Synopsys, Inc. Q1 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹92.1K Cr
- Synopsys expects double-digit growth in EDA (Electronic Design Automation) and simulation & analysis segments. - Synopsys expects double-digit long-term growth in EDA software and simulation & analysis businesses.
From Synopsys, Inc.'s Q1 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹480.64
Market Cap
₹92.1K Cr
P/E Ratio
82.1
Revenue Rank
Margin Rank
How does Synopsys, Inc. rank in Software?
Compare Synopsys, Inc. against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →Synopsys expects double-digit growth in EDA (Electronic Design Automation) and simulation & analysis segments.
- →IP (Intellectual Property) growth is projected at mid-teens long-term, though 2026 is seen as a transitional year with muted growth.
- →Ansys revenue is expected to grow double digits, contributing approximately $2.9 billion in FY 2026.
- →The company anticipates a sequential improvement in IP revenue in the second half of 2026, with a Q4 weighting.
- →Future growth is fueled by strong demand in AI infrastructure and robust design start activity for AI compute.
- →The integration of Ansys is expected to expand the customer base and address new market opportunities.
- →The company is focused on executing technology promises that would drive growth beyond 2026.
- →Overall, Synopsys targets sustained double-digit revenue growth driven by expanding portfolios and technology trends like AI.
📈 Profitability & Margins
Rank 3- →Synopsys expects double-digit long-term growth in EDA software and simulation & analysis businesses.
- →Design IP segment is projected to achieve mid-teens growth over the long term, despite 2026 being a transitional year.
- →The joint Synopsys-Ansys technology integration starting in 2026 is expected to drive growth beyond 2026.
- →Full-year 2026 revenue guidance is $9.56 billion to $9.66 billion, with Ansys revenue expected at $2.9 billion midpoint, growing double digits.
- →Non-GAAP operating margin targeted around 40.5% for 2026.
- →Non-GAAP EPS guidance for 2026 increased slightly to between $14.38 and $14.46 per share.
- →The company is confident in second-half IP revenue pickup, with improved roadmap alignment and delivery.
- →Continuous AI-driven product innovation and joint solutions are key growth drivers.
- →Ongoing revenue synergies aimed at $400 million run rate by year 4 post-merger.
🏗️ Capital Expenditure Plans
Yes💰 Fundraising & Capital Structure
No information- →No new fundraising through debt or equity was announced.
- →The company repaid the entirety of its $4.3 billion term loans recently, indicating debt reduction rather than new debt.
- →The board replenished the stock repurchase program with authorization to buy up to $2 billion of common stock, signaling share buybacks rather than equity issuance.
- →Capital allocation priorities remain focused on investing in the business, opportunistic share repurchases, and paying down debt.
- →Strong cash position with $2.2 billion in cash and short-term investments at the end of Q1 supports financial flexibility without immediate fundraising needs.
📋 Order Book & Pipeline
Yes- →Synopsys reported a strong backlog (remaining performance obligations, RPO) of $11.3 billion as of the latest quarter.
- →Backlog provides confidence in customer demand and delivery commitments.
- →Bookings show typical seasonality and ebb and flow, with no unusual changes reported.
- →The backlog supports visibility into customer demands and revenue expectations.
- →The company experiences fluctuations due to renewal timings but maintains a strong pipeline.
- →Synopsys expects a pickup in design IP sales in the second half of the year, contributing to future order growth.
- →The company is focused on aligning delivery schedules with customer tape-outs to capture IP revenue opportunities.
- →Ansys business results show some variability due to pronounced accounting effects, but overall demand remains strong across multiple markets.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Synopsys, Inc. Q1 FY26 results?
- Synopsys expects double-digit growth in EDA (Electronic Design Automation) and simulation & analysis segments. - Synopsys expects double-digit long-term growth in EDA software and simulation & analysis businesses.
What is Synopsys, Inc. share price analysis?
Synopsys, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 82.1 with a market cap of $92,072. Investors should review the full earnings analysis for detailed insights.
Is Synopsys, Inc. planning capital expenditure?
Based on the information from the document: - Synopsys is investing in expanding and delivering IP titles, especially for hyperscalers, focusing on timely delivery and customization.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.