Synopsys Raises $9.665 Billion Outlook as Snps Stock Reacts
Synopsys raised its full-year outlook after reporting second-quarter fiscal 2026 results on May 27, and snps stock now reflects a bigger revenue target and higher profit guidance. Quarterly revenue reached $2.276 billion, while GAAP earnings per diluted share were $0.09 and non-GAAP earnings per diluted share were $3.35. The raise came after revenue came in above prior guidance.
Synopsys Second-Quarter Revenue
The company said revenue rose to $2.276 billion from $1.604 billion a year earlier. That puts the quarter at a much higher sales base than fiscal 2025’s second quarter, even as GAAP net income fell to $17.1 million from $349.2 million. Non-GAAP net income increased to $643.7 million from $572.7 million.
Sassine Ghazi said, "Synopsys delivered a strong second quarter with solid execution and strength across the business." He also said, "AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power - driving demand across our portfolio." The company is pointing to AI demand as the engine behind its current momentum, not just a one-quarter beat.
Guidance Turns Higher
Synopsys raised its full-year revenue outlook to $9.665 billion at the midpoint and lifted full-year non-GAAP EPS guidance to $14.76 at the midpoint. Shelagh Glaser said, "Second quarter revenue and non-GAAP EPS exceeded guidance." She also said, "We are raising our targets for revenue, operating margin, EPS, and free cash flow for the year, as we drive greater efficiency across the business."
The company said the revenue outlook was driven by strong performance across the business and an EPS-neutral Ansys channel-related accounting impact. It also said the outlook was partly offset by the impending close of the Processor IP Solutions business, which means the higher sales target does not come from a clean, across-the-board lift.
Sept. 30, 2026 Investor Day
Synopsys said management will give more detail on long-term financial targets and strategy at an Investor Day on Sept. 30, 2026. The practical question for investors is how much of the higher outlook comes from current demand and how much depends on margin gains and the business mix shift the company already flagged.
Ghazi said, "Our momentum, leadership roadmap, and deep customer engagements are a strong foundation for sustained growth and margin expansion as we solve our customers' toughest engineering challenges." For snps stock, the next concrete checkpoint is whether that story still holds when management lays out the longer-term plan in September.
