Synopsys reports Q3 2026 results and raises guidance

Synopsys (NASDAQ: SNPS ) released third-quarter financial results and hosted an earnings call on Wednesday.

Read the complete transcript below.

This content is powered APIs.

For comprehensive financial data and transcripts, visit Access the full call at Watch the full earnings call below: Summary Synopsys reported an outstanding Q3 2026 with revenue, non-GAAP operating margin, and EPS all exceeding guidance, driven by strength in EDA, Ansys, and IP growth.

The company raised its full-year revenue, non-GAAP operating margin, and EPS guidance, expecting accelerated EDA growth in Q4 and double-digit growth for the full year.

Notable operational highlights include the launch of Multiphysics Fusion, collaboration with Ansys, and progress in agentic AI, leading to strong customer interest and new growth opportunities.

The Ansys acquisition marked its first anniversary, with the integration creating new growth opportunities and achieving cost synergies ahead of schedule.

The Design Automation segment saw revenue of approximately $2 billion, with EDA revenue increasing by 8.5% year over year.

The Design IP segment returned to growth with revenue of $474 million, up 11% year over year, driven by demand in AI infrastructure.

Future outlook includes a revenue range of $9.69 to $9.74 billion for the full fiscal year 2026, with ANSYS expected to contribute approximately $2.98 billion.

The company remains focused on expanding its IP Factory 2 model, enhancing customer collaborations, and leveraging AI-driven design processes for future growth.

Full Transcript OPERATOR Welcome to the Synopsys earnings conference call for the third quarter of fiscal year 2026.

At this time, all participants are in listen-only mode.

Later, we will conduct a question-and-answer session.

If you would like to ask a question at that time, please press star 1 on your telephone keypad to remove yourself from the queue.

It is star 1 again.

If you require assistance during the call, please press star 0 and an operator will assist you.

Today's call will last one hour.

As a reminder, today's call is being recorded.

At this time, I would like to turn the conference over to Tushar Jain, Vice President.

Please go ahead.

Tushar Jain, Vice President, Investor Relations Good afternoon, everyone.

Welcome to Synopsys' third quarter fiscal year 2026 earnings call.

With us today are Sassine Ghazi, President and CEO of Synopsys, and Shelagh Glaser, CFO.

Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results.

While these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.

In addition to any risks that we highlight during this call, important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release.

In addition, we will refer to certain non-GAAP financial measures during the discussion.

Reconciliations to their most directly comparable GAAP financial measures and supplemental financial information can be found in the earnings press release, financial supplement, and 8-K that we released earlier today.

All of these items, plus the most recent investor presentation, prepared remarks, and Investor Day information, can be found on our website at With that, I'll turn the call over to Sassine Ghazi.

Sassine Ghazi, President and CEO Good afternoon.

Synopsys delivered an outstanding third quarter, with revenue, non-GAAP operating margin, and EPS all exceeding the high end of guidance.

These results reflect broad-based strength, including outperformance in EDA and Ansys and continued growth in IP.

We are raising our full-year revenue, non-GAAP operating margin, and EPS guidance.

In addition, we expect EDA growth to accelerate in Q4 and to deliver double-digit growth for the full year.

The key takeaway from Q3 is that the fundamentals across our portfolio are strengthening.