Synopsys Beats Earnings, Raises Guidance on AI Demand

Synopsys reported stronger-than-expected fiscal third-quarter results on August 26, 2026, and raised its full-year financial guidance, citing robust demand driven by artificial intelligence. Despite the positive performance, the company's shares declined in after-hours trading. The chip design software maker posted revenue of $2.477 billion for the quarter ending July 31, a significant increase from $1.740 billion in the same period a year earlier. On a GAAP basis, net income was $545.8 million, or $2.84 per diluted share, compared with $242.5 million, or $1.50 per diluted share, in the prior-year quarter. Non-GAAP earnings per diluted share reached $3.91, exceeding the high end of the company's previous guidance range. The results surpassed Wall Street expectations. Analysts had forecast non-GAAP earnings of approximately $3.67 per share on revenue of just over $2.4 billion. The company's Design Automation segment, which includes electronic design automation software and products from its recent Ansys acquisition, generated $2.003 billion in revenue, accounting for about 81% of the total. The Design IP segment contributed $473.8 million.