SYNOPSYS INC Q3 REVENUE UP 42%

By Philip Seaworth • Thursday, August 27 10:53 • Permanent Link

SYNOPSYS INC has recently released its latest 10-Q report. Synopsys, Inc. supplies design IP and semiconductor software used in chip and electronics development, operating through two segments: Design Automation and Design IP. Its portfolio includes digital and custom IC design tools, verification software, FPGA products, TCAD, mask synthesis and manufacturing analytics, along with pre-verified IP, processor and security IP, and automotive-focused offerings.

For the third quarter ended July 31, 2026, Synopsys reported revenue of $2.4768 billion, up 42% from $1.7397 billion a year earlier. The company said the increase included $622.2 million from Ansys, which contributed a full quarter in fiscal 2026 versus a partial quarter in the prior-year period. Nine-month revenue rose 49% to $7.1616 billion from $4.7993 billion.

Operating income for the quarter was $357.5 million, compared with $165.3 million a year earlier. Net income from continuing operations attributable to Synopsys was $545.8 million, up from $242.5 million. Diluted earnings per share from continuing operations increased to $2.84 from $1.50.

Total cost of revenue and operating expenses in the quarter rose 35% to $2.1193 billion from $1.5745 billion. Synopsys said the increase reflected $330.0 million of additional amortization tied to intangible assets from the Ansys merger and $174.3 million of higher employee-related costs, including $169.2 million from Ansys.

For the first nine months of fiscal 2026, total cost of revenue and operating expenses climbed to $6.4806 billion from $4.0058 billion, a 62% increase. The company cited $1.1 billion of higher amortization expense, $768.9 million of higher employee-related costs, and $236.3 million of restructuring charges.

Synopsys said the Ansys acquisition closed on July 17, 2025, and that the quarter reflected a full period of Ansys revenue. It also said the business continues to be affected by changes in trade policy and export controls, with China restrictions weighing on business in its Design IP segment. Following these announcements, the company's shares moved 9.54%, and are now trading at a price of $449.135. Check out the company's full 10-Q submission here.

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