SNPS
Synopsys, Inc.463.34
+8.67+1.91%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
IP H2 drivers detailed; synergies accelerate
Q&A detailed IP confidence for H2 pickup via AI design starts, hyperscaler resource prioritization, and faster standards evolution, while noting muted FY26 growth and compressed margins from investments. ARC divestiture to GlobalFoundries sharpens interconnect focus, with revenues still included pre-close. Ansys synergies accelerate, with cross-selling active and joint solutions imminent at Converge for FY27 monetization. NVIDIA partnership advances GPU-accelerated EDA/Ansys and Omniverse digital twins. China restrictions pinch IP more than EDA/hardware. Management was direct on analyst probes. IP execution matters for the thesis.
Key Stats
Market Cap
88.30BP/E (TTM)
57.49Basic EPS (TTM)
8.06Dividend Yield
0%Recent Filings
8-K
Synopsys launches $250M ASR
Synopsys entered a $250 million accelerated share repurchase agreement with The Bank of Nova Scotia on March 2, 2026. It receives ~513,000 shares initially, with final settlement by June 1 based on volume-weighted average prices less a discount. Shares repurchased. Risks hinge on stock price volatility and bank performance.
10-Q
Q1 FY2026 results
Synopsys crushed Q1 FY2026 revenue at $2.4B, up 66% y/y from $1.5B, fueled by Ansys' $886M contribution post its July 2025 close for $34.9B (cash/stock mix) while Design Automation soared 96% y/y yet Design IP dipped 6%. Gross margin held 74% (derived); operating income fell to $203M from $252M on $404M intangible amortization and $118M restructuring, but cash from operations surged to $857M. Debt stands at $10B Senior Notes (4.6-5.7%, 2027-2055) after repaying $3.5B Term Loan, with $2.2B cash. NVIDIA private placement added $2B equity. Ongoing securities class actions over Design IP disclosures loom.
8-K
Q1 revenue $2.4B, buyback $2B
Synopsys posted Q1 FY2026 revenue of $2.409 billion, up sharply from $1.455 billion last year, with non-GAAP EPS of $3.77 topping guidance. Design Automation surged 96%, fueled by Ansys integration, yet GAAP EPS dipped to $0.34 amid $404M amortization and $118M restructuring. Board replenished $2B buyback. Reiterating FY revenue at $9.61B midpoint.
8-K
Synopsys appoints Shimer to board
Synopsys expanded its board from 11 to 12 directors, appointing former Deloitte executive Peter Shimer effective February 14, 2026, to the Audit Committee as an independent financial expert. Shimer receives $140,000 annual cash retainer plus $350,000 initial RSU grant. Board won't renominate Luis Borgen and Dr. Ajei Gopal post-2026 meeting. Refreshment bolsters governance amid Ansys integration.
10-K
FY2025 results
Synopsys posted FY2025 revenue of $7.1B, up 15% y/y, fueled by 26% growth in Design Automation to $5.3B including $757M from the July Ansys merger, yet Design IP fell 8% to $1.8B hit by China export curbs and weak foundry demand. Q4 momentum faltered with IP weakness persisting into FY2026 amid resource reallocations. Debt hit $13.5B post-merger, suspending buybacks; $3B cash cushions liquidity. Backlog swelled to $11.4B. China trade restrictions threaten quarterly design starts.
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