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EarningsQ2 2026 Earnings Report
SNPS Q2 2026 EPS Results
Actual EPS$3.35
Consensus EPS$3.15
Beat/MissBeat by +$0.20
One Year Ago EPS$3.67
SNPS Q2 2026 Revenue Results
Actual Revenue$2.27B
Expected Revenue$2.25B
Beat/MissBeat by +$24.01M
YoY Revenue Growth+41.92%
Earnings Announcement Details
QuarterQ2 2026
Date05/27/2026
TimeAfter Close
Conference CallWednesday, May 27, 2026
SNPS Upcoming Earnings
Synopsys's next earnings date is estimated for August 26, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
SNPS Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple material positive developments: a quarter that beat on revenue and non‑GAAP profitability, raised full‑year guidance, strong free cash flow, broad AI-driven demand across EDA/IP/ANSYS, early productivity gains from multiphysics fusion, and concrete IP/connectivity wins. Offsetting items include a YoY decline in IP revenue (though sequentially recovering), one‑time GAAP headwinds from restructuring that depressed GAAP EPS, significant debt, and the fact that several strategic initiatives (multiphysics fusion, agentic EDA, GPU‑accelerated monetization) are still largely in evaluation with monetization yet to fully convert. Overall, the positives (operational execution, raised guidance, cash flow, and clear AI tailwinds) materially outweigh the negatives, though execution and monetization of new technology and channel accounting nuances will be key watch points.Company Guidance
Quarterly Revenue and Earnings Beat
Q2 revenue of $2.276 billion exceeded guidance; non-GAAP operating margin of 39.5% and non-GAAP EPS of $3.35 also beat expectations.
Upgraded Full-Year Guidance
Raised FY26 revenue guidance to $9.625B–$9.705B; non-GAAP EPS guidance increased to $14.72–$14.80 (a $0.34 increase at the midpoint); non-GAAP operating margin raised to ~41% at the midpoint (up 50 basis points).
Strong Cash Generation and Capital Return
Q2 free cash flow ~ $575 million; cash & short-term investments $2.48 billion; raised FY26 cash from operations guide to ~$2.3 billion and free cash flow to ~$2.0 billion (up $100 million vs prior). Initiated a $250 million accelerated share repurchase and completed ~$50 million open market repurchase.
AI-Driven Demand and Product Momentum
Management cited broad AI-driven demand across EDA, IP and multiphysics simulation, with EDA strength including >30 full-flow technical wins for advanced nodes in Q2 and sustained hardware-assisted verification demand.
Multiphysics Fusion Early Productivity Gains
Early results for multiphysics fusion showed up to 3x faster design closure, higher ECO success rates, and up to 2x faster turnaround for complex analog designs; commercial rollout expected in second half of FY26.
Agentic EDA Traction
Agentic/AI-driven EDA traction: 20 customers evaluating solutions across more than 25 specialized AI agents spanning front-end, verification, implementation and analog flows—representing a long-term monetization opportunity.
Design IP and Connectivity Wins
PCIe 7.0 IP achieved >90% win rate with 18 new licenses in Q2; UCIE lifetime wins exceeded 150; delivered industry's first HBM4 IP test chip and achieved a 64‑gig tapeout on a 2nm process.
ANSYS Integration Progress
ANSYS contributed approximately $652 million in Q2 (including a $12.5 million channel accounting impact); integration is on track with synergies being realized and management expects to achieve about half of committed synergies by end of FY26.
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