Synopsys lifts 2026 revenue outlook on AI chip demand

Synopsys, a leading provider of electronic design automation software, raised its full-year financial forecast on Wednesday, citing robust demand driven by the global race to develop artificial intelligence chips and infrastructure. The company reported second-quarter earnings and revenue that exceeded analyst expectations.

For its fiscal second quarter, Synopsys reported adjusted earnings of $3.35 per share on revenue of $2.28 billion. This surpassed the consensus estimates of $3.15 per share and $2.25 billion in revenue, respectively. The company's revenue showed significant growth from the $1.6 billion reported in the same period a year earlier.

Citing strong execution across its business, the company subsequently increased its outlook for the entire 2026 fiscal year. Synopsys now expects annual revenue in the range of $9.63 billion to $9.71 billion, up from a prior forecast of $9.56 billion to $9.66 billion. Its projected adjusted annual profit was raised to between $14.72 and $14.80 per share, compared to an earlier view of $14.38 to $14.46 per share.

In a statement, CEO Sassine Ghazi linked the raised guidance directly to the artificial intelligence boom. He stated that AI...