Synopsys IncSynopsys beat Q3 estimates, raised fiscal 2026 revenue and EPS guidance, and lifted its operating margin outlook.

Synopsys reported third-quarter fiscal 2026 non-GAAP earnings of $3.91 per share, up 15.3% year over year and ahead of the Zacks Consensus Estimate by 6.5%, while revenues rose 42.4% to $2.48 billion. The company raised its fiscal 2026 revenue guidance to $9.69-$9.74 billion, with the midpoint up $50 million, and lifted its fiscal 2026 non-GAAP earnings guidance to $15.04-$15.10 per share, a 31-cent increase at the midpoint. Ansys contributed approximately $711 million to total quarterly revenues and is now expected to contribute about $2.98 billion for the full fiscal year, up $20 million from the previous outlook. Backlog stood at $10.9 billion, and the non-GAAP operating margin was 41.6%, with fiscal 2026 non-GAAP operating margin now projected at about 41.5% at the midpoint, up 50 basis points. For the fourth quarter, Synopsys projects revenues of $2.53-$2.58 billion and non-GAAP earnings of $4.10-$4.16 per share, with management expecting EDA revenue growth to accelerate to double digits.
Synopsys IncSynopsys beat Q3 estimates, raised fiscal 2026 revenue and EPS guidance, and lifted its operating margin outlook.