Synopsys (NASDAQ: SNPS) boosts 2026 outlook after $2.48B Q3

Rhea-AI Filing Summary

Synopsys, Inc. (SNPS) reported strong third-quarter fiscal 2026 results, with revenue of $2.48 billion, up from $1.74 billion a year earlier. GAAP net income from continuing operations rose to $545.8 million ($2.84 per diluted share) from $242.5 million ($1.50 per share).

On a non-GAAP basis, net income from continuing operations increased to $752.5 million, or $3.91 per diluted share, from $548.9 million, or $3.39 per share. Design Automation generated $2.00 billion of Q3 revenue, while Design IP contributed $473.8 million. Non-GAAP operating margin reached 41.6%.

For the fourth quarter of fiscal 2026, Synopsys targets revenue of $2.53–$2.58 billion and non-GAAP EPS of $4.10–$4.16. For the full fiscal year 2026, it targets revenue of $9.69–$9.74 billion, non-GAAP operating margin of about 41.5%, non-GAAP EPS of $15.04–$15.10, operating cash flow of about $2.8 billion and free cash flow of about $2.6 billion.

Positive

• Q3 FY26 revenue grew to $2.48 billion from $1.74 billion, with both GAAP and non-GAAP earnings rising significantly year over year, indicating strong operating performance.
• Full-year FY26 guidance increased, with revenue targeted at $9.69–$9.74 billion and non-GAAP EPS at $15.04–$15.10, along with expected ~$2.6 billion free cash flow.
• Balance sheet strengthened as long-term debt declined to $9.02 billion from $13.46 billion, while cash, cash equivalents and short-term investments increased to $3.61 billion.

Negative

• Year-to-date GAAP net income from continuing operations fell to $627.9 million from $887.4 million, and diluted EPS declined to $3.27 from $5.61, reflecting higher amortization, restructuring and other acquisition-related costs.

Filing Explained

The filing records $2 billion of private-placement stock proceeds, but does not quantify the resulting ownership effect.

As a Form 8-K, this report discloses a material event: Synopsys furnished third-quarter fiscal 2026 results and targets and recorded $2,000,000 thousand of common-stock issuance for a private placement, creating an issued-share structure whose ownership effect is not quantified here.

The exhibit is expressly furnished rather than treated as filed for Section 18 purposes, and the reported financial statements remain unaudited. The cash-flow statement records the private-placement amount for the nine months ended July 31, 2026.

A private placement is a sale of securities to selected investors outside a public offering. Issuing additional shares reduces an existing holder’s percentage ownership absent offsetting changes; this filing does not state the placement share count or resulting ownership percentage.

The specified resolution point is Synopsys’ Form 10-Q, which the company says it will file on or before September 9, 2026 with the final third-quarter financial statements.

8-K Event Classification

3 items: 0.9, 2.02, 9.01

3 items

Item 0.9 Item 0.9

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Q3 2026 Total Revenue: $2,476,822,000 Q3 2025 Total Revenue: $1,739,737,000 Q3 2026 GAAP Net Income from Continuing Operations: $545,800,000 +5 more

8 metrics

Q3 2026 Total Revenue $2,476,822,000 Revenue for the third quarter of fiscal year 2026

Q3 2025 Total Revenue $1,739,737,000 Revenue for the third quarter of fiscal year 2025

Q3 2026 GAAP Net Income from Continuing Operations $545,800,000 GAAP net income attributed to Synopsys in Q3 FY26

Q3 2026 Non-GAAP Net Income from Continuing Operations $752,493,000 Non-GAAP net income attributed to Synopsys in Q3 FY26

Q3 2026 Diluted EPS (GAAP, continuing operations) $2.84 GAAP diluted EPS from continuing operations in Q3 FY26

Q3 2026 Diluted EPS (Non-GAAP, continuing operations) $3.91 Non-GAAP diluted EPS from continuing operations in Q3 FY26

FY26 Revenue Guidance Range $9,690,000,000–$9,740,000,000 Target revenue range for fiscal year ending October 31, 2026

FY26 Non-GAAP EPS Guidance Range $15.04–$15.10 Target non-GAAP EPS range for fiscal year ending October 31, 2026

Key Terms

non-GAAP, free cash flow, Deferred revenue, Restructuring charges, +2 more

6 terms

non-GAAP financial

"On a non-GAAP basis, net income for the third quarter of fiscal year 2026 was"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

free cash flow financial

"Free Cash Flow (2) | | | | | | | | | | | ~$2,600"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Deferred revenue financial

"Deferred revenue | | | 2,331,173 | | | | 2,245,961"

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

Restructuring charges financial

"Restructuring charges | | | 2,164 | | | | —"

Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.

Design Automation technical

"Design Automation, which includes our advanced silicon design, verification products"

effective tax rate financial

"GAAP effective tax rate | | | 20.2 | % | | | 19.8 | %"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

Earnings Snapshot

Q3 2026 Revenue: $2,476,822,000 · Guidance included

Third quarter and full fiscal year 2026 targets

Q3 2026 Revenue $2,476,822,000 $1,739,737,000 in Q3 2025 to $2,476,822,000 in Q3 2026

Q3 2026 GAAP Diluted EPS (continuing ops) $2.84 $1.50 in Q3 2025 to $2.84 in Q3 2026

Q3 2026 Non-GAAP Diluted EPS (continuing ops) $3.91 $3.39 in Q3 2025 to $3.91 in Q3 2026

FY26 Revenue Guidance $9,690,000,000–$9,740,000,000 Full-year fiscal 2026 target range as provided

FY26 Non-GAAP EPS Guidance $15.04–$15.10 Full-year fiscal 2026 target range as provided

Guidance

Synopsys targets Q4 FY26 revenue of $2.53–$2.58 billion and non-GAAP EPS of $4.10–$4.16, and for FY26 revenue of $9.69–$9.74 billion, non-GAAP operating margin of about 41.5%, non-GAAP EPS of $15.04–$15.10, operating cash flow of about $2.8 billion and free cash flow of about $2.6 billion.

FAQ

How did Synopsys (SNPS) perform in Q3 fiscal 2026?

Synopsys reported Q3 FY26 revenue of $2.48 billion, up from $1.74 billion a year earlier. GAAP net income from continuing operations was $545.8 million ($2.84 diluted EPS), and non-GAAP net income was $752.5 million ($3.91 diluted EPS).

What guidance did Synopsys (SNPS) give for Q4 fiscal 2026?

For Q4 FY26, Synopsys targets revenue of $2.53–$2.58 billion, non-GAAP expenses of $1.45–$1.48 billion, GAAP EPS of $0.60–$0.85, and non-GAAP EPS of $4.10–$4.16, at an 18% non-GAAP tax rate.

What is Synopsys’ full-year FY26 outlook?

For FY26, Synopsys targets revenue of $9.69–$9.74 billion, non-GAAP expenses of $5.67–$5.70 billion, GAAP EPS of $3.84–$4.08, and non-GAAP EPS of $15.04–$15.10. It also forecasts about $2.8 billion operating cash flow and $2.6 billion free cash flow.

How did Synopsys’ business segments perform in Q3 2026?

In Q3 FY26, Design Automation revenue was $2.003 billion (about 81% of total), with adjusted operating margin of 45.2%. Design IP revenue was $473.8 million (about 19% of total), with adjusted operating margin of 26.5%.

What were Synopsys’ key non-GAAP metrics for Q3 2026?

Non-GAAP net income from continuing operations was $752.5 million, or $3.91 per diluted share. The non-GAAP operating margin for Q3 FY26 was 41.6% and the non-GAAP effective tax rate was 18.0%.

How strong was Synopsys’ cash flow in the first nine months of FY26?

For the first nine months of FY26, Synopsys generated $2.30 billion in net cash from operating activities. Capital expenditures were $156.1 million, and cash, cash equivalents and restricted cash increased to $3.61 billion at period end.

What impact did Ansys have on Synopsys’ results?

Management highlighted a strong quarter from Ansys within the Design Automation segment and noted that Q3 FY26 was one year after the transformational acquisition of Ansys, contributing to revenue growth and higher amortization of acquired intangible assets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Understanding 8-K Material Events →

Available on EDGAR 08/26/2026 - 04:22 PM Accepted by SEC EDGAR 08/26/2026 - 04:21 PM Learn about SEC filing dates

SYNOPSYS INC false 0000883241 0000883241 2026-08-26 2026-08-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): August 26, 2026

SYNOPSYS, INC.

(Exact name of registrant as specified in charter)

Delaware		000-19807		56-1546236
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

675 Almanor Ave

Sunnyvale, California 94085

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (650) 584-5000

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock (par value of $0.01 per share)		SNPS		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 26, 2026, Synopsys, Inc. (“Synopsys”) issued a press release announcing the financial results of its third fiscal quarter ended July 31, 2026. A copy of the press release is furnished and attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto and incorporated by reference herein, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission by Synopsys whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Exhibit Title
99.1		Press release dated August 26, 2026 containing Synopsys, Inc.’s results of operations for its third fiscal quarter ended July 31, 2026.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

				SYNOPSYS, INC.
Dated: August 26, 2026				By:		/S/ JANET LEE
						Janet Lee
						General Counsel and Corporate Secretary

Exhibit 99.1

PRESS RELEASE

INVESTOR CONTACT:

Tushar Jain

Synopsys, Inc.

650-584-4289

Synopsys-ir@synopsys.com

EDITORIAL CONTACT:

Cara Walker

Synopsys, Inc.

650-584-5000

corp-pr@synopsys.com

Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026

Results Summary

• Quarterly revenue of $2.477 billion; reflects broad-based strength with outperformance in Design Automation

• Quarterly GAAP earnings per diluted share (EPS) of $2.84, and non-GAAP EPS of $3.91, exceeding high-end of prior guidance

• Raising expectations for full-year total revenue to $9.715 billion at the midpoint and full-year non-GAAP EPS guidance to $15.07 at the midpoint on continued AI-driven demand strength

SUNNYVALE, Calif. – Aug. 26, 2026 – Synopsys, Inc. (Nasdaq: SNPS) today reported results for its third quarter of fiscal year 2026. Revenue for the third quarter of fiscal year 2026 was $2.477 billion, compared to $1.740 billion for the third quarter of fiscal year 2025.

“AI is driving unprecedented complexity and increasing demand for the silicon IP and engineering solutions necessary to deliver next-generation AI compute, infrastructure and physical AI systems,” said Sassine Ghazi, president and CEO of Synopsys. “One year after the transformational acquisition of Ansys, we are executing with focus, extending our leadership and gaining momentum.”

“Synopsys delivered an outstanding third quarter, with revenue and earnings per share exceeding the high end of our guidance range. Results were driven by broad-based strength across the business, led by EDA, a strong quarter from Ansys, and our design IP business returned to year-over-year growth,” said Shelagh Glaser, CFO of Synopsys. “Given our strong performance and expectations for double-digit growth in EDA, we are raising our full year revenue, non-GAAP operating margin, EPS and cash flow guidance.”

1

GAAP Results

On a U.S. generally accepted accounting principles (GAAP) basis, net income for the third quarter of fiscal year 2026 was $545.8 million, or $2.84 per diluted share, compared to $242.5 million, or $1.50 per diluted share, for the third quarter of fiscal year 2025.

Non-GAAP Results

On a non-GAAP basis, net income for the third quarter of fiscal year 2026 was $752.5 million, or $3.91 per diluted share, compared to non-GAAP net income of $548.9 million, or $3.39 per diluted share, for the third quarter of fiscal year 2025.

For a reconciliation of net income, earnings per diluted share and other measures on a GAAP and non-GAAP basis, see “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Business Segments

Synopsys reports revenue and operating income in two segments: (1) Design Automation, which includes our advanced silicon design, verification products and services, Ansys products, system integration products and services, digital, custom and field programmable gate array integrated circuit design software, verification software and hardware products, manufacturing software products and other; and (2) Design IP, which includes our logic libraries, embedded memories, wired interface IP, memory interface IP and security IP.

Financial Targets

Synopsys also provided its consolidated financial targets for the fourth quarter and full fiscal year 2026. These targets assume no further changes to export control restrictions or the current U.S. government “Entity List” restrictions. These targets constitute forward-looking statements and are based on current expectations. For a discussion of factors that could cause actual results to differ materially from these targets, see “Forward-Looking Statements” below.

2

Fourth Quarter and Full Fiscal Year 2026 Financial Targets

(in millions, except per share amounts)

		Range for Three Months Ending October 31, 2026								Range for Fiscal Year Ending October 31, 2026
		Low				High				Low				High
Revenue (1)		$	2,530			$	2,580			$	9,690			$	9,740
GAAP Expenses		$	2,225			$	2,300			$	8,667			$	8,742
Non-GAAP Expenses		$	1,450			$	1,480			$	5,670			$	5,700
Non-GAAP Interest and Other Income (Expense), net		$	(119	)		$	(115	)		$	(485	)		$	(481	)
Non-GAAP Tax Rate			18	%			18	%			18	%			18	%
Outstanding Shares (fully diluted)			192				194				192				194
GAAP Operating Margin											Midpt: ~10.4%
Non-GAAP Operating Margin											Midpt: ~41.5%
GAAP EPS		$	0.60			$	0.85			$	3.84			$	4.08
Non-GAAP EPS		$	4.10			$	4.16			$	15.04			$	15.10
Operating Cash Flow											~$2,800
Free Cash Flow (2)											~$2,600
Capital Expenditures											~$225

(1) Fiscal year 2026 revenue includes $2.98 billion of expected Ansys revenue, and reflects the impact of approximately $110 million of the divested Optical Solutions Group and PowerArtist RTL businesses, and $40 million related to the recently completed divestiture of the Processor IP Solutions business.

(2) Free cash flow is calculated as cash provided from operating activities less capital expenditures.

For a reconciliation of Synopsys’ fourth quarter and fiscal year 2026 targets, including expenses, earnings per diluted share and other measures on a GAAP and non-GAAP basis, a discussion of the financial targets that we are not able to reconcile without unreasonable efforts and a discussion of why management believes such measurements provide useful information to investors, see “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Earnings Call Open to Investors

Synopsys will hold a conference call for financial analysts and investors today at 2:00 p.m. Pacific Time. A live webcast of the call will be available in the investor relations portion of Synopsys’ corporate website at www.synopsys.com. Synopsys uses its website and social media channels as tools to disclose important information about Synopsys and to comply with its disclosure obligations under Regulation Fair Disclosure. A webcast replay will also be available on the corporate website from approximately 5:30 p.m. Pacific Time today through the time Synopsys announces its results for the fourth quarter and fiscal year 2026.

3

Availability of Final Financial Statements

Synopsys will include final financial statements for the third quarter of fiscal year 2026 in its quarterly report on Form 10-Q to be filed with the Securities and Exchange Commission (SEC) and available at www.sec.gov on or before September 9, 2026.

Continuing Operations

On Sept. 30, 2024, Synopsys completed the sale of its Software Integrity business. Unless otherwise noted, Synopsys’ Software Integrity business has been presented as a discontinued operation in Synopsys’ consolidated financial statements for all periods presented herein and all financial results and targets are presented herein on a continuing operations basis.

Reconciliation of Third Quarter Fiscal Year 2026 Results

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP net income, earnings per diluted share, and tax rate for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Third Quarter Fiscal Year 2026 Results

(unaudited and in thousands, except per share amounts)

		Three Months Ended July 31,								Nine Months Ended July 31,
		2026				2025				2026				2025
GAAP net income from continuing operations attributed to Synopsys		$	545,800			$	242,509			$	627,863			$	887,424
Adjustments:
Amortization of acquired intangible assets			402,426				74,941				1,210,292				99,193
Stock-based compensation			231,604				267,723				712,631				655,725
Restructuring charges			2,164				—				236,340				—
Acquisition/divestiture related items			(402,556	)			120,012				(363,315	)			264,355
Loss on sale of strategic investments			—				1,200				—				3,635
Tax adjustments			(26,945	)			(157,477	)			(309,115	)			(315,553	)
Non-GAAP net income from continuing operations attributed to Synopsys		$	752,493			$	548,908			$	2,114,696			$	1,594,779

4

		Three Months Ended July 31,								Nine Months Ended July 31,
		2026				2025				2026				2025
GAAP net income from continuing operations per diluted share attributed to Synopsys		$	2.84			$	1.50			$	3.27			$	5.61
Adjustments:
Amortization of acquired intangible assets			2.09				0.46				6.30				0.63
Stock-based compensation			1.20				1.66				3.71				4.15
Restructuring charges			0.01				—				1.23				—
Acquisition/divestiture related items			(2.09	)			0.74				(1.89	)			1.67
Loss on sale of strategic investments			—				0.01				—				0.02
Tax adjustments			(0.14	)			(0.98	)			(1.60	)			(2.00	)
Non-GAAP net income from continuing operations per diluted share attributed to Synopsys		$	3.91			$	3.39			$	11.02			$	10.08
Shares used in computing net income per diluted share amounts:			192,319				161,682				191,981				158,176

GAAP to Non-GAAP Operating Margin Reconciliation

(unaudited)

		Three Months Ended July 31, 2026
GAAP operating margin			14.4	%
Amortization of acquired intangible assets			16.2	%
Stock-based compensation			9.4	%
Restructuring charges			0.1	%
Acquisition/divestiture related items			0.9	%
Non-qualified deferred compensation plan			0.6	%
Non-GAAP operating margin			41.6	%

GAAP to Non-GAAP Tax Rate Reconciliation

(unaudited)

		Three Months Ended July 31, 2026				Nine Months Ended July 31, 2026
GAAP effective tax rate			20.2	%			19.8	%
Stock-based compensation			(5.0	)%			(4.6	)%
Restructuring charges			(3.3	)%			(3.3	)%
Income tax adjustments (1)			6.1	%			6.1	%
Non-GAAP effective tax rate			18.0	%			18.0	%

(1) The income tax adjustments are primarily due to differences in the tax rate effect of certain deductions, such as the deduction for foreign-derived intangible income and credits.

5

Reconciliation of 2026 Targets

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP targets for the periods indicated below.

GAAP to Non-GAAP Reconciliation of Fourth Quarter Fiscal Year 2026 Targets

(in thousands, except per share amounts)

		Range for Three Months Ending October 31, 2026
		Low				High
Target GAAP expenses		$	2,225,000			$	2,300,000
Adjustments:
Amortization of acquired intangible assets			(400,000	)			(405,000	)
Stock-based compensation			(230,000	)			(240,000	)
Restructuring charges			(145,000	)			(175,000	)
Target non-GAAP expenses		$	1,450,000			$	1,480,000
		Range for Three Months Ending October 31, 2026
		Low				High
Target GAAP earnings per diluted share attributed to Synopsys		$	0.60			$	0.85
Adjustments:
Amortization of acquired intangible assets			2.10				2.07
Stock-based compensation			1.24				1.19
Restructuring charges			0.91				0.75
Tax adjustments			(0.75	)			(0.70	)
Target non-GAAP earnings per diluted share attributed to Synopsys		$	4.10			$	4.16
Shares used in non-GAAP calculation (midpoint of target range)			193,000				193,000

6

GAAP to Non-GAAP Reconciliation of Full Fiscal Year 2026 Targets

(in thousands, except per share amounts)

		Range for Fiscal Year Ending October 31, 2026
		Low				High
Target GAAP expenses		$	8,667,091			$	8,742,091
Adjustments:
Amortization of acquired intangible assets			(1,610,000	)			(1,615,000	)
Stock-based compensation			(945,000	)			(955,000	)
Restructuring charges			(380,000	)			(410,000	)
Acquisition/divestiture related items (1)			(62,091	)			(62,091	)
Target non-GAAP expenses		$	5,670,000			$	5,700,000
		Range for Fiscal Year Ending October 31, 2026
		Low				High
Target GAAP earnings per diluted share attributed to Synopsys		$	3.84			$	4.08
Adjustments:
Amortization of acquired intangible assets			8.37				8.34
Stock-based compensation			4.95				4.90
Restructuring charges			2.12				1.97
Acquisition/divestiture related items (1)			(1.88	)			(1.88	)
Tax adjustments			(2.36	)			(2.31	)
Target non-GAAP earnings per diluted share attributed to Synopsys		$	15.04			$	15.10
Shares used in non-GAAP calculation (midpoint of target range)			193,000				193,000

(1) Adjustments reflect actual expenses incurred by Synopsys as of July 31, 2026, and do not fully reflect all potential adjustments for future periods for the reasons set forth in “GAAP to Non-GAAP Reconciliation” below.

GAAP to Non-GAAP Reconciliation of Operating Margin at Midpoint of Full Fiscal Year

2026 Targets ⁽¹⁾

		Fiscal Year Ending October 31, 2026
At midpoint of revenue and expense guidance ranges
GAAP operating margin			10.4	%
Amortization of acquired intangible assets			16.6	%
Stock-based compensation			9.8	%
Restructuring charges			4.1	%
Acquisition/divestiture related items (2)			0.6	%
Target non-GAAP operating margin			41.5	%

(1) These numbers represent the midpoint of targets in the prepared remarks provided on August 26, 2026, and do not represent official guidance for fiscal year 2026.

(2) Adjustments reflect actual expenses incurred by Synopsys as of July 31, 2026 and do not fully reflect all potential adjustments for future periods for the reasons set forth in “GAAP to Non-GAAP Reconciliation” below.

7

Forward-Looking Statements

This press release and the investor conference call contain forward-looking statements, including, but not limited to, statements concerning our short-term and long-term financial targets, expectations and objectives; our businesses, business segments, strategies, partnerships, initiatives and opportunities, including, among other things, the reallocation of resources in our Design IP segment to higher growth opportunities and planned restructuring activities; industry growth and technological trends, such as artificial intelligence, including our development and planned commercialization thereof; business and market outlook; the potential impact of the uncertain macroeconomic environment and global economic conditions on our financial results; the impact of current and future U.S. and foreign trade regulations, government actions and regulatory changes, such as export control restrictions and tariffs; the ANSYS, Inc. (Ansys) integration and its expected impact, including expected synergies and the timing thereof, our ability to create joint solutions as a combined company, and related accounting changes; planned and recently completed acquisitions or divestitures, and their anticipated timing and impact; our key customers, customer concentration, customer engagement, customer demand and market expansion; results and strategies related to our products, technology and services, including product development and our planned product releases and capabilities; the expected realization of our contracted but unsatisfied or partially unsatisfied performance obligations (backlog); planned stock repurchases; our expected tax rate; and the status, expected outcome or expected impact of litigation and/or regulatory investigations. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames or achievements to differ materially from those expressed or implied in such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: macroeconomic conditions and geopolitical uncertainty in the global economy; uncertainty in the growth of the semiconductor and electronics industries; the highly competitive industry we operate in; actions by the U.S. or foreign governments, such as the imposition of additional export restrictions or tariffs; consolidation among our customers and our dependence on a relatively small number of large customers; risks and compliance obligations relating to the global nature of our operations; failure to realize the benefits expected from the transactions we complete, including the acquisition of Ansys (the Ansys Merger) or unexpected difficulties or expenditures arising therefrom; risks related to inaccuracies in, or failures to achieve, our operational and business metrics or forecasts of growth; and more. Additional information on potential risks, uncertainties and other factors that could affect Synopsys’ results is included in filings we make with the SEC from time to time, including in the sections entitled “Risk Factors” in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in Synopsys’ most recent reports on Forms 10-K and 10-Q, each as may be amended from time to time. Synopsys’ financial results for its third quarter of fiscal year 2026 are not necessarily indicative of Synopsys’ operating results for any future periods.

8

Effectiveness of Information

The targets included in this press release, the statements made during the earnings conference call, the information contained in the financial supplement and the corporate overview presentation, each of which are available in the investor relations portion of Synopsys’ corporate website at www.synopsys.com (collectively, the Earnings Materials), represent Synopsys’ expectations and beliefs as of August 26, 2026. Although these Earnings Materials are expected to remain available on Synopsys’ website through the time Synopsys announces its results for the fourth quarter and fiscal year 2026, their continued availability through such time does not mean that Synopsys is reaffirming or confirming their continued validity. Synopsys undertakes no duty, and does not intend, to update any forward-looking statement, including any targets, provided in the Earnings Materials, whether as a result of new information, future events or otherwise, unless required by law.

SYNOPSYS, INC.

Condensed Consolidated Statements of Income

(Unaudited, in thousands, except per share amounts)

		Three Months Ended								Nine Months Ended
		July 31,								July 31,
		2026				2025				2026				2025
Revenue:
Time-based products		$	1,002,792			$	892,364			$	2,899,957			$	2,548,928
Upfront products			665,223				516,404				1,953,005				1,395,204
Total products revenue			1,668,015				1,408,768				4,852,962				3,944,132
Maintenance and service			808,807				330,969				2,308,643				855,186
Total revenue			2,476,822				1,739,737				7,161,605				4,799,318
Cost of revenue:
Products			275,622				230,895				750,921				615,953
Maintenance and service			156,514				103,301				451,849				290,309
Amortization of acquired intangible assets			247,252				46,368				743,850				62,624
Total cost of revenue			679,388				380,564				1,946,620				968,886
Gross margin			1,797,434				1,359,173				5,214,985				3,830,432
Operating expenses:
Research and development			719,737				625,301				2,134,849				1,732,496
Sales and marketing			385,889				259,480				1,164,262				683,700
General and administrative			176,979				280,550				532,129				584,133
Amortization of acquired intangible assets			155,174				28,573				466,442				36,569

9

Restructuring charges			2,164				—				236,340				—
Total operating expenses			1,439,943				1,193,904				4,534,022				3,036,898
Operating income			357,491				165,269				680,963				793,534
Interest expense			(133,234	)			(146,502	)			(429,313	)			(251,977	)
Other income (expense), net			459,665				170,543				530,601				335,061
Income before income taxes			683,922				189,310				782,251				876,618
Provision (benefit) for income taxes			138,216				(52,967	)			154,961				(12,080	)
Net income from continuing operations			545,706				242,277				627,290				888,698
Loss from discontinued operations, net of income taxes			—				—				—				(3,900	)
Net income			545,706				242,277				627,290				884,798
Less: Net income (loss) attributed to non-controlling interest and redeemable non-controlling interest			(94	)			(232	)			(573	)			1,274
Net income attributed to Synopsys		$	545,800			$	242,509			$	627,863			$	883,524
Net income (loss) attributed to Synopsys:
Continuing operations		$	545,800			$	242,509			$	627,863			$	887,424
Discontinued operations			—				—				—				(3,900	)
Net income		$	545,800			$	242,509			$	627,863			$	883,524
Net income (loss) per share attributed to Synopsys - basic:
Continuing operations		$	2.85			$	1.51			$	3.29			$	5.67
Discontinued operations			—				—				—				(0.03	)
Basic net income per share		$	2.85			$	1.51			$	3.29			$	5.64
Net income (loss) per share attributed to Synopsys - diluted:
Continuing operations		$	2.84			$	1.50			$	3.27			$	5.61
Discontinued operations			—				—				—				(0.02	)
Diluted net income per share		$	2.84			$	1.50			$	3.27			$	5.59
Shares used in computing per share amounts:
Basic			191,536				160,174				190,858				156,536
Diluted			192,319				161,682				191,981				158,176

10

SYNOPSYS, INC.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value amounts)

		July 31, 2026				October 31, 2025
ASSETS:
Current assets:
Cash and cash equivalents		$	3,606,286			$	2,888,030
Short-term investments			1,383				72,929
Total cash, cash equivalents and short-term investments			3,607,669				2,960,959
Accounts receivable, net			1,318,747				1,505,427
Inventories			479,129				365,190
Prepaid and other current assets			1,238,791				1,180,526
Total current assets			6,644,336				6,012,102
Property and equipment, net			749,598				696,693
Operating lease right-of-use assets, net			694,603				702,008
Goodwill			26,834,774				26,899,215
Intangible assets, net			11,458,656				12,679,591
Deferred income taxes			95,515				112,159
Other long-term assets			1,248,781				1,122,693
Total assets		$	47,726,263			$	48,224,461
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and accrued liabilities		$	1,480,598			$	1,326,211
Operating lease liabilities			137,837				128,205
Deferred revenue			2,331,173				2,245,961
Short-term debt			1,020,247				22,117
Total current liabilities			4,969,855				3,722,494
Long-term operating lease liabilities			666,592				680,698
Long-term deferred revenue			383,936				382,557
Long-term debt			9,017,113				13,462,398
Other long-term liabilities			1,537,388				1,649,299
Total liabilities			16,574,884				19,897,446
Stockholders’ equity:
Preferred stock, $0.01 par value: 2,000 shares authorized; none outstanding			—				—
Common stock, $0.01 par value: 400,000 shares authorized; 191,605 and 185,994 shares outstanding, respectively			1,916				1,860
Capital in excess of par value			20,711,069				18,640,947
Retained earnings			10,943,350				10,315,487
Treasury stock, at cost: 433 and 1,222 shares, respectively			(193,292	)			(398,278	)
Accumulated other comprehensive income (loss)			(310,504	)			(232,414	)
Total Synopsys stockholders’ equity			31,152,539				28,327,602
Non-controlling interest			(1,160	)			(587	)
Total stockholders’ equity			31,151,379				28,327,015
Total liabilities and stockholders’ equity		$	47,726,263			$	48,224,461

11

SYNOPSYS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

		Nine Months Ended July 31,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	627,290			$	884,798
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation			1,362,021				211,307
Reduction of operating lease right-of-use assets			109,254				80,789
Amortization of capitalized costs to obtain revenue contracts			70,835				38,920
Stock-based compensation			712,631				655,909
Allowance for credit losses			21,847				23,559
Loss on sale of strategic investments			—				3,635
Gain on sale of building			—				(51,385	)
(Gain) loss on divestitures, net of transaction costs			(380,527	)			8,299
Amortization of bridge financing costs			—				41,996
Amortization of debt issuance costs			21,280				6,790
Deferred income taxes			(121,720	)			(326,610	)
Other			21				(737	)
Net changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable			165,337				(27,989	)
Inventories			(133,944	)			(34,068	)
Prepaid and other current assets			(70,709	)			120,348
Other long-term assets			(125,304	)			(427,793	)
Accounts payable and accrued liabilities			90,610				31,384
Operating lease liabilities			(109,757	)			(78,360	)
Income taxes			(56,728	)			(140,347	)
Deferred revenue			116,166				(19,932	)
Unrealized loss on settlement of interest rate treasury lock			—				(121,643	)
Net cash provided by operating activities			2,298,603				878,870
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of short-term investments			20,995				53,630
Proceeds from sales of short-term investments			68,761				148,809
Purchases of short-term investments			(18,524	)			(47,558	)
Proceeds from sales of strategic investments			—				3,470
Purchases of strategic investments			(1,402	)			(4,086	)
Purchases of property and equipment, net			(156,089	)			(134,908	)
Proceeds from sale of building			—				74,279
Acquisitions, net of cash acquired			—				(16,681,257	)
Proceeds from business divestiture, net of cash divested			440,022				142,546
Other			—				(611	)
Net cash provided by (used in) investing activities			353,763				(16,445,686	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt, net of issuance costs			—				14,329,340
Repayment of debt			(3,463,726	)			(2,579	)
Issuances of common stock			124,585				138,101

12

Payments for taxes related to net share settlement of equity awards			(262,761	)			(242,791	)
Common stock issuance for private placement			2,000,000				—
Purchases of treasury stock			(300,000	)			—
Redemption of redeemable non-controlling interest			—				(30,000	)
Other			—				(463	)
Net cash provided by (used in) financing activities			(1,901,902	)			14,191,608
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(33,409	)			8,649
Net change in cash, cash equivalents and restricted cash			717,055				(1,366,559	)
Cash, cash equivalents and restricted cash, beginning of year			2,893,721				3,898,729
Cash, cash equivalents and restricted cash, end of period		$	3,610,776			$	2,532,170

Synopsys provides segment information, namely revenue, adjusted segment operating income and adjusted segment operating margin, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. Synopsys’ chief operating decision maker (CODM) is our Chief Executive Officer. In evaluating our business segments, the CODM considers the income and expenses that the CODM believes are directly related to those segments. The CODM does not allocate certain operating expenses managed at a consolidated level to our business segments and, as a result, the reported operating income and operating margin do not include these unallocated expenses as shown in the table below. These unallocated expenses are presented in the table below to provide a reconciliation of the total adjusted operating income from segments to our consolidated operating income:

SYNOPSYS, INC.

Business Segment Reporting ⁽¹⁾

(Unaudited, in millions)

		Three Months Ended July 31, 2026				Three Months Ended July 31, 2025				Nine Months Ended July 31, 2026				Nine Months Ended July 31, 2025
Revenue by segment
- Design Automation		$	2,003.0			$	1,312.1			$	5,826.6			$	3,454.6
% of Total			80.9	%			75.4	%			81.4	%			72.0	%
- Design IP		$	473.8			$	427.6			$	1,335.0			$	1,344.7
% of Total			19.1	%			24.6	%			18.6	%			28.0	%
Adjusted operating income by segment
- Design Automation		$	905.0			$	583.8			$	2,641.6			$	1,447.2
- Design IP		$	125.4			$	86.0			$	302.2			$	363.1
Adjusted operating margin by segment
- Design Automation			45.2	%			44.5	%			45.3	%			41.9	%
- Design IP			26.5	%			20.1	%			22.6	%			27.0	%

13

Total Adjusted Segment Operating Income Reconciliation ⁽¹⁾

(Unaudited, in millions)

		Three Months Ended July 31, 2026				Three Months Ended July 31, 2025				Nine Months Ended July 31, 2026				Nine Months Ended July 31, 2025
GAAP total operating income – as reported		$	357.5			$	165.3			$	681.0			$	793.5
Other expenses managed at consolidated level
Amortization of acquired intangible assets			402.4				74.9				1,210.3				99.2
Stock-based compensation (2)			231.6				267.7				712.6				655.9
Restructuring charges			2.2				—				236.3				—
Acquisition/divestiture related items (3)			22.9				118.4				62.1				218.7
Non-qualified deferred compensation plan			13.9				43.4				41.5				42.9
Total adjusted segment operating income		$	1,030.4			$	669.8			$	2,943.8			$	1,810.3

(1) Synopsys manages the business on a long-term, annual basis, and considers quarterly fluctuations of revenue and profitability as normal elements of our business. Amounts may not foot due to rounding.

(2) The adjustment includes non-GAAP expenses attributable to non-controlling interest and redeemable non-controlling interest.

(3) The adjustment excludes the amortization of bridge financing costs entered into in connection with the Ansys Merger that was recorded in interest expense, and certain divestiture related items that were recorded in other income (expense), net in our unaudited condensed consolidated statements of income.

GAAP to Non-GAAP Reconciliation

Synopsys continues to provide all information required in accordance with GAAP but acknowledges evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Synopsys presents non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Synopsys’ operating results in a manner that focuses on what Synopsys believes to be its core business operations and what Synopsys uses to evaluate its business operations and for internal budgeting and resource allocation purposes. This press release includes non-GAAP earnings per diluted share, non-GAAP net income, non-GAAP operating margin and non-GAAP tax rate for the periods presented. It also includes future estimates for non-GAAP expenses, non-GAAP interest and other income (expense), net, non-GAAP tax rate, non-GAAP operating margin, non-GAAP earnings per diluted share and free cash flow. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

When possible, Synopsys provides a reconciliation of non-GAAP financial measures to their most closely applicable GAAP financial measures. Synopsys is unable to provide a full reconciliation of certain fourth quarter and full fiscal year 2026 non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because Synopsys

14

believes that it would not be possible for it to have the information necessary to quantitatively reconcile such measures with sufficient precision without unreasonable efforts due to, among other things, the potential variability and limited predictability of the excluded adjustment items necessary for a full reconciliation such as certain acquisition/divestiture related items, tax deduction variability, changes in the fair value of non-qualified deferred compensation plan, and gains (losses) on the sale of strategic investments. For the same reasons, Synopsys is unable to address the probable significance of the unavailable information.

Synopsys’ management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, as superior to, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Synopsys’ management believes the presentation of non-GAAP financial measures, when shown in conjunction with the corresponding GAAP financial measures, provides useful information to investors allowing them to view financial and business trends relating to our financial condition and results of operations through the eyes of management. Synopsys’ management evaluates and makes decisions about our business operations using both GAAP financial measures and non-GAAP financial measures to help facilitate internal comparisons to Synopsys’ historical operating results and forecasted targets, planning and forecasting in subsequent periods and comparisons to competitors’ operating results.

The following are descriptions of the adjustments made to reconcile non-GAAP financial measures (other than free cash flow, which is defined in the footnote to the Financial Targets table above) to the most directly comparable GAAP financial measures:

(i) Amortization of acquired intangible assets. We incur expenses from the amortization of acquired intangible assets, which may include impairment charges from write-downs of acquired intangible assets. Acquired intangible assets include, among other things, core/developed technology, customer relationships, contract rights, trademarks and trade names, and other intangibles related to acquisitions. We amortize the intangible assets over their estimated useful lives. We do not enter into acquisitions on a predictable cycle. The amount of an acquisition’s purchase price allocated to intangible assets and their estimated useful lives can vary significantly and are unique to each acquisition. From time to time, we incur impairment charges due to write-downs of acquired intangible assets. We believe that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets, including impairment

15

charges, provides investors and others with a consistent basis for comparison across accounting periods. We also exclude this item because such expenses are non-cash in nature and we believe the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding our core operational performance and liquidity, and ability to invest in research and development and fund future acquisitions and capital expenditures.

(ii) Stock-based compensation. Stock-based compensation expenses consist primarily of expenses related to restricted stock units, stock options, employee stock purchase rights and other stock awards, including such expenses associated with acquisitions. We exclude stock-based compensation expense from our non-GAAP financial measures primarily because it is not an expense that typically requires or will require cash settlement by us. Further, the expense for the fair value of the stock-based instruments we utilize may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards and, therefore, is not used by management to assess the core profitability of our business operations.

(iii) Acquisition/divestiture related items. In connection with certain of our business combinations and/or divestitures, we incur significant expenses that we would not have otherwise incurred as part of our business operations. These expenses include, among other things, compensation expenses, professional fees and other direct expenses, concurrent restructuring activities and divestiture activities, including employee severance and other exit costs, bridge financing costs, costs related to integration activities, debt forgiveness, changes to the fair value of contingent consideration related to the acquired company, and amortization of the fair value difference of below-market value assets arising from arrangements entered into or acquired in conjunction with an acquisition. We also recognize the gains and losses from the divestitures of business, as well as the mark-up of equity or cost method investments to fair value upon obtaining control through acquisition. We exclude these items because they are related to acquisitions and divestitures and have no direct correlation to the core operation of our business. Further, because we do not acquire or divest businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, we believe it is useful to exclude such expenses when looking for a consistent basis for comparison across accounting periods.

16

(iv) Restructuring charges. We initiate restructuring activities to align our costs to our operating plans and business strategies based on then-current economic conditions, and such activities have a specific and defined term. Restructuring costs generally include severance and other termination benefits related to voluntary retirement programs, involuntary headcount reductions and facilities closures. Such restructuring costs include elimination of operational redundancy, permanent reductions in workforce and facilities closures and, therefore, are not considered by us to be a part of the core operation of our business and are not used by management when assessing the core profitability and performance of our business operations.

(v) Gains (losses) on the sale of strategic investments. We exclude gains and losses on the sale of equity investments in privately held companies because we do not believe they are reflective of our core business and operating results.

(vi) Deferred compensation. We exclude changes in the fair value of our non-qualified deferred compensation plan because we do not use these to assess the core profitability of our business operations.

(vii) Income tax effect of non-GAAP pre-tax adjustments. Excluding the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes assists investors in understanding the tax provision associated with those adjustments and the effect on net income. Beginning in fiscal year 2026, we transitioned from an annual non-GAAP tax rate to a three-year normalized non-GAAP tax rate of 18.0%. We believe this will provide better consistency across reporting periods by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency and do not necessarily reflect our normal operations. This rate is based on our projected annual rate through fiscal year 2028, primarily due to the completion of the acquisition of Ansys in the third quarter of fiscal year 2025 and the enactment of the One Big Beautiful Bill Act (the OBBB), which affects taxable income starting in fiscal year 2026 over the next several years. In projecting this rate, we evaluated our historical and projected mix of U.S. and international profit before tax, excluding the impact of stock-based compensation, the amortization of purchased intangibles and other GAAP only adjustments described above. We also considered other factors, including our current tax structure, U.S. tax law changes, such as the OBBB which impacts Synopsys’ expensing of U.S. research expenditures commencing in fiscal year 2026, and changes to foreign derived intangible income commencing in fiscal year 2027.

17

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.

^© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

18

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 285.5 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.1 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 16.8 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 10.6 KB