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Synopsys Posts Strong Q1 Results, Expands Buyback Program

Story Highlights
  • Synopsys posted strong Q1 FY 2026 results with revenue and non-GAAP EPS above guidance, reaffirming full-year outlook amid AI-driven demand.
  • The board replenished Synopsys’ stock repurchase program with up to $2 billion in buyback capacity, reinforcing confidence and capital-return plans.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Synopsys Posts Strong Q1 Results, Expands Buyback Program

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An update from Synopsys ( (SNPS) ) is now available.

On Feb. 25, 2026, Synopsys reported first-quarter fiscal 2026 revenue of $2.409 billion, up from $1.455 billion a year earlier, with GAAP EPS of $0.34 and non-GAAP EPS of $3.77, both at or above guidance. Management highlighted strong execution, an AI-driven uplift in system-level and semiconductor R&D demand, and reiterated full-year revenue expectations around $9.61 billion, including a sizable Ansys contribution.

The board also replenished Synopsys’ stock repurchase program, authorizing buybacks of up to $2 billion of common stock, a move that underscores confidence in the company’s growth trajectory and capital-return strategy. Synopsys issued financial targets for the second quarter and full fiscal 2026, signaling continued investment discipline as it seeks to capitalize on an expanded market opportunity and reinforce its competitive position in chip design and systems engineering tools.

The most recent analyst rating on (SNPS) stock is a Hold with a $455.00 price target. To see the full list of analyst forecasts on Synopsys stock, see the SNPS Stock Forecast page.

Spark’s Take on SNPS Stock

According to Spark, TipRanks’ AI Analyst, SNPS is a Neutral.

SNPS scores highest on financial quality (strong revenue growth, high gross margins, healthy cash flow) and a generally positive FY2026 outlook with improving margin guidance. The score is held back by weak technical momentum (below key moving averages with negative MACD) and a premium valuation (P/E ~55) with no dividend yield support, alongside risks from China softness and Design IP segment pressure.

To see Spark’s full report on SNPS stock, click here.

More about Synopsys

Synopsys, Inc. is a leading provider of electronic design automation software, semiconductor IP and related services, supplying tools for advanced silicon design, verification and system integration. Through its Design Automation and Design IP segments, the company targets semiconductor and systems companies, and is expanding its portfolio with offerings such as Ansys products to address engineering challenges from silicon to systems.

Average Trading Volume: 2,164,762

Technical Sentiment Signal: Sell

Current Market Cap: $84.32B

See more data about SNPS stock on TipRanks’ Stock Analysis page.

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