SNPS Q1 2026 Earnings
Reported Feb 25, 2026 at 4:15 PM ET · SEC Source
Q1 26 EPS
$3.77
BEAT +5.98%
Est. $3.56
Q1 26 Revenue
$2.41B
BEAT +0.74%
Est. $2.39B
vs S&P Since Q1 26
+9.2%
BEATING MARKET
SNPS +13.7% vs S&P +4.5%
Market Reaction
Did SNPS Beat Earnings? Q1 2026 Results
Synopsys opened fiscal 2026 with a quarter that underscored how fundamentally its acquisition of Ansys has reshaped the business, posting Q1 revenue of $2.41 billion, up 65.4% year-over-year, and non-GAAP EPS of $3.77, running ahead of the $3.56 Wall… Read more Synopsys opened fiscal 2026 with a quarter that underscored how fundamentally its acquisition of Ansys has reshaped the business, posting Q1 revenue of $2.41 billion, up 65.4% year-over-year, and non-GAAP EPS of $3.77, running ahead of the $3.56 Wall Street consensus by 5.98%. The Ansys integration, now fully reflected for the first time in a complete quarterly period, was the single defining driver of that growth, with the enlarged Design Automation segment alone contributing $2.00 billion, or 83% of total revenue. Operating cash flow swung to a robust $856.83 million from negative territory a year ago, while the company aggressively reduced long-term debt by roughly $3.45 billion during the quarter. AI-fueled chip design demand remained a central theme in management's commentary, and the company reiterated full-year FY2026 revenue guidance of $9.56 billion to $9.66 billion with non-GAAP EPS of $14.38 to $14.46, signaling confidence in sustained momentum even as a Morgan Stanley downgrade flagged potential growth deceleration ahead.
Key Takeaways
- • AI-fueled robust system-level and semiconductor R&D demand
- • Ansys acquisition contributing significantly to revenue growth
- • Revenue at upper end of guided range with non-GAAP EPS above guidance
- • Strong operating cash flow of $857M vs. negative $67M year-ago quarter
- • Deferred revenue increase of $265M supporting cash generation
SNPS Forward Guidance & Outlook
Synopsys reiterated full-year FY2026 revenue guidance of $9.56-$9.66 billion at the midpoint of $9.61 billion, including approximately $2.9 billion of expected Ansys revenue. Full-year non-GAAP EPS is targeted at $14.38-$14.46, with a non-GAAP tax rate of 18%. Full-year operating cash flow is targeted at approximately $2.2 billion, free cash flow at approximately $1.9 billion, and capital expenditures at approximately $300 million. For Q2 FY2026, revenue is guided at $2.225-$2.275 billion, GAAP EPS of $0.23-$0.43, and non-GAAP EPS of $3.11-$3.17. Guidance assumes no further changes to export control restrictions or U.S. Entity List designations.
SNPS YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
SNPS Revenue by Segment
With YoY comparisons, source: SEC Filings
“Synopsys enters 2026 with an expanded portfolio, leadership positions across the business, and the most compelling roadmap in our history.”
— Sassine Ghazi, Q1 2026 Earnings Press Release
SNPS Earnings Trends
SNPS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SNPS EPS Trend
Earnings per share: estimate vs actual
SNPS Revenue Trend
Quarterly revenue: estimate vs actual
SNPS Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $3.56 | $3.77 | +5.98% | $2.41B | +0.74% |
| Q4 25 FY | — | $2.90 | — | $2.25B | — |
| FY Full Year | — | $12.91 | — | $7.05B | — |
| Q3 25 MISS | $3.75 | $3.39 | -9.48% | $1.74B | -1.54% |
| Q2 25 BEAT | $3.40 | $3.67 | +8.03% | $1.60B | +0.29% |