Synopsys targets 15% revenue CAGR through fiscal 2030
The chip-design software company said it is targeting about 15% compound annual revenue growth from fiscal 2026 through fiscal 2030, citing demand for AI-driven chip design, custom silicon and engineering software. It also outlined FY27 revenue of $11.1 billion to $11.2 billion, non-GAAP operating margin of about 44%, and free cash flow of about $3.1 billion.
Synopsys is targeting approximately 15% compound annual revenue growth from fiscal 2026 through fiscal 2030, citing demand for AI-driven chip design, custom silicon and engineering software. 2 billion, which it said implies approximately 15% year-over-year growth at the midpoint. 12. 1 billion in free cash flow for FY27, with roughly $500 million in capital spending.
Through FY30, the company is targeting annual revenue growth of at least 13% for EDA, at least 10% for Systems & Analysis and at least 17% for Design IP. It also expects non-GAAP operating margin of approximately 50%, with non-GAAP EPS and free cash flow each rising at a mid-20% compound annual rate from FY26. The company said it aims to return up to 50% of free cash flow through buybacks and plans to repurchase about $1 billion in shares over the coming months, subject to market conditions. Synopsys said it is expanding application-optimized IP for custom silicon, with $AMZN Amazon.
Among its customers, Synopsys has announced a collaboration with OpenAI to develop the GPT-Synopsys chip-design model.