The beat-and-raise quarter with expanding margins and accelerating Ansys synergies is a strong positive signal. Watch for the September 30 Investor Day for long-term targets and the closing of the Processor IP Solutions divestiture for portfolio simplification. The raised FCF guidance to ~$2.0B supports continued capital return.
Price Chart
Executive Summary
Synopsys reported Q2 FY2026 revenue of $2.276B (above prior guidance of $2.225-$2.275B) and non-GAAP EPS of $3.35 (above prior guidance of $3.11-$3.17). The company raised full-year revenue guidance to $9.665B at the midpoint (from $9.61B) and raised full-year non-GAAP EPS guidance to $14.76 at the midpoint (from $14.42). The beat and guidance raise were driven by strong execution, Ansys integration synergies, and cost discipline, partly offset by the impending divestiture of the Processor IP Solutions business.
Key Financial Metrics
Key Facts
- Q2 FY2026 revenue of $2.276B, above prior guidance of $2.225-$2.275B
- Non-GAAP EPS of $3.35, above prior guidance of $3.11-$3.17
- Full-year revenue guidance raised to $9.665B at the midpoint (from $9.61B)
- Full-year non-GAAP EPS guidance raised to $14.76 at the midpoint (from $14.42)
- Full-year free cash flow guidance raised to ~$2.0B (from ~$1.9B)
- Design Automation segment revenue grew 62% YoY to $1.822B, with operating margin expanding to 43.3%
- Company plans to host an Investor Day on September 30, 2026
- Impending divestiture of Processor IP Solutions business expected to close with ~$40M revenue impact
Financial Impact
Revenue beat guidance by ~$1-51M; non-GAAP EPS beat guidance by $0.18-$0.24; full-year revenue guidance raised by $55M; full-year non-GAAP EPS guidance raised by $0.34
Risk Factors
- GAAP EPS of $0.09 is depressed by large amortization ($403.6M) and restructuring charges ($115.9M) from the Ansys acquisition
- Design IP segment revenue declined 5.8% YoY and operating margin contracted from 31.2% to 24.4%
- Impending Processor IP Solutions divestiture will reduce revenue by ~$40M annually
- Historical performance shows prior bullish calls on SNPS had a 33% win rate at T+20, suggesting the market may not fully reward this beat
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-241911 |
| Document: d126227d8k.htm | 0001193125-26-241911 |
| Document: 0001193125-26-241911-index-headers.html | 0001193125-26-241911 |
| Document: 0001193125-26-241911-index.html | 0001193125-26-241911 |
| Document: 0001193125-26-241911.txt | 0001193125-26-241911 |
| 8-K Data (Synthetic) | 0001193125-26-241911 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 25, 2026 7d ago | ANALYST-UPGRADE | — | awaiting T+5 | — | — |
Sep 10, 2026 22d ago | ANALYST-UPGRADE | $397.17 $381.17 | ▼ −4.03% | ▼ −3.53% | $489.90 (+23.35%) |
Sep 8, 2026 24d ago | ANALYST-UPGRADE | $392.03 $367.70 | ▼ −6.21% | ▼ −5.09% | $489.90 (+24.96%) |
Aug 27, 2026 5w ago | ANALYST-UPGRADE | $464.89 $414.77 | ▼ −10.78% | ▼ −11.05% | $489.90 (+5.38%) |
Jul 16, 2026 11w ago | ANALYST-UPGRADE | $417.03 $373.52 | ▼ −10.43% | ▼ −8.76% | $489.90 (+17.47%) |
Jun 23, 2026 14w ago | ANALYST-UPGRADE | — | awaiting T+5 | — | — |
Jun 16, 2026 15w ago | Insider Cluster | $461.74 $463.93 | ▲ +0.47% | ▲ +1.52% | $489.90 (+6.10%) |
Jun 16, 2026 15w ago | Insider Cluster | $461.74 $463.93 | ▲ +0.47% | ▲ +1.52% | $489.90 (+6.10%) |
Jun 16, 2026 15w ago | Insider Cluster | $461.74 $463.93 | ▲ +0.47% | ▲ +1.52% | $489.90 (+6.10%) |
May 27, 2026 18w ago | 8-K | $480.64 $493.02 | ▲ +2.58% | ▲ +2.26% | $489.90 (+1.93%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access