Results Summary
"First quarter results reflect strong execution and financial discipline across the business. We achieved revenue at the upper end of our guided range and non-GAAP EPS above guidance," said Shelagh Glaser, CFO of Synopsys. "We're positioning the company to capture an expanded market opportunity as we solve customers' toughest engineering challenges from silicon to systems."
In addition, today Synopsys announced that its board of directors approved a replenishment of the company's existing stock repurchase program with authorization to purchase up to $2.0 billion of Synopsys common stock.
GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal year 2026 was $65.0 million, or $0.34 per diluted share, compared to $295.7 million, or $1.89 per diluted share, for the first quarter of fiscal year 2025.
Non-GAAP Results
On a non-GAAP basis, net income for the first quarter of fiscal year 2026 was $718.5 million, or $3.77 per diluted share, compared to non-GAAP net income of $473.2 million, or $3.03 per diluted share, for the first 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 IC 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, security IP, and embedded processors.
Financial Targets
Synopsys also provided its consolidated financial targets for the second quarter and full fiscal year 2026. These targets also 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.
Link to Full Press Release
- - Quarterly revenue of $2.409 billion, at high-end of prior guidance; quarterly GAAP earnings per diluted share (EPS) of $0.34, and non-GAAP earnings per diluted share of $3.77 above prior guidance
- - Reiterating expectations for full-year total revenue of $9.61 billion at the midpoint, including $2.9 billion of expected Ansys revenue
- - Synopsys' board of directors approved a replenishment of the existing stock repurchase program with authorization to purchase up to $2.0 billion of Synopsys common stock
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Synopsys headquarters
"First quarter results reflect strong execution and financial discipline across the business. We achieved revenue at the upper end of our guided range and non-GAAP EPS above guidance," said Shelagh Glaser, CFO of Synopsys. "We're positioning the company to capture an expanded market opportunity as we solve customers' toughest engineering challenges from silicon to systems."
In addition, today Synopsys announced that its board of directors approved a replenishment of the company's existing stock repurchase program with authorization to purchase up to $2.0 billion of Synopsys common stock.
GAAP Results
On a U.S. generally accepted accounting principles (GAAP) basis, net income for the first quarter of fiscal year 2026 was $65.0 million, or $0.34 per diluted share, compared to $295.7 million, or $1.89 per diluted share, for the first quarter of fiscal year 2025.
Non-GAAP Results
On a non-GAAP basis, net income for the first quarter of fiscal year 2026 was $718.5 million, or $3.77 per diluted share, compared to non-GAAP net income of $473.2 million, or $3.03 per diluted share, for the first 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 IC 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, security IP, and embedded processors.
Financial Targets
Synopsys also provided its consolidated financial targets for the second quarter and full fiscal year 2026. These targets also 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.
Link to Full Press Release