The quarter cleared a reasonably high bar. Published estimates clustered around roughly $2.44–$2.49 billion of revenue and $3.67–$3.74 of non-GAAP EPS, putting Synopsys’ $2.477 billion revenue near the top of expectations and its $3.91 EPS clearly above consensus. The company also said quarterly EPS exceeded the high end of its prior guidance. 〔0〕
| Metric | Q3 FY2026 | Q3 FY2025 | Market reference |
|---|---|---|---|
| Revenue | $2.477B (Financial Highlights) | $1.740B (Financial Highlights) | ~$2.44B–$2.49B consensus |
| GAAP diluted EPS | $2.84 (Financial Targets) | $1.50 (Financial Targets) | — |
| Non-GAAP diluted EPS | $3.91 (Financial Targets) | $3.39 (Financial Targets) | ~$3.67–$3.74 consensus |
| Design Automation revenue | $2.003B (Business Segment Reporting) | $1.312B (Business Segment Reporting) | — |
| Design IP revenue | $473.8M (Business Segment Reporting) | $427.6M (Business Segment Reporting) | — |
| Nine-month operating cash flow | $2.299B (Cash Flow statement) | $878.9M (Cash Flow statement) | — |
The beat was led by the core Design Automation engine, not evenly distributed across the portfolio. Design Automation revenue rose about 53% year over year and its adjusted operating margin expanded to 45.2%, while Design IP revenue grew only about 11% and remained below its prior-year nine-month level. Management specifically attributed the result to broad-based strength led by EDA, Ansys and a return to growth in design IP. 〔1〕
The forward revision is modest on revenue but more meaningful on earnings power. Full-year revenue midpoint increased to $9.715 billion from $9.665 billion previously, while non-GAAP EPS midpoint rose to $15.07 from $14.76. The new outlook also includes approximately $2.98 billion of Ansys revenue and the effects of divested businesses, so the headline growth rate is not entirely organic.
Net: a genuine earnings beat with upward revisions, though the cleanest underlying signal is stronger execution in Design Automation rather than a wholly organic acceleration. The filing raises full-year revenue, non-GAAP margin, EPS and cash-flow expectations, with midpoint targets of approximately 41.5% non-GAAP operating margin, $2.8 billion operating cash flow and $2.6 billion free cash flow. 〔2〕
Read the original 8-K on SEC EDGAR ↗