EarningsQ3 2026 Earnings Report
MX:SNPS Q3 2026 EPS Results
Actual EPS$66.48
Consensus EPS$62.35
Beat/MissBeat by +$4.13
One Year Ago EPS$57.64
MX:SNPS Q3 2026 Revenue Results
Actual Revenue$42.04B
Expected Revenue$41.45B
Beat/MissBeat by +$595.06M
YoY Revenue Growth+42.21%
Earnings Announcement Details
QuarterQ3 2026
Date08/26/2026
TimeAfter Close
Conference CallWednesday, August 26, 2026
MX:SNPS Upcoming Earnings
Synopsys's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:SNPS Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive: the company reported strong Q3 results with revenue up ~42% YoY, non-GAAP margin and EPS beating guidance, significant cash generation, ahead-of-schedule synergy realization, and raised full-year guidance. Strategic milestones — the Ansys integration anniversary, the Multiphysics Fusion launch, agentic AI demonstrations, robust EDA momentum and notable IP wins — underpin confidence in multi-year growth. Near-term headwinds include a large absolute debt balance (~$10B), increased restructuring/GAAP charges, a modest backlog decline tied to a divestiture, and the expectation that some new product-driven revenue (e.g., Multiphysics Fusion) will contribute meaningfully only beginning in 2027. Overall, the positive operational execution, guidance raise and pipeline momentum outweigh the limited near-term negatives.Company Guidance
Quarterly Revenue and EPS Beat
Q3 revenue of $2.477 billion, up ~42% year-over-year (includes ~ $711M Ansys contribution). Non-GAAP operating margin of 41.6% and non-GAAP EPS of $3.91 — all above the high end of guidance.
Raised Full-Year Guidance
Management raised full-year revenue guidance (new range $9.69B–$9.74B), increased non-GAAP operating margin guidance by ~50 basis points (41.5% at midpoint), and raised non-GAAP EPS guidance to $15.04–$15.10 (up $0.31 at midpoint). Cash flow from operations guidance increased by $500M to ~$2.8B; free cash flow guidance increased by $600M to ~$2.6B.
Strong EDA Performance and Outlook
Design Automation (EDA) revenue increased 8.5% YoY in Q3 with record hardware-assisted verification (HAV) revenue and 12 new + 66 repeat HAV customer wins. Management expects EDA growth to accelerate to double digits in Q4 and for the full year (double-digit organic EDA growth expected).
Launch of Multiphysics Fusion with Early Customer Validation
Introduced Multiphysics Fusion (first joint Synopsys-Ansys solution). Early customer validations (NVIDIA, Cisco, MediaTek, Samsung Foundry) report up to 10x faster design closure and 3x faster runtime; management expects Multiphysics Fusion to begin contributing to EDA growth in 2027.
Agentic AI and Autonomous Workflow Progress
Demonstrations showed up to 50x faster time to validated RTL and 20% additional coverage improvement; Microsoft/Amd autonomous EDA workflows showed up to 40% reduction in debug cycle time. More than 30 active customer engagements for agentic AI, creating additional consumption opportunities for EDA tools.
Design IP Returning to Growth with Notable Wins
Design IP revenue of $474M, up ~11% YoY and sequential growth. Wins include >95% of PCIe 7 opportunities, 25 LPDDR6 design wins YTD, die-to-die business on pace to double YoY with >100 cumulative design wins, and USB IP exceeding $2B lifetime bookings. Automotive design-win rate sustained >90% for three consecutive quarters.
Strong Cash Generation and Synergy Execution
Q3 free cash flow of $746M; cash and short-term investments of $3.6B. Management repaid term loans earlier than planned and is ahead of schedule on Ansys cost synergy commitments.
MX:SNPS 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