Synopsys raised its full-year outlook on May 27, 2026, after reporting second-quarter fiscal 2026 revenue of $2.276 billion and non-GAAP earnings of $3.35 a share. The chip design software company said the updated view reflected strong performance across the business, an EPS-neutral Ansys channel-related accounting impact and, in part, the looming close of its Processor IP Solutions business.
GAAP earnings per diluted share came in at $0.09, while GAAP net income was $17.1 million, down from $349.2 million a year earlier. Non-GAAP net income rose to $643.7 million from $572.7 million, giving Synopsys a cleaner signal on underlying operating performance even as accounting items weighed on the bottom line.
The second quarter was also a sharp step up from the same period in fiscal 2025, when Synopsys reported revenue of $1.604 billion. The company is now projecting full-year total revenue of $9.665 billion at the midpoint and non-GAAP EPS of $14.76, both higher than before. Management said the new earnings view was driven by expanded operating margin, tight cost discipline and accelerating synergies.
Chief Executive Sassine Ghazi said Synopsys delivered a strong second quarter with solid execution and broad strength across the business. He added that AI is scaling semiconductor demand, increasing architectural diversity and chip complexity, and lifting demand across the company’s portfolio. Chief Financial Officer Shelagh Glaser said second-quarter revenue and non-GAAP EPS exceeded guidance and that the company’s focus on execution and financial discipline sets it up for a strong second half.
Synopsys is one of the most closely watched names in the electronic design automation market, with revenue and operating income reported through its Design Automation and Design IP segments. Its updated targets also assume no further changes to export control restrictions or the current business outlook, a reminder that the company’s forecast still depends on a stable operating backdrop.
The main test now is whether Synopsys can turn a better quarter into a steadier year while the business mix shifts. The company plans to give investors a fuller look at long-term financial targets and strategy at an Investor Day on Sept. 30, 2026, and that meeting should show how much of this improved outlook is cyclical momentum and how much is something more durable.
