Synopsys, Inc.

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