Education
About Us
Working with TipRanks
Follow Us
Synopsys (DE:SYP)
XETRA:SYP
Earnings Data
Report Date
May 20, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.67Last Year’s EPS
3.11Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized a strong start to FY'26 with revenue at the high end of guidance, a material non-GAAP EPS beat, high non-GAAP margins, robust free cash flow and sizeable backlog. Integration of Ansys is already contributing meaningful revenue and is expected to drive cross-sell and joint-solution monetization over time, while the company is pursuing $400M run-rate revenue synergies and accelerating cost synergies. On the downside, Design IP is in a transitional phase with a ~6% YoY revenue decline, depressed IP margins and some timing/delivery risk for new IP titles. China headwinds and softer consumer/auto/industrial design starts add regional and end-market pressure. Overall, the positive operational execution, strong cash generation, and Acceleration from Ansys integration outweigh the near-term IP and China-related challenges.Company Guidance
Top-Line Beat and Strong Quarter Start
Q1 total revenue of $2.41 billion came in at the high end of guidance, driven in part by approximately $886 million of Ansys revenue; company reiterated full-year revenue guidance of $9.56B–$9.66B.
Earnings and Margins Outperformance
Non-GAAP EPS of $3.77 exceeded guidance; non-GAAP operating margin was 42.1% (Design Automation adjusted operating margin: 47.3%), and full-year non-GAAP EPS guidance was raised to $14.38–$14.46 (up $0.06).
Strong Cash Generation and Capital Actions
Q1 free cash flow of approximately $822 million; cash and short-term investments of $2.2 billion; operating cash flow guidance ~ $2.2 billion and free cash flow guidance ~ $1.9 billion for the year; Board authorized up to $2 billion for share repurchases and the $4.3 billion term loan was fully repaid.
Healthy Backlog and Visibility
Backlog (RPO) ended at $11.3 billion, providing strong revenue visibility despite near-term volatility in some end markets.
Ansys Integration and Revenue Contribution
Ansys contributed about $886M in Q1; management expects ~ $2.9B Ansys revenue at the FY midpoint and double-digit growth from Ansys, with cross-selling underway and committed revenue synergies target of $400M run-rate by year 4.
Product & Technology Momentum — AI and Hardware Wins
Synopsys reported major wins (including a marquee emulation win vs. an incumbent at a leading AI/HPC customer), Fusion Compiler and PrimeTime achieved 100% usage on critical 2nm+ tape-outs, and hardware-assisted verification (ZeBu/HAPS/EP) remains in strong demand.
AI Productivity Gains Demonstrated
Synopsys.ai customer results cited: up to 50% faster knowledge assistance, up to 70% faster workflow assistance and up to 5x faster formal test bench generation, positioning Synopsys for AI-driven engineering efficiency gains.
IP Market Leadership in Key Interfaces
Design IP saw >40 PCIe design wins in the quarter, an industry-first PCIe 8.0 demo, and first-to-market 224G SerDes with 10 lifetime wins — supporting longer-term conviction in interface IP demand.
DE:SYP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DE:SYP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | €378.55 | €363.10 | -4.08% |
Dec 10, 2025 | €400.50 | €398.60 | -0.47% |
Sep 09, 2025 | €519.40 | €343.15 | -33.93% |
May 28, 2025 | €447.15 | €410.10 | -8.29% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Synopsys (DE:SYP) report earnings?
Synopsys (DE:SYP) is schdueled to report earning on May 20, 2026, After Close (Confirmed).
What is Synopsys (DE:SYP) earnings time?
Synopsys (DE:SYP) earnings time is at May 20, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Synopsys stock?
The P/E ratio of Synopsys is N/A.
What is DE:SYP EPS forecast?
DE:SYP EPS forecast for the fiscal quarter 2026 (Q2) is 2.67.
