Synopsys boosts – Synopsys reported second-quarter fiscal 2026 revenue of $2.276 billion and GAAP diluted EPS of $0.09, while lifting full-year guidance at the same time it flagged the “impending close” of the Processor IP Solutions business and set an Investor Day for Sept. 30
When Synopsys said its second-quarter results beat guidance. the numbers moved fast: revenue climbed to $2.276 billion. and non-GAAP EPS rose to $3.35 per diluted share. But the message that followed carried a second beat—optimism about growth and margin—tempered by a specific business still in the process of being wound down.
For the second quarter of fiscal year 2026. Synopsys reported revenue of $2.276 billion. compared with $1.604 billion for the second quarter of fiscal year 2025. GAAP earnings per diluted share were $0.09, and non-GAAP earnings per diluted share were $3.35. GAAP net income for the quarter was $17.1 million. or $0.09 per diluted share. versus $349.2 million. or $2.24 per diluted share. for the second quarter of fiscal year 2025. Non-GAAP net income was $643.7 million. or $3.35 per diluted share. compared with non-GAAP net income of $572.7 million. or $3.67 per diluted share. for the second quarter of fiscal year 2025.
Synopsys tied its momentum to AI demand. “Synopsys delivered a strong second quarter with solid execution and strength across the business. ” said Sassine Ghazi. Synopsys president and CEO. “AI is scaling semiconductor demand. architectural diversity and complexity of chips and the systems they power – driving demand across our portfolio. Our momentum. leadership roadmap. and deep customer engagements are a strong foundation for sustained growth and margin expansion as we solve our customers’ toughest engineering challenges.”.
The company also framed its financial discipline as a setup for the back half of the year. “Second quarter revenue and non-GAAP EPS exceeded guidance. Our continued focus on execution and financial discipline sets us up for a strong second half. ” said Shelagh Glaser. CFO of Synopsys. “We are raising our targets for revenue. operating margin. EPS. and free cash flow for the year. as we drive greater efficiency across the business.”.
That growth story is now pinned to guidance raised for the full fiscal year 2026. Synopsys said it is raising expectations for full-year total revenue to $9.665 billion at the midpoint. driven by strong performance across the business and an EPS-neutral Ansys channel-related accounting impact. partly offset by the impending close of the Processor IP Solutions business.
On earnings, Synopsys raised full-year non-GAAP EPS guidance to $14.76 at the midpoint on expanded operating margin, citing strong cost discipline and accelerating synergies.
The company also outlined the next milestone for investors: an Investor Day on Sept. 30. during which management plans to provide additional detail on long-term financial targets and strategy to capitalize on what it calls a sizable opportunity as the leader in engineering solutions from silicon to systems.
All of that is part of a wider financial picture that Synopsys is asking investors to read in layers—GAAP versus non-GAAP, quarterly versus yearly, and continuing operations versus what it has already removed from the main narrative.
Synopsys’ second quarter results are reported on a continuing operations basis, and the company reminded readers that on Sept. 30, 2024, it completed the sale of its Software Integrity business, which has been presented as a discontinued operation for all periods presented.
The raised outlook comes with specific assumptions and exclusions. Synopsys provided third-quarter and full fiscal year 2026 financial targets that assume no further changes to export control restrictions or the current U.S. government “Entity List” restrictions.
For the quarter ending July 31, 2026, Synopsys set revenue guidance of $2.410 billion to $2.460 billion. GAAP expenses were listed as $2.075 billion to $2.125 billion, with non-GAAP expenses at $1.440 billion to $1.470 billion. Non-GAAP interest and other income (expense). net. was set at $(121) million to $(117) million. and the non-GAAP tax rate was 18% across the range. GAAP EPS guidance was $0.84 to $0.98, and non-GAAP EPS guidance was $3.63 to $3.69. Operating cash flow was listed as approximately $2,300 million, free cash flow as approximately $2,000 million, and capital expenditures as approximately $300 million.
For the full fiscal year ending Oct. 31, 2026, Synopsys set a revenue range of $9.625 billion to $9.705 billion. GAAP expenses were projected at $8.469 billion to $8.599 billion, with non-GAAP expenses at $5.675 billion to $5.725 billion. Non-GAAP interest and other income (expense), net, was $(495) million to $(485) million and the non-GAAP tax rate remained 18% across the range. Outstanding shares (fully diluted) were given as 192 to 194 million. GAAP EPS was projected at $2.49 to $2.91, and non-GAAP EPS at $14.72 to $14.80. Operating cash flow was listed as approximately $2,300 million, free cash flow as approximately $2,000 million, and capital expenditures as approximately $300 million.
The revenue guidance also includes named moving parts. Synopsys said fiscal year 2026 revenue includes $2.96 billion of expected Ansys revenue. including $60 million related to an accounting impact for Ansys channel partners. It also reflects the impact of approximately $110 million of the divested Optical Solutions Group and PowerArtist RTL businesses. and $40 million related to the expected divestiture of the Processor IP Solutions business.
Synopsys provided a breakdown of how its fiscal year 2026 revenue target moved from prior guidance at the midpoint to new guidance. In millions, for the fiscal year ending Oct. 31. 2026: prior guidance midpoint revenue of $9. 610 increased by $35 due to business performance. increased by $60 due to the Ansys channel accounting impact. decreased by ($40) due to the Processor IP Solutions divestiture. resulting in new guidance midpoint revenue of $9. 665.
The contrast between those figures—and the words “impending close”—is the clearest tension in Synopsys’ update. The company is lifting the top line and earnings targets while also pointing to a specific business it expects to exit as part of the year’s plan.
That tension sits alongside a broader financial reporting story. Synopsys’ GAAP net income for the quarter was $17.1 million, while its non-GAAP net income was $643.7 million. The company’s reconciliation shows adjustments that include amortization of acquired intangible assets of $403.6 million. stock-based compensation of $222.3 million. and restructuring charges of $115.9 million. among other items.
Those reconciliations repeat across the financial supplement with more detail. including the GAAP to non-GAAP reconciliation tables for the second quarter and for three-month and full-year targets. and an explanation that Synopsys is unable to provide a full reconciliation of certain third quarter and full fiscal year 2026 non-GAAP targets to GAAP on a forward-looking basis without unreasonable efforts.
Investors are also being given access to the timing and delivery of information that usually frames how markets react. Synopsys planned to hold a conference call for financial analysts and investors on May 27, 2026 at 2:00 p.m. Pacific Time, with a live webcast available on its investor relations website and a webcast replay available approximately 5:30 p.m. Pacific Time on May 27, 2026 through the time Synopsys announces its third quarter results.
Final financial statements for the second quarter of fiscal year 2026 were scheduled to be included in Synopsys’ quarterly report on Form 10-Q to be filed with the SEC and available on or before June 9, 2026.
For readers watching what this all means beyond the press release. Synopsys’ message is straightforward: momentum is strong enough to justify higher targets. and the company’s push into AI-driven semiconductor design and verification is fueling that confidence. Yet the same guidance packet keeps returning to a business exit tied to Processor IP Solutions—one more reminder that growth plans can move upward even while parts of the portfolio are being reduced or reshaped.
Synopsys fiscal year 2026 second quarter results Investor Day September 30 non-GAAP EPS GAAP EPS Ansys accounting impact Processor IP Solutions divestiture