Synopsys, Inc.
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+ FollowMarket Cap$89.61B
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Earnings Call Q3 2026
August 26, 2026 - AI Summary
Q3 performance beats guidance; strong fundamentals across EDA, Ansys, and Design IP
- Revenue: $2.477B (+~42% YoY); EDA strength plus Ansys revenue ~$711M
- Profitability: Non-GAAP operating margin 41.6% and non-GAAP EPS $3.91—both above the high end of guidance
- Backlog: $10.9B, down modestly QoQ (primarily due to the processor IP solutions divestiture closed in Q3), but still described as very strong
Raising full-year guidance (notable upside + accelerating EDA outlook)
- Company raised full-year guidance for revenue, non-GAAP operating margin, non-GAAP EPS, and cash flow
- FY26 revenue range: $9.69B–$9.74B (midpoint +$50M vs prior)
- FY26 margin: non-GAAP operating margin raised ~50 bps to 41.5% at midpoint
- FY26 non-GAAP EPS: $15.04–$15.10 (midpoint +$0.31 vs prior)
- Cash flow improvement: Cash flow from ops +$500M to ~$2.8B; CapEx reduced to ~$225M, implying free cash flow ~$2.6B (+$600M vs prior guidance)
- Q4 target: revenue $2.53B–$2.58B; non-GAAP EPS $4.10–$4.16
EDA: acceleration thesis for Q4 and full year; “double-digit” expectation tied to complexity + AI
- Q3 EDA revenue: +8.5% YoY (explicitly framed as impressive because Q3’25 comp was ~16%), supporting confidence for EDA acceleration to double-digit growth in Q4 and FY
- Drivers repeatedly cited:
- Chip design complexity from AI (specialized chips, advanced packaging, multi-die architectures)
- Advanced packaging/3DIC and multi-die co-design
- AI as a tailwind requiring more verification and more AI-enabled workflows
- Hardware: record hardware-assisted verification revenue year; Q3 had another record hardware-assisted verification quarter
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$271.96
41.3% downside
Current Fair Value
41.3% downsideOvervalued by 41.3% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $89.61 Billion |
|---|---|
| Enterprise Value | $99.18 Billion |
| Earnings per Share | $8.13 |
| Beta | 1.21 |
| Outstanding Shares | 191,536,000 |
Return
| Return on Equity | 3.45% |
|---|---|
| Return on Assets | 2.25% |
| Return on Invested Capital | 4.50% |
Valuation & Multiples
| P/E Ratio | 81.18 |
|---|---|
| PEG | 64.91 |
| Price to Sales | 9.45 |
| Price to Book Ratio | 2.86 |
| Enterprise Value to Revenue | 10.53 |
| Enterprise Value to EBIT | 51.54 |
| Enterprise Value to Net Income | 92 |
| Total Debt to Enterprise | 0.13 |
| Debt to Equity | 0.42 |
Revenue Sources
No data
Last Earnings Call
Report Date
September 8, 2026
EPS Estimate
$3.68
Consensus analyst estimateRevenue Estimate
$2.44 B
Consensus analyst estimateNext Earnings Call
Expected Date
December 9, 2026
EPS Estimate
$4.12
Consensus analyst estimateRevenue Estimate
$2.56 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.89, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.8850▼ 23.75% |
|---|---|
| Total Calls | 41,244▼ 98.73% |
| Total Puts | 36,500▼ 99.00% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 6.07%▼ 87.03% |
|---|---|
| Total Invested | $5.05B▼ 93.64% |
| Investors Holding | 490▼ 1034.00% |
About Synopsys, Inc.
13,000 employees
CEO: Sassine Ghazi
Synopsys, is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in elec...