans to buy back about $1 billion of shares over the coming months.
